US Election Commission Gives Green Light for Support of Favorite Candidates via Crypto Mining

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US Election Commission Gives Green Light for Support of Favorite Candidates via Crypto Mining

Under the FEC advisory opinion, it would be possible to support political campaigns by donating computer power to mine crypto for preferred candidates.

US Election Commission Gives Green Light for Support of Favorite Candidates via Crypto Mining

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India Ready to Announce Its Stance on Cryptocurrencies

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India Ready to Announce Its Stance on Cryptocurrencies

After years of ambiguity, the Indian government might finally reveal a regulatory draft for the cryptocurrency sector in the country before the turn of the year.

India Ready to Announce Its Stance on Cryptocurrencies

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SEC Orders Airfox and Paragon to Return Millions to Investors on ICO Registration Violations

The U.S. Securities and Exchange Commission (SEC) has settled charges against two cryptocurrency companies which were accused of violating ICO securities offering registration rules.
Both firms, Carrier EQ (Airfox) and Paragon Coin sold digital tokens in ICOs in 2017 after the regulator’s official stance on the ICO. Some crypto fundraisers can be considered securities offerings, according to its DAO Report of Investigation.
Airfox and Paragon Settle Charges with SEC for ICO Registration Violations, $250 in Penalties
As part of the settlement, both cryptocurrency companies will return funds to harmed investors, register the tokens as securities, file periodic reports with the Commission, and pay $250,000 in penalties.
Neither one has admitted or denied the findings made by the SEC, but they have consented to the orders.
Carrier EQ (Airfox), a firm which facilitates the transfer of mobile airtime, data and currency, as well as payments for goods and services, raised $15 million from selling over a million AirTokens on October 2017.
The company had closed its $6.5 million ICO pre-sale weeks earlier than scheduled. The Boston-based blockchain company intended to use the money to develop a micro-loans program and expand abroad to emerging markets.
Paragon Coin, which focuses its blockchain platform on the cannabis industry, raised approximately $12 million worth of digital assets to work toward legalization of cannabis and implement its business plan.
Related Reading: Crypto Week in Review: SEC Fines EtherDelta, Binance to Attract Institutions
The funds would be used to make supply chains more efficient and manageable, increase transparency regarding the origin of seeds and produces, as well as allowing payments between different parties.
These are the Commission’s first cases imposing civil penalties solely for ICO securities offering registration violations. Airfox and Paragon Coin failed to register their crypto fundraisers pursuant to the federal securities laws nor did they qualify for an exemption to the registration requirements, Stephanie Avakian, co-director of the SEC’s Enforcement Division, said in a statement.
“We have made it clear that companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities. These cases tell those who are considering taking similar actions that we continue to be on the lookout for violations of the federal securities laws with respect to digital assets.”
Munchee was the Commission’s first non-fraud ICO registration case. The visual review and social networking app for food failed to register with the financial watchdog, but stopped its offering before delivering any tokens and promptly returned proceeds to investors.
The company was seeking to raise up to $15 million from thousands of investors ‎to develop an iPhone app for restaurant meal reviews. The SEC did not impose a penalty or include undertakings from Munchee.
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Report: ICO Funding Stumbles in Q3, Regulation a Primary Factor

