task Archives -
In Thursday’s edition of The Daily, we cover a new task force established by the state of New York to explore the cryptocurrency market and its regulation, a move by Galaxy Digital’s Mike Novogratz to buy more of the business, and an interesting way to mark the anniversary of Bitcoin’s genesis block.
State of New York Establishes Cryptocurrency Task Force
New York State Assemblyman Clyde Vanel, the Chair of Subcommittee on Internet and New Technologies at the legislator, has publicly announced the creation of a cryptocurrency task force. The reports produced by the task force will likely be used to update the state’s regulation of the industry, as the announcement notes that “It has been nearly four years since the implementation of the Bitlicense. In the cryptocurrency space and technology in general, a few months is equivalent to years.”
According to the announcement, the members of the task force, appointed by Governor Andrew Cuomo, the Senate, and Assembly, are to study how to regulate, define and use cryptocurrency and submit their reports by Dec. 15, 2020. They will include different stakeholders such as technologists, consumers, institutional and small investors, large and small blockchain enterprises, and academics.
“New York leads the country in finance. We will also lead in proper fintech regulation,” Assemblyman Vanel added. “The task force of experts will help us strike the balance between having a robust blockchain industry and cryptocurrency economic environment while at the same time protecting New York investors and consumers.”
Mike Novogratz Increases Stake in Galaxy Digital
Michael Novogratz, Founder and CEO of Galaxy Digital Holdings Ltd. (TSXV GLXY; Frankfurt: 7LX) reported on Wednesday that he acquired 7,500,768 more shares of the company for approximately $ 7.4M Canadian dollars (U.S.$ 5.4M) during December 2018. This amount represents about 2.7 percent of the company’s shares, bringing Novogratz’s estimated stake in the company from an already high 76.6 percent to approximately 79.3 percent.
The former hedge fund manager created his cryptocurrency merchant bank in the hope it would eventually become the “Goldman Sachs of crypto.” The crypto bear market of 2018 has been hard on the company’s stock, but Novogratz claimed in November he still believes that institutional demand for cryptocurrencies will drive the start of a new bull trend in 2019. By buying more company stocks, Novogratz is signaling that he is willing to put his money where his mouth is.
Bitcoin Magazine to Return to Print in 2019
Bitcoin Magazine, one of the first print publications specializing in cryptocurrencies, was created by Vitalik Buterin and Mihai Alisie in May 2012. In 2015 it was acquired by a company from Nashville, Tennessee which moved the magazine entirely online. Now, to mark the anniversary of Bitcoin’s genesis block, the company has announced that the first print edition of Bitcoin Magazine in seven years will come off the presses in the summer of 2019.
“Back in 2012, Vitalik and Mihai were handing out Bitcoin Magazine from their backpacks to anyone with even a fleeting interest in some mysterious, magic internet money,” the team remarked. “Today, with 10 years of history behind it, Bitcoin is almost a household name, and more and more people are curious about this ‘digital gold’ that they’ve been hearing about. Our intention is to distribute tens of thousands of copies, free of charge, at hundreds of locations and events around the world.”
What do you think about today’s news tidbits? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.
The post The Daily: New York Establishes Crypto Task Force, Novogratz Buys More of Galaxy Digital appeared first on Bitcoin News.
Three years after sealing a landmark global climate deal in Paris, world leaders are gathering again to agree on the fine print, per the AP . The euphoria of 2015 has given way to sober realization that getting an agreement among almost 200 countries, each with their own political and economic…
In recent regulatory news, the chairman of the United States Commodity Futures Trading Commission has predicted that distributed ledger technology will soon be adopted by the CFTC to monitor the financial markets, and a supervisor of the REACT Task Force has emphasized the priority placed on policing SIM swapping in Northern California. In addition, Germany’s financial watchdog has ordered a cessation of UK-based Finatex’s unauthorized cross-border proprietary trading via its Crypto-Capitals trading platform.
