Digital Currency Weekly Recap 10-2-2016
Spain Labels Cryptocurrency Mining as Taxable Economic Activity
You can always tell when a government has really taken note of something when it draws the attention of the tax agencies. Such is the case in Spain now, as authorities there have decided to classify digital currency mining as a taxable activity. The decision means that cryptocurrency mