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PR: Write off Crypto Losses With CoinTracking.info

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This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Last Thanksgiving, Bitcoin was in the middle of a bull run that would result in a record high of $19,511 just before Christmas. Now, Bitcoin is worth just $3,752.

If you bought Bitcoin and other cryptos when their prices were high, there’s a silver lining around the gray state of crypto markets now: any losses you take this year could place you in a lower tax bracket. What’s more, claiming those losses is easier than you might assume.

For the purposes of taxation, the US and most other governments consider cryptocurrencies to be assets. This means that whenever you trade cryptocurrency, the transaction falls into one of two categories: a capital gain or a capital loss.

Capital gain: A capital gain occurs when you sell cryptocurrency for more than the amount that you paid to purchase it.
Capital loss: If you sell cryptocurrency for less than the amount that you paid for it, this is considered to be a capital loss.

You have to sell or buy an asset to trigger a taxable gain or loss. Once you decide to make a move, tax authorities consider the loss to be “realized.” If your loss is great enough, you may be able to use it to enter a lower tax bracket.

One of the biggest benefits of claiming a loss is that you can offset income gained from other sources.

In the US, the IRS lets you deduct up to $3,000 worth of net capital losses each year from the amount of money you’ve earned at your day job. If the amount you lost was greater than $3,000, you can get another deduction of up to $3,000 when you file your taxes next year.

If you currently make just over $50,000 per year at your job, that $3,000 cryptocurrency loss could place you in a lower tax bracket. This could result in thousands of dollars of tax savings.

What’s more, if you’ve earned some income through stocks or through the sale of property, there’s no limit to the amount you can deduct from those revenues.

If you’re in the $38,701 – $82,500 tax bracket and your crypto capital loss deduction puts you below the $38,700 mark, you’d only have to pay $952.50 plus 12% of any amount over $9,525. But if you made $38,701 or more, you’d have to pay over four times as much in taxes, plus 22% of any amount over $38,700.

In other words, if you fail to deduct your crypto losses and you fall into the third bracket as a result, you’d have to pay at least $4,453.50 to the IRS. But if you do file your losses and make it into bracket two, you’d pay just $952.50.

Total tax savings: $3,501.50.

If you’re married and filing jointly or widowed, moving into a lower tax bracket can result in even more tax savings. If you made $77,402 in 2018, you’d have to pay the IRS $8,907 and change.

Dropping down to the $19,051-$77,400 tax bracket by filing a crypto loss would save you $7,002.

In addition to cryptocurrency traders, cryptocurrency miners can use deductions to reach lower tax brackets.

A notice that the IRS published in March of 2014 provides some relevant details:

“…when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income.”

If the value of the cryptocurrency you mined decreased and you decide to sell it, then that would mean that you have triggered a capital loss. You can report this loss in the same way that you would if you bought and then sold your coins through an exchange.

IRS analysts told CNBC that electricity costs and other expenses may be written off as well.

Figuring out how much you’ve made or lost can be a headache, particularly if you haven’t been keeping track of your purchases or if you placed a huge amount of trade orders last year.

Sorting out how much you lost or earned requires access to historical pricing data. Without that historical data, you won’t be able to determine what the price of your crypto asset was when you bought and sold it.

Fortunately, there is software available that can crunch all your crypto tax data for you.

With CoinTracking.info, can import your transactions from all your cryptocurrency wallets and exchanges. The interface walks you through how to do the imports.

At the end of the import process, you can download IRS form 8949. This is the form you need to submit to report your loss.

Other download options include CSV, TaxACT and TurboTax.

If you use a crypto tax calculator to do your own taxes, filing your taxes is a straightforward process. All you have to do is take the total from IRS form 8949 and transfer that to IRS form 1040 Schedule D.

In fact, most CPAs that work with crypto traders use CoinTracking and other publicly available software to determine what their clients owe. These tools are not difficult to use. Many have free trials, which let you see how they work for yourself before you commit.

If you lost money in crypto markets last year, you may be able to offset some– or perhaps even all– of those losses at tax time. Reporting your capital losses might help you move to a lower tax bracket. If your deductions qualify you for a lower bracket, filing them could save you thousands of dollars when you submit your taxes this year.