A recent report details just how weak initial coin offering (ICO) fundraising is becoming amidst the persisting 2018 crypto bear market, with Q3 being the least successful fundraising quarter for ICOs so far this year.
ICO Fundraising Drops Sharply in Q3
The report, which was conducted by independent research firm, ICORating, notes that a total of just over $1.8 billion was raised by a total of 597 ICO projects in Q3 2018, down significantly from the over $8.3 billion that was raised in Q2 2018.
Earlier this year, investors were clamoring to throw money into just about any ICO project that asked for it, but the persisting bear market and poor performance of tokens has led to increased fundraising difficulty, with 57% of ICO projects not being able to raise more than $100,000 USD.
Although most ICO tokens that are available for trading have had a terrible year, the report also explains that only 4% of ICO tokens have actually been listed on exchanges, making them an incredibly illiquid and risky investment.
Related Reading: German Regulator Advises Investors to “Keep Their Hands Off” ICOs
Factors Behind ICO Fundraising Drop
The report specifically notes that there are multiple primary factors contributing to the drop in ICO fundraising, including the high frequency of scams and fraud, uncertainty regarding regulation, a decline in value of some of the most hyped ICO products from earlier this year, and a general disappointment in the state of the markets.
A lack of transparency within many projects is one source of fear for investors, as it leads to increased uncertainty regarding how trustworthy the team leading the project is. The fear that stems from a lack of transparency in the industry is due to the amount of news regarding ICO-related exit scams.
“The market in Q3 shows signs of overall disappointment in traditional ICOs as a means of venture financing… The key problem with ICOs is that a vast number of them are scams or scam-like projects…”
Furthermore, regulatory uncertainty regarding the ICO industry is a huge contributing factor behind the drop in fundraising, as it is likely that many of the tokens resulting from ICOs are in fact securities products.
The report discusses this factor, saying that “a vast number of them [ICOs] are scams or scam-like projects, and the fact that some tokens sold were actually securities, meaning that they violate U.S securities law, forcing the Securities and Exchange Commission (SEC) to take action.”
Recently, the U.S. SEC released a report that said reducing ICO-related fraud is among their top priorities.
In the SEC’s annual 2018 enforcement report, the regulatory authority explained that the complex technological nature of ICOs makes them the perfect venue for scamming unsuspecting retail investors, and their international nature makes it difficult to enforce existing laws that are being violated by nefarious projects.
“Additionally, in partnership with the Division’s Cyber Unit and Microcap Fraud Task Force, as well as the Division of Corporation Finance’s Digital Asset Working Group, the RSTF has launched a lead-generation and referral initiative involving trading suspensions related to companies that purport to be in the cryptocurrency and distributed ledger technology space,” the SEC explained.
Although ICOs were a popular fundraising method in 2017 and early-2018, as regulations begin unfolding they may increasingly become an inefficient and legally dangerous way for projects to raise money.
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NYDFS Grants Yet Another BitLicense, Now It’s Time for NY Digital Investment Group to Celebrate

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NYDFS Grants Yet Another BitLicense, Now It’s Time for NY Digital Investment Group to Celebrate

New York Digital Investment Group has recently become the 14th company to be granted with BitLicense by the NYDFS.

NYDFS Grants Yet Another BitLicense, Now It’s Time for NY Digital Investment Group to Celebrate

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Maduro Further Takes All the Imaginable Steps to Push the Adoption of His Petro Token

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Maduro Further Takes All the Imaginable Steps to Push the Adoption of His Petro Token

A new initiative of Venezuela aimed at boosting Petro adoption presupposes making it the main digital currency backed by oil.

Maduro Further Takes All the Imaginable Steps to Push the Adoption of His Petro Token

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SEC Charges EtherDelta Founder For Running Unregistered Securities Exchange

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SEC Charges EtherDelta Founder For Running Unregistered Securities Exchange

The SEC notes that EtherDelta allowed its customers to trade ERC20 which were deemed as securities, and without registering with the agency.

SEC Charges EtherDelta Founder For Running Unregistered Securities Exchange

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Is Russia on Its Way to Adopting Its Own State-Backed CryptoRuble?

Russia may be on the way to adopting its own central bank digital currency, according to Anatoly Aksakov, chair of the State Duma’s Financial Market Committee.
The Russian Parliament is studying three bills, introduced in March, to regulate smart contracts, digital currencies, cryptocurrency mining, and initial coin offerings (ICOs). Now it seems that legislators also have a state-backed cryptocurrency in mind.
Russia to Approve Regulatory Framework on Cryptocurrencies and ICOs By Year End
The Financial Market Committee of the Russian Parliament has discussed the launch of the digital ruble, an encrypted form of the country’s fiat currency, in order to better integrate the cryptocurrency market, Aksakov told RIA Novosti.
“This is the same ruble, just in encrypted form, and it tracks the money turnover between the blockchain participants … The information system can place tokens, digital rights to raise funds for projects. All rights are taken into account in the information platform. This resource allows you to exchange money for crypto money. For example, you bring 100 thousand rubles to a bank and get 100 thousand crypto rubles, one to one for fiat money. You use these funds to buy goods fixed in the blockchain.”
Aksakov expects blockchain to eventually represent a significant portion of Russia’s economy, which then will raise the need for a CryptoRuble that enables the trade and economic processes in the country. The member of the State Duma believes the Bank of Russia should regulate the whole process of launching the Russian ruble in the form of cryptocurrency. The central bank, however has been cautious about the issue.
Related Reading: “Cryptocurrency Is Not Money,” Says Russia
For now, cryptocurrencies are not an authorized means of payment in Russia. Elvira Nabiullina, President of the Central Bank of Russia, called Bitcoin “quasi-money.” The central bank does not allow cryptocurrencies to be exchanged for rubles, currency or other property.
The State Duma has introduced three draft bills on cryptocurrencies and digital tokens in which they are considered assets, but won’t be able to pay for goods and services in Russia. Regulation on ICOs may limit the investment of non-accredited investors to 50,000 rubles (approximately $900) at the most. Aksakov said the Parliament plans to approve the regulatory framework on cryptocurrencies and initial coin offerings by the end of 2018, but the crypto-ruble is not in it.
“This is not in the bill, it’s my fantasy of what I suppose will be in the future. So far there is no request. While we are creating first of all the legal possibilities for holding an ICO within the Russian jurisdiction and provide for the protection of investors’ rights, the rules of operators, the requirements for them and the information system. First, we create the infrastructure, then the infrastructure may require cryptocurrency.”
Although the Bank of Russia considers cryptocurrencies as “quasi-money”, the central bank has tested an ICO technology on its central bank’s regulatory platform in order to conduct the first transaction involving tokenized assets.
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In EtherDelta Case, SEC Hints Most Ethereum Based Tokens are Securities

The U.S. Securities and Exchange Commission (SEC) has officially charged Zachary Coburn, the founder of cryptocurrency exchange EtherDelta, for operating an unregistered securities exchange. The regulatory agency’s move to charge Coburn comes amidst a greater trend of increasing regulation over the cryptocurrency industry.
In a press release today, the SEC announced that the charges against Coburn are the result of EtherDelta’s ERC20 token offerings, many of which were issued through initial coin offerings (ICOs) and qualify as securities.
“EtherDelta is an online platform for secondary market trading of ERC20 tokens, a type of blockchain-based token commonly issued in initial coin offerings (ICOs). The order found that Coburn caused EtherDelta to operate as an unregistered national securities exchange,” the release explained.
The press release further notes that this is the regulatory agency’s first enforcement action against a platform operating as an unregistered national securities exchange.
EtherDelta is a popular Decentralized Exchange (DEX) that utilizes Ethereum-based smart contracts to execute buy and sell orders. According to the commission, the exchange had violated multiple securities laws due to its offering of specific assets that were defined as securities in the SEC’s 2017 DAO report.
Stephanie Avakian, the co-director of the SEC’s Enforcement Division, spoke about the charges against the EtherDelta founder, saying:
“EtherDelta had both the user interface and underlying functionality of an online national securities exchange and was required to register with the SEC or qualify for an exemption.”
Steven Peikin, also a co-director of the SEC’s Enforcement Division, further noted that the charges against EtherDelta come as the agency is increasingly trying to protect investors in the distributed ledger technology (DLT) and cryptocurrency industry.
“We are witnessing a time of significant innovation in the securities markets with the use and application of distributed ledger technology. But to protect investors, this innovation necessitates the SEC’s thoughtful oversight of digital markets and enforcement of existing laws,” he said.
Since being charged, Coburn has consented to the order and has agreed to pay $300,000 in disgorgement, as well as a $75,000 penalty and $13,000 in prejudgment interest. It is important to note that Coburn has not admitted to, or denied, any of the SEC’s findings.
SEC Moving Quickly to Regulate the Cryptocurrency Industry
The SEC’s charges against the EtherDelta platform come less than a week after they released their annual report that detailed how they would be moving to regulate the cryptocurrency industry.
In the report, they specifically noted that they would be focusing their efforts on regulating ICO tokens that are being offered to investors as unregistered securities, and have recently shut down multiple platforms, including TokenLot, that are offering these products to investors without receiving the proper licensing.
As for their methods of reducing industry fraud, the commission explained that they would focus on increasing the public’s awareness of the dangers of nascent industries, and that they would be prosecuting violators to the fullest extent of the law.
The charges against Coburn likely signal that more cases against unlicensed cryptocurrency exchanges, especially those offering tokens resulting from ICOs, are to come in the near future as the SEC moves to regulate the cryptocurrency industry.
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How to Ruin Life Trading Cryptos: College Student Turned $5k Investment into $400k Tax Bill

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How to Ruin Life Trading Cryptos: College Student Turned $5k Investment into $400k Tax Bill

A Californian student thought that he had the run of his life last year by turning his small $5,000 investment into cryptocurrency to $880,000 in December 2017.

