Crypto Regulations to be enforced by November in Taiwan

Qiu Taisan, Taiwan’s Minister of Justice, has  invoked for cryptocurrency regulations to be in place by November in order to obstruct money laundering
23 April 2018   1188

Qui Taisan claimed the country’s Ministry of Interior, the Central Bank, the Bureau of Investigation and other organizations will be involved in defining how to regulate Bitcoin. Qui Taisan was interviewed during the financial industry money laundering conference held by the Taiwan Financial Services Coalition.  

According to the report, the government’s Legal Department involved two domestic virtual currency operators on April 10 to learn about virtual currency operations. The department will be informed about “control mechanisms” prior to the Asia Pacific Anti-Money Laundering Organization in Taiwan at the end of November.

The chairman of the Financial Supervision and Management Commission, Gu Lixiong, also declared that the control of Bitcoin and other cryptocurrencies is based promptly on the prevention of money laundering. In order to prevent Bitcoin from turning into a money laundering tool, the commission has asked banks to list the account of the Bitcoin sales platform as a “high-risk account.”

Wellington Koo, then Taiwan’s Financial Supervisory Commission chairman, in October, stated a joint session of the parliament and the cabinet that Taiwan will not proceed the paths of China and South Korea in a crypto-related activity ban. On the contrary, the head of Taiwan’s financial regulator committed to adopt a friendlier position to support the development and adoption of both cryptocurrencies and blockchain in the country.

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   180

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.