Category Archives: Cryptocurrency

In the United States, the SEC does not regulate platforms such as Coinbase primarily because digital currencies are not considered a security.

Reuters

Cryptocurrency industry participants are warning that recent guidelines imposed by Canadian securities regulators on crypto-trading platforms could lead foreign-based platforms to block Canadian users rather than comply with the regulations.

Foreign crypto-exchange giants such as Coinbase Inc., Binance and Gemini are popular in Canada because they offer a wide range of assets and generally more favourable buy and sell rates.

On Monday, the Canadian Securities Administration an umbrella group of all 13 provincial and territorial securities regulators released guidelines compelling all crypto-trading platforms, including non-Canadian ones, to register with the relevant authorities and bring their operations into compliance.

Story continues below advertisement

It is reasonable and likely to expect that many of the big foreign platforms will not want to comply to Canadian securities legislation and will instead shut off access to Canadian investors, said Brian Mosoff, chief executive officer of Toronto-based Ether Capital Corp.

Mr. Mosoff, who is also a member of the Investment Industry Regulatory Organization of Canada (IIROC)s crypto-asset working group, said large foreign platforms can benefit local investors because they tend to be technically superior and offer exposure to a variety of innovative assets.

It is possible in the near term Canadians will be cut off from these platforms if they feel that there is no benefit to undertake the expense and time to comply with Canadian regulators.

The Globe and Mail asked several popular foreign crypto platforms that offer services in Canada, including Coinbase, Binance, FTX Exchange and Gemini, if they had begun registering with Canadian regulators or intended to. Only Coinbase responded, saying it does not have anything to share on the topic right now, but might have more to discuss in the future.

Jonathan Ip, a lawyer whose clients are predominantly blockchain and cryptocurrency companies, said Canadian investors could be left with fewer choices. The offshore platforms might say, Okay, thats nice that you have these new regulations and all, but Canada is a small market for us, so well just pack up and leave altogether, he said.

As part of the new regulation, platforms that facilitate trading in security tokens or contracts involving crypto assets will have to register to become investment dealers and eventually, members of IIROC. The deadline to get in touch with regulatory authorities about being regulated is April 19, 2021.

Most of these platforms are currently required only to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), a government agency responsible for tracking and policing money laundering and terrorist financing.

Story continues below advertisement

In the United States, the Securities and Exchange Commission (SEC) does not regulate platforms such as Coinbase primarily because digital currencies are not considered a security.

We dont want to see our competitors shut down, but of course we do have the platform capacity to take on additional accounts if foreign platforms decide to exit, said Stacey Hoisak, the recently appointed CEO and general counsel of Coinsquare, a Toronto-based trading platform for digital assets.

The company and its former executives were fined $1.9-million by the OSC last July after admitting to market manipulation and retaliating against an internal whistle-blower. Regulators forced Coinsquare to register with the OSC and IIROC.

It is a costly process and time-consuming. But we are really happy to work with regulators and engage in a more collaborative process in regulating the industry, Ms. Hoisak added.

Justin Hartzman, co-founder and CEO of Toronto-based crypto exchange CoinSmart, agreed it was possible offshore exchanges will leave Canada if the cost of regulation is deemed too high relative to the market opportunity, but added that this would be a good thing for his company.

Other Canadian crypto-trading platforms also appeared to welcome the new regulatory guidance.

Story continues below advertisement

Registration does add certain significant costs in terms of registration and legal fees to complete the IIROC application process and become registered but we believe that the guidance released by the CSA yesterday is helpful as it provides further clarity around operating in our industry that we have been seeking, said Pamela Draper, the CEO of Bitvo Inc., a Calgary-based cryptocurrency exchange.