How to Ruin Life Trading Cryptos: College Student Turned $5k Investment into $400k Tax Bill

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SEC Report: Reducing Cryptocurrency Scams Among Their Top Priorities

In the U.S. Securities and Exchange Commission’s (SEC) latest annual report, the regulatory authority explained that reducing the number of cryptocurrency-related scams is currently among their top priorities. The report specifically cites initial coin offerings (ICOs) as one such sector of the industry that they are focusing on.
The report comes amidst an exponential increase in crypto-related scams that has resulted from increased public interest and the complex nature of the industry that leads many neophyte investors to fall prey to savvy scams.
Cryptocurrency, DLT, and ICO Markets Their Primary Focuses
In a section of the report titled “Focus on the Main Street Investor,” the agency explains that their main goal is to protect traditional retail investors from falling prey to complex scams that specifically target their lack of technological knowledge.
Naturally, the cryptocurrency industry is one such industry that has a problem with scams due to its unregulated nature, and the SEC states that they are launching multiple initiatives with partner agencies to reduce fraud in the crypto and DLT sectors.
“Additionally, in partnership with the Division’s Cyber Unit and Microcap Fraud Task Force, as well as the Division of Corporation Finance’s Digital Asset Working Group, the RSTF has launched a lead-generation and referral initiative involving trading suspensions related to companies that purport to be in the cryptocurrency and distributed ledger technology space.”
With regards to ICO-related regulation, they explain that in 2018 alone they have already brought 20 stand-alone cases against ICO companies that have been accused of legal misconduct and/or misleading investors.
“Since the formation of the Cyber Unit at the end of FY 2017, the Division’s focus on cyber-related misconduct has steadily increased. In FY 2018, the Commission brought 20 stand alone cases, including those cases involving ICOs and digital assets. At the end of the fiscal year, the Division had more than 225 cyber-related investigations ongoing.”
As for their strategy to reduce fraud and misconduct in the nascent markets, they say that they have focused on increasing the public’s alertness to the amount of fraud, prosecuting cases to the full extent of the law, requiring that issuers have the proper broker-dealer licensing to offer tokens, and by holding platforms accountable for the quality of the tokens being offered.
Despite the SEC being keen on reducing fraud, they have yet to lay out a formal regulatory framework that focuses specifically on cryptocurrencies and ICOs, rather than using existing laws that are geared towards traditional investments.
Thailand’s main regulatory agency (also called the SEC) is one example of an agency that is regulating the markets through the use of specific frameworks that are designed to help the markets progress while still reducing fraud and misconduct.
The Thai SEC states that, with regard to ICOs, funding must be done through approved venues and that token issuers must receive licensing from the government:
“ICO fundraising needs to be done through an ICO portal approved by the SEC. The ICO acceptance criteria may include due diligence and screening of funders from dishonest people. The source code of the smart contract will automatically be enforced against the contract. After the sale, the SEC publishes a copy of the statement on the SEC website.”
There are currently no signs as to whether or not the U.S. SEC will eventually release a similar framework that is designed specifically with cryptocurrencies and token offerings in mind, but until then it is likely that accusations of fraud and misconduct will continue growing.
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Brazil Tax Authority Orders Crypto Exchanges to Provide Monthly Reports

