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Who pays and who enjoys: cryptocurrencies under taxation

Have you ever found yourself constantly questioning what cryptocurrency is in terms of taxes, and still not getting? The tax code does not get it clearly either. 

When you hold crypto coins, each move of yours triggers taxes. For tax purposes, transfers are treated as sales. Well, unless you can find some other way of transferring cryptocurrency tax-free. The fact that the Internal Revenue Service (IRS) marks crypto as property might prompt you to study the concept of ownership.

But, is crypto really yours, if you are holding it for someone else? In other words, if you are holding the crypto for the benefit of someone else, who has to pay the taxes? read more

Blockchain-focused law practice

The Blockchain industry inevitably seeks for support by law, and the hole in the market will be soon filled by two competent entrepreneurs Angela Angelovska-Wilson and Lewis Cohen, who have started their own law practice focused on the nascent industry. 

The creators promise to read more

Crypto Will Not Replace Fiat But It's All Good

Crypto Will Not Replace Fiat But It's All Good

The CEO of Russia’s state bank Sberbank Herman Gref doesn’t expect cryptocurrency to replace fiat currency anytime soon nor in the future, according to the interview at the Astana Finance Days international conference in the Kazakhstan capital July 4. Grew cannot yet imagine governments “yielding their centralized role” in currency emission. read more

Terms&Conditions in ICOs: what should we pay attention to

Terms & conditions have always been an essential part of an initial coin offering (ICO), as well as of any other type of deal. A regular active user may hit «I agree» button multiple times a day without bothering to considering what surprises can possibly pop up. What, sometimes, can be a bit of an issue. We are conditioned to overlook the less-than-enthralling legal sections of websites. Even lawyers can feel unmotivated to read these provisions. We analyze the product or service on its alleged merits, prior experience and reviews of other users. We are also sometimes shielded by consumer protection laws.

But, since ICO tokens exist in the virtual realm and are nothing more than a set of rights, there is often no product to demonstrate, there can be no usage reviews, and, what’s more, there is little clarity on legislative protections. These points make it imperative to have a look at the corresponding terms and conditions.

In case if an ICO’s website doesn’t even have an attached T&Cs document, it’s a signal to hold your money tighter. Obviously, it’s not that fun reading T&Cs, but don’t be tempted by a one-page document: it must be lengthy.  

What else should you pay attention to? read more

There Is A Lot More Fiat Crimes Than Crypto, – Mary Beth Buchanan Says

We should “get rid of the negative connotations”, said Mary Beth Buchanan, former U.S Federal Prosecutor about Bitcoin on Monday, June 4 at the conference Money20/20 Europe in Amsterdam

In the past, she used to deal with a great number of crimes and states that saying there are more crypto crimes than usual ones is rather unfair, since, unlike fiat, cryptocurrency can be traced. read more

Crypto-Friendly Malta Approves 3 New Blockchain Bills

Crypto-Friendly Malta Approves 3 New Blockchain Bills

Malta approved 3 Blockchain and crypto bills in the 2nd reading in Parliament yesterday, June 26. The first two of them, Technology Arrangements and Services Bill and the Virtual Financial Assets Bill, provide regulation of digital ledger technologies under the control of the Malta Digital Innovation Authority. read more

Anonymity Is No Longer Welcome In Europe

Crypto Exchange Poloniex has toughened its policy concerning users’ privacy, who are now unable to trade before their accounts are verified. The KYC (Know Your Customer) procedure was announced in December 2017, yet not all users paid proper attention to the exchange’s recommendation to withdrawal their resources. From now the withdrawal limit is $2000 per day read more

Cryptocurrency Miners and Owners Will Be Taxed In Accordance with Existent Schemes

Cryptocurrency Miners and Owners Will Be Taxed In Accordance with Existent Schemes

Cryptocurrency miners and owners in Russia will be regulated under the Internal Revenue Code, as the Chairman of the Russian State Duma Committee on Financial Markets, Anatoly Aksakov, told the local news media Izvestia July 18. Individuals and legal entities will be taxed separately but in accordance to the existent Tax Code of Russia. Thus, physical people will be regulated under the conditions of the personal income tax, while entities – conforming to their form of business. Aksakov mentioned that in the future specific taxation schemes may appear if the government wishes so, but for now, no new laws will be introduced. Lawmakers are planning on passing the bill on cryptocurrency mining and holding during the Autumn session of the Duma. read more

China Is Crushing Foreign ICOs Venturing into the Country

China Is Crushing Foreign ICOs Venturing into the Country

A vice governor of the People’s Bank of China Pan Gongsheng roughly commented on the situation with ICOs in the country, specifically those that had moved overseas but kept communicating with Chinese investors. Gongsheng reminded that ICOs, undercover ICOs and crypto asset trading are illegal in the Republic and represent illicit forms of fundraising and securities issuance.

