October 2019 Update
A Focus on Compliance
As we enter the fourth quarter of this year, we continue to work towards our goal of full regulatory compliance, including KYC for the US Dept of Financial Crimes Enforcement Network (FINCEN), which is a requirement of our incorporation in South Dakota, and compliance with United States tax authorities.
All CITYUPTAKE holders will need to complete identity verification using DocuSign to be eligible to receive rewards by the following deadlines:
- November 15, 2019, is the deadline for current CITY and CITYUPTAKE holders to complete the documentation.
- Effective October 1, 2019, new holders of CITY and CITYUPTAKE must complete KYC through DocuSign to start receiving rewards.
Current holders have been sent an email to complete the KYC process through DocuSign. Pictures with a government-issued ID are required to verify one’s identity. This data will be stored off-line, safe and secure.
A badge in the Member’s Lounge will indicate one’s status in the KYC process. New holders can complete the DocuSign process by clicking the badge in the Member’s Lounge dashboard.
Holders that have not completed this process by November 15 will no longer have full access to the services of CITYUPTAKE. We are very grateful for your assistance in this matter.
What’s Next
In the near future, holders with rewards in excess of $600.00 USD will be required to complete the necessary tax forms or face a 30% withholding. United States citizens will need to complete a W-9 form, and for Non-Residents subject to International Tax Treaties, a Form W-8BEN will be required.
Holders that do not submit these documents will continue to receive rewards with 30% withheld until proper tax documents are submitted. See more info about tax withholding requirements and exemptions here.
To aid our holders in these matters, our Member’s Lounge dashboard currently records the value of TRX dropped to within one minute of the transaction with a future update to the Lounge dashboard enabling the ability to print out a report of the transactions initiated by CITYUPTAKE. CityUptake will provide a 1099-MISC report to U.S. holders that meet the requirements stated above. CityUptake is taking steps in part due to Notice 2014–21 issued by the IRS.
We are setting the example as a first mover to crypto regulated ownership. These actions will strengthen the position of CITYUPTAKE and its holders going forward and allow us to continue building value for our community.
¹Trade Desk rewards are never guaranteed. The average is a history of past rewards and not a predictor of future rewards. CITYUPTAKE is a utility token that provides a voting service for its members.
²The Trade Desk is built via fee with purchase, and owned and operated by CITYUPTAKE.
