Today, the SEC made positive statements on the potential of ICOs, as bitcoin failed to achieve a significant price bounce. Japan proposed tax changes in favor of cryptocurrencies, China banned STOs, and Crypto Insider reported on Stellar and Ripple application headway.
Here are the details:
Stellar And Ripple Penetrate Further Into Traditional Banking
It makes logical sense for banks to fear cryptocurrencies. However, banks are now looking into blockchain technology application, instead of shunning the potential it holds. Stellar and Ripple are two cryptocurrency projects looking to mesh with the traditional financial system.
Along its journey thus far, Stellar has partnered with mainstream giant IBM, and has created a blockchain solution to improve bank transfers. It’s also worth mentioning that these are only two of their achievements. Stellar also acquired a blockchain startup called Chain, which touts a list of powerful investors among which you can find Citi Ventures and Visa.
Ripple has also made waves in their pursuit to help banking. Some of their achievements include a partnership with UAE (United Arab Emirates) exchange in order to provide a decentralized global payment solution. Other partners include the Brazilian banking giant Bradesco.
ICOs Are ‘Effective Way’ To Raise Capital If Rules Are Followed: SEC Chairman
Securities and Exchange Commission (SEC) chairman Jay Clayton recently discussed the topic of ICOs, providing his additional thoughts on their potential.
According to a speech last week, Clayton stated, “I believe that ICOs can be effective ways for entrepreneurs and others to raise capital.”
Although Clayton sees potential for the ICO model, he also notes their need for structure and regulation. “[T]he novel technological nature of an ICO does not change the fundamental point that, when a security is being offered, our securities laws must be followed,” Clayton said.
$3K Ahead? Bitcoin Price Bounce Is Again Losing Steam
The crypto space could still see a price of $3,000 for crypto’s largest asset, according to a CoinDesk report today.
Last week, bitcoin hit price lows it hadn’t seen for over a year, coming in at $3,210. BTC did have a small price rally which ensued shortly after. However, prices only reached $3,633 before heading back down toward $3,470 today. (Price levels mentioned refer to Bitstamp data.)
CoinDesk explained the lack of a convincing bounce as a maintained control position for the bears, with lower prices ahead. Additionally, “the 3-day chart, which can offer a better picture of the broader market trend than the daily and intra-day charts, is indicating room for a drop below the psychological support of $3,000,” CoinDesk said.
Japanese Lawmaker Proposes 4 Changes To Ease Crypto Tax Burden
Cryptocurrency taxes are currently complicated. Japan recently came out with several possible tax rule alterations to simplify the process, while promoting crypto adoption.
Nippon Ishin political party member Takeshi Fujimaki’s proposition stated, “[w]e will change the virtual currency taxation system to a certain form to promote the wider penetration of virtual currency into society and encourage the development of block chain technology.”
“The tax system should not crush the future of virtual currency or block chain,” Fujimaki added.
CoinDesk’s report went into further details of the proposals mentioned.
Central Bank Deputy Governor: STO Business ‘Essentially An Illegal Financial Activity In China
The People’s Bank of China outlawed security token offerings (STOs) in an official ruling recently.
In a report referencing statements from deputy governor Pan Gonsheng (People’s Bank of China), the South China Morning Post reported unlawful “financing activities through STOs and ICOs were still rampant in the mainland despite a nationwide clean-up of the cryptocurrency market last year.”
In a recent statement, head of Beijing Bureau of Financial Work explained, “I want to warn those who are promoting STO fundraising in Beijing. Don’t do it in Beijing. You will be kicked out if you do it.”