The Importance of Keeping Crypto Crowdsales Accountable
For many entrepreneurs, one of the most compelling use cases of blockchain technology is the potential for it to enable new marketplaces that remove traditional hurdles associated with investing and crowdfunding. The growing number of public crowdsales has been widely covered as of late. With these crowdsales, companies sell a branded bitcoin fork as a way to finance the early development of cryptocurrency-related projects. The popularity of many of the early crowdsales has sparked a conversation about where the burden of consumer protection lies. It appears that burden, at least for the....
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Cryptocurrency crowdsales, or Initial Coin Offerings (ICO), can be a contentious subject. But there are a lot of ICOs on the crypto-landscape lately. Many exist on larger platforms, such as Bitshares and Ethereum. Crowdsales & ICOs Are Growing More Popular. Lately, in the cryptocurrency news cycle, all you hear about is some new ICO or crowdsale....
In the last 24 hours, a couple of developments coming out of the US have shaken up American cryptocurrency communities. First, the US Securities Exchange Commission has sent out letters to possibly hundreds of crypto-companies asking them to voluntarily hand over documents relating to their crowdsales. The SEC is clearly concerned with whether such crowdsales run afoul of the commission’s regulations, and there is a gag order attached to these requests for voluntary cooperation. Second, the Financial Crimes Enforcement Network (FinCEN) has offered a little clarity on its position regarding....
South Korean tax authorities are unstoppable in keeping crypto holders in their eyes and making them accountable to pay taxes. The National Tax Service (NTS) has issued a warning to the crypto traders that they have to report their earnings even from tokens held in foreign exchanges. No Details on How the Agency Will Supervise the Process According to MBC, the agency alerted that South Koreans who are using overseas exchanges are also responsible for reporting all their profits gained. By doing so, crypto holders should pay correspondent taxes on them from 2022. That year is where the....
The world of digital currencies is so rooted in the emerging ideas and developments of the tech world that when start-ups in the space approach the more normal issue of business development, such as staffing and funding, the drive for innovative solutions is often carried across. Enter the world of altcoin crowdsales. These “initial coin offerings” serve multiple functions for new cryptocurrencies, both raising awareness as well as funds- for the start-ups trying to gain leverage in a crowded marketplace. Getting people excited about a new coin at such an early stage also represents a more....
On October 19, the US Securities and Exchange Commission (SEC) dismissed all its claims against Ripple’s CEO, Brad Garlinghouse, and Co-founder, Chris Larsen. Following this, Larsen called out the financial regulator, stating why it had to be held accountable for its actions. Larsen Calls SEC A Rogue Administrative State In a post shared on his […]