In the acute issue of regulating crypto-currency at the state level, significant changes were made in different countries in the new year. Briefly go through the main ones.
Steve Peykin (co-head of the SEC department): “This is the first time that the commission requested the search for a recipient in connection with fraud in the ICO.We will use all our tools and tools to protect investors from those who commit fraudulent activities in the digital securities market “.
The United States intensified its efforts to fight ICO by freezing AriseCoin assets. This is the first time that the US government has seized ICO assets, which, in their opinion, are fraudulent.
And on January 30 it was announced that the US Commodity Futures Trading Commission filed a lawsuit against Tether on December 6, which issues a widely sold coin USDT Tether and claims that it is tied to the dollar. It was for USDT Tether and Bitfinex with Poloniex.
In general, the United States is still deciding how to classify crypto-currencies. It was not yet decided whether to qualify certain crypto-currencies as securities.
As for the sphere outside government regulation, Facebook unexpectedly banned advertising related to crypto-currencies, due to fears that the company calls “financial products and services often associated with misleading or deceptive advertising practices.”
Official statements by US agencies have remained the same:
- SEC (Securities and Exchange Commission) did not approve any exchange products (for example, ETFs) that have crypto or other assets associated with blocking technology for listing or trading. At the moment, the SEC has not officially registered any ICO.
- The CFTC (Commodity Futures Trading Commission) designated Bitcoin as an extremely dangerous threat and announced that it is fraudulent and profitable at the interstate level, and urgent regulation of commodity futures tied directly to Bitcoin is needed.
- The IRS (US Internal Revenue Service) ruled that Bitcoin and other crypto currencies are considered for tax purposes as property, not currency. Although some exchanges can correctly register Form 1099, the users themselves remain responsible for accounting for profits and paying taxes on crypto-currencies, transactions in crypto-currencies generate either short-term or long-term capital gains or losses and should be properly formalized.
In South Korea, the Crypto-currency is going to be legalized and more rigidly to regulate it, rather than to prohibit directly. This statement follows the reports in early February that the country allows the possibility of termination of trade due to mass evasion from payment of taxes. The government plans to tighten regulation and fight illegal practices for the most part in this area.
The process of self-regulation of the situation began with the fact that the largest exchangers of the crypto currency pool joined together to form the Korean Blockchain Association (KBA), which was already launched on January 26. These steps are extremely important for the long-term success of the crypto currency after unfavorable rumors. In general, like the Chinese, South Koreans still have mixed views on government plans, but the changes that have begun are a positive development for the industry.
The final version of the draft law on the regulation of the Crypto-currency, according to the instructions of the President of the Russian Federation Vladimir Putin, should be prepared in the first half of the year.
The bill will define the crypto currency, mining, tokens and ICO. As explained by Deputy Finance Minister Alexei Moiseev, the draft law is mainly concerned with the ICO, and the rules for the circulation of the crypto currency will be set somewhat later.
Anton Siluanov (Ministry of Finance of the Russian Federation): “I see the draft law, it is very framework.” As a matter of fact, as in the textbook, they give a description of the terminology, and everything. I think that the law should provide for regulating the activities that we are currently considering, this should be a full-fledged law I think that here it is necessary to work much deeper into the topic of regulator and go much deeper to this law. “
From China, for a long time already come different moods on the mood. At the end of January, there were multiple reports that China would lift the imposed ban on ICO, and on February 5, that radical plans could be implemented to ban all crypto-currencies with the blocking of websites, even indirectly related to ICO, including foreign ones. Previously, a similar ban was already introduced to block the presence of sites such as Facebook and Google in the country, and it can be extremely effective.
A report from Xinhua News Service on February 4 states that the authorities are starting to “prohibit all commercial deals, including blocking both commercial and corporate sites of the currency trade.” China still represents a significant part of the global crypto-currency market, and a complete lock-up will have irreversible negative consequences.
Probably, in Japan significant additional regulation is expected very soon. On January 28, it was reported that Coincheck (a large Japanese crypto exchange) was hacked, resulting in lost funds worth more than $ 500 million. Officials of the Ministry of Finance of Japan said that the country will conduct inspections, and crypto-currencies will be a problem at the next meeting of the G-20.
David Moskovitz (Indorse Pte): “The last theft will have two immediate effects: more regulation by the authorities over exchanges and a wider recognition of the advantages offered by decentralized ways of trade.”
The European Union only continues to talk about the need for regulation, without providing details or updates.
It is clearly visible that 2018 will become a year of significant additional regulation in the crypto community, and where and how it happens – can significantly affect the price of the currency. Recently, the value of most currencies has decreased noticeably, but this is not necessarily related to regulatory changes, and appropriate reasonable regulation on a national scale can be beneficial to the health of the cloud money ecosystem.