CFTC Chair: Bitcoin joins Elements of all Asset Classes

  The Head of the Commodity Futures Trading Commision (CFTC) affirms that Bitcoin is part currency, part security, and part digital coin
01 May 2018   1629

The ecosystem around Bitcoin and cryptocurrency keeps on to develop different  regulatory structures in the US which still struggle to determine what for it is to found  a framework in which it can be controlled.

Christopher Giancarlo, the Chairman of the CFTC, J. , went on CNBC’s Fast Money and declared that Bitcoin is a little bit of everything. Reporting to host Melissa Lee,  the Chairman claimed: “Bitcoin and a lot of its other virtual currency counterparts really have elements of all of the different asset classes, whether they’re meeting payment, whether it’s a long-term asset.”

Conceding that cryptocurrency hardly correspond by the criteria that the different  financial regulatory establishments in the US use, Giancarlo went on to explain that most of the asset definitions they use were instituted during the reform period of the 1930’s which makes it very difficult to use to a currency based on technology which is only about ten years old.

We see elements of commodity in it that are subject to our regulations, but depending on which regulatory regime you’re looking at, it has different aspects of all of that.
Christopher Giancarlo,
Chairman, CFTC

Where he pointed out some regulatory progress has been made is in the licensing of Bitcoin futures contracts traded on the CME and CBoE which he claimed are working quite well. He stated that Bitcoin being more suitable as a long term store of wealth then an perfect mean of payment without mentioning other cryptocurrencies like Bitcoin Cash that were created specifically as simpler to use forms of payment.

The chairman also said that in his opinion Bitcoin and the blockchain technology came hand in hand. That to fight against one while accepting the other would stymie the technological evolution of the ecosystem.

In conclusion of his report, Christopher Giancarlo underlined that regulating Bitcoin is going to be complicated and that he didn’t see the matter being solved anytime soon.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   171

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.