Brazil’s tax regulator, the Department of Federal Revenue, is requiring local cryptocurrency exchanges to report their operations on a monthly basis in order to verify tax compliance and improve the country’s fight against money laundering and corruption.
Brazillian Cryptocurrency Exchanges to Report Monthly Trading Data to Authorities
Citing the examples of Australia and South Korea, the Brazillian authorities announced they will require monthly reports from local digital currency exchanges from now on.
The document points to a significant increase of cryptocurrency trading in Brazil. In 2017, the number of user accounts on crypto operators surpassed the number of user accounts registered on the Sao Paulo stock exchange.
Annual Bitcoin trading volume has jumped from 44.8 million BRL ($12.12 million at current rates) in 2014, to 113 million BRL ($30.57 million) in 2015. Volumes only got larger in 2016 (363.2 million BRL or $98 million at current rates) and 2017 (8.3 billion BRL, which is $2.25 billion at current rates).
It is important to note that the value of the country’s currency has fallen by approximately half throughout that period and the value of Bitcoin reached its all-time high in late December 2017, around the $20,000 area.
Daily trading volumes on Brazil’s largest digital currency exchanges, registered on July 10, 2018, also reveal a substantial cryptocurrency market. Mercado Bitcoin daily volume was of 3.1 million BRL ($840,000), with Foxbit reaching 1.2 million BRL, and Bitcointrade reporting 2.2 million BRL ($600,000). BrasiliEX and Bitcointoyou facilitated the trading of 790,000 and 974,000 BRL in one day, respectively, which is $213,000 and $263,000.
The document also points out that currency trading operations are subject to capital gains tax, at progressive rates based on the amount realized: 15% on an amount not exceeding BRL $5 million up to 22.5% on an amount that is at least BRL $30 million or more. Money laundering and corruption is a concern, especially now that Brazilians have just elected Jair Bolsonaro for President, a populist who pledges to end corruption.
“With the imposition of an ancillary obligation for exchanges to provide information on the purchase and sale of crypto assets, we seek to verify tax compliance, as well as to improve the fight against money laundering and corruption, and increase the perception of risk in taxpayers who intend to avoid taxes.
In Australia, exchanges are obliged to report users’ identities for anti-money laundering purposes and to fight the funding of terrorism. In South Korea, tax authorities have collected the equivalent to 24 percent of cryptocurrency exchanges’ revenues in tax. The regulator requires segregated accounts and KYC processes.
Brazil’s main regulatory authority, the CVM, has released a comprehensive document that offers guidance to fund managers looking at adding cryptocurrencies to their portfolios. The documents warn of illegal operations relating to money laundering, fraud, and price manipulation.
The regulator recommends fund managers to only use regulated cryptocurrency operators and independent auditors. The agency also published a circular providing guidance to help managers detect and avoid fraudulent digital assets.
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BlackRock Will Not Launch Bitcoin ETF Until the Industry Becomes ‘Legitimate’, Says CEO

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BlackRock Will Not Launch Bitcoin ETF Until the Industry Becomes ‘Legitimate’, Says CEO

BlackRock’s Larry Fink showed that he is eager to believe in the potential of crypto. According to him, cryptos could one day be seen as a good way to store wealth, but not necessarily now.

BlackRock Will Not Launch Bitcoin ETF Until the Industry Becomes ‘Legitimate’, Says CEO

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Malta Attracts 5,000+ Attendees in Crypto Conference, Active Market

In the cryptosphere, all eyes are on Malta, as November 1 marked the start of The Malta Blockchain Summit, a much-hyped event that looks to shine a light on the ever-growing cryptocurrency and blockchain industries. The island nation, which has established itself as a stand-out destination for companies associated with crypto and blockchain, also saw a big day on the regulatory front as its Virtual Financial Assets Act (VFA) come into force.
The Malta Blockchain Summit
The Malta Blockchain Summit comes at an important time, as 2018 winds down and crypto asset providers look for a continued legitimization of the industry and its real-world applications, as well as a further uptick in interest from institutional investors. 
The two-day event, which has drawn commentators and investors from across the world, boasts four conferences and a giant, sold-out expo floor. Highlights include a Hackathon, an ICO Pitch, a Blockchain Awards ceremony, and a Crypto Cruise. As for the numbers, it boasts 5,000 delegates, hundreds of investors, 100 speakers, and 300 sponsors and exhibitors.
According to its website, The Summit promises to be an innovative and momentous opportunity for global influencers to network and debate the potential applications of blockchain across a myriad of industries including marketing, entertainment, government, and banking. Also of note is that the dialogue that takes place in Malta is likely to set the stage for the crypto industry as we move towards 2019.
One speaker of specific interest is John McAfee — world-renowned computer scientist, activist, business leader, and cryptocurrency evangelist who in 1987 founded McAfee Antivirus, which, under McAfee’s leadership, executed a meteoric rise to the top of the computer security industry. “We are coming into our power,” McAfee Tweeted, highlighting the importance of the Summit for crypto:

5,000 people showed up for the Malta Blockchain Summit. This is by far the most influential and energetic meeting of minds within the crypto community that I have had the pleasure to address. We are growing. We are coming into our power. pic.twitter.com/t5bzUgwUWu
— John McAfee (@officialmcafee) October 31, 2018