Press Contact Email Address
alex@cointracking.info

Supporting Link
https://cointracking.info

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Japan Reveals Expectations for Cryptocurrency Industry Self-Regulation

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In an exclusive interview with news.Bitcoin.com, Japan’s top financial regulator revealed its expectations for the self-regulation of cryptocurrency exchanges in Japan. The agency has approved a self-regulatory organization, which it is working closely with to ensure compliance. All 16 regulated crypto exchanges in Japan are members of this self-regulatory organization.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Working Together

Japan Reveals Expectations for Cryptocurrency Industry Self-RegulationThe Japan Financial Services Agency (JFSA), the country’s top financial regulator, granted the Japan Virtual Currency Exchange Association (Jvcea) self-regulatory organization (SRO) status under the Payment Services Act in October.

The JFSA explained to news.Bitcoin.com that it believes “the SRO can take actions flexibly to keep up with the fast-changing environment surrounding crypto-assets,” adding:

We think it necessary [for us] to work with the Jvcea closely so that the association can successfully perform self-regulatory functions through the establishment and application of self-regulatory rules and monitoring of their members.

Japan Reveals Expectations for Cryptocurrency Industry Self-RegulationThe association is expected to cooperate with the JFSA to instruct and supervise its members to “operate their businesses appropriately.” It is also expected work with them “to improve the safety of related systems through investigation and research on security” and disseminate “information externally to increase the awareness of exchange users,” the agency described.

Furthermore, the association is expected to “set out detailed wallet management processes from the system security point of view and the cross-sectoral rules in areas that are not covered by the laws/regulations, for example, margin trading, for the users’ protection,” Japan’s top financial regulator noted, elaborating:

We expect that through self-regulation, clearer and more detailed rules will be provided as to provisions that are not specified under the existing laws/regulations, as well as self-discipline in areas that are not covered by the laws and regulations.

Adhering to Self-Regulatory Rules

Japan Reveals Expectations for Cryptocurrency Industry Self-RegulationAll of Japan’s 16 registered cryptocurrency exchanges are members of the Jvcea. Initially, only registered exchanges could join the association. However, after it was granted SRO status, the association opened up membership to other cryptocurrency operators. According to local media, deemed dealers, which are companies that have been allowed to operate while their applications are being reviewed by the JFSA, can also join the association.

Japan Reveals Expectations for Cryptocurrency Industry Self-RegulationThe JFSA confirmed to news.Bitcoin.com that “It is not a legal obligation for virtual currency exchange service providers to be a member” of a self-regulatory organization. “However, from the perspective of user protection, the JFSA monitors whether virtual currency exchange service providers conduct their businesses appropriately, taking self-regulatory rules into account.” In other words, crypto exchanges are expected to uphold self-regulatory standards even if they are not members of the Jvcea.

The agency revealed that it “works closely with the association by exchanging views about various issues on a regular basis and sharing information on members, unregistered business providers and user complaints,” emphasizing:

In cooperation with the Jvcea, the JFSA has been monitoring virtual currency exchange service providers as to their compliance with self-regulation as well as the laws and regulations.

In terms of whether the JFSA will approve another self-regulatory organization, the agency noted that “There is no limit to the number of SROs under the laws/regulations.” The regulator added, “In the event that another SRO submits an application for approval, the JFSA will scrutinize it from the viewpoint of the applicant’s effectiveness in performing self-regulatory functions.”

What do you think of Japan’s approach to self-regulation for the crypto industry? Let us know in the comments section below.


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Indian Crypto Exchange Sees Record Trading Volumes Amid Regulatory Uncertainty

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Despite regulatory uncertainty and banking restriction imposed by the country’s central bank, an Indian cryptocurrency exchange is seeing record trading volumes every month. The CEO of Wazirx told news.Bitcoin.com that the recent uptick in crypto prices has prompted a lot of Indians to start trading again.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Record Trading Volumes

Indian Crypto Exchange Sees Record Trading Volumes Amid Regulatory UncertaintyIndian cryptocurrency exchange Wazirx is seeing record trading volumes despite a number of conditions that dampen trader sentiment such as the crypto banking ban imposed by the country’s central bank, the Reserve Bank of India (RBI).

