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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

Wyoming promises to become the most crypto-friendly state in the US

Wyoming, being in the very North of the country, isn’t quite like Silicon Valley neither the rich East Coast. Yet, the government aims to partially replace ranchos with crypto companies and provide all conditions for their flourish. 

The state’s governor signed sweeping legislation that turns Wyoming to a particularly friendly to cryptocurrency place. The new law enshrines utility tokens as an asset class exempting cryptocurrency from state property taxes.

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

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

An Association Made To Control Mining Hotels In Russia

An Association Made To Control Mining Hotels In Russia

Russia has focused on developing regulations for mining hotels and data-centers. Preliminary requirements include a space not less than 100 sq meters, 24/7 service and a fire extinguishing system. The Russian Cryptocurrency & Blockchain Association is creating a committee in charge of the legitimate, taxing and technical bases in the mining sphere. In the first 5 months of 2018, the demand for mining hotels has multiplied by six times. And not surprisingly: mining in domestic conditions is becoming costlier and less comfortable: equipment needs oodles of electric power, and in response brings too much noise and heat irradiation. 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

Fantastic Growth of Blockchain Industry in China

China’s Ministry of Industry and Information Technology states that the domestic blockchain industry saw a fantastic growth last year. 

178 new blockchain startups have been launched in 2017, which makes 465 in total. The notable progress is led by the improvement of the crypto regulation in China, and today the new sector is boosting the development of industries, helps bring down expenses and raise the efficiency. As an example of China generously funding the industry, last month the government of Hangzhou decided to invest more than $400 mln in a Hangzhou-based venture capital firm known as Tunlan Investment, to facilitate the growth of Blockchain startups and projects. To the publishment date, China has the most blockchain patents in the world. 

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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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

Goldman Sachs Postpones the Launch of Crypto Trading Desk

Goldman Sachs Postpones the Launch of Crypto Trading Desk

Goldman Sachs Group Inc. is pausing its intention to open a cryptocurrency exchanging desk, as Business Insider reported September 5. 

Vague Regulation Environment to Pause the Project 

In December, Bloomberg announced the bank’s plan to launch a crypto-centered unit by the end of June 2018. Sources claimed that Goldman Sachs was willing to become "the first large Wall Street firm to make markets in cryptocurrencies."

However, since the regulatory policy remains rather vague, the bank has brought down the priority of the project. It might take some time before a regulated bank could exchange digital assets, claim the sources. 

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A “Global Sandbox” for Financial Technologies

A “Global Sandbox” for Financial Technologies

Various financial regulators from over the globe are teaming up to facilitate the development of financial technologies including those of distributed ledger – such as blockchain.

The Creation of a “Global Sandbox”

The Global Financial Innovation Network (GFIN) unites regulators from Hong Kong, the U.S., Australia, Abu Dhabi and 7 other members, as the U.K.’s Financial Conduct Authority (FCA) announced.

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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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Tech Giants WeChat and AliPay Against Crypto

Tech Giants WeChat and AliPay Against Crypto

Сhinese regulators are fighting against announcements anyhow related to cryptocurrency, and giant mobile payment platforms WeChat Pay and Alipay declare to be collaborating with the government in the fight.

Taking Drastic Measures 

Five regulatory organizations in China, including the People's Bank of China and the Banking Regulatory Commission, warned against any digital currency-related fundraising and exchanging operations. 

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Prime Minister of Malta: Cryptocurrency Is the “Future of Money”

Prime Minister of Malta: Cryptocurrency Is the “Future of Money”

Prime minister of Malta, Joseph Muscat, has expressed his positive view on the potential of cryptocurrency and the blockchain technology at the 73rd Session of the General Assembly of the U.N. 

There’s No Escape from Cryptos 

In his speech on September 27, Muscat stressed cryptocurrency’s importance for the financial industry:

"Blockchain makes cryptocurrencies the inevitable future of money, more transparent since it helps filter good businesses from bad businesses."

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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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China’s Censorship Agency Introduces New Rules for Blockchain Services

China’s Censorship Agency Introduces New Rules for Blockchain Services

As an agency in charge of censorship on the Internet, the Cyberspace Administration of China (CAC) has revealed its plans for regulation of blockchain-related projects in the country. 

Each and Every One 

CAC published a draft policy on Friday and is expecting public feedback before the regulations enacted. If they take effect, the rules will apply to China-based startups defined as “entities or nodes” providing blockchain service to the public. These include both institutions and individuals that use the technology via desktop or mobile apps. 

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