Bitcoin ETFs last week: Law Decoded
More than ten years after the first application, the crypto industry has finally found a place for Bitcoin (BTC) exchange-traded funds in the United States. On January 10, the US Securities and Exchange Commission (SEC) approved Bitcoin ETF applications from ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex and Franklin Templeton. The SEC decision was a historic event for crypto, but the road was not smooth. It all started in the year In 2013, Gemini co-founders Cameron and Tyler Winklevoss filed the first application for a Bitcoin ETF in the United States.
The SEC's decision to approve a spot cryptocurrency ETF for the first time in the U.S. has raised questions about the motives of commission chairman Gary Gensler. Since taking office, Gensler has spoken out several times about the risks of crypto investments, linking digital assets to fraud and fraud. However, Gensler was one of three commissioners who voted to approve the offer. The 3-2 vote suggests the SEC chairman's decision is likely. Some members of the community suggested that the chairman of the SEC “voted with Wall Street”, because the expansion of crypto products can bring investors' money. Others speculate that “the writing was already on the wall” for the SEC to approve a Bitcoin ETF, as the commission was ordered by a federal court to review the grayscale offering.
Not everyone is happy with the SEC's decision. In her statement, SEC Commissioner Caroline Crenshaw — one of two commissioners who voted against approval — wrote that the agency's move to greenlight bitcoin-based investment vehicles was “unhealthy and historic.” Better Markets, a nonprofit economic organization, did not mince its words in criticizing the ETF's decision, saying the asset is inherently worthless and purposeless. Gold advocate and bitcoin critic Peter Schiff added that the approvals are nothing more than a series of new avenues for speculation to gamble on bitcoin.
The Special Zone of Honduras recognizes Bitcoin as a unit of account
Less than two years after bitcoin was accepted as legal tender, Prospera, a special economic zone in Roatan, Honduras, has officially recognized bitcoin as a unit of account — meaning it can now be used to measure the market value of goods and services. For the time being, the tax liability of Bitcoin-electing entities is determined in BTC for internal accounting purposes, but is reported in US dollars or Honduran lempiras to the Prospera Zone for Employment and Economic Development (ZEDE). Once the issues are resolved, entities report tax liabilities (and pay the corresponding amount) in BTC to Próspera ZEDE.
Continue reading
Google Play Store has banned Binance, OKX in India
India's Google Play Store has removed crypto exchange apps Binance and OKX after the government issued a non-compliance notice against them. The removal followed a similar decision by the Indian Apple App Store in December 2023. At that time, the Financial Intelligence Unit (FIU) of the Ministry of Finance of India issued a notice to Binance, Huobi, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global. , because Bittrex and Bitfinex operate illegally in India. The FIU notification to Indian users states that any exchange transaction must be registered as a “reporting entity” and submit returns to the Income Tax department. FIU has proposed to the Ministry of Electronics and Information Technology to suspend the mentioned money exchange websites for non-compliance with the regulations.
Continue reading
Do Kwon asked the SEC to postpone the trial
Terraform Labs co-founder Do Kwon has asked the US District Court for the Southern District of New York to extend his trial until March. In a letter to Judge Jed Rakoff, Cowon's legal team emphasized its intention to attend the scheduled hearing on January 29. However, they assumed that Kwon would be allowed to return to America early.
In the year In February 2023, the SEC filed fraud charges against Kwon, alleging his role in orchestrating a multibillion-dollar crypto-securities fraud. The charges relate to the collapse of Terraform Labs' stablecoin TerraUSD (USTC) and its associated token Terra (LUNA). Recognizing the urgency of the trial, Kwon's legal team has indicated that it will not be possible for him to attend this month's trial date.
Continue reading
