Connect with us

Regulation News

Cryptocurrency Donations To Japanese Politicians Are Unregulated

Published

on

Cryptocurrency Donations To Japanese Politicians Are Unregulated
Cryptocurrency Donations To Japanese Politicians Are Unregulated

Sanae Takaichi, Japan’s internal affairs, and communications minister have stated that cryptocurrency donations to individual politicians are not illegal in the country.

Takaichi made that statement at a news conference. During the event, she reportedly said that cryptocurrency donations are not subject to disclosure under the country’s Political Funds Control Act.

According to the report, Takaichi explained that Japan’s laws prohibit donations to politicians in fiat currencies and securities, and noted that crypto assets “do not fall under any of the above, and don’t limit donations.” When confronted about the possible negative implications of this regulation, Takaichi replied:

“Because addressing this problem would limit the political activities of politicians, this problem will be discussed by each party and each group.”

Regulation News

Telegram Asks Court To Block SEC Action

Published

on

Telegram Asks Court To Block SEC Action
Telegram Asks Court To Block SEC Action

Telegram responded to the United States securities regulator, arguing that Gram, the native cryptocurrency for the Telegram Open Network (TON), is not a security.

In an Oct. 16 filing, Telegram urged the United States District Court for the Southern District of New York to deny the U.S. Securities and Exchange Commission’s (SEC) request for a preliminary injunction. Moreover, the firm asked the court to enter an order that maintains the status quo regarding the offer, sale or distribution of Grams. The filing is released two days in advance of Telegram’s ordered deadline to release a counterclaim on Oct. 18, the firm noted in the document.

About the SEC’s recent emergency action against Telegram on Oct. 11, the filing document claims that ”the SEC’s instant application is an ‘emergency’ of its own making.” Reiterating its previous claims, Telegram’s legal council wrote that the firm has been voluntarily engaged with the authority regarding both the TON blockchain and Grams for the past 18 months, but the authority has not provided any clear feedback on the matter. Specifically, Telegram stressed that the authority allegedly decided to do so because Telegram promised to reimburse its investors in case if TON does not launch by Oct. 31. The filing reads:

“Despite the SEC knowing for 18 months that if the TON Blockchain did not launch by October 31, 2019, Telegram would be obligated under its agreements with private purchasers to return the funds it raised, the SEC (i) never requested that Telegram delay the launch of the TON Blockchain; (ii) never advised Telegram of its intention to seek injunctive relief; and (iii) waited until the eleventh hour to file an ex parte application to enjoin Telegram’s launch.”

In the document, Telegram pushed back the U.S. securities regulator by claiming that its Gram token is not a security. The firm emphasized that Telegram already treated the Private Placement as a securities offering according to valid exemptions to registration under the Securities Act of 1933. Once the TON blockchain launches, the grams will merely be a currency or commodity like gold or silver, but not a security, the firm wrote.

Telegram also considered the ambiguity of Gram’s connection with initial coin offering (ICO) products, stating that Telegram has never issued a security to the public through an ICO. Telegram explained that instead of doing an ICO-like product, the firm entered into private purchase agreements with a limited number of purchasers that provided the future payment of Gram currency. The firm wrote:

“Unlike other digital assets that were offered to the general public through so-called Initial Coin Offerings (“ICOs”), Telegram did not — and will never — offer any securities to the public through an ICO.”

While informing that court that Telegram has decided to delay the launch of the TON blockchain, the firm concluded that there is no need for the Court to enter a preliminary injunction in the filing. As reported, in addition to declaring Gram token illegal, the SEC also issued a temporary restraining order on the issuance of Gram tokens, with a court hearing scheduled for Oct. 24.

Continue Reading

Regulation News

IRS Is Adding Tax Questions To Income Tax Forms

Published

on

IRS Is Adding Tax Questions To Income Tax Forms
IRS Is Adding Tax Questions To Income Tax Forms

The United States Internal Revenue Service (IRS) has added a question on crypto ownership to the standard 1040 income tax form for the coming tax season.

On Oct. 11, a draft of the “Additional Income and Adjustments to Income” section of the new 1040 form surfaced that included a change was made to the ‘Additional Income and Adjustments to Income’ section. On the new 1040 form, the additional question reads:

“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”

the IRS had issued new guidelines for tax reporting on cryptocurrency airdrops and hard forks. The tax agency’s guidance answered questions about cryptocurrency transmissions for investors that hold cryptocurrencies as a capital asset and set general principles of tax law to determine that virtual currency is property for federal tax purposes.

United States-based accounting firm H&R Block started acting as an intermediary between crypto users and the IRS after the agency began sending letters to crypto traders who may have failed to report income and pay taxes. H&R Block can now assist people who have engaged in digital currency transactions, specifically providing consultations on how to properly file their cryptocurrency gains and losses on tax returns.

Continue Reading

Regulation News

Coinbase CEO Speaks Favorably About Libra

Published

on

Coinbase CEO Speaks Favorably About Libra
Coinbase CEO Speaks Favorably About Libra

Following a rousing presentation from David Marcus – the head of Facebook’s Libra – Coinbase CEO Brian Armstrong has come out in support of the developing cryptocurrency.  Libra is often depicted as a pretty divisive and maligned project. It’s not shocking to think that a cryptocurrency with plans of financial domination – emanating from a company with a checkered past of privacy problems – has regulators and citizens up in arms. 

Nonetheless, Libra now has at least one supporter, Coinbase’s CEO Brian Armstrong.  On Wednesday, Armstrong tweeted out a message of support for Libra, calling it “one of several important crypto projects;” adding that he doesn’t understand why it gets such a bad wrap.

Despite the apparent positive news for crypto pundits, there are still many obstacles ahead. Bitcoin and Ethereum are not legal tenders in most countries.  Furthermore, the state will have to convince their counterparts to accept crypto as a means of payment. And then also to possibly foot the hefty exchange bill when converting to their local currency. Unless of course they too accept cryptocurrency outright.  The Venezuelan Bolivar is reeling from the effects of hyperinflation and locals have limited access to the more stable U.S. dollar.

Continue Reading

TRENDING

Copyright © 2015 Crypto Global News Team.