“SEC, FINRA Issue Explanation of Crypto Custodian Approval Delay”
The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) believe there are a number of questions they need to address before they can approve crypto companies’ applications to become broker-dealers. In a joint statement Monday, the SEC Division of Trading and Markets and FINRA’s office of general counsel outlined the different factors that the agencies consider when determining whether to approve a broker-dealer application by a company which touches digital assets, including custody and whether the assets are treated as securities under the Securities Investor Protection Act (SIPA) of 1970.
“Jihan Wu To Launch A New Crypto Startup”
Bitmain Technologies Ltd. co-founder Wu Jihan has marshaled a group of the mining giant’s former employees to launch a new cryptocurrency financial services startup, hoping to capitalize on Bitcoin’s resurgence. Called Matrixport, Wu’s latest endeavor is a one-stop platform for over-the-counter trading, lending and custody for digital assets, Chief Executive Officer Ge Yuesheng said. The venture will go live on Monday after spinning off from Bitmain in January, when the world’s largest producer of crypto-mining rigs ran into a cash crunch.
“Singapore to Exempt MoE Cryptos From GST”
Singapore plans to exempt cryptocurrencies that are intended to function as a medium of exchange from Goods and Services Tax (GST) — the local equivalent of Value-Added Tax (VAT). The news was revealed in a draft e-tax guide published by the Inland Revenue Authority of Singapore (IRAS) on July 5. The proposed exemption, if accepted, is set to take effect on January 1, 2020, and will overhaul the current system wherein the supply of digital payment tokens is treated as a taxable supply of services. IRAS outlines that until now, cryptocurrencies that function — or are intended to do so — as a medium of exchange have been treated as a barter trade that results in two separate supplies: namely a taxable token supply and a supply of the relevant goods and services.
“Libra Receives Pushback From Indian Govt”
Facebook’s new digital currency Libra has received an early jolt from the Indian government. The authorities in Asia’s third-largest economy are no more keen on the social media giant’s project than any cryptocurrency that came before it. A virtual ban on cryptocurrency trading came into effect in India in April 2018 when the Reserve Bank of India (RBI) issued a notice to Indian banks asking them to stop dealing with any cryptocurrency businesses. The Supreme Court of India endorsed the ban in an interim order in July that year. Peer-to-peer trading of virtual currencies remains legal in India.