Search Results for: Blockchain Association

“The threat of a US government shutdown could influence the future of digital assets. Crypto-focused bills like the FIT, Blockchain Regulatory Certainty Act, and Keep Your Coins Act risk being delayed. Any shutdown could stall these bills’ progress until government funding is secured for the next fiscal year.”

The Securities and Exchange Commission’s (SEC) regulation of cryptocurrency firms like Binance, Coinbase, and Ripple, is creating dynamic shifts in the crypto world. Some firms are facing a ‘regulation by enforcement’ approach, while others like Prometheum, have found compliance success, sparking investigations and controversy over potential ‘sweetheart deals.’

“In just a half decade, the digital assets industry has seen significant evolution. Despite challenges caused by regulatory scrutiny, anti-money-laundering concerns, and varying political views, the adoption trend for crypto continues to rise. The anticipated regulatory changes and upcoming elections, particularly in 2024, present an opportunity for a fresh perspective on digital assets’ development and use.”

Japan’s top financial regulator, the Financial Services Agency (FSA), has proposed changes to the country’s tax laws regarding digital asset profits. This move aims to better align Japan’s stance on cryptocurrencies with global standards, reduce financial burdens on local businesses, and foster innovation within the blockchain industry.

The digital euro by the European Union could face obstacles in non-euro states due to necessary international agreements between the EU and third-countries. Complex issues surrounding Central Bank Digital Currency (CBDC) usage, like unresolved legal queries concerning usage and jurisdiction, may hinder its implementation.

“The United States Internal Revenue Service (IRS) is proposing new tax policies for the sale/exchange of digital assets by brokers, attracting criticism from crypto figures. Meanwhile, Gemini, a cryptocurrency exchange, faces a SEC lawsuit on potential regulatory violations. These developments reflect the ongoing struggle to balance regulation with innovation in the emerging field of cryptocurrency.”

The US Treasury and IRS propose new regulations making digital asset brokers accountable for reporting certain sales and exchanges. This move aims to simplify tax calculations, bring digital asset tax reporting on par with securities, and prevent tax evasion. Critics, however, see this as an attempt at excessive government control, potentially stifling the growth of decentralization and web3 adoption.

The US IRS has issued draft guidelines on reporting rules for digital asset brokers. Aimed at regulating the digital asset industry, this regulation intends to streamline tax reporting and prevent fraud, proposing to raise $28 billion in fresh tax over a decade. Critics label it as “misguided” and “an attack on the digital asset ecosystem.”

The U.S. Treasury Department’s proposed digital assets tax rules have sparked controversy within the crypto community. The debate revolves around the feasibility of regulating decentralized operations and potential implications for wallet vendors, decentralized exchanges, and smart contract systems. Nonetheless, a clear taxation path might facilitate easier engagement with digital assets.

“The FIT Act marks the premiere of crypto-focused legislative efforts gaining traction in U.S. Congress. This signals mutual agreement about the significance of the digital assets sector, addressing the inadequacy of the current regulatory system, and fostering innovation. Policymakers are establishing a suitable framework for the rapidly evolving crypto industry.”

Senator Cynthia Lummis filed an Amicus Brief supporting Coinbase’s initiative to dismiss the SEC lawsuit, arguing the SEC is using its lawsuit to control the growing cryptocurrency sector, bypassing Congress’s role. The SEC’s approach could bring digital assets under its scope, categorizing them as securities and bypassing other agencies’ authority, which critics regard as overstepping its jurisdiction.

Senator Jack Reed introduced a bill to strengthen Know Your Customer and Anti-Money Laundering regulations within decentralized finance. Meanwhile, two House committees proposed a bill to clarify regulatory authorities’ jurisdiction over digital commodities. Despite opposition, these developments highlight the need for clearer DeFi regulations and could shape its future trajectory.