Mr. Mosoff said the new guidelines, while necessary to protect investors, are perhaps not entirely appropriate for the cryptocurrency industry. I feel sorry for everyone the regulators who are trying to understand this, the investors trying to get involved in an entirely new asset class and the platforms that are trying to be cutting-edge.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Read the original:
Concerns mount over cryptocurrency guidelines - The Globe and Mail

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is likely to be tabled in Parliament soon. While details of the Bill are not yet known, various voices from within the government have talked about imposing a blanket ban on cryptocurrencies or experimenting with them or allowing them in only limited and closely monitored scenarios.

But what is this currency thats making the world go round? To know, lets get back to basics. What is a cryptocurrency? Its a virtual currency. Every crypto-coin is a unique code, like the serial ...

Key stories on business-standard.com are available to premium subscribers only.

MONTHLY STAR

Business Standard Digital Monthly Subscription

Complete access to the premium product

Convenient - Pay as you go

Pay using Master/Visa Credit Card & ICICI VISA Debit Card

Auto renewed (subject to your card issuer's permission)

Cancel any time in the future

Note: Subscription will be auto renewed, you may cancel any time in the future without any questions asked.

Requires personal information

SMART ANNUAL

Business Standard Digital - 12 Months

Get 12 months of Business Standard digital access

Single Seamless Sign-up to Business Standard Digital

Convenient - Once a year payment

Pay using an instrument of your choice - Credit/Debit Cards, Net Banking, Payment Wallets accepted

Exclusive Invite to select Business Standard events

Note: Subscription will be auto renewed, you may cancel any time in the future without any questions asked.

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, March 20 2021. 06:10 IST

Read the original post:
Decoded: What is a cryptocurrency and how does a blockchain work? - Business Standard

In 2021, food retailers need to educate themselves about digital currencies and the looming reality that businesses will eventually need the ability to accept various digital currencies. Already there are currency kiosks in place capable of processing Bitcoin and 30 other digital variants.

It can quickly become overwhelming, but knowing how the currencies are mined and tracked to say nothing of blockchain and associated technologies is hardly the most important thing for food retailers in 2021, according to Chris McAlary, CEO of Las Vegas-based digital currency services firm CoinCloud.

If they wanted to go down that rabbit [hole] now, they could, but there is no reason, says McAlary, adding that one doesnt have to know how mobile phone service works at its technological core to craft a mobile marketing program.

Whats more vital is that all age groups are using digital currency the companys largestconsumer group by volume is women age 45 and older and that the transaction technology is quickly gaining legitimacy in the financial world. In addition, payment services such as PayPal are enabling digital currency transactions. No doubt, food retail consumers will one day expect such options while buying groceries.

Thats not the only positive change, according to McAlary. Compliance has caught up, he says about digital currencies in general. Any company like us has to follow a KYC process. KYC is an acronym for know your customer, and such processes require financial services providers to verify that their customers are indeed legitimate, in hopes of preventing fraud and other illegal activities.

For now, though, the main intersection between food retail and these forms of paymentinvolves the location of digital currency ATMs or, as CoinCloud calls them, digital currencymachines (DCMs) inside supermarkets, which are themselves becoming centers of bankingactivity. Those machines in turn draw traffic into stores and are paving the way for moreadoption of digital currency in the food retail space.

Mass adoption is here, says McAlary, referring to the companys base of 1,500 machines in 45 states. Its no longer underground. There are a lot of different use cases for these digital currencies, not just investing, but payment and smart contracts and gaming.

Further evidence of mass adoption is evident from the growing partnership between Coinstar and Coinme. The companies said last December that their installed base of Bitcoin-enabled kiosks had surpassed 5,000 locations.

The fast-moving expansion of Bitcoin-enabled Coinstar kiosks means that more Americans than ever now have the power to invest in digital currencies and stake their claim in the future of money even on a quick trip to the grocery store, notes Neil Bergquist, CEO of Seattle-based Coinme.

Meanwhile, CoinFlip says that it grew its ATM network from 441 ATMs in January 2020 to more than 1,400 by the end of that year, with locations in 45 states. The Chicago-based company adds that it saw an average 48% increase in the amount per customer transaction in 2020. According to CEO and founder Daniel Polotsky, a single machine can bring in from 100 to 200 people into a store who otherwise wouldnt visit it. Whats more, food retail stores get a cut of that business.