A lifelong advocate of personal freedom, McAfee has been a vocal critic of privacy invasion and encryption backdoors. He has also been ranked as one of the top five cryptocurrency personalities by the Bithemoth Exchange along with Roger Ver, Vitalik Buterin, Changpeng Zhao, and Satoshi Nakamoto.
Another notable attendee is Scott Stornetta, who is considered by many to be one of the founding fathers of blockchain technology. In 1991, Stornetta, along with Stuart Haber, published the first paper that outlined blockchain architecture — a paper which became the framework behind Satoshi Nakamoto’s Bitcoin blockchain infrastructure.
Since then, the Stanford-educated Stornetta has assumed a prominent role as Chief Scientist for the Australian investment firm First Digital Capital, where he is in charge of evaluating blockchain technology firms and initial coin offerings (ICOs).
Speaking on the event, Stornetta, a vocal supporter of the Maltese government’s recent efforts to position the island in the eye of the blockchain storm, said:

“I am happy to provide useful ways to support Malta in its efforts to strengthen its already leading position in establishing itself as a centre of blockchain-related activity. Hence, my focus is on delivering a keynote that will be unique, entertaining and valuable for its insight to all attendees at this summit.”

Malta’s Virtual Financial Assets Act
On top of the commencement of the Summit, Nov. 1 also marked the day that Malta’s Virtual Financial Assets Act (VFA) came into play. The Act, coordinated by the Malta Financial Services Authority (MFSA), will regulate the registration of white papers by issuers of virtual financial assets, VFA service providers, and VFA agents.
The aim of the VFA is to provide a fair balance between both sides, allowing for investor protection, market integrity, and financial stability, while at the same time fostering regulation that supports the innovation and adoption of new technologies. As might be expected, the Act also looks to provide limits on the potential for crypto’s use in money laundering and the financing of terrorism.
In related news, as November progresses the MFSA intends to publicly outline its FinTech Strategy, which looks to enable further opportunities for crypto asset providers. The Strategy will outline the paradigm shift in the way financial services providers interact with their customers, establishing a holistic and robust sector for both start-ups and industry incumbents, the MFSA’s CEO Joseph Cuschieri said.
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Ron Paul Advocates for Cryptocurrencies to be Tax-Free While Criticizing US Fed

Ron Paul, the Austrian School economist and notable Libertarian who served as a US Representative for over ten years, is now advocating for a tax exemption on cryptocurrencies. He also noted that the issuance of a government-backed digital currency, as opposed to private or decentralized ones, could lead to a “Fed-created recession.”
Paul made these remarks in a recent blog post titled “Trump is Right, the Fed is Crazy,” where he not only criticized the central bank, but also supported cryptocurrencies, explaining that one way to end the “monetary madness” is to stop taxing cryptocurrencies.
He also noted that a so-called Fed-created recession could lead to the end of fiat currency, which is why they should support the use of non-state-backed fiat currencies, and that all cryptocurrency and precious metal-related transactions should be exempt from capital gains taxes.
“It is likely that the next Fed-created recession will come sooner rather than later. This could be the major catastrophe that leads to the end of fiat currency. The only way to avoid crisis is to force Congress to end our monetary madness. The first steps are passing the Audit the Fed bill, allowing people to use alternative currencies, and exempting all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes,” Paul explained.
On the unlikely chance that the government follows Paul’s suggestion and excludes cryptocurrencies from capital tax gains, it would be an incredibly positive development for the industry, as it would further legitimize the markets and encourage traditional investors to enter the markets due to the lack of taxes.
Ron Paul Has a Long-Established Record for Advocating for Cryptocurrencies
Paul has a long-established track record for being an advocate for cryptocurrency, and recently wrote extensively about it in a June post titled “The Dollar Dilemma, Where to From Here?” In this post, Paul notably explained that cryptocurrency, and gold, could play a serious role in restoring citizen’s confidence in currencies and could help re-establish economic order.
In this post, he explained that the markets will easily sort out whether or not cryptocurrencies or precious metals are the answer to a flawed financial system but added that the government’s intervention in the markets will act as the largest barrier.
“The marketplace is quite capable of sorting out the advantages and disadvantages of cryptocurrencies and precious metals. The biggest challenge will be to get the government out of the way to allow this choice,” Paul said.
He further explained that the world may one day see a monetary system based on a mixture of precious metals and cryptocurrencies, each posing certain advantages that account for the other’s disadvantages, saying that:
“It’s conceivable that cryptocurrencies, using blockchain technology, and a gold standard could exist together, rather than posing an either-or choice. Different currencies may be used for certain transactions for efficiency reasons…A combination of gold and crypto will prove to be a lot more achievable than getting people to adapt to a totally new concept of money.”
In 2013, someone created a cryptocurrency called RonPaulCoin to pay tribute to his Libertarian ideals that are often seen as being embodied by decentralized cryptocurrencies.
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