Policy

  • US SEC Takes Another Look at Rejected Bitwise Bitcoin ETF Proposal

    The United States Securities and Exchange Commission (SEC) is reviewing its decision to reject the Bitcoin (BTC) exchange-traded fund (ETF) filing from Bitwise Asset Management and NYSE Arca. Taking a second look In an announcement on Nov. 18, the commission said that the ETF filing from Bitwise Asset Management and NYSE Arca will return to review, following the earlier rejection for not meeting the necessary requirements. In October the U.S. regulators said that the applicants did not meet the necessary requirements regarding possible market manipulation and illicit activities. The SEC wrote at the time: “The Commission is disapproving this proposed rule change because, as discussed below, NYSE Arca has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section6(b)(5), and, in particular, the requirement that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices.” Continued concerns about market manipulation One of the regulator’s major concerns when evaluating new commodity-based ETFs is establishing whether the…

    Nov 19, 2019
  • Hong Kong Cryptocurrency Exchanges to Receive new Regulations

    The regulatory watchdog in Hong Kong is set to release clear regulations regarding cryptocurrency exchanges in the country. According to a report by Reuters on November 6, 2019, the new set of crypto regulations will center on areas such as know-your-customer (KYC), anti-money laundering, and custody rules.  SFC Set to Release Robust Cryptocurrency Rules Speaking at a recent fintech conference held in Hong Kong, the chief of the city’s financial regulatory body, the Securities Futures Commission (SFC), Ashley Alder announced that the cryptocurrency trading platform should get ready to receive a robust crypto regulation from the SFC.  The announcement from the SFC Chief comes amidst a blanket ban on bitcoin and cryptocurrency exchanges in China. Hong Kong, unlike China, is more receptive to the cryptocurrency industry. Head of the virtual asset trading firm, BC Group, Hugh Madden, commented on the recent development by the Hon Kong regulatory watchdog, saying: “Ashley Alder’s announcement of a regulatory framework for digital asset trading platforms is a seminal moment for financial services in Asia and points to increased acceptance of digital assets as new…

    Nov 7, 2019
  • British Tax Authority Updates Cryptocurrency Guidelines, Says It Is Not Money

    The United Kingdom’s tax, payments and customs authority, Her Majesty’s Revenue and Customs (HMRC), has updated its cryptocurrency taxation guidelines for businesses and individuals. On Nov. 1, the U.K. government tax agency, which manages taxes alongside other financial policies, released tax guidance updates that further clarify its stance on how businesses and individuals involved with cryptocurrency will be taxed. Crypto is not money or currency The guidelines set out HMRC’s view on cryptocurrency transactions, which taxes apply, how to file tax returns and accounting practices, among others. It also considers the taxation of exchange tokens, while stating that rules for utility or security tokens will be added in the future. Companies that buy or sell tokens, mine, exchange tokens for other assets or provide goods or services in return for tokens are liable to pay for one or more different types of tax. Those taxes include income tax, corporation tax, capital gains tax, stamp taxes and National Insurance contributions. The tax authority explicitly stated that it does not consider any of the current types of cryptocurrencies to be money or…

    Nov 4, 2019
  • US Congressman to Introduce Bill Clarifying Digital Asset Issuance

    United States Representative Tom Emmer (R-MN) intends to introduce new legislation to provide regulatory certainty for cryptocurrencies. On Oct. 24, Congressman Tom Emmer, who serves as the Ranking Member of the House Financial Services Committee’s Task Force on financial technology, announced that he is introducing a new law that can provide a clear path to regulatory certainty for cryptocurrencies and other emerging technologies under securities law. The bill would allow companies that are already compliant with securities laws, or who have already acquired a securities exemption, to distribute their assets without subjecting them to further regulations. According to a tweet by Weiss Crypto Ratings, the bill would provide companies who have complied with the U.S. Securities and Exchange Commission (SEC) registration requirements with legal protection from some of the SEC’s enforcement actions. Emmer said in the announcement: “Companies that have followed our current rules of the road, even if convoluted, deserve the certainty that they can offer their digital asset to the public and help contribute to a truly decentralized network. I am hopeful this non-partisan legislation will receive strong…

