US Government: Officials must disclose Crypto Holdings

The United States Office of Government Ethics (OGE) claims digital currencies should be declared by politicians in order to avoid conflicts of interest
19 June 2018   654

This statement applies whether the holdings are described as coins or tokens. The letter affirms that politicians have been seeking guidance from the OGE about what to do about their cryptocurrency, and the office is thus aware that “virtual currencies are experiencing a surge in use and access”. It is also mentioned that the legal framework governing the assets is not yet solidified, and alerts that further guidance will likely need to be published.

The IRS, the country’s tax authority, estimates virtual currency as property, the Commodity Futures Trading Commission consider them as commodities, while the Securities and Exchange Commission is still making their desicion. It recently affirmed that while Ethereum is not a security (that caused the price of that token to jump by nine percent), many are being advanced as investment assets and thus would follow under its jurisdiction. Ripple, a major cryptocurrency firm, is presently facing a lawsuit over exactly this matter.

The OGE approves that it itself does not regard cryptocurrency to be legal tender, but according to the Ethics in Government Act of 1978 government employees must inform about any source of income. Thus, they are now demanded to report crypto holdings if those holdings exceed a value of $1000 and/or bring them $200 in profit during a specified reporting period.

Pure Bit to Refund Investors' Money

Another cryptocurrency scam storu may have happy ending
15 November 2018   93

The founders of the South Korean exchange Pure Bit, who were suspected of stealing investors' money, announced the return of funds.

According to the local edition of BlockchainROK, representatives of the exchange have already partially returned the money to some users and pledged to return all other funds.

On November 4, the exchange team launched the ICO with the goal of collecting about $ 30 million to create a crypto exchange. However, on November 9, Pure Bit closed the site, said goodbye to its investors and removed everyone from the group in the KakaoTalk messenger. Also, the founders of the exchange withdrew funds from the account that was used for ICO.

According to CCN, one of the issues traced the Ethereum address of the exchange and asked Upbit to block the account and freeze the funds. Upbit fulfilled this request.

This is Pure Bit. First off, I would like to apologize to everyone that was affected by the ICO. Since November 5, I raked in 16,000 ETH and did not open a crypto exchange as promised. I kicked out everyone in our social media chat groups and disappeared without any message. I negatively affected investors in the project psychologically and financially. I made an unforgivable mistake that cannot be turned around, blinded by money. It has been less than a day and I have already started to suffer from guilt. Although it cannot be compared with the hardship faced by the investors, I also felt significant guilt. I sincerely apologize to all of the investors in the ICO who were affected by the operation.

CEO of Pure Bit

The founder of Pure Bit also notified that he would return ETH 16,000 to depositors without taking into account the payment of services to a third-party company that organized ICO.