CFTC Chairman Seeks AI-Monitoring of Cryptocurrency Markets
The chairman of the United States CFTC, Christopher Giancarlo, recently discussed his expectation that emerging technological innovations, especially distributed ledger technology (DLT) and artificial intelligence (AI), will redefine the financial markets and the processes adopted by the regulators seeking to monitor such.
During his speech, titled “Quantitative Regulation: Effective Market Regulation in a Digital Era,” Giancarlo asserted that “we begin to see a world where the majority of standard tasks are managed by machines,” emphasizing the need for regulators to keeps pace with technological innovation in order to effectively oversee the sector.
The CFTC discussed the impact that the greater role of technology will have upon the way that regulators harness human labor, stating that becoming a “quantitative regulator” will “not mean replacing human judgment and market intelligence; it means reinforcing it,” adding that agency staff will be freed from “repetitive and low-value tasks” and will instead “focus on high-value activities that require their expert judgment and domain knowledge.”
Giancarlo also shared his future expectation that “rulebooks are digitized, compliance is increasingly automated or built into business operations through smart contracts, and regulatory reporting is satisfied through true-time DLT networks.”
US Police to Crack Down on SIM Swapping
Samy Tarazi, sergeant of the Santa Clara County Sheriff’s Office and supervisor of the REACT Task Force, recently discussed the increased priority placed on cracking down on ‘SIM swapping’ by US police.
Tarazi stated that although the REACT Task Force was initially formed to police a variety of cyber crimes, cracking down on SIM swapping has become the primary of the group, adding that many of the individuals targeted by SIM swappers are based in Northern California.
“It’s probably REACT’s highest priority at the moment, Tazari said, adding that “SIM swapping is actively happening to someone probably even as we speak right now.”
Emphasizing the challenges associated with policing SIM swapping, Tarazi stated: “We’re talking about kids aged mainly between 19 and 22 being able to steal millions of dollars in cryptocurrencies. I mean, if someone gets robbed of $ 100,000 that’s a huge case, but we’re now dealing with someone who buys a 99 cent SIM card off eBay, plugs it into a cheap burner phone, makes a call and steals millions of dollars. That’s pretty remarkable.”
German Financial Watchdog Flags Unauthorized Operations of Finatex
Germany’s independent federal financial regulator, the Federal Financial Supervisory Authority (Bafin), has ordered the partial cessation of the operations of United Kingdom-based crypto company Finatex Ltd.
According to Bafin’s website, the regulator ordered Finatex to cease cross-border proprietary trading – which was facilitated through Finatex’s trading platform crypto-capitals.com.
Bafin asserted that the company was “conducting proprietary trading within the meaning of section 1 (1a) sentence 2 no. 4 (c) of the German Banking Act (Kreditwesengesetz – KWG) as a service for others in the Federal Republic of Germany,” but “does not hold the authorization required under section 32 (1) of the KWG.”
Do you think that DLT will soon be utilized by regulators to monitor the cryptocurrency and financial markets? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
The post Regulations Roundup: CFTC to Embrace DLT, SIM Swapping Task Force appeared first on Bitcoin News.
Last year, President Trump signed an executive order on religious freedom , and now the Department of Justice is creating a “religious liberty task force” to implement the guidance that was issued as a result of that order. Attorney General Jeff Sessions announced the task force Monday during the DoJ’s religious…
A coalition government between two of Italy’s antiestablishment parties was sworn in, but deep differences between them are raising questions over how the government will implement its promises.
WSJ.com: What’s News Europe
Are you an Australian citizen and worried you might not be paying all the taxes you are due on your bitcoin investments? Well, worry no more because the government is here to help. A group of experts has been assembled to make sure no satoshi goes untaxed in the land down under.
Australian Bitcoin Taxation Office
The Australian Taxation Office (ATO), the government agency and principal revenue collection body for the Australian government, has reportedly created a special task force to help it track and identify all cryptocurrency transactions in the country for tax collecting purposes. It is meant to help tax officials to “explore common queries and practical issues” involving cryptocurrency trading and tackle tax evasion, according to the Australian Financial Review.
