Belgian tax authority investigates cryptocurrency operations

Following a 33% tax on virtual currency gains Belgian regulator tightens its grip on cryptocurrency
04 March 2018   435

Special Tax Inspectorate has launched 3 distinct investigations that concern exchange operations with cryptocurrency. Several Belgian citizens have allegedly traded virtual currency at foreign exchanges and yet to file the gains made on the operations. STI received such information from foreign tax authorities. Now, the regulator will try to contact those tax offices directly with the intention to elaborate on the allegations.

To remind the readers, Belgian regulator has made a bold move last year with the introduction of 33% tax on any cryptocurrency income and instruction to refer to it as "Other income" in the tax filing form. But such measure turned out to be difficult to actually implement as most of the virtual asset are based on foreign platforms that are prone to be resistful to authority penetration.

At present, in Belgium cryptocurrencies are neither legal nor illegal. And despite the fact that Minister of Justice Koen Geens has proposed the implementation of a new legislation that is meant to control all of the digital currency transactions, and despite the fact the country's tax authority approved the suggestion still Brussels didn't announce any comprehensive policy. Belgium is in a standby mode for now waiting for a common European policy.

Crime prevention and regulations should evolve with new technologies. cryptocurrencies should be subject to stricter rules because of their growing popularity with cybercriminals and scammers, and crypto companies should be obliged to cooperate with authorities.

 

Koen Geens

Minister of Justice,  Belgium

Crypto Exchange White Label Service launched by OKEx

OKEx, one of the biggest exchanges in the world, has declared the run of a crypto exchange creation programme ‘Digital Asset Exchange Open Partnership Program’
20 June 2018   80

The announcement claims that the programme is intended to “nurture a new generation of digital asset exchanges”. To establish a new crypto exchange, interested parties have to provide OKEx with a domain name, logo, and specialties of the management team. They are assured to possess “solid industry experience, quest for service excellence, and strong industry influence.”

Applicants should also deposit 500,000 OKB tokens into their accounts. This equals around $2.5 million at the present rate, according to coincodex.com. OKB is a utility token that were first sold in March of this year in packages of up to 100, each costing $100. They can be applied to settle transaction fees on the exchange and traded for Bitcoin, Ethereum and Tether.

The applicants will get access to OKEx’s fitting system (which links up buy and sell orders), cold and hot wallets (offline and online cryptocurrency storage), clearing system (which handles money transfer), client support system, and know-your-customer and anti-laundering systems. They will also get support from the OKEx technical team.

100 places are suggested by the programme in its first phase. It is anticipated to start in July. The announcement also points out the setup that the new exchanges must have. They will develop their own native tokens, and distribute them as follows:

  • 25 percent to themselves;
  • 24 percent to OKB holders;
  • and 51 percent to be mined.

OKEx explains the mechanisms by which the tokens will be mined/released. The term white label was firstly invented in the music industry - a white label vinyl record was a release so new that it had not yet been labelled, a much sought-after thing. Presently it cites to a service or product manufactured by one company and sold to another for re-sale under a different brand name.