New legislation to regulate blockchain and cryptocurrencies proposed in Vermont

Senator Alison Clarkson (D) from Vermont has proposed legislation that outlines a use case for government-based cryptocurrency solutions
09 January 2018   813

Blockchain technology is rapidly gaining popularity in different aspects of real life and production. Pharmacologists and food suppliers are looking into ways to implement digital ledgers. So, no wonder, that the new round of legislation got proposed last week in Vermont to regulate and harness blockchain.

Alison Clarkson, the Windsor District Democrat, proposed a new bill detailing the use of digital assets tethered to blockchain and various digital currency solutions. Two most interesting parts are sections twelve and thirteen.

Section thirteen calls for research and report on risks and benefits of adopting blockchain technology and cryptocurrency operations in Vermont state government. This report will be reviewed various government officials and members of the Vermont Law School. Also Clarkson wants to create a dedicated cryptocurrency research and fintech Summit to explore opportunities that promote financial technology and economic development in the private sector, including in the areas of banking, insurance, retail and service businesses, and cryptocurrency providers and proponents, as quoted from the bill, published on Vermont government website.

Section twelve, in turn, is more along the regulatory lines. It talks about digital currency LLCs' physical presence in the state, taxation and possible exemptions for such companies. This section proposes the ability to pay taxes in cryptocurrency, if the company resides in Vermont. The S.269 proposal follows:

A digital currency limited liability company shall remit to the State in the form of its digital currency a transaction tax equivalent to $0.01, at the then current exchange rate for the currency with the U.S. dollar, per transaction for: each unit of currency mined or otherwise created; and each sale or other transfer of one or more units of currency.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   213

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.