Arizona to Regulate Bitcoin and ICOs

Several bills that recognize crypto as currencies are passing by the Arizona State Legislature
10 February 2018   194

Arizona might become the first U.S. state to legalize bitcoin and other currencies as a method of payment. One of several bills already passed by the Senate Finance Committee. Moreover, the first reading of a draft law which will regulate ICOs has been scheduled. It seems that Arizona will be a place for crypto.

There are several bills that recognize bitcoin and other cryptos as currencies. Two of them, SB1091 and SB1145, will regulate income tax payments with cryptocurrency. In mid-January, one of them has already passed the Senate Finance Committee. Another one  (HB2601) will regulate initial coin offerings (ICOs). The first reading of this bill is scheduled for June 2. The second reading will take place a month later.

The state is going to be the place to be for blockchain and cryptocurrency in future. Experts believe that in the next 5 to 10 years this technology will change the world.

According to Jeff Weninger, a Republican member of the Arizona House of Representatives, the new law will make it easier for people to pay their taxes, without opening their “normal wallets”. A taxpayer will be able to pay taxes from his home even in the middle of the night.

Of course, there is an opposite opinion. The new technology will replace traditional money transfers with credit cards. All taxpayers will be put at risk because of the volatile nature of bitcoin. If the new legislation is passed the state will be responsible for exchanging the cryptos.

If Arizona lawmakers approve the bills, the state may start collecting taxes in bitcoin within two years. It will be the first state in the U.S. to legalize cryptocurrency payments for taxes.

SEC Suspends Trading in 3 Companies

On Friday The U.S. Securities and Exchange Commission temporarily suspended the trading of three companies as they made the purchase of cryptocurrency and blockchain-related assets
17 February 2018   121

According to the announcement, the trade of  Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. will be suspended between 9:30 a.m. EST Friday and March 2. The notice was dated Feb. 15.

SEC stated that its trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things.

The release also indicates additional reasons for the suspensions. The agency’s orders also say there are questions regarding the nature of the company's business operations. In case of CHIT, the Commission suspended trading in the securities because of its delinquency in filing annual and quarterly reports.

In August 2017, the SEC  issued a warning for investors about the companies that may publicly announce ICO or coin-related events to affect the price of the company’s common stock.

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. 

U.S. Securities and Exchange Commission