    Oct 31, 2019
  • Chinese authorities to monitor crypto activities starting 2020

    China is pushing blockchain adoption by introducing new policies as well as with its Central Bank Digital Currency (CBDC). Chinese President is pushing blockchain adoption China has recently passed a law allowing authorities to regulate all crypto-related activities in the country starting in January 2020. The Chinese government is trying to create a uniform standard for all applications of cryptographic techniques. This also includes the management of passwords and other private data. The initial draft was published back in May that focused on government-controlled password management. The draft did not have many details about crypto-related techniques. It is expected that China will be using this law to administer its upcoming CBDC. Regardless, CBDC still does not have a schedule for launch. President Xi Jinping is a core supporter of blockchain adoption in the country. Xi called the nation’s tech community to accelerate their efforts for blockchain–adoption. Xi stated that blockchain should be considered an essential breakthrough for core technologies. The country must clarify the policies and increase investment in the sector. However, Xi’s efforts seem to contradict to the Chinese…

    Oct 31, 2019
  • 10th-Largest Indian State to Release Policy for Blockchain and AI

    The Indian state of Tamil Nadu is reportedly working on a state-level policy for blockchain technology and artificial intelligence (AI). On Oct. 31, local news outlet The Times of India reported that Tamil Nadu, the 10th-largest state in India, is working on separate policies for blockchain and AI which could be released as soon as the next 10 days. Tamil Nadu’s blockchain and AI policies are expected to establish ground rules on how the state government can apply the emerging technologies for service delivery and solving governance issues. Santosh Misra, CEO of the state’s e-Governance Agency commented: “We are working on separate policies on blockchain and AI. The AI policy is going to be perhaps the world’s first policy addressing safe and ethical use of AI […] No state or country has announced a standalone policy to address the safety and ethics associated with AI, and we have no precedence for it.” Indian states are taking the initiative in forming blockchain policies Tamil Nadu is not the first Indian state to form policies and initiatives regarding blockchain technology. Earlier this…

    Oct 31, 2019
  • China Passes Cryptography Law in Advance of Expected Digital Currency Launch

    The Standing Committee of China’s 13th National People’s Congress passed a new cryptography law on Saturday, in a move that some observers see as necessary preparation for the country’s eventual launch of its own digital currency. According to Chinese state media, the new law will go into effect on January 1, 2020, Reuters reports. China’s cryptography law, which takes effect on Jan. 1, is aimed at “facilitating the development of the cryptography business and ensuring the security of cyberspace and information”, the official Xinhua news agency said, citing parliament. The law states that the state encourages and supports the research and application of science and technology in cryptography and ensures confidentiality. Though the law makes no direct mention of digital currency, its focus on legal issues related to cryptography and the designation of a centralized agency to manage public cryptographic efforts will almost certainly have broad implications for cryptocurrency throughout China. On Twitter, Primitive Ventures founding partner Dovey Wan reviewed the draft text of the new law and concluded that China is building the foundation for its own digital currency…

    Oct 28, 2019
  • Lebanese Protestors Gather at Central Bank as Financial Lockout Continues

    Since the beginning of widespread protests in Lebanon last week, banks and lending institutions have remained closed, fueling fears of an impending nationwide cash crisis. Attempts to assuage the concerns of suffering individuals without money or options are not proving effective, as officials scramble to address the situation against a backdrop of alleged political embezzlement and mounting public frustration. Also Read: 3 Major Signs That Precede the Fall of World Reserve Currencies We Don’t Have Your Money As banks don’t actually store customer deposits, Lebanese lenders and business officials are afraid that a sudden re-opening after being closed to the public for over a week could have disastrous consequences. “The cash of the banks are in reserve at the Central Bank or are in Treasury bills,” the president of the Worldwide Association of Lebanese Businesspeople told U.S. media. “The cash of the banks are not in the bank deposits, so no, they don’t have enough cash for everyone that would come and ask for any cash of transfer.” An official statement from the Association of Banks in Lebanon (ABL) confirmed…

    Oct 25, 2019
  • Bank Of Lithuania Becomes First Market Regulator to Issue Guidelines on STOs –