The recently introduced US Senate bill, Crypto-Asset National Security Enhancement Act (CANSEE), targets the DeFi sector with the aim of curbing money laundering. However, its ambiguous definition of ‘control’ over DeFi protocol and potential infringement on software developers’ rights have led to widespread disapproval.

“Congressman Ritchie Torres has raised concerns about a ‘sweetheart deal’ between the United States Securities Exchange Commission (SEC) and Prometheum, a digital assets platform. Torres highlights the SEC’s lack of transparency in the handling of digital assets law enforcement and its supposedly failed process of registering digital asset platforms.”

Three

The Canadian crypto sector has seen a surge in companies falsely claiming authorization, with some even affiliated with counterfeit regulatory organizations. Investors should verify platform legitimacy and stick to CSA-registered trading platforms to avoid falling prey to crypto scammers.

The Canadian Securities Administrators (CSA) issued a warning about crypto firms claiming to have obtained authorization from non-existent regulatory organizations in an effort to appear legitimate. The CSA urges investors to independently verify the veracity of these organizations before engaging with crypto firms claiming certification or memberships.

Crypto startup Prometheum gains attention as the first crypto-centric broker-dealer registered with the SEC and a member of FINRA. Despite controversy, the firm’s regulatory status may provide insights into the SEC’s perspective on digital asset compliance, impacting future crypto startups seeking regulation.

Coinbase Chief Legal Officer Paul Grewal opposes the SEC’s proposed rule change requiring decentralized exchanges (DEXes) to register, saying it’s impossible and fundamentally flawed. The rule change extends SEC authority to products ill-equipped for regulatory requirements and has been criticized by US lawmakers and crypto advocacy groups.

The House Financial Services Committee discussed regulation of digital asset markets, focusing on crypto market structure and stablecoin regulation. Aaron Kaplan, CEO of Prometheum, stated that existing securities laws suffice for crypto regulation, echoing SEC Chair Gary Gensler’s viewpoint. However, some argue that the SEC’s current approach doesn’t provide a clear path for crypto exchanges.

Attorney John Deaton, representing 75,000 XRP token holders, alleges that the SEC isn’t considering the best interests of Coinbase and Binance users. He encourages a class of customers to participate in the lawsuits and potentially attain amicus status, allowing their voices to be heard.

The recent SEC lawsuit against Binance and Coinbase has sparked debate in the crypto community, with some criticizing the regulatory body’s approach as “unacceptable” and “lazy.” Concerns include driving crypto companies away from the US, uncertainty in rules and guidance, and potential weakening of consumer confidence in cryptocurrencies. Efforts are ongoing to develop effective regulations.

Binance appoints Richard Teng, a traditional finance veteran with significant regulatory expertise, as head of all regional markets excluding the US. This move reflects the company’s intent to strengthen regulatory compliance, acquire licenses, and pursue international expansion.

The crypto industry spent only $21.6 million on lobbying in 2022, lagging behind other industries like pharmaceuticals and automotive. To compete with traditional financial players, crypto must step up lobbying efforts and navigate challenging regulatory landscapes, while displaying resilience and adaptability.

The SEC’s proposed custody rule faces criticism from industry players and officials, citing overreaching authority, potential advisor inhibition, and investor asset security risks. Amidst concerns, clearer regulatory frameworks are needed to balance market stability with innovation in the crypto landscape.

The U.S. House Financial Services Committee and crypto community criticize the SEC’s proposed advisory clients custody rule, arguing it oversteps authority and affects the banking and digital asset industries negatively. The rule could impose burdensome regulations on banks and hinder digital assets’ growth and innovation, necessitating a reconsideration of the proposal.

“Cyprus, traditionally a cryptocurrency haven, plans to strengthen its crypto regulations. This includes compulsory registration for crypto service providers with the Cyprus Securities and Exchange Commission (CySEC). Non-compliance risks hefty fines and imprisonment. However, it’s unclear if tighter regulations will boost transparency or hinder blockchain technology growth.”