Thiel’s Layer1 Starts Mining in Texas, IRS to Meet Crypto Companies, €52 Million BTC Confiscated

TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. Layer1 starts mining operations in Texas. IRS invites crypto companies to discuss tax implications. Man gets €52 million worth of BTC confiscated. Regulators will have to hasten action on digital assets, FSB chair states. Enigma ICO to pay $500,000 due to selling unregistered securities, and EatBCH featured as one of the most important charities using cryptocurrencies. 

Layer1 Starts Mining Operations in Texas

Layer1, a mining startup backed by Peter Thiel, started operations in Texas, after having raised more than $50 million last November. Layer1 aims to “repatriate” Bitcoin to the US, having manufactured their own mining equipment instead of using Chinese ASICS. Layer1 CEO Alexander Liegl stated they want to dominate 30% of the Bitcoin mining hash rate by 2021, and they have already deployed several 2.5 MW containers using liquid cooling (due to the climate of the region).

IRS to Meet With Crypto Company Officials

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The US Internal Revenue Service (IRS) invited several cryptocurrency companies to a summit happening March 3rd about how it can “balance taxpayer service with regulatory enforcement,” according to an invitation received by Bloomberg Tax. The IRS tried to get cryptocurrency traders and users to declare and pay taxes, something that has not been happening on a big scale. The meeting will have 90 minutes of panels on several themes, including tax preparation and regulatory guidance for tax compliance.

Man Gets €52 Million Worth of BTC Confiscated

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Clifton Collins, an early investor of Bitcoin who bought 6,000 BTC years ago, had more than €52 million worth of BTC confiscated after a court ruled his cryptocurrency “was the proceeds of crime and that it should be forfeited to the state.” Collins was detained because he held a small amount of cannabis, and a further investigation found more than $450K worth of cannabis plants belonging to him. The Criminal Assets Bureau will now hold the control of these assets for 7 years, and then they will be released and redistributed by the Department of Finance of Ireland.

Regulators Need to Speed Up On Crypto, FSB States

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Randal Quarles, Chairman of the FSB (Financial Stability Board), an international organization created to launch early alarms on possible crises affecting the global economy, recognized global regulations are falling behind when it comes to dealing with digital assets. “FSB (Financial Stability Board) members recognise the speed of innovation in the area of digital payments, including so-called ‘stablecoins’,” Quarles stated, while pointing the board was “resolved to quicken the pace of developing the necessary regulatory and supervisory responses to these new instruments.”

SEC Rules Against Enigma Privacy ICO

The US SEC (Securities and Exchange Commission) settled charges against Enigma, a dApp privacy-focused ICO, for selling unregistered securities. Enigma agreed to return the $45 million raised in their ICO to investors, and register their offering with the SEC. Also, Enigma will pay the SEC a $500,000 fine. “The remedies in today’s order provide ICO investors with an opportunity to obtain compensation and provide investors with the information to which they are entitled as they make investment decisions,” declared John T. Dugan, Associate Director for Enforcement in the SEC’s Boston Regional Office.

EatBCH Featured as One of the Most Important Charity Crypto Organizations

EatBCH, the project that feeds hungry Venezuelans using Bitcoin Cash donations, has been featured as one of the most important projects of its. According to Decrypt, EatBCH is one of the many ways cryptocurrencies can contribute to the charitable sector that is “notoriously slow to react to transformative technologies.” EatBCH operates in Venezuela and South Sudan, and leverages the power of instant, across border donations using BCH technology to provide needy with a hot meal. EatBCH has received thousands in donations and even support from companies like CrazyCalm.

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