The Russian Finance Ministry has proposed ‘a draft federal law’ for the regulation of virtual assets and Initial Coin Offerings. The draft legislation highlighted that there would not be any restrictions on the investment limits made by the licensed professionals under the Securities Law. However, the unqualified investors are limited to only 50,000 ruble or $900 approximately.
The Philippines Securities and Exchange Commission had issued a ‘cease and desist order’ against four companies namely Black Cell Technology Inc., Black Sands Capital Inc., Black Cell Technology Limited and Krops. They had operated in affiliation with the KropCoin token sale which was coined as the ‘first agriculture marketplace crypto equity ICO.’ The SEC had stated that they had traded the Kropcoins without obtaining the license.
The National Internet Finance Association (NIFA) had issued a warning to the citizens of China against investing in overseas Initial Coin Offerings (ICO) and Cryptocurrencies. It observed that the investors had been migrating their funds to overseas crypto market since ICOs had been banned and crypto exchanges shut in China. The NIFA issued a public statement and cautioned, “Some overseas ICO and trading platforms may also face the risk of being forcefully closed due to the compliance issue.”
Six investors, acting on behalf of all investors and account holders at the BitConnect exchange platform, filed a suit with the Southern District Court of Florida. They claimed that they had almost lost $771,000. They alleged that BitConnect issued unregistered securities and they had also received additional investment funds under the Ponzi scheme.
Randall Crater, Mark Gillespie and My Big Coin Pay, Inc., a company based in Las Vegas had been accused by the Commodity Futures Exchange Commission (CFTC) with regard to a cryptocurrency scam. The CFTC claimed that the accused had misappropriated $6 million and more from its customers. The anti-fraud provisions of Commodity Exchange Act had been imposed in respect of this case.
Three suspects budged into the offices of Canadian Bitcoins in Ottowa holding their handguns and restrained four employees. They had compelled one of the employees to transact from the exchange. One of the suspects was caught by the police. It is also reported that the New York District Attorney’s Office had charged Louis Meza with looting $1.8 million of Ether.
The most popular Benebit ICO had dissolved $2.7 million to $4 million. It is observed that this had been the top-rated ICO before it had scammed the investors. It is also reported that the Benebit had spent nearly $500,000 for its market promotion. The official site and other social network accounts of Benebit were shut down.
The Israel Tax Authority (ITA) had drafted a circular explaining the taxation policies for domestic companies earning revenues through ICO campaigns. Yitzchak Chikorel of the Deloitte’s International Taxation Team told the Coindesk, “The goal of the blockchain industry in Israel is not to stay under the radar. The ITA has realized the magnitude and the importance of the blockchain as an evolutionary technology that could allow the creation of the next generation of multinational companies.”
The South Korean government unveiled two sets of cryptocurrency legislations. The government exposed anti-money laundering guidelines for banks that provide support services to cryptocurrency exchanges. The legislation was prepared by the Korean Financial Intelligence Unit (FIU). It was also revealed that the ‘real-name system’ will be implemented from 30th January.
The eight cryptocurrency exchanges in South Korea, namely Korbit, Coinone, Upbit, Coinplug, RippleForYou and Coinpia had been slashed with the fine amounting to $130,000. The South Korean Communications Commission reasoned that the said exchanges had violated ‘Information and Communication Network Act and Privacy Act.’