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On August 31, the US Securities and Exchange Commission (SEC) announced that it had delayed until October any spot ruling it received on a bitcoin exchange-traded fund (ETF).
In total, the regulator received six applications from crypto and traditional financial firms such as Fidelity, BlackRock and Invesco Galaxy, which hoped to soon launch the first spot Bitcoin ETF.
The SEC’s requirements meant that existing comment periods would be extended to October 16 and 19 – depending on the application – and more public feedback would be allowed.
The regulatory authority has a total of 240 days from when it first begins its review of any application to make a final decision on approval or rejection. The SEC has traditionally used every available comment and review period to delay making final decisions until the 240-day period expires, which is why the latest filings are expected.
The development comes after a federal appeals court ruled on August 29 that some of the SEC’s arguments in rejecting Grayscale Investment’s bid to convert Grayscale Bitcoin Trust into an ETF were “arbitrary and capricious” and overturned the SEC’s order to deny the filing for listing. The ruling meant that the SEC must review the application, but does not guarantee an eventual grayscale listing of the bitcoin ETF.
India pushes for global cryptoasset framework as G20 president
Indian Prime Minister Narendra Modi gave an exclusive and far-reaching interview to the media ahead of the G20 leaders’ summit to be held in New Delhi at the beginning of September. As the chair since last December, India is in a unique position to set the agenda of this forum for international economic cooperation.
Among other topics, Modi spoke about the need for a consensus-based global model to regulate cryptoassets. Acknowledging the rapid change in technology in the sector, he said the focus should be on “adoption, democratization and a unified approach” with “rules, regulations and a framework”. […] it doesn’t belong[ing] one country or group of countries”.
According to Modi, significant energy has been channeled into global discussions on cryptoassets, and India has broadened the conversation beyond financial stability to consider the broader macroeconomic implications of cryptoassets, particularly for emerging markets and developing economies.
You can read our full analysis of Modi’s interview and India’s stance on crypto-assets here.
US Proposes New Cryptocurrency Tax Filing Rules
Under a proposed US Treasury rule published in late August, crypto asset brokers, including exchanges and payment processors, will have to report new information on sales and exchanges of users’ crypto assets – including coins like Bitcoin and Ether, as well as non-fungible tokens (NFTs) – Internal Revenue Service (IRS).
According to the proposal, the definition of “broker” would include both centralized and decentralized trading platforms, payment processors and certain online wallets where users’ crypto assets are stored. The rule is part of a broader US effort to crack down on tax fraud and help law-abiding taxpayers determine the taxes they owe on the sale or exchange of cryptoassets.
The new requirements stem from the $1 trillion Infrastructure Investment and Jobs Act of 2021, which included a provision to increase tax filing requirements for cryptoasset brokers. He ordered the Tax Administration to define which companies are qualified as brokers, and to provide forms and instructions for reporting. It also extended the reporting requirements for certain cash transactions of more than $10,000 to cryptoassets.
The US, Japan and South Korea have imposed new sanctions on North Korea
Japan, the US and South Korea imposed additional sanctions on North Korea in response to Pyongyang’s failed attempt to launch a military satellite last week.
Japan has designated four people – a Briton, a Chinese man and two North Korean men – and three groups, including the North Korean hacking group Andariel, as new targets for an asset freeze. South Korea also announced sanctions against a North Korean firm linked to its weapons development programs and five individuals.
The two countries’ autonomous sanctions follow additional measures announced by the US on August 31 against two individuals, a North Korean and a Russian, as well as Intellect LLC of Russia, alleging that they helped finance North Korea’s efforts to develop weapons of mass destruction and ballistic missiles. rockets.
SEC Takes First Enforcement Action Against NFTs
On August 28, the SEC charged the Los Angeles-based company with conducting an unregistered offering of crypto-asset securities in the form of NFTs. Impact Theory raised about $30 million from hundreds of investors – including many across the United States – through the offering.
According to the SEC, Impact Theory offered and sold three tiers of NFTs between October and December 2021. The firm was found to have encouraged potential investors to view the purchase of NFTs as an investment in the business, stating that the investors would profit from them if the company was successful, which would provide such buyers with “tremendous value”.
The SEC ordered Impact Theory to pay a total of more than $6.1 million in disgorgement, prejudgment interest and civil penalties. The order also establishes a fair fund to refund the amounts paid by investors to purchase NFTs.
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