TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. Cryptocurrency Act of 2020 to clarify crypto-related responsibilities. Poloniex drops KYC/AML requirements. Bitwise sends another letter to US lawmakers. Bitcoin.com Exchange is having “internal discussions” about a possible HEX delisting. Coinbase to shut down Earn.com. US congress members ask for clarification on tax-related guidance.
Cryptocurrency Act of 2020 to Clarify Crypto Regulating Institutions
The US Congress is discussing a proposed bill called the Cryptocurrency Act of 2020, which aims to be the ultimate instrument to regulate the industry. The Cryptocurrency Act of 2020 would introduce a crypto-specific federal regulator within the CFTC, SEC and FinCEN, dividing cryptocurrencies into three broad groups: crypto-commodities, to be regulated by the CFTC; crypto-securities, to be regulated by the SEC, and cryptocurrencies, to be regulated by FinCEN, who will also establish rules for transaction tracing when using these instruments.
Poloniex Drops KYC/AML Requirements
Poloniex, the cryptocurrency exchange recently sold by Circle, dropped Know Your Customer / Anti Money Laundering requirements for some of their users. Poloniex created a new Tier 1 account classification to let new users execute unlimited trades and deposits with only providing an email account. Accounts generally can withdraw up to $10K per day, while the verified customer can withdraw up to $25K daily. Poloniex is not available for US customers, but FATF rules are pushing to make KYC/AML requirements global.
Bitwise Talks About Bitcoin ETF in Recent Letter to SEC
Bitwise, a crypto index fund company, has written a letter to the SEC defending the reasons it thinks a Bitcoin ETF is ready to be issued within today’s markets. Bitwise addressed some key issues the SEC mentioned in not approving a Bitcoin ETF product, such as price manipulation and surveillance sharing. It argued price manipulation for the asset is very difficult due to the open nature of the market, stating also how surveillance sharing is already happening across the industry. Bitwise’s proposals have been rejected or postponed eight previous times by the SEC in one form or another.
Bitcoin.com Debates Delisting HEX
Roger Ver, Executive Chairman of Bitcoin.com, announced the company’s crypto exchange is still debating what to do with HEX, which it currently lists. Earlier this month, the Bitcoin Cash community was surprised by the listing, prompting a lot of outrage. A YouTube teaser appeared to suggest the exchange was going to delist HEX in response, but it hasn’t been made public. Ver, in his latest weekly update, acknowledged the company is indeed having “internal discussions” about delisting HEX, and also admitted to having cut a video explaining the decision. However, he also stressed no formal decision has been made on the matter.
Coinbase to Shutdown Earn.com, Transition to Coinbase Earn
Coinbase informed in an email they will be shutting down Earn.com in favor of Coinbase Earn, their own in-house trader education rewarding platform. Coinbase acquired Earn.com for more than $100 million last year, and it served as a base to develop a more specific program for the platform’s users, Coinbase Earn. The idea is to help people learn about cryptocurrency projects and how to trade them while also benefitting from the experience. The formal transition will be completed by February 2020.
US Congress Asks IRS for Clarification on Crypto Tax Laws
Several members of the US Congress sent a letter to the Internal Revenue Service (IRS) to ask for clarification on which kind of crypto assets its guidance recommends as to tax, including policies on how forks and airdrops will be managed from a tax point of view. The letter states current guidance issued by the IRS is incomplete, though its stated goal was to lessen the percentage of crypto-related tax evasion.
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