    In a recent update Bank of Lithuania has become the first of market regulators to issue guidelines on STOs. STO’s Need To Comply With EU and National Legislation Regulating Capital-Raising Activities. The new guidelines are focussed on the classification of security tokens, assessing specific cases and providing recommendations related to the issue of the security tokens and also clarify on applicable legal regulation. Furthermore, enterprises planning to use the STO method will need to comply with EU and national legislation regulating capital-raising activities. “The current focus on security token offerings (STOs) is taking over the waning interest in initial coin offerings (ICOs). Businesses are interested in this particular way of raising capital as an alternative to bank lending. The Guidelines on Security Token Offering are aimed at explaining our position in this regard rather than creating new regulatory arrangements. In a strict regulatory environment, such as the securities market, it becomes crucial to set rules in order to avoid any miscommunication, misunderstandings, and consequences. said Marius Jurgilas, Member of the Board of the Bank of Lithuania. Furthermore, in case if…

    Oct 23, 2019
  • Anti-Money Laundering Laws Apply to Crypto Too, Says FinCEN Chief

    The United States Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco spoke at the University of Georgetown where he made it clear that Anti-Money Laundering (AML) laws apply to everyone. On Oct. 21, banking trade publication American Banker reported that Blanco said that fintech firms offering cryptocurrency users anonymity must comply with AML laws “just like everyone else.” Blanco highlights responsibilities and the Bank Secrecy Act Blanco seemed to direct his comments toward anonymous crypto payment systems that could conceal criminal activity and or enable users to anonymously engage in criminal behavior. The FinCEN head pointed in his speech to the key objective of AML policy, which is obtaining information about who is involved in a payment transaction, saying: “There is a reason you want to know … the person on the other side of that transaction — they might be dealing in some kind of illicit activity. Whether it’s opioids … or human smuggling on the other side … you want to know who that person is.” Blanco told the audience that it is not that hard to obtain…

    Oct 22, 2019
  • Telegram Asks Court to Deny SEC’s Gram-Related Injunction

    On Wednesday, Telegram responded to the Securities and Exchange Commission’s October 11 emergency action seeking a preliminary injunction against the company and its Gram digital token. In an October 16 court filing, the company asked the federal court to reject the SEC’s preliminary injunction request, arguing that the action could be “misconstrued” by the public, Telegram’s customers, and investors: “Telegram submits that there is no need for the Court to enter a preliminary injunction, which has the potential to be misconstrued by Telegram’s private placement subscribers and the public in this highly-publicized matter, where Telegram has already voluntarily agreed not to engage in the very conduct that the SEC is seeking to enjoin.” In its filing, the company argued that the SEC has improperly defined Gram tokens as securities. Telegram said that the Grams will be more akin to a currency or a commodity like gold or sugar once the TON Blockchain has been launched. In addition, Telegram suggested that the injunction is unnecessary, since the company has been voluntarily working with the SEC during the project’s development and launch…

    Oct 18, 2019
  • Central Banks Have Three Options for Crypto Regulations, Says Official

    Denis Beau, the deputy governor of France’s central bank, Banque De France, recently delivered comments regarding central banks’ approaches to cryptocurrencies. Establish appropriate cryptocurrency regulations On Oct. 16, Beau spoke at the Official Monetary and Financial Institutions Forum conference in London, where he discussed the role of cryptocurrency assets in today’s global financial payment system. Beau stated that the traditional bank-based ecosystem could face significant changes due to the many technological developments, such as blockchain and distributed ledger technologies, further explaining: “With the emergence of so called crypto-assets […] and so called stablecoins, we may also see new settlement assets develop which may compete against and possibly, according to their promoters, replace commercial and central bank money as settlement assets at the center of our payment systems.” Beau continues by saying that stablecoins of potentially large size and reach might present unforeseen challenges of “system-wide importance, to competition policy, financial and monetary stability.” Beau adds that central banks really only have three available options to address cryptocurrencies. The first would be to completely ignore crypto-assets, which would not mitigate any…

    Oct 17, 2019
  • SEC, CFTC, FinCEN Warn Crypto Industry to Follow US Banking Laws

