Our team and our attorneys are continuously studying global sentiment and legal rulings by governments from the leading nations. Statements from regulators can help us be the “fly-on-the-wall” when it comes to future potential and business understanding. Sharing this with our community would aim to show the progressiveness of many countries regarding blockchain, ICOs and cryptocurrency.
- Warren Davidson, the U.S Congressman representing the State of Ohio announced that he would be inviting the big players in the cryptocurrency industry to discuss the regulation of Initial Coin Offerings (ICO). The Congressman has reportedly invited around 32 leaders from the cryptocurrency space and related. The key players invited include NASDAQ, Intercontinental Exchange (ICE), Kraken, Ripple, Harbor, CME Group, Circle, Coin Centre and Union Square Ventures. The meeting will be held on 25th September 2018 in Washington DC. During an interview in June, the Congressman stated that ICOs need ‘light touch’ regulation. He believes that if all the ICO companies implement Know Your Customer (KYC) policy and Anti Money Laundering (AML) policy then there would be a decrease of scam attempts in the market.
2. Recently released transcripts from the Securities and Exchange Commission (SEC) round table in June showed that cryptocurrency is being looked at; maybe more than most thought. On June 4th, SEC official Eric Werner introduced Jay Clayton (SEC Chairman) at a roundtable on standards for investment professionals. In discussing Clayton’s work at the agency, Werner highlighted an instance in which he walked into a “heated” discussion between the SEC chairman and an unnamed attorney about cryptocurrency — while also stressing Clayton’s commitment to the issue in question.
Werner was quoted as saying:
“In fact, the first time that I met the Chairman, I walked into a heated discussion he was having with an attorney in my office about the legitimacy and viability of cryptocurrencies. I was taken aback, honestly, about how much thought he had given to this space and the issues surrounding that. And what I have learned in the time working with him is that he has given every single issue that he has confronted that same dedication and thought process.” Jay then finished by saying, “I want to go back to separating ICOs and cryptocurrencies. ICOs that are securities offerings, we should regulate them like we regulate securities offerings. End of story,” he said at the time.
- Though ICOs are banned, organizers have found ways around this. According to a report by Diar, the China-based Shenzhen Puyin Blockchain Group has generated over $60 million from its 3 ICOs which include ACChain, BioLifeChain and Puyin.
2. Chinese Government releases Public Crypto Ratings to help guide citizens. The Chinese Ministry of Industry and Information Technology released its first rating on May 17th 2018. It evaluated 28 cryptocurrencies; judgment ranged on things like applicability, technology and innovation. Chinese officials still remain committed to fostering this technology for their country where applicable.
- A Fintech company called, Identitii launches an IPO on Australia Securities Exchange (ASX). They are only the second blockhain startup in Australia to launch an actual IPO. With the company facing huge losses last year and at the start of the year a decision was reached to raise more capital from the public to develop the company’s technology and continue its day-to-day operations. A total of $11 million USD is set to be raised through the sale of 14 million shares on ASX at $0.75 USD per share. With a total of 25% of the company’s shares up in the IPO, the company is set to be valued at $44 million USD at the market.
- South Korea’s top financial regulator, the Financial Services Commission (FSC), said it will undergo a “major organizational restructuring.” It will establish a department exclusively for policymaking initiatives in the nation’s blockchain industry, the Korea Times described. This newly minted department, Financial Innovation Bureau will have a two-year lifespan.
2. The Korea Times also reported that blockchain was added to the list of emerging technologies eligible for tax benefits. “In order to alleviate the investment burden of companies that use new technology,” the publication explained that the government has decided to “apply the tax benefits to blockchain” technology
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