Schlagwort: crypto news

• SEC emails suggest XRP doesn’t satisfy all Howey factors, John Deaton notes.
• The lawyer says SEC staff noted “reasonable grounds” to believe that XRP is not a security.
• The SEC sued Ripple Labs and two of its executives for selling alleged unregistered securities in the form of XRP.

In latest Ripple news, a lawyer says the ongoing court battle between Ripple and the US Securities and Exchange Commission (SEC) could be game over for the regulator should the case go to a jury. 

The attorney made the comments after stumbling on references of SEC emails in the briefs and arguments Ripple presented before court in this long standing battle.

XRP not a security? SEC emails on XRP and Howey test

John Deaton, a pro-XRP lawyer that has followed the SEC vs. Ripple case since its filing in 2020, says new email details suggest staff at the US Securities and Exchange Commission (SEC) seem to have indicated there are “reasonable grounds” to believe XRP is not a security.

The emails are highlighted as part of the footnote in Ripple’s arguments against the SEC allegations. One of these is “exhibit 220.” 

SEC staff states that there are reasonable grounds to believe XRP is NOT a security

THAT’S BY SEC ENFORCEMENT LAWYERS PEOPLE!

But the SEC charges @bgarlinghouse and @chrislarsensf with Recklessness because it’s so obvious that XRP is a security?

Absolutely shameful. https://t.co/5YMPYfLS1o

— John E Deaton (@JohnEDeaton1) May 20, 2023

Deaton said:

“Exhibit 220 is part SEC emails: XRP is mentioned and that there are reasonable grounds XRP doesn’t satisfy ALL Howey factors. HUGE.”

There’s also a citation of “SEC-LIT-EMAILS” which the lawyer points out relates to the Hinman emails.

“Since noticing this, I’ve been racking my brain about two things: 1) why wouldn’t Ripple lawyers make a much bigger deal about this (and not just include it in a footnote); and 2) how tf did I miss it before today (although to be fair I’ve read thousands of pages and do have a job)?” he tweeted.

As to why Ripple didn’t go hard on the SEC in light of these suggestions, he says it’s likely the fact that the information is not a direct quote from an SEC official. He argues that the emails might have been reference to an analysis of XRP and not an absolute statement of XRP not being a security.

SEC emails are “huge”, it could be game over if it goes to jury

Anticipation of a favourable ruling for Ripple continues to build across the crypto community. 

As CoinJournal covered here, this was evident when a recent ruling saw the XRP price react higher. And Deaton says the emails could be a game-changer in favour of the company if this goes to a jury. Some experts have opined that the SEC could choose to settle.

On June 13, 2018, SEC Enforcement lawyers wrote an XRP 📝 analyzing whether XRP satisfied Howey. Yet, the SEC did NOT recommend enforcement or a cease and deist letter to stop selling XRP. When you add that XRP 📝 w/this statement about XRP, it could be game over for a jury.

— John E Deaton (@JohnEDeaton1) May 20, 2023

The lawsuit between Ripple and the SEC began in December 2020, when the SEC filed a complaint alleging that Ripple had violated federal securities laws by selling XRP as an unregistered security. 

Ripple has denied the allegations and has accused the SEC of overreach.

The post Ripple vs. SEC: Here’s why it could be “game over” for SEC in XRP case appeared first on CoinJournal.

• DOJ’s national security division is investigating Binance.
• Binance is accused of enabling Russians to circumvent US sanctions.
• The inquiry is focusing on both Binance and its officials.

Binance, the largest cryptocurrency by trading volume, is under investigation by the US Department of Justice (DOJ) for potential violations of Russian sanctions.

The DOJ’s national security division is investigating whether Binance was used to enable Russians to evade US sanctions and transfer money through the exchange.

Growing regulatory crypto scrutiny

The DOJ is specifically investigating whether the crypto exchange or its officials violated or assisted in violating the sanctions against Russia.

DOJ’s investigation highlights the increasing regulatory scrutiny of crypto exchanges across the world and mostly in the US as authorities kick in to prevent illegal activities.

Binance troubles in the US

It is not the first time Binance is getting investigated by US securities. On March 27, the US Commodity Futures Trading Commission (CFTC) issued a 74-page complaint labelling Ethereum (ETH), Binance USD (BUSD), Litecoin (LTC), Tether (USDT), and  Bitcoin (BTC) as commodities and also accused Binance and its CEO Changpeng Zhao of market manipulation and lack of compliance. Changpeng ‘CZ’ Zhao however came out and rejected the CFTC’s allegations against Binance and himself.

Although Binance was yet to comment on the reported DOJ investigation at press time, it has previously stated that it is committed to complying with all laws and regulations in all the jurisdictions in which it operates in. The exchange has also invested heavily in complying with Know Your Customer and Anti-Money Laundering measures to prevent illegal activities.

The post US DOJ investigating Binance for potential violations of Russian sanctions appeared first on CoinJournal.

• Kenya’s Treasury Secretary outlined the tax proposals in a document sent to parliament on 4 May, 2023.
• The 3% crypto tax will target cryptocurrencies and NFT transfers on exchanges and by individuals.
• Kenya is one of the countries with the fastest growing adoption of cryptocurrencies in the world.

Kenya is seeking a 3% tax on the transfer of digital assets, budget proposals from the Treasury ministry outline.

The tax proposals were part of the Finance Bill 2023 that Njuguna Ndung’u, Cabinet Secretary for National Treasury and Economic Planning, sent to the National Assembly on Thursday, 4 May 2023. 

The Treasury CS is expected to present the budget statement to Parliament on 8 June, and could see the East African nation have the new taxation measures in place for the 2023/2024 budget year, the details of the proposal showed.

Authorities eye tax for crypto and NFTs

Apart from cryptocurrencies, the tax proposals also target non-fungible token (NFT) transfers. These will relate to transactions made by exchanges as well as individuals.

Digital assets are classified as property in Kenya, and any gains from the sale, exchange, or disposal of such assets would be subject to capital gains tax. Other than crypto, Kenya also targets monetized online content, with the sector set to be subject to a 15% tax.

Around 8.5% of Kenya’s adult population own or hold cryptocurrencies. While countries in Africa such as Nigeria and South Africa have more people owning crypto, Kenya places higher in terms of percentage of the population. 

Recent statistics on global crypto ownership and usage by the UN ranked Kenya fifth worldwide and fourth among emerging economies – behind Ukraine, Russia and Venezuela.

According to the latest ownership figures from Singapore-based crypto research company Triple A, over 2.7 million Kenyans own digital assets. Globally, cryptocurrency ownership has risen to an average of 4.2%, with numbers jumping from 320 million in early 2022 to over 420 million in May 2023.

Kenya’s plans for crypto taxation rules come as the trend around the world sees increased regulatory scrutiny of cryptocurrencies. The UK, EU and other jurisdictions are looking to offer clear regulatory guidelines for the industry, particularly around overall protection of investors amid likely risks from unregulated crypto exchanges.

The post Kenya eyes 3% tax on cryptocurrency transfers appeared first on CoinJournal.

• UK’s HM Treasury has outlined tax policy changes targeted at DeFi lending and staking.
• The proposals are part of a consultation on taxation of activities conducted using crypto assets in DeFi.
• The new changes are also looking to apply to crypto lending and staking transactions on centralised finance (CeFi) platforms.

HM Treasury, the UK’s economic and finance ministry, has announced an open consultation regarding the taxation of decentralised finance (DeFi) activities.

Per a publication the government released on Thursday, 27 April 2023, the consultation seeks to have public views on the modification of tax policies to cater to crypto asset related lending and staking – two key activities in the DeFi industry.

The objective of the consultation is to help formulate a crypto tax regime for the UK, where taxation DeFi lending and staking “better aligns with the underlying economic substance, whilst reducing the administrative burden on users,” the HM Treasury wrote.

HMRC is therefore looking to get feedback from key stakeholders within the DeFi space, including tech and financial firms involved in DeFi, investors, and professionals. Also invited to participate are trade associations, academic institutions, legal firms, and tax advisory firms among others.

Crypto tax framework also targets CeFi

The government also says that the consultation seeks to explore legislative changes to overall tax treatment of lending and staking in the industry. The changes, the HM Treasury noted, involve proposals that using cryptocurrencies in DeFi transactions “would no longer be treated as giving rise to a disposal for tax purposes.”

Rather, tax disposals will only arise where taxpayers economically dispose of their crypto assets via non-DeFi transactions. The finance ministry added in the announcement:

“Although the focus of this document is on DeFi lending and staking, the proposed tax framework outlined below is also intended to apply to the lending and staking of crypto assets which is done through an intermediary. Some industry participants refer to these arrangements as Centralised Finance (CeFi).”

HM Treasury’s consultation paper comes amid increased recognition within the government agencies that proper and clear regulatory approach to crypto is needed as the industry grows rapidly. 

The proposals are likely to form a major part of the UK’s crypto tax guidelines in 2024, the same year the EU’s crypto law MiCA is expected to come into effect.

The post UK Treasury opens consultation on taxation of DeFi lending and staking appeared first on CoinJournal.

• Hong Kong’s new cryptocurrency licensing framework is expected in May.
• The Securities and Futures Commission (SFC) chief executive Julia Leung told Bloomberg the guidelines follow a consultative process.
• Companies seeking to offer services in Hong Kong will need to apply for and get licenses from the commission.

Hong Kong is taking the next step in providing further regulatory clarity for cryptocurrencies by releasing its crypto exchange licensing framework.

Specifically, the licensing guidelines will require every digital asset service provider and operator to seek and acquire approval from the regulator.

Julia Leung, chief executive of Hong Kong’s Securities and Futures Commission (SFC), revealed this on Thursday, telling Bloomberg that the guidelines are expected in May. The legislation is expected to come into effect from June.

According to Leung, the digital assets regulation framework comes after a vital consultative process that a policy statement from the government in October last year. The statement highlighted the need to regulate virtual assets, including sectors such as DeFi and NFTs.

The SFC reportedly received more than 150 responses from various players, following the consultative process.

Hong Kong’s crypto framework comes after EU’s MiCA approval

Hong Kong has recently taken an aggressive approach to crypto regulation even as it looks to make itself a leading crypto-friendly jurisdiction. Recent administrative policies have indeed seen the number of companies looking to operate from the city-state jump to near 100.

Other than cryptocurrency exchanges, there are multiple projects and platforms in Web3 security, blockchain payments, and infrastructure that are currently eyeing SFC’s licensing.

Recently, the European Union parliament voted to approve the Markets in Crypto Act, MiCA regulation, that has been hailed as key to regulatory clarity for the crypto industry in the EU. 

Many obersers say the law, expected to take effect in 2024, will herald a new era for crypto.

The post Hong Kong to release crypto framework next month- Bloomberg appeared first on CoinJournal.