19/07/2018: Biggest Stories in the Cryptosphere

by BlockEx

1. US Government Agency To Launch Blockchain Regulatory Sandbox

The Consumer Financial Protection Bureau (CFPB) wants to promote blockchain and other financial technology innovation by launching a regulatory sandbox. The initiative was announced by the Acting Head, Mick Mulvaney. CFPB wants to help companies developing products and services based on these new technologies. “Cryptocurrencies, blockchain-based platforms, other private currencies and individual microlending will all be investigated by the government agency. In the future, they might even consider alternatives to the current credit scores system.

2. Switzerland Doesn’t Want To Lose Its Spot With Crypto Projects

Lately, cryptocurrency projects have been leaving Switzerland, and this prompted Swiss regulators to ensure they create laws which are favourable to the crypto industry. Switzerland is losing business to countries such as Liechtenstein, Gibraltar and the Cayman Islands, due to a more friendly banking system. The crypto industry still represents a tiny fraction in comparison to the traditional banking industry. However, hundreds of people are employed, and it’s believed that the sector will only grow over the years. Swiss National Bank (SNB)’s Thomas Moser mentioned how cryptocurrencies companies struggled to open bank accounts and wanted the central bank to intervene but were redirected to the financial market supervisor FINMA. More friendly regulations would definitely help with the ‘exodus’.

3. Blockchain-based ‘Proposal Evaluation System’ To Be Launched In South Korea

The South Korean administrative district of Yeongdeungpo-gu has launched a blockchain-based ‘Proposal Evaluation System’, which will make administrative procedures fairer and more transparent. It will be possible to implement a smart administration thanks to new technologies. The evaluation proposal process will become overall more trustworthy. Various areas will be improved, “including real-time result disclosure, holding proposal review meetings, and publishing results of negotiations”. The evaluation committee will digitally sign their decisions on blockchain, and they will then be uploaded on the Yeongdeungpo-gu office’s homepage in real-time.

4. Russia To Maintain Existing Laws For Crypto Miners And Holders

It has been reported that cryptocurrency miners and holders will be regulated according to the Internal Revenue Code. The Duma Committee on Financial Markets Chairman Anatoly Aksakov revealed that a bill on digital financial assets and cryptocurrencies will be passed later this year. They will not benefit from special taxation schemes. The already existing Russian Tax Code will be implemented on cryptocurrency miners and holders. However, the possibility of creating a separate system in the future cannot be excluded yet. At the moment, individuals will pay income tax while legal entities will make payments based on the type of business.

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