“A new report from the Proof of Stake Alliance calls attention to a little-debated tax provision that would require some peer-to-peer crypto transactions to be reported to the government. And unlike other tax code reporting violations, violations of this provision – Tax code section 6050I – are felonies.
The law requires recipients to verify the sender’s personal information and record their Social Security number, the nature of the transaction and other information, and report the transaction to the government within 15 days.
POSA, a crypto lobbying group, called for the reporting mandate to be struck from the infrastructure bill in a report published Friday, calling it intrusive and overly broad. Applied to digital assets, which could include cryptocurrencies and non-fungible tokens (NFTs), Sutherland believes that the law would be nearly impossible to comply with.
Sutherland wrote that the provision has largely escaped public scrutiny because it uses a nearly 40-year-old law that was meant to apply to in-person cash transactions over $10,000.”
“$1.2 billion worth of ETH was withdrawn from centralized exchanges on Thursday to mark a new record in short-term outflows from exchanges, leading to speculation about imminent price gains for Ether as supply shrinks on many trading venues.
IntoTheBlock noted that Ether’s price rallied by 60% in the 30 days after $1 billion was pulled from centralized trading platforms in April.
Bitcoin (BTC) has also seen steady outflows from centralized trading venues since peaking at 17% of supply in May. According to on-chain analytics firm Glassnode, centralized exchanges’ BTC reserves have fallen to their lowest level since February 2018.“
“Shortly after Texas securities regulators issued crypto lender Celsius with an order to appear in court on Friday, New Jersey is piling on by filing a cease-and-desist order. New Jersey and Texas were also among the states to slap crypto lender BlockFi with similar actions in July.
If you sell securities in NJ, you need to comply with NJ’s securities laws. Our Bureau of Securities has ordered an NJ-based company – Celsius – to stop offering interest-bearing accounts.
Earlier this week, BlockFi CEO Zac Prince said crypto lenders need federal guidance on the status of accounts that provide interest on crypto deposits.
We’re not going to decide what box crypto lending belongs in based on what New Jersey does or what Texas does or what any one other state does.”
“Blockchain technology will reshape financial services in the coming decade in the same way broadband internet reshaped media companies, CMCC Global co-founder Charlie Morris said.
Twenty years ago, broadband enabled explosive growth of the internet. We are now at the broadband moment for blockchain technology. Larger scalability, clearer regulation landscape and increasing institutional adoptions are signs that we are standing at the pivot point.
Where some see regulatory threats, Morris sees opportunity, as what is occurring now is ‘actually regulators regulating the space into existence.'”
“A security token offering (STO) operating on the Bitcoin sidechain Liquid Network has been approved by Germany’s Federal Financial Supervisory Authority, BaFin. This is the first approval of an STO issued on a Bitcoin sidechain by BaFin.
Luxembourg-based video game publisher Exordium’s EXOeu token is now available to all German investors on digital asset marketplace STOKR.”