    The heads of three U.S. financial regulators warned the cryptocurrency industry to abide by banking laws in a joint statement published Friday. The statement, signed by Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert, Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco and Securities and Exchange Commission (SEC) Chairman Jay Clayton, “reminds” actors in the crypto space that they must comply with various banking and financial services laws in the U.S., regardless of what they call their cryptocurrencies or tokens.  The agencies referred to the Bank Secrecy Act (BSA), which outlines how different financial services businesses should register with regulators. Specifically, the agencies explained that the “nature of the digital asset-related activities” a person participates in will determine which agencies that person should register with, as well as which other laws they need to comply with. “For example, something referred to as an ‘exchange’ in a market for digital assets may or may not also qualify as an ‘exchange’ as that term is used under the federal securities laws,” the statement reads, adding: “As such, regardless of the label or terminology that…

    Oct 12, 2019
  • US SEC Rejects Bitwise Bitcoin ETF Proposal

    The United States Securities and Exchange Commission (SEC) has rejected a proposal to list a Bitcoin (BTC) exchange-traded fund (ETF). In an announcement on Oct. 9, the Commission stated that the ETF filing from Bitwise Asset Management and NYSE Arca did not meet the necessary requirements. Specifically, regulators stated that the applicants did not meet the necessary requirements regarding possible market manipulation and illicit activities. The SEC wrote: “Rather, theCommission is disapproving this proposed rule change because, as discussed below, NYSE Arcahas not met its burden under the Exchange Act and the Commission’s Rules of Practice todemonstrate that its proposal is consistent with the requirements of Exchange Act Section6(b)(5), and, in particular, the requirement that the rules of a national securities exchange be’designed to prevent fraudulent and manipulative acts and practices.’” Bitcoin ETF “closer than ever?” Today’s decision by the SEC seems to fly in the face of recent comments from Matt Hougan, managing director and global head of research at Bitwise, who on CNBC on Oct. 7 said, “We’re closer than we’ve ever been before to getting a Bitcoin ETF approved.” Hougan had…

    Oct 10, 2019
  • Proposed Russian cryptocurrency tax aims to regulate crypto

    Russian cryptocurrency tax issue is again making the headlines again. Russian tax authorities are looking to widen their tax net to include more crypto assets. As per reports a major Russian media firm Izvestia, the country is considering to tax mined cryptocurrency equivalent to acquired properties and treasure finds. Association of Banks of Russia submitted a report that included a proposal to tax mined cryptocurrencies at par with treasure findings which are in fact taxable. Such a reform, if implemented, would allow tax authorities to label cryptocurrencies as a ‘finding or ‘treasure’ thereby bringing them under the legal framework of taxation. Since a digital asset is created by the miners, the activity is akin to ‘finding a treasure.’ The document further justifies this argument as ‘a fully rational-legal process.’ Russian cryptocurrency tax proposal will help regulate the market The proposed document has more details about taxing the cryptocurrency in Russia. The legal acumen suggests that miners have ‘found’ the asset when they mine the cryptocurrency. When an asset is received from an anonymous system, it can be termed a ‘find.’…

    Sep 29, 2019
  • Swiss Stock Exchange SIX Launches Digital Assets Exchange Prototype

    Swiss stock exchange SIX has launched a pilot version of its exchange and central securities depository (CSD) for digital assets. The prototype platform, launched under its digital assets subsidiary SIX Digital Exchange (SDX), is expected to see more functionality added as it approaches a full launch slated for Q4 2020, according to an announcement emailed to CoinDesk on Monday. The platform as it stands is aimed to “showcase the future of financial markets,” and as well as obtain feedback from early testers. SDX further said it intends to show that a distributed ledger technology (DLT)-based CSD can “be integrated with a central order-book stock exchange model to ensure fair market conditions for all.” Thomas Zeeb, chairman of SDX and member SIX’s executive board, said: “The launch of this prototype is a major milestone in creating a credible digital infrastructure for moving our industry forward. We are now one step closer to demonstrating the viability of our vision for the financial markets of the future and, ultimately, for the way people and businesses access capital.” Early functionality of the platform for “test cases”…

    Sep 24, 2019

Contact Us

Mail:uucjnews@gmail.com