"Any new financial product or phenomenon that is not authorized under the existing legal framework, we will crush them as soon as they dare to surface,” Pan said. Further, a Chinese state-owned messenger WeChat turned out to be contributing into the regulation by spotting crypto traders and limiting the amount of fiat currency such users can receive via the app. 

Russia cracks down on digital assets

Russia is doing its best to ignore or simply tear down innovations. In January this year, the State Duma made public a draft law concerning digital financial assets and basically put paid on them. The document contains noticeable white spots making the new law vague and ambiguous. Here are the fundamental points it affects: read more

Obscure Cryptocurrencies Lack Attention from the U.S. Government, – R. Novy Says

Obscure Cryptocurrencies Lack Attention from the U.S. Government, – R. Novy Says

A U.S. Secret Service official called Congress on to consider potential legislative action towards cryptocurrencies that boast privacy-enhancing features.

Before the U.S. House of Representatives Committee on Financial Services, Robert Novy claimed that cryptocurrencies and services intended to obscure transactions require a particular attention from the government. But, no active measurements are expected anytime soon. 

"As such, continued Congressional attention is warranted to ensure law enforcement agencies maintain lawful access to critical sources of evidence, regardless of where, or in what form, that information is stored," Novy stated.

South Korea Is About to Present New Regulations

South Korea Is About to Present New Regulations

South Korea’s legislature is developing new rules on cryptocurrency, Initial Coin Offerings (ICOs) and Blockchain technology. Lawmakers will introduce drafts of the bills at an extraordinary session of the National Assembly between July 12 and 26. 

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Dubai Willing to Implement Blockchain in Its Legal System

Dubai Willing to Implement Blockchain in Its Legal System

Based in Dubai, an international court that manages civil and commercial disputes in the financial industry is willing to launch a so-called "Court of the Blockchain" to streamline legal deals.

Collaboration with Smart Dubai to Build a Blockchain-Based Platform 

The Dubai International Financial Center (DIFC) Courts reported on Monday that it is collaborating with the government-backed Smart Dubai initiative to frame a team that will focus on building up the blockchain-based legitimate platform. read more

South Korea Investigates Crypto Scam that Promised Investors Doubtful Treasures

South Korea Investigates Crypto Scam that Promised Investors Doubtful Treasures

Authorities of South Korea has begun an investigation of a conceivable crypto investment scam. The key figure involved in the scam is the Seoul-based Shinil Group, as Korea JoongAng Daily revealed July 31. Shinil Group (Shinil) allegedly guaranteed to pay investors in gold lifted from a sunken Russian ship. read more

The Philippines Has Developed New Regulations Concerning Initial Coin Offerings

The Philippines Has Developed New Regulations Concerning Initial Coin Offerings

The Philippines is about to present new regulations allowing startups to legitimately raise funds through initial coin offerings (ICOs).

All Tokens Are Securities Expect When They Are Not

Before the regulations go into effect, the country’s Securities and Exchange Commission (SEC) is waiting for the people’s feedback concerning the draft rules published on Thursday, August 2nd. read more

South Korean Judges Form the Blockchain Law Society

South Korean Judges Form the Blockchain Law Society

Judges, lawmakers and industry specialists in South Korea are shaping a group to discuss legitimate issues associated with blockchain.

Topics to Be Discussed

Named the Blockchain Law Society, the group is holding its founding meeting on August 24 in the Seoul Central District Court. Members will bring up both regulatory issues around blockchain and its use cases in the lawful space.

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China Is Gunning for Foreign Crypto Trading Platforms

China Is Gunning for Foreign Crypto Trading Platforms

China’s financial regulators are going to ban more than 100 foreign crypto exchanges that offer trading services to local investors.

Hunting Down Crypto Exchanges

Providing details, Shanghai Securities Times reported that the China National Fintech Risk Rectification Office has so far detected 124 trading platforms with foreign IP addresses, yet that are accessible in the country. The office intends to keep monitoring the space and

The National Fintech Risk Rectification Office is a government organization aiming to fight against money related risks like peer-to-peer loaning and cryptocurrency exchanging.

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California Is Forming a Blockchain Working Group

California Is Forming a Blockchain Working Group

California released a bill calling for the creation of a working group on blockchain, which has passed in both Senate and Assembly and is now waiting for the governor’s approval.

The Brightest Minds to Come Together  

The bill, main point of which is to form a group of specialists from different fields to focus on blockchain, defines the technology as “a mathematically secured, chronological, and decentralized ledger or database.” 

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Regulators in Philippines to Present ICO and Crypto Exchange Rules

Regulators in Philippines to Present ICO and Crypto Exchange Rules

Crypto regulators in the Philippines intend to publish draft cryptocurrency regulation before September ends, The Manila Times announced Monday, September 3. 

Regulating Crypto Exchanges 

Referring to Ephyro Luis Amatong, executive of the country’s Securities and Exchange Commission (SEC), the local news outlet reported that cryptocurrency exchanges should be considered as conventional "trading platforms." 

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