Besides this group of tax and law experts, the agency is also assumed to be working closely with the Australian Transaction Reports and Analysis Centre (Austrac) as well as state revenue offices, especially in relation to real estate deals. Austrac is the government’s financial intelligence agency all the exchanges in the country must be registered with to operate legally. Banks are also part of this effort as they are known to be very concerned about AML/KYC (anti-money laundering and know your customer) compliance.
The New Normal
Targeting bitcoin traders for tax evasion investigations seems to be a common practice right now for authorities all over the world and not just Australia. A few recent countries where similar efforts are being made include South Korea, India, and South Africa among others. The most famous case is probably the IRS vs Coinbase, where US investigators use the services of companies like Chainalysis to hunt down bitcoin users for evading taxes.
“We are consulting with key stakeholders who have expressed an interest in tax issues relating to cryptocurrencies. We will discuss common queries and scenarios, practical issues and the tax implications for current and anticipated future developments in relation to cryptocurrencies,” an ATO spokesperson commented. The purpose is to “help inform the ATO’s strategy for supporting the community in understanding the tax implications of cryptocurrency arrangements they may enter into, including any additional advice and guidance.”
Are you looking forward to paying your bitcoin taxes? Tell us what you feel in the comments section below.
Images courtesy of Shutterstock.
The post Australian Taxation Office Creates Task Force to Go After Bitcoin Traders appeared first on Bitcoin News.
The European Union started this year by announcing a global trade offensive to counter rising U.S. protectionism. Now the bloc faces an uphill battle to prove it can deliver, Emre Peker writes.
WSJ.com: What’s News Europe
The Philippine military scored a victory when it drove Islamic State-linked fighters from Marawi in October, but that success is now in peril as the government discovers as many pitfalls in rebuilding Marawi as in liberating it.
WSJ.com: What’s News Asia
South Korea’s government has established a new task force to regulate bitcoin and other cryptocurrency trading. Taking over the effort from financial regulators, the Ministry of Justice has now been put in charge of the task force to establish and implement cryptocurrency regulations.
Cryptocurrency Countermeasure Task Force
On Monday the South Korean government established a “virtual currency countermeasure task force” to “promptly review measures to strictly regulate virtual currency transactions,” reported The Asia Times.
This is the second task force set up by the government. The first was smaller and only involved financial regulators. It also made little progress to create a regulatory framework for cryptocurrencies and has been inactive since September, Maekyung Media described.
In an effort to speed up regulation, “the ministries agreed to jointly set up a government-wide measure to strictly regulate virtual currency transactions under the supervision of the Ministry of Justice,” the publication added. The new task force’s first meeting was also held on Monday to reevaluate domestic and foreign cryptocurrency market trends and their future countermeasures.
“Related agencies have expressed serious concern about the recent rise in virtual currency speculative trading and the continued increase in virtual currency-based offenses,” the news outlet wrote and quoted the government announcing:
We agreed that the Ministry of Justice will be the main ministry and will set up and implement the regulatory measures through consultation between the related ministries.
Legal Status of Cryptocurrency in Korea
While there is currently no law to protect cryptocurrency investors in South Korea, the government is actively discussing the legal framework for cryptocurrencies. The ministries were quoted at the meeting by The Korea Times:
Virtual currency cannot be viewed as a financial product or money. While virtual currency trading is claimed to be safe and thus the future money, blockchain technology only guarantees secure transactions and does not guarantee value.
In order to protect investors, the government is pursuing regulations to ensure that cryptocurrency exchanges meet certain requirements. For example, they must deposit client investments in banks or other reputable institutions and must inform customers of investment risks in detail. In addition, the punishment level for multi-level crimes involving digital currency transactions will be greatly increased, the publication detailed.
“We will make regulations for the protection of investors rather than making virtual currency exchange regulations,” the finance minister said at the meeting.
Do you think South Korea will introduce cryptocurrency regulations soon? Let us know in the comments section below.
Images courtesy of Shutterstock and the South Korean Ministry of Justice.
Need to calculate your bitcoin holdings? Check our tools section.
The post South Korea Launches Cryptocurrency Task Force to Spearhead Regulations appeared first on Bitcoin News.