The exchange’s CEO, Nischal Shetty, told news.Bitcoin.com on Monday that “In a flat market coupled with banking restriction,” there is little motivation for Indians to trade cryptocurrencies. However, he elaborated:

The recent uptick in the crypto prices has gotten a lot of Indians trading again … whenever there’s volatility people forget the problems and start trading. That’s exactly the reason why we’re seeing our volumes shooting up so fast.

Indian Crypto Exchange Sees Record Trading Volumes Amid Regulatory UncertaintyThe RBI issued a circular in April banning financial institutions under its control from providing services to crypto companies. Responding to the banking restriction, Wazirx launched an exchange-escrowed peer-to-peer (P2P) platform in July, with Shetty repeatedly saying that the response to this service has been “tremendous.”

He further shared that his exchange has been “hitting new peaks in volume every month,” adding that this month it surpassed 200 BTC in daily trading volume for the first time. “200 BTC in 24 hours was our record high and the highest by any exchange in India right now,” he claimed. Noting that this record high was achieved within nine months of launching his exchange and during a bear market, he concluded:

Considering the banking restriction in place, this is great news for the Indian crypto sector.

On Localbitcoins, the number of BTC traded in INR has also been growing, with 302 BTC traded in the week of Dec. 22 as well as in the previous week.

Indian Crypto Exchange Sees Record Trading Volumes Amid Regulatory Uncertainty

Regulatory Uncertainty

Indian Crypto Exchange Sees Record Trading Volumes Amid Regulatory Uncertainty
Subhash Chandra Garg

The Indian government is expected to finalize the regulatory framework for cryptocurrencies in the near future. The panel, tasked with providing recommendations regarding crypto regulatory measures, has reportedly submitted its report to the government. This panel is headed by Subhash Chandra Garg, the country’s Economic Affairs Secretary.

Commenting on the upcoming crypto regulatory framework, Shetty told news.Bitcoin.com, “I have to remain optimistic,” noting:

I believe in our government, that they’ll listen to our voices. I’ve been running a Twitter campaign and it’s gaining traction amongst Indian crypto users. As the campaign grows it’ll be harder to ignore.

The CEO started his Twitter campaign on Oct. 31, calling for positive regulations for the Indian crypto space. Meanwhile, the country’s supreme court is set to hear the petitions against the RBI ban in January.

What do you think of the crypto ecosystem in India? Let us know in the comments section below.


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Japan’s GMO Quits Manufacturing and Selling Mining Machines

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Japanese internet giant GMO has announced that it will no longer develop, manufacture, and sell cryptocurrency mining machines. The company will, however, continue to mine in-house but will relocate its mining center to a region with cleaner and less expensive energy.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Exiting the Mining Equipment Business

Japan’s GMO Quits Manufacturing and Selling Mining MachinesGMO Internet Inc. announced on Tuesday following a board of directors meeting that it “will no longer develop, manufacture, and sell mining machines.” The company is posting an extraordinary loss of 24 billion yen (~$218 million) related to these activities for the fourth quarter of the fiscal year ending December 2018.

Japan’s GMO Quits Manufacturing and Selling Mining Machines“Regarding the current mining machine markets, the environment is increasingly competitive because of the decreased demand mainly due to the decline in the cryptocurrency price, the decline in the sales price, etc,” the announcement reads. After considering changes in the current crypto environment, GMO wrote:

The company expects that it is difficult to recover the cryptocurrency mining business-related assets through selling mining machines, so the company has decided to stop the development, manufacture, and sales of mining machines, thereby recording an extraordinary loss.

In addition, GMO noted that it has purchased mining machines and paid the costs required to manufacture its 7nm machines. With the decision to exit the manufacturing business, GMO revealed that it will transfer related assets held to MP18 Llc, a special purpose company of Tani Electronics Corporation.

Japan’s GMO Quits Manufacturing and Selling Mining Machines

GMO first announced the development of its 7nm bitcoin mining equipment in September last year. Miner B2, the first line of its mining equipment, went on sale in June for $1,999. Another line, Miner B3, went on sale in July for the same price. The first batch of B2s was supposed to be shipped at the end of October and B3s in November. However, to date, no mining machines of either type have been shipped.

In-House Mining

Japan’s GMO Quits Manufacturing and Selling Mining MachinesFor its in-house mining business, launched in December last year, GMO is posting an extraordinary loss of approximately 14 billion yen on an unconsolidated basis (11.5 billion yen on a consolidated basis) for the fourth quarter of the fiscal year ending December 2018.

The company explained that the profitability of its in-house mining business “decreased as the cryptocurrency price declined and our mining share did not increase as expected due to the rise of the global hash rate, which went beyond our initial assumption,” noting:

After taking into consideration changes in the current business environment, the Company expects that it is difficult to recover the carrying amounts of the in-house-mining-related business assets, and therefore, it has been decided to record an extraordinary loss.

GMO mined 696 BTC and 400 BCH in November. Its hashrate has been steadily growing as planned, its latest in-house mining report shows. “We will introduce the mining machine from other manufacturers to the in-house mining. Our plan is to see
our hash rate surpass 800 PH/s by the end of December,” the company said earlier this month.

In its Tuesday’s announcement, GMO noted that “Depreciation cost of mining machines and electricity cost comprise the majority of operating expenses,” elaborating:

In terms of the electricity cost, we will relocate the mining center to a region that will allow us to secure a cleaner and less expensive power supply.

What do you think of GMO exiting the business of manufacturing and selling mining machines? Let us know in the comments section below.


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China Now Ranks 34 Crypto Projects

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China’s Center for Information and Industry Development has released its latest crypto project ranking. The center evaluated one more crypto project this month, bringing the total number of ranked projects to 34. Bitcoin has been downgraded while the top two positions remain unchanged.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

December Update

China Now Ranks 34 Crypto ProjectsThe Center for Information and Industry Development (CCID), under China’s Ministry of Industry and Information Technology, released its eighth crypto project ranking update on Thursday. Thirty-four crypto projects were evaluated this time, with Ontology as the newest addition.

EOS remains number one in the overall ranking, followed by Ethereum. Ontology debuted at number five. BTC dropped from the 13th position in the previous ranking to the 18th position, while BCH fell one place from the 29th spot to the 30th. Dwelling at the bottom is Decred, with NEM and Litecoin ranking just above it.

China Now Ranks 34 Crypto Projects

New Addition: Ontology

China Now Ranks 34 Crypto ProjectsOntology describes itself as a distributed trust collaboration platform. Its “blockchain framework supports public blockchain systems and is able to customize different public blockchains for different applications,” according to its website. The center specifically evaluated Ont ID, Ontology’s protocol for a “complete distributed identity framework supporting identity verification and authentication for people, assets, objects, and affairs.” According to the CCID:

Its [Ontology’s] main network was launched in June 2018. In this assessment, Ontology has outstanding performance in basic technology and application, with a composite index of 112.6, ranking fourth in the [overall] list.

Rankings Across 3 Categories

The 34 projects were evaluated overall as well as in three separate categories: basic technology, applicability and innovation.

China Now Ranks 34 Crypto ProjectsIn the basic technology category, EOS, Bitshares, Steem, Gxchain, and Ontology top the list this month. NULS has improved rapidly in this category, the CCID revealed. “According to the evaluation model, the basic technology [category] mainly examines the technical realization level of public chains, including functionality, performance, security and decentralization.”

In terms of applicability, the top five projects are Ethereum, NEO, Ontology, Nebulas, and Qtum. “The new Ontology replaced Dash in the top five,” the center wrote. “The applicability [category] mainly evaluates the comprehensive level of public chain support for practical applications, including node deployment, wallet application, development support and application implementation.” As for the innovation category, the top five positions are occupied by BTC, EOS, Ethereum, Komodo, and Cardano.

What do you think of this crypto project ranking? Let us know in the comments section below.


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South Korean Business School Launches Crypto MBA Program

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A major business school in South Korea is now offering a master’s degree in cryptocurrency. Crypto MBA is a one-and-a-half-year program that covers topics such as Bitcoin, Ethereum, smart contracts, crypto funds, Dapp planning, game theory, and how to write persuasive whitepapers. Meanwhile, the government is working on follow-up crypto regulations.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Crypto MBA

South Korean Business School Launches Crypto MBA ProgramSeoul School of Integrated Sciences and Technologies, often known as Assist, announced on Friday that it is now offering a Master of Business Administration (MBA) degree program dedicated to cryptocurrency and blockchain technology. The new course is “a master’s degree program in blockchain, cryptoeconomics and token economy courses from technological, cryptoeconomic and business strategic perspectives,” the school described.

Claiming that it has “launched the world’s first crypto MBA course for a business graduate school,” Assist wrote:

The mission of Assist business school’s Crypto MBA program is to remedy the lack of academic research and systematic education currently available in the industry, despite a high level of social interest in the blockchain and cryptocurrency.

South Korean Business School Launches Crypto MBA ProgramThe professional graduate school has been offering master’s degrees and doctorate degrees in business administration since 2004. Its website claims that the school “has been evaluated as the no. 1 graduate school for business administration,” noting that large corporations such as LG Electronics, KT, Doosan Infracore, and Korea Electric Power Corporation continuously use its courses.

Crypto Curriculum and Regulation

South Korean Business School Launches Crypto MBA ProgramAccording to Friday’s announcement, “The curriculum includes Bitcoin, Ethereum, smart contract, cryptology, EOS, deep learning and system dynamics mechanisms. The cryptoeconomics curriculum consists of digital currency studies, microeconomics, macroeconomics, behavioral economics and theory on currency finance, game theory and mechanism design.” In addition, students will learn about “management mechanisms, strategic statistics, digital financial accounting, digital marketing strategies, crypto funds, Dapp planning and writing strategy for the persuasive whitepaper.”

South Korean Business School Launches Crypto MBA ProgramThe South Korean government is currently working on additional crypto regulatory measures following the implementation of the real-name system in January. Initial coin offerings (ICOs) have been banned domestically since September last year. However, a number of lawmakers have introduced several bills to regulate them.

Recently, a fintech startup filed a complaint with the country’s constitutional court alleging that the government’s ICO ban is unconstitutional.

Crypto Classes on the Rise

While Assist offers an actual MBA degree in crypto, a growing number of business schools worldwide have added crypto classes including Stanford Graduate School of Business, Wharton School of the University of Pennsylvania and Georgetown University Mcdonough School of Business. Cnbc previously reported that these top schools “are expanding classes in digital currency and blockchain to keep up with demand from students and their future employers.”

South Korean Business School Launches Crypto MBA ProgramStanford’s business school, ranked number one globally by the Financial Times this year, added a course called “Cryptocurrencies and Blockchain Technologies.” The school’s website describes, “The course covers all aspects of cryptocurrencies, including distributed consensus, blockchains, smart contracts and applications. We will focus in detail on Bitcoin and Ethereum as case studies.”

Wharton, ranked number one by Forbes, added a class in the fall called “Blockchain, Cryptocurrency, and Distributed Ledger Technology,” while Georgetown offers an elective that teaches topics such as the history and evolution of fintech, blockchain technology, and their applications.

What do you think of the Crypto MBA program? Let us know in the comments section below.


Images courtesy of Shutterstock, Assist, and the South Korean FSC.


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Officials at Top Korean Cryptocurrency Exchange Upbit Indicted for Fraud

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Officials at South Korea’s largest cryptocurrency exchange, Upbit, have been indicted for fraud. They allegedly made bogus crypto orders worth approximately $226 billion and sold 11,550 BTC to around 26,000 investors. Upbit has denied the charges and insisted that it did not commit fraud, engage in wash trades, or trade cryptocurrencies it did not own.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Officials Indicted

Officials at Top Korean Cryptocurrency Exchange Upbit Indicted for FraudThree officials at South Korea’s largest cryptocurrency exchange, Upbit, have been “indicted for offering fraudulent transactions and swindling money from investors,” Yonhap reported Friday.

According to the Southern Seoul District Prosecutors’ Office, a board chairman, a financial director and a working-level official of the exchange “allegedly opened a fake account around September last year,” the news outlet conveyed. The prosecutors said the officials “made bogus orders worth 254 trillion won (US$226.2 billion) over a period of about two months to inflate the currency transactions and lure more customers,” the publication detailed, adding:

While rigging transactions, they actually sold 11,550 bitcoins to around 26,000 customers and pocketed 150 billion won.

Upbit is currently the largest cryptocurrency exchange in the country, with over 50 percent domestic market share. With an adjusted 24-hour trading volume of almost $1.1 billion at the time of this writing, the exchange currently ranks as the world’s third-largest crypto exchange, according to Coinmarketcap.

Upbit Denies Allegations

Officials at Top Korean Cryptocurrency Exchange Upbit Indicted for FraudYonhap also reported that Upbit “strongly denies the allegations.” The investigation into the exchange’s operations started eight months ago.

On Friday, the Kakao-backed exchange released a detailed explanation of what happened. “First of all, we would like to express our deepest regrets for causing much anxiety aroused by the indictment,” the exchange began. “The case is related to some transactions during a three-month period [last year], from Sept. 24 to Dec. 31.” Noting that its exchange was launched on Oct. 24, Upbit explained that all transactions in question were from “when our company was preparing for and had just launched Upbit service. All transactions which took place in Upbit after that period are not related to the case.” The exchange wrote:

Upbit did not commit wash trading (cross trading), imaginary orders (provision of liquidity), or fraudulent trading. The company did not trade cryptocurrencies which it didn’t own, or have its staff and employees benefit from such trading.

Upbit continued to explain that “Liquidity has been provided through a corporate account, and no one was swindled out of benefits or engaged in fake trading during the process.” Upbit, however, admitted that “For about two months after launching the service, some cross trading took place for marketing purposes.” Nonetheless, the exchange claims that “such trading had no influence on the market price, and the volume of such trading took up about 3% of the total trade volume at that time.”

The exchange also noted that its auditor has confirmed three times — on Jan. 19, June 28, and Oct. 8 — that its combined cash and cryptocurrency balance exceeds the amount owed to customers. “As of Oct. 8 when the most recent audit took place, Upbit held about 103% of the cryptocurrencies payable to customers. Also, Upbit’s bank balance is 165% of the cash payable to customers,” claimed the company’s statement released on Friday.

Do you think Upbit is guilty? Let us know in the comments section below.


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US Lawmakers File Bill to Exclude Cryptocurrencies From Securities Definition

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Two U.S. congressmen have introduced a bill aimed at amending the country’s securities laws to exclude cryptocurrencies from the definition of a security. The bipartisan bill also seeks to adjust taxation and create tax exemptions for certain cryptocurrency transactions.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Bill Introduced

US Bill to Exclude Cryptocurrencies From Securities Definition FiledU.S. Reps. Warren Davidson, R-Ohio, and Darren Soto, D-Fla, introduced a bipartisan bill on Thursday aimed at excluding cryptocurrencies from the definition of a security. The bill, called Token Taxonomy Act, seeks “To amend the Securities Act of 1933 and the Securities Exchange Act of 1934 to exclude digital tokens from the definition of a security,” according to the text of the bill.

US Bill to Exclude Cryptocurrencies From Securities Definition FiledIt also directs the Securities and Exchange Commission (SEC) “to enact certain regulatory changes regarding digital units secured through public key cryptography.” Moreover, it seeks to “adjust taxation of virtual currencies held in individual retirement accounts, to create a tax exemption for exchanges of one virtual currency for another, to create a de minimis exemption from taxation for gains realized from the sale or exchange of virtual currency for other than cash, and for other purposes.”

Cnbc explained that the bill resulted primarily from a September roundtable hosted by Davidson. More than 50 industry participants attended including Fidelity, Nasdaq, State Street, Andreessen Horowitz and the U.S. Chamber of Commerce, the news outlet noted, adding that this bill has been in the works for months.

Changing the Law

US Bill to Exclude Cryptocurrencies From Securities Definition FiledThe bill introduced on Thursday defines digital tokens and clarifies why securities laws do not apply to cryptocurrencies. Currently, the SEC uses the Howey Test to determine whether a cryptocurrency is a security.

Last month, U.S. District Judge Gonzalo P. Curiel ruled that the commission was not successful at showing the court that Blockvest tokens were securities based on the Howey Test. The agency has been cracking down on numerous cryptocurrency projects this year.

SEC Chairman Jay Clayton has emphasized that he does not intend to update the commission’s standards to include cryptocurrencies. At the Senate hearing earlier this year, he said that every ICO he had seen is a security. The only exceptions were BTC and ETH, he clarified, noting that the two cryptocurrencies are regulated as commodities by the Commodity Futures Trading Commission (CFTC).

“This week’s bill is largely symbolic,” Cnbc elaborated. “Friday is likely the last day Congress is in session and the bill will need to be reintroduced next year, when Democrats are in control of the House.”

Do you think cryptocurrencies will be excluded from the definition of a security? Let us know in the comments section below.


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Thai SEC Plans to Relax ICO Regulations

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The Thai Securities and Exchange Commission (SEC) is reportedly planning to ease the country’s regulation for initial coin offerings. The regulator is conducting a public hearing to relax rules on pre-sales and private token sales. The commission has also unveiled plans to prevent the exploitation of token sales.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Relaxing Rules

The Thai SEC made an announcement regarding the country’s regulation for initial coin offerings on Thursday. According to the Bangkok Post:

The [Thai] Securities and Exchange Commission (SEC) is conducting a public hearing to relax regulations on pre-sales and private sales of initial coin offerings (ICOs), aiming to reduce impediments for ICO issuers raising funds.

Thai SEC to Relax ICO RegulationsThe current regulations apply to all token sales including pre-ICO and private sales, the news outlet explained. Noting that the change will reduce burdens for token service providers, the publication continued: “The existing regulations are barriers for ICO fundraising in practice, so the SEC plans to relax certain rules for digital token sales made through private placement to specific investor groups. The intention is to allow private digital token sales to proceed without the need to submit registration statements and a draft prospectus.”

Thailand enacted the royal decree on digital assets on May 14, putting the Thai SEC in charge of regulating all activities relating to cryptocurrencies and ICOs. Crypto exchanges, brokers and dealers must be licensed by the commission. Currently, six exchanges and one dealer have received temporary licenses but no ICO portal has been certified. SEC secretary-general Rapee Sucharitakul previously said that an ICO portal was likely to be certified in November. However, after evaluation, the regulator reportedly said that the portal will not be approved this year due to some security issues.

ICO Regulatory Framework in the Works

Thai SEC to Relax ICO RegulationsIn a statement posted on the Thai SEC’s website on Thursday, SEC assistant secretary-general Praoporn Senanarong explained that “The Thai government is in the process of considering the appropriate regulatory framework” for token sales. She emphasized that ICO funding “must be done through an ICO portal approved by the SEC to help screen ICOs and increase transparency.” Comments on the regulatory framework for ICOs can be submitted to the SEC until Jan. 22 next year.

Senanarong further noted that there is no investment limit for institutional investors, venture capitals, or high net worth investors. However, there is a limit for retail investors. The Bangkok Post added that, over a 12-month period, each token sale will be limited to 50 investors, while the investment limit for individual investors will be 20 million baht (~$611,957). The news outlet further elaborated:

To prevent exploiting investment opportunities during public ICOs, the SEC plans to require all ICO issuers to distribute all digital tokens to every investor group at the same time after public ICOs end. Digital tokens receiving a discount or bonus will have a lock-up period of six months starting from the first day of digital token distribution.

What do you think of the Thai SEC wanting to relax its ICO rules? Let us know in the comments section below.


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