The Crypto Traders Pro Weekly Review 1-25-20 is here! On today’s Crypto Traders Pro Weekly Review 1-25-20, we’re approaching the end of the first month of the new year. It’s clear that already, Crypto is being taken more seriously by lawmakers and regulators. It’s also clear that if crypto entities don’t abide by established financial rules and regulations – they’ll pay the price.
Tether and Bitfinex continue to be harangued by legal lawsuits and class action lawsuits. The various claims are now combining their efforts, with a reportedly fourth joining in. Tether and Bitfinex reportedly welcome the move as it will make it easier for them to defend against the claims.
The European Union (EU) has drafted new anti-money laundering regulations, dubbed the Fifth Anti-Money Laundering Directive. Initially passed last year, the directive is now in force. Because if this, crypto shops have closed their businesses in the EU, with KyberSwap being one of the more notable. They’ve closed up and have announced a move to the British Virgin Islands. They assert that the new rules “would put too high a barrier for the majority of traders, both – regulatory and cost-wise”.
Crypto gains in South Korea could soon be taxed. The Ministry of Economy and Finance wants to place a 20% tax on a portion of earnings. They want to list crypto as a source of income. Previously, any money made off of crypto holdings was considered capital gains, but the new rules acknowledge crypto as money that is subject to “other income” tax rules. Bad for traders, but great for eventual adoption!
South Korea is also taking a stronger stance against financial fraud. Korbit has updated its terms of services to indicate that digital assets it holds for users can be seized without noticed if a financial institution or relevant authorities request it. The seizure would take place if the user was found to be participating in any fraud or scam to steal from others.
Facebook’s Libra stablecoin has struggled from the onset. They’ve lost members, faced intense scrutiny, and now, they face a lack of respect in its own backyard, Switzerland, where the project is being deemed a “failure” by others. In another humiliating blow, Vodafone has bowed out to focus on its own payments solution, M-Pesa.
India still is not sure if Crypto is banned or not. The country’s Supreme Court continues to delay on weighing in on the subject. Consensus, however, remains that crypto must remain underground. The Reserve Bank of India issued a statement stating that crypto is not banned, it’s just illegal for banks to provide services to companies operating inside the ecosystem. Which in effect, makes crypto operations near impossible to operate.
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