As digital currency continues to gain ground, food retailers should, at the very least, startplanning their moves by treating Bitcoin and its competitors as another form of alternativepayment.

Do your homework and understand on a higher level how it works, advises CoinClouds McAlary, directing retailers to blogs run by companies such as his. If they are not thinking about it now, they are probably going to be left behind.

The rest is here:
The Grocer's Guide to Cryptocurrency - Progressive Grocer

Geltrude & Company founder Dan Geltrude provides insight into how cryptocurrency is taxed.

The phenomenon of underground cryptocurrency and its economic boom is raising questions as to how, or if, earnings are taxable.

Geltrude & Company founder and CPA Dan Geltrude explained to Cavuto: Coast to Coast Thursday that if crypto earnings areconsideredcapital gains, then they must be filed as such on a tax return.

Every time you use, lets say, Bitcoin, youre actually potentially triggering a taxable transaction, he said. Because when you use that Bitcoin if youre getting value greater than what you paid, what the basis was, its like a stock. You now have a gain and its taxable. So its got to be reported.

BITCOIN HITS $60,000 IN RECORD HIGH

According to Geltrude, the Internal Revenue Service (IRS) is hot on the issue. The Fraud Enforcement Office has launched Operation Hidden Treasure in search of unreported income in the form of transactional cryptocurrency.

1040 tax return forms for 2020 now question taxpayers if they have transacted in cryptocurrencies, Geltrude added, and prompt a signature under penalty of perjury.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

For Americans who have been paid in cryptocurrency, Geltrude explained thosetransactions becomea basis as would any other form of payment.

When you got paid, its no different than getting paid by credit card or cash, so whatever profit you had in the transaction, you pay there, he said.

Now youve received the Bitcoin, now you have to track what your basis is as of that transaction. Because when you go to use the cryptocurrency, you are creating potentially another taxable event. Its going to be nuts!"

CLICK HERE TO READ MORE ON FOX BUSINESS

Excerpt from:
How will cryptocurrency earnings be taxed? - Fox Business

Paris, March 17, 2021 -Governments might look askance at bitcoin, but it does not mean they do not want to cash in on its soaring value and France is set to pocket nearly $30 million from its first-ever action of the cryptocurrency, a minister said on Wednesday.

The sale was of more than 600 coins seized as part of an investigation and were valued at more than $30 million based on current market prices.

Held online by the Kapandji Morhange auction house, the sale attracted nearly 1,600 bidders.

"It's a sale that will raise 24 million euros ($29 million) in proceeds for the government", the minister of public finances, Olivier Dussopt, told the television channel, BFM Business, at the end of the auction.

When preparations got underway in September, bitcoin was trading around $10,000, far from the $60,000 it struck over the weekend, putting the sale of 611 coins in an altogether different league.

When bidding began at 9:00 am (0800 GMT), the starting price stood at 23,250 euros per coin, but most of the coins sold for around 40,000 euros apiece, more or less in line with the current market price minus exchange rate rates and commission.

No information has been disclosed about the provenance of the bitcoins as the legal process is underway.

If the defendant wins, they'll receive the funds from the auction minus commissions paid to the auction house.

Otherwise, the French state will pocket any money not awarded by the court to victims or charity.

France is far from the first to auction cryptocurrencies, with the United States doing so in 2014, followed by Canada, Australia, Belgium and Britain, according to the auction house.

Entrepreneurs are a high-risk group whenever the markets catch a cold. Heres how they invested to keep themselves, and their companies, in the pink of health.

Jyotsna Uttamchandani, Executive Director, Syska GroupIf I had to stress about investing in something this year, it would be health. A gym, at this point, is accessible to us on our smartphones. We can always do group exercise classes online or even group challenges for steps with our friends. From a business point of view, investing in AI solutions to drive productivity will be a year-round focus. It will prioritise product sales, optimise our pricing, and provide seamless forecasting.

Gautam Das, CEO, Oorjan CleantechI have participated in almost 50 marathons, including an 87-km comrade run. Spending time outdoors running, doing yoga or meditation, swimming or playing a sport is how I invest in my mental and physical well-being. Good health is the biggest wealth. I believe in financial investments in new ventures that create value and jobs. Success and money are the by-products.

Dhruvil Sanghvi, CEO, LogiNextIn 2021, I am going to double down on efforts to maintain good health by regular exercise and meditat ion. For our employees too, we are envisaging more ways for people to invest in their mind and body. As for wealth, I actively help upcoming technology entrepreneurs with mentorship and angel investments. Ill be expanding horizons here to build more pathbreaking global companies from India.

Ameera Shah, MD, Metropolis HealthcareLife is all about tradeoffs. Keep a mental and emotional balance and deal with your anxiety in a positive way. Regular exercise and spending quality time nurturing myself and my family are some of my priorities. On wealth, for those investing in markets, it is better to be diversified and to stay liquid. For entrepreneurs, there needs to be a strong back-up plan. Wealth-creation is a process, but solving customer problems and impacting lives positively is the true purpose.

Read more here:
Cashing in on bitcoins: French government to pocket $30 mn from first-ever cryptocurrency auction - Economic Times

Businesses dealing with crypto assets can now obtain bespoke licences offered by the DMCC Crypto Centre in Dubai.

The DMCC freezone and Government of Dubai Authority on commodities, trade and enterprise signed an MoU with the the Securities and Commodities Authority (SCA) to establish a regulatory framework for businesses offering, issuing, listing, and trading crypto assets in DMCC.

Working closely with DMCCs onboarding teams, the SCA will issue approvals for crypto-related businesses seeking to establish themselves in DMCC.

The SCA will subsequently regulate the crypto activities in line with their policies that were introduced in October 2020 to develop an integrated ecosystem for the crypto and blockchain industries.

In 2020, DMCC launched DigitalSugar, a blockchain-enabled trading platform for sugar, and the Agriota e-Marketplace, an agri-commodity trading and sourcing platform that uses blockchain to help bridge the gap between millions of rural farmers in India and the UAEs food industry.

In line with DMCCs #digital strategy, we have signed an MoU with @sca_uae to provide a regulatory framework for crypto-related businesses to operate through @dmcccrypto in Dubai. Read more: https://t.co/IoHN5TJT1G pic.twitter.com/mqEAGQSc0O

DMCC (@DMCCAuthority) March 20, 2021

The latest MoU with the SCA is expected to promote the development of blockchain applications in Dubai.

Through this agreement with the SCA, DMCC is expanding its current range of crypto assets licences, which perfectly complement the existing business licence options. In early 2020, we signed an agreement with CV VC and CV Labs, a Swiss Government-supported initiative that will bring the worlds leading blockchain and cryptographic technologies ecosystem to Dubai. This agreement also builds the foundation for our future partnerships in the crypto space and is a major step in the launch of the DMCC Crypto Centre, which we will bring to the market in the near future, said Ahmed bin Sulayem, executive chairman and CEO of DMCC.

Read: Dubais DMCC registered 2,025 companies in 2020

As we continue to make strides within the crypto and blockchain space, DMCC is making it easier for crypto and blockchain businesses to set up and operate in Dubai. Cutting-edge technologies are at the forefront of our strategy and they will play an instrumental role in driving increased trade through Dubai in the future.

By working with SCA, we are able to extend the centralised supervision of the crypto market to our business district in the heart of Dubai, bolstering its standing as a hub for crypto assets.

In related cryptocurrency news from the region, the Central Bank of Bahrain (CBB) recently issued cryptocurrency exchange, CoinMENA, with a Crypto Asset Services Company License Category 2. CoinMENA is Sharia-compliant exchange, certified by the Shariyah Review Bureau. CoinMENAs services will initially be available to residents of Bahrain, the UAE, Saudi Arabia, Kuwait and Oman.

Read: Central Bank of Bahrain licences Sharia-compliant cryptocurrency exchange CoinMENA

Follow this link:
Cryptocurrency businesses can now open offices within DMCC freezone in Dubai - Gulf Business

By Gertrude Chavez-Dreyfuss

NEW YORK, March 16 (Reuters) - Inflows into cryptocurrency funds and products have already hit a record $4.2 billion for the first quarter, reflecting growing institutional investor interest, CoinShares data showed.

The previous high for crypto inflows was $3.9 billion in the fourth quarter of last year, driving total inflows for 2020 to $6.7 billion, the asset manager's data shows.

Bitcoin, the world's largest cryptocurrency in terms of market capitalization, has had the most inflows so far this year with $3.3 billion, while ethereum was second with $731 million.

Bitcoin hit a record high of $61,781.83 on Saturday, but has fallen since then as investors consolidated gains and amid plans by India to ban cryptocurrencies.

"As bitcoin moves into the mainstream and captures greater attention, it will likely draw further scrutiny from regulators in the United States and Asia," Jesse Cohen, senior analyst at Investing.com, said.

On Tuesday, the virtual currency was at $55,415.

"The potential for more scrutiny and tighter regulation remains the biggest headwind for bitcoin," Cohen added.

Crypto assets under management have also surged to a peak of $55.8 billion, CoinShares data showed. Last year, AUM for the sector reached $37.6 billion. Five digital asset investment providers now oversees assets of more than $5 billion.

Grayscale is still the largest digital currency manager, with $43.73 billion in assets, while CoinShares, the second biggest, oversees nearly $5 billion in assets.

CoinShares' analysis further showed investors continue to choose investment providers that simply track the price of digital assets, so-called passive funds, over those that have active management strategies.

Passive funds have AUM of $54.1 billion, compared with $786 million for those with active strategies. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Alexander Smith)

View original post here:
Cryptocurrency inflows hit record high of $4.2 bln, CoinShares says - Yahoo Finance

Six people were arrested in FBI raids in New Hampshire Tuesday as part of a crackdown on an allegedly unlicensed cryptocurrency exchange business based in Keene, authorities said.

Federal prosecutors say the New Hampshire residents operated a virtual currency exchange, in which people exchange cryptocurrency like Bitcoin for fiat currency like the U.S. dollar, but did so in violation of federal laws and rules that prevent money laundering. Some of the accused allegedly tried to hide the scheme as a religious institution.

Some of the accused "engaged in substantial efforts to evade detection of their unlawful virtual currency exchange scheme by avoiding answering financial institutions questions about the nature of the business and misleading financial institutions into believing their unlawful virtual currency exchange business was instead a religious organization receiving charitable contributions," according to the U.S. Attorney for the District of New Hampshire's Office.

In-depth news coverage of the Greater Boston Area.

All six of the people arrested in coordinated raids in Keene, Manchester, Nashua, Derry and Alstead face conspiracy to operate an unlicensed money transmitting business charges, prosecutors said. Some are facing wire fraud, money laundering and financial crimes charges.

Bitcoin and other crypto-currencies are all the rage, but what exactly are they, and how do they work?

Among the people arrested were Keene residents Nobody, who tried to run for mayor in 2019, and Aria DiMezzo, a Libertarian who secured the Republican nomination for sheriff of Cheshire County last year as a Satanist anarchist, according to The Boston Globe. DiMezzo lost in the general election.

Also arrested were Ian Freeman, a 40-year-old from Keene; Colleen Fordham, a 60-year-old from Alstead; and Renee Spinella, 23, and Andrew Spinella, 35, of Derry, prosecutors said.

It wasn't immediately clear if they had attorneys who could speak to the charges; they were due to appear before a federal judge Tuesday afternoon.

Their cryptocurrency exchange business, which wasn't named in a news release, started in 2016 and has exchanged over $10 million for virtual currency, prosecutors said.

Cryptocurrencies like Bitcoin and Ethereum have been gaining value in recent years as people find new ways to use them, as well as because of speculating on an expanding market. Their value is derived from their scarcity -- a set amount of Bitcoins exist, for example -- and the transparency they provide, since each transaction is recorded on a public ledger called the blockchain.

But the regulatory status of cryptocurrency remains in flux.

Read more from the original source:
FBI Arrests 6 Over NH Cryptocurrency Business - NBC10 Boston

India is reportedly moving forward with a sweeping ban on cryptocurrencies. According to Reuters, the countrys legislature will introduce a bill that criminalizes trading, mining, issuing, transferring, or possessing cryptocurrency. The bill is likely to pass if its introduced, giving India some of the worlds strictest digital currency laws.

Under the plan, people who own these digital assets would have six months to liquidate their holdings. Reuters source, a government official, didnt specify the punishment for breaking the rules after that. But a 2019 government panel recommended a jail sentence of up to 10 years for cryptocurrency-related offenses. The official says the discussions are in their final stages, although theres no strict timeline for introducing the bill.

The Indian government outlined its plans in January, when it published an agenda for the upcoming legislative session. That agenda included banning all private cryptocurrencies in India, with some exceptions to promote the general use of blockchain technology. The goal is to roll out an official government-issued digital currency while outlawing private alternatives like Bitcoin which reached a record high earlier this month, trading at $59,755.

No other large country has implemented this kind of ban on cryptocurrency. China, which has some of the harshest policies, prohibits trading coins but does not outlaw owning them.

The in-progress proposal follows a years-long fight between cryptocurrency traders and the Indian government. Indias central bank cracked down on Bitcoin in 2018, banning banks from dealing in virtual currencies. Its Supreme Court overturned the decision in 2020, but it didnt necessarily preclude passing a new, even stricter law like whats on the table now.

Read the rest here:
India will reportedly introduce bill to make owning cryptocurrency illegal - The Verge

ZURICH, March 17, 2021 /PRNewswire/ --With the increasing demand for Bitcoin and other cryptocurrencies, the need for an easy solution to find the best exchange has become more obvious than ever.

Recently, Bitcoin Buyers Guide, a crypto reviews network, has launched the most advanced crypto exchange search filter. The search filter consists of numerous triggers and options in order for potential newcomers to the industry to avoid illicit exchanges and brokers.

The glossary behind the filter consists of machine learning algorithms that study the behavior of every cryptocurrency enthusiast and is able to return the most suitable broker or exchange for that particular user.

The website provides a list of top-rated exchanges that corresponds to the selected categories. The selector is comprised of the following options:

Derivatives TradingOptions TradingSpot TradingUser CountryDeposit Options

And can grade brokers by the following criteria:

AnonymityCopy-TradingFeesRegulationSecurityUser-friendlinessDeposit and Withdrawal methodsTrading InstrumentsUser Experience

Thanks to the exchange filter, now every newcomer to the crypto industry can freely explore and find the best options for his needs, avoiding many hours of research that must be done to make the best choice of a broker.

About the company

Bitcoin Buyers Guide is an award-winning research agency, which has reviewed and graded the most prominent cryptocurrency trading brokers. With over 60 reviews and multiple ratings for different exchanges, BitcoinBuyersGuide is aiming to provide the most comprehensive review and guide for newcomers to the crypto trading industry. With years of experience and research, the information on display is of high quality. There are more than 10 000 hours put into researching exchanges and the crypto market as a whole.

This press release was issued through 24-7PressRelease.com. For further information, visit http://www.24-7pressrelease.com.

SOURCE Bitcoin Buyers Guide

https://bitcoinbuyersguide.com/

See the original post here:
BitcoinBuyersGuide Introduces the Most Advanced Exchange Filter in the Cryptocurrency Industry - PRNewswire