Headlines dominated by the Global Task Force, the IRS, and the SEC

The current week’s crypto news features have been portrayed basically by worldwide guidelines and assessment rules. With the ongoing instability in crypto costs alongside their bullish pattern, these guidelines and rules come at an urgent minute for the future advancement and development of the cryptographic money industry.

Firstly, new international standards for regulating cryptocurrency firms are reportedly being finalized by the Financial Action Task Force (FATF) by the upcoming month. Next, the Internal Revenue Service (IRS) Commissioner has quoted that his agency has “made it a priority” to issue more comprehensive crypto tax guidance “soon”. Lastly, the US SEC (Securities & Exchange Commission) further delayed their verdict on the VanEck and SolidX Bitcoin exchange-traded fund (ETF) proposal.

All these three occasions are very vital in their own specific manners towards keeping up financial specialists’ conclusions, directing crypto undertakings, and empowering or deterring future improvements in the space.

Global Standard Regulation

Coindesk reported that the Financial Action Task Force (FATF) is set to finalize new international standards for regulating cryptocurrency firms next month which would go beyond the standardized “Know-Your-Customer” (KYC) regulations that exist today for such firms. They also advocate for the use of the ‘Travel Rule’, whereby, in addition to verifying and keeping records of their own users’ identities, exchanges and other service providers would have to pass customer information to each other when transferring funds.

In any case, this proposition has been met with a tremendous reaction by industry delegates because of how it might possibly push clients from such digital money stages as an option in contrast to customary stages. The FATF’s consultative gathering in Vienna, Austria, was gone to by around 200 to 300 individuals extending from boss consistence officers of top trades to provincial bitcoin merchants, to give their requests a chance to be heard for the equivalent.

Yet, Sigal Mandelker, the U.S. Treasury’s Under Secretary for Terrorism and Financial Intelligence, appeared to be determined to actualizing these benchmarks, as he was cited in a discourse a week ago at Consensus 2019 in New York.

“During its presidency of the FATF, the United States has worked with other countries to clarify how all countries should regulate and supervise activities and providers in the digital currency space. We anticipate that in June the FATF will adopt a final version of its Interpretative Note, along with updated guidance to further assist countries and industry with their obligations.”

IRS aims to reform crypto taxes

The choice by the IRS to redesign their techniques for deciding the Federal Taxes on Crypto Payments emerge because of the ongoing endeavor by Minnesota Representative Tom Emmer to pass enactment changing the way that Hard Forks and the resultant “Fork Coins” are seen by assessment offices and the administration.

Emmer and the Blockchain Caucus sent an open letter to Charles Rettig, the IRS Commissioner, to draw attention to their aforestated concerns on April 11, 2019. Rettig responded with an open letter to Congressman Emmer thanking him for his same request on May 16, 2019, due to how it addressed the issue at hand of increasing the clarity of regulations.

Rettig said:

“I share your belief that taxpayers deserve clarity on basic issues related to the taxation of virtual currency transactions and have made it a priority of the IRS to issue guidance,” Rettig wrote. “Specifically, your letter mentions (1) acceptable methods for calculating cost basis; (2) acceptable methods of cost basis assignment; and (3) tax treatment of forks. We have been considering these issues and intend to publish guidance addressing these and other issues soon.”

The SEC postpones the ETF again

The US Securities and Exchange Commission (SEC) by and by delayed its choice on the VanEck/SolidX bitcoin (BTC) Exchange-Traded Fund (ETF) proposition yesterday, hence delineating their absence of preparation in the standard exchanging of Crypto Funds. The deferred ETF proposition was at first recorded over a year back.

A unique feature of their response is that the US investor is seeking opinions from the general public in relation to the proposed VanEck SolidX bitcoin ETF. They added a 35-day period for gathering more information and opinions on the proposal.

“The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest.’”

A legal counselor, Jake Chervinsly, tweeted that the following due date for the VanEck SolidX Bitcoin Trust proposition to be affirmed or rejected is August 18. In any case, the SEC will have the choice to postpone its choice to October 18.