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Taiwan puts forth a clear description of the crypto sector

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  • Taiwan announces a description of the crypto sector in the new regulations released.
  • The decision arises from the need to regulate the growing crypto sector in its country.

The Taiwan government has finally released a clear definition of what crypto services within the country. Before this, no regulations governed the sector. However, crypto businesses had to stay at par with the Money Laundering Control Act and the Taiwan securities laws. 

According to the Financial Supervision Commission (FSC), some of the currencies in the past were securities. This is under the Howey test. The coins, including Bitcoin, were under the Securities Exchange Act, following these laws in their issuance.

 

The Taiwan Ministry of Economic Affairs (MOEA) took the initiative to hold cabinet meetings to eliminate the ambiguity of the sector. During a meeting on November 15, the body decided on FSC to overlook matters involving the crypto businesses within the country. 

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Furthermore, it takes the responsibility of providing the laws that should govern the crypto industry. At the same time, they ensured they didn’t suffocate its progress. Also, it termed such services under “virtual currency platforms and trading businesses.”

Taiwan lawmakers pressure this step

The Taiwan government received massive pressure from MPs who demanded a hurried description of the crypto sector. It might be an understandable fret as the global pandemic proved a boost to the sector’s rise. Not only did it provide moneyless avenues to payments, but it also provided a hedge against a failing global economic system.

While some of the lawmakers demanded more stringent laws against the currencies, the government opposes this idea. Its next steps suggested that the crypto sector could be a significant driver of its economic sector. 

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Filecoin Foundation’s director Clara Tsao openly spoke about her thoughts on Taiwan taking this road. She did this during a US-Taiwan crypto forum on YouTube on November 13. She explained that Taiwan should take this period to improve crypto businesses. She further added that it’s essential to create better opportunities arising from the growing space.

Crypto regulation is nigh

Forbes describes current times within the crypto sector as a period where regulations are inevitable. Most would prefer the opposite. However, there is continued crypto’s growth and involvement in different exchanges globally. The factor makes the development a step towards securing a future for digital assets in the financial industry.

Countries like China have extinguished the flames of digital currencies in their jurisdiction. However, others like the United States are at a global front for crypto regulation. Recently, the Biden government allowed Bitcoin ETF futures, a decision that will eventually open doors for ETFs as a whole. 

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The report still maintains that governments should be careful in how they decide to go about the same. In its opinion, taking a slower and surer approach is better than hurrying into the endeavour. 

Additionally, it stands with the belief that involving influential market participants in the process will create more solid and practical decisions. 

It further points out that the crypto sector is one of its kind, especially with the decentralized finance boom. So far, this might be the most challenging portion of the crypto industry to find straightforward designations. 

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Therefore, Taiwan’s approach to the matter is a positive harbinger of what other countries might emulate to improve cryptocurrencies and blockchain.

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Crypto

South Korea: Crypto VC Giant Raises $200M After Postponement of Crypto Taxation

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After consistent efforts at crypto crackdown, South Korea appears to be gravitating towards a pro-crypto approach. The South Korean Crypto-focused Venture Capital firm, Hashed recently announced the launch of its $200 million fund, Hashed Venture Fund II, to invest in web3 oriented startups, which will incorporate metaverse, blockchain gaming, NFTs, and DeFi concentrated companies.

“We are radically optimistic about web3’s potential to restore trust and enable new kinds of governance where players collectively make critical decisions about how the metaverse should be defined”, TheBlock quoted Hashed.

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South Korea to Follow Crypto’s Global Growth

This fund is said to be a follow up of Hashed’s former web3 oriented fund, that amounted to approximately $120 million in just three months’ period, from its launch in September of 2020, to December of last year. Through Hashed Venture Fund I, the company made investments in blockchain and other technology startups to further promote protocol economy, designating an open economy underpinned by “independent” and “consensus-driven” protocols to facilitate direct rewards via digital assets. The idea of Web3 and crypto adoption is becoming more mainstream with each passing day. Not only the West, in fact countries across the globe are investing in, and embracing the benefits of the decentralized industry.

Last month, CoinGape reported on CB Insights’ data, revealing that the month of November alone exceeded $3 billion in venture capital funding into crypto and blockchain startups. Furthermore, the value of venture investments in the decentralized industry surged globally, from $3.1 billion in 2020, to $21.3 billion by November 30 of this year.

Earlier this week, South Korean authorities finally folded on its long-standing anti-postponement stance regarding the implementation of crypto taxation in the nation. The National Assembly of South Korea passed a bill on Tuesday to push back the implementation of crypto taxation to January 2023. Kim Young-jin, Chairman of the Tax Subcommittee also noted that imposing taxation on the crypto market without a clear government definition wouldn’t be a good idea.

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“There is an inconsistent system for imposing taxes without a clear basis on how to legally define cryptocurrencies in our system… but only in Korea does taxation come before regulation.”

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Kimbal Musk, Elon Musk’s brother launches decentralized philanthropy platform

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  • Kimbal Musk launch decentralized philantrophy platform.
  • Says he launched platform after learning a lot from Web 3.
  • Crypto continues to integrate with philanthropy on many fronts.

Kimbal Musk, brother to the world’s richest man, Elon Musk, has announced the launch of a “Giving DAO.” He calls it an experiment in “decentralized philanthropy,” (Big Green DAO)

In a tweet he used to announce the DAO launch, Musk said he is deciding to launch the decentralized philanthropy after learning a lot from Web 3. During an interview, he said that one of the goals of the charity is to overhaul the philanthropy industry with the use of blockchain-based tooling – a sector he believes is plagued by inefficiencies.

“Wow, Web 3 has been teaching me a lot. I’ve decided to run an experiment to decentralize philanthropy. This Giving Tuesday, I’m launching the first Giving DAO,” Musk tweeted.

It is safe to say, like Elon, Kimbal Musk is also fascinated by cryptocurrencies and its potential. He called for constructive criticism on his decentralized philanthropy project.

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Who is Kimbal Musk?

Kimbal is Elon Musk’s younger brother and a restaurateur, chef, and entrepreneur. He owns The Kitchen Restaurant Group, a nest of “community” restaurant concepts located in Colorado, Chicago, Cleveland, Memphis, and Indianapolis. He is also a board member on Elon’s electric vehicle company, Tesla.

So far, his crypto foray has generated positive feedback on Twitter. “This sounds exciting! The true power of crypto and the blockchain to disrupt philanthropy is yet to be tapped, so it’s great to see you pioneering in this regard,” said one Floki Inu account.

Crypto continues to bond with charity

More and more people change the narrative of crypto being used for illegals by bad actors.

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Musk is not the first to integrate the Web 3 and crypto world with philanthropy and charity.

Months back, Médecins Sans Frontièrs (MSF) Doctors Without Borders—received $3.5 million worth of Ethereum from an NFT sale. “This game-changing crypto donation comes at a time where the COVID-19 emergency has compounded the already urgent medical needs of people around the world,” said Jennifer Tierney, MSF Australia’s executive director at the time.

A group of hackers also donated proceeds of their ransomware attacks to charities and NGOs.

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The giving block, a crypto charity organization, has been making giant strides providing leading solutions for nonprofits to accept crypto and a platform for donors to give cryptocurrency to their favorite causes. The Giving Block opens new revenue streams for charitable organizations while reducing the crypto tax burden for donors.

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El Salvador’s President Asks the Fed to Stop Printing Money

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El Salvador’s pro-crypto president commented on a report on the U.S. Fed’s response to escalating economic and financial woes.

On Dec. 1, the outspoken Nayib Bukele responded to a Bloomberg report detailing Federal Reserve chair Jerome Powell’s comments on inflation. Interestingly, El Salvador’s president asked the Fed chief to stop printing so much money out of thin air.

Inflation a Growing Concern

A fresh round of economic anguish has been ignited by last week’s discovery of the new highly-transmissible Covid-19 variant named Omicron by the WHO.

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On Nov. 30, Bloomberg reported on the Fed chair’s comments before the Senate Banking Committee this week. Both Democrats and Republicans expressed concerns about high prices and inflation, it added. The central bank chair retired the word “transitory” to describe high inflation that remains a persistent issue in the U.S.

He added that the Fed should start to wrap up its bond purchasing scheme earlier than the scheduled mid-2022 target.

The word used was “tapering,” which refers to a gradual slowing down of purchases of securities and bonds. The central bank has been effectively printing money to buy bonds with the aim of pushing down interest rates which are currently at 0.25%.

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Lower interest rates mean more borrowing, which stimulates the economy and spending. However, money printing increases inflation and gradually erodes the value of the currency over time, hence Bukele’s comments today.

According to the Federal Reserve Bank of St. Louis Economic Research (FRED), the five-year breakeven inflation rate surged to over 3% in November – its highest level for more than two decades. As a result, the consumer price index for all urban consumers (Core CPI) – which measures the average cost of goods less food and energy – is also at an all-time high.

The figures are a clear indication that the situation is not “transitory” despite what the Fed claims. The latest Omicron strain could exacerbate America’s economic woes even further if it runs rampant and more lockdowns are enforced.

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El Salvador Gains

Naturally, store of value assets that offer a hedge against the greenback and inflation are going strong. As reported by CryptoPotato, Nayib Bukele bought the dip adding 100 BTC to El Salvador’s treasury on Nov. 27.

It has worked out very well for the Latin American nation so far, despite a few protests. A tracking feed that measures the value of the $30 BTC airdrop Bukele gave citizens to spur adoption back in September is reporting a current profit of almost 15% in dollar terms.

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