17th of September 2018, read the highlights of the latest cryptocurrency and blockchain news.
Staying up to date with all the latest crypto news can be overwhelming. Screening through Reddit’s home page, Twitter’s feed and keeping up with your favorite Youtuber can be tiresome. Just sit back with a cup of coffee, we’re here to digest some of the top crypto news of the week for you.
Japan’s financial regulator, the Financial Services Agency (FSA), has recently published a document disclosing the current state of crypto regulations and the latest exchange registrations. According to that report, out of the 16 companies that have been allowed to operate crypto exchanges in Japan, three have survived the agency’s recent inspections and one was rejected.
In addition, the FSA needs to process and evaluate approximately 160 new crypto companies that have expressed their intention to enter this booming industry. In that regard, the FSA is seeking additional workforce to help them review all the applicants.
Japan is presenting new crypto regulations, how do you see regulations evolving in the crypto industry?
New Crypto Bill Filed in the Ukrainian Rada
In Kiev, a new drafted bill classifies cryptocurrency as a virtual asset that can function as a means of exchange and a of store value. Tokenized assets, on the other hand, certify property or other rights of their holders that correspond to the obligations of an issuer. According to this proposal, crypto incomes and profits of both private individuals and corporate entities will be subjected to only 5% tax until 2024.
With this new law, the government would only be responsible for regulating transactions that involve the exchange of cryptocurrency to fiat money, the state would not have any responsibilities related to the oversight of crypto-to-crypto trading.
Alternative Law on Digital Assets Proposed in Russia
In Moscow, the managers of leading Russian enterprises represented by the Russian Union of Industrialists and Entrepreneurs (RUIE), have prepared their own version of the law on digital financial assets which contains the legal term “cryptocurrency” and differentiates it from tokens.
Initial Coin Offerings (ICOs), will not be required to apply for licenses from the Centrobank and the tokens will serve as evidence of a civil law contract concluded between the ICO projects and the investors. In the end, the ICO will only have to abide by the rules applicable to traditional securities.
The draft is still under consideration and will be discussed with the regulatory agencies in October. Some of Russia’s top managers, including the president of the mining and metallurgical company Nornickel, Vladimir Potanin, the head of Rostelecom, Mikhail Oseevsky, and the president of the Skolkovo Fund, Viktor Vekselberg, are participating in the working group developing the bill.
New crypto legislations are in the making in Ukraine and Russia, what are the legal developments where you live?
The government of Mexico has put the Bank of Mexico in charge of their crypto industry. The central bank will decide which cryptocurrencies are legal (list hasn’t been publish yet) and fintech companies will need to gain their approval to be able to operate in Mexico. According to the president of the National Banking and Securities Commission (CNBV), Bernado Gonzalez, “The fintech law is meant to regulate financial and technological institutions in Mexico, making it the first country in Latin America to establish a legal framework for this type of company [crypto]”.
What do you think about the planned crypto regulations in Mexico?
Leading crypto companies in the United States have teamed up to establish the Blockchain Association — the first lobbying group in Washington. This lobbying group aims to establish a dialogue between the crypto companies and lawmakers and tackle policy issues such as legal status and tax laws. The association will work to encourage collaboration between industry leaders and the community and educate both lawmakers and the public on the potential benefits of the blockchain technology.
What do you think of the new blockchain lobbying group in Washington, could they make a difference?
Australia’s newly-elected Prime Minister Scott Morrison believes that blockchain technology will disrupt and bring “much tougher competition” to the big banks and other sectors in the country. While not directly endorsing cryptocurrencies, Morrison has previously pushed favorable laws for domestic cryptocurrency adopters. In early 2016, the then treasurer confirmed the government was working toward removing the double taxation of transactions involving cryptocurrencies like bitcoin.
Do you believe that blockchain technology can disrupt the banks and other industries?