The United States House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion received an education in the uses of blockchain technology in a hearing titled \u201cCrypto Crime in Context: Breaking Down the Illicit Activity in Digital Assets.\u201d The meeting began with a discussion of Hamas\u2019s use of crypto for fundraising. However, the committee\u2019s Chair, Representative French Hill, declared that as \u201cphone and the internet aren\u2019t to be blamed for terror financing,\u201d crypto shouldn\u2019t be either. The witnesses, including representatives from Consensys and Chainalysis, spoke about the need for international and public-private collaboration in stopping the misuse of digital assets, the need for well-crafted legislation and the intricacies of blockchain sleuthing.<\/p>\n
At another hearing held by the Senate Special Committee on Aging, U.S. Senator Elizabeth Warren highlighted the dangers of cryptocurrency scams. Steve Weisman, a recognized expert on scams and cybersecurity as described by Warren, confirmed that unlike credit card fraud, which can be swiftly identified, stopped and traced, crypto poses greater challenges with transparency. Weisman expressed support for Warren\u2019s Digital Asset Anti-Money Laundering Act, which seeks to ensure that digital assets are subject to the same Anti-Money Laundering laws as traditional fiat currency.<\/p>\n
Meanwhile, the New York State Department of Financial Services (NYDFS) unveiled new restrictions that mandate crypto companies submit their coin listing and delisting policies for NYDFS approval. Company policies will be measured against more stringent risk assessment standards set forth by the NYDFS to protect investors. Technological, operational, cybersecurity, market, liquidity and illicit activity risks of the tokens are among the factors to be considered by the NYDFS. The incoming changes apply to all digital currency business entities licensed under the New York Codes, Rules and Regulation or limited purpose trust companies under the state\u2019s banking law. <\/p>\n
Republican United States Presidential candidate Vivek Ramaswamy unveiled a crypto policy framework called \u201cThe Three Freedoms of Crypto.\u201d Ramaswamy vows to \u201cdirect government prosecutors to prosecute bad actors, not the code they use and not the developers who write that code\u201d if elected president. In an accompanying speech, Ramaswamy specifically targeted sanctions against crypto mixer Tornado Cash, stating: \u201cThe case brought against the Tornado Cash folks, for example. [\u2026] You can\u2019t go after the developers of code.\u201d<\/p>\n
The presidential candidate also promises to provide regulatory clarity that gives new cryptocurrencies \u201csafe harbor\u201d exemptions from securities laws for a period of time after they are launched and to prevent any federal agency from creating rules that limit the use of self-hosted wallets.<\/p>\n
Continue reading<\/strong><\/p>\n The Australian Taxation Office (ATO) has issued guidance on capital gains tax (CGT) treatment of decentralized finance and wrapping crypto tokens for individuals, clarifying its intent to continue taxing Australians on capital gains when wrapping and unwrapping tokens. In May 2022, the ATO outlined crypto capital gains as one of four key focus areas. Building on the initiative, the Australian tax authority recently clarified a raft of taxable actions in its jurisdiction. The transfer of crypto assets to an address that the sender does not control or that already holds a balance will be regarded as a taxable CGT event, the ATO said in its statement.<\/p>\nAustralia will impose a capital gains tax on wrapped tokens<\/h3>\n