ICO Alert Crypto Minute: February 14, 2018
Most Americans Have Not Reported Cryptocurrency Gains in Their Taxes This Year
Credit Karma reported that less than 100 of the 250,000 people who have already filed federal taxes this year reported a cryptocurrency transaction to U.S. tax authorities. However, a January 2018 survey by Credit Karma found that 57 percent of its users claimed some gains from cryptocurrency. As reported by Reuters, the same percentage claimed they had “never reported cryptocurrency gains to the IRS, while nearly half of those polled said they understood how owning cryptocurrencies affected their taxes.”
Cryptocurrency Mining May Cause An Energy Shortage in Iceland
According to Washington Post, cryptocurrency mining could soon result in an energy shortage in Iceland. For the first time, cryptocurrency miners’ demand for energy exceeds that of private Icelanders. Iceland’s energy producers have expressed concern over their ability to keep up with the rising demand, especially if Iceland continues to attract new cryptocurrency-mining centers.
Cryptocurrency Traders Expected to File Lawsuit Against Coincheck by Tomorrow
According to TechCrunch, ten cryptocurrency traders who used Coincheck are preparing to file a lawsuit with Tokyo’s District Court tomorrow. Coincheck froze withdrawals and movements of cryptocurrency following the hack, in which they lost USD 530 million-worth of NEM tokens. The lawsuit demands that Coincheck allow the plaintiffs to withdraw their cryptocurrency from the platform and relocate their holdings to external wallets.
SEC Receives Petition Requesting Leniency for ICO Issuers
According to CoinDesk, the U.S. Securities and Exchange Commission (SEC) received a petition last month, in which ICO organizers request the opportunity to seek remediation in light of possible violations. In other words, the petition requests that the SEC “provide some leeway as the agency itself ramps up its enforcement around the blockchain use case.” The petition also requests a regulatory sandbox, in which ICOs may be conducted in a limited setting under supervision if the product or service generates enough public or government interest.
Russian Government Requesting Public Comment on Draft of ICO Standards
The Russian government is drafting a bill to establish a set of standards that ICO issuers will have to comply with before conducting their ICO. According to Bitcoin.com, issuers will be subject to inspections every three years. Russian lawmakers are currently accepting public comments on the proposal via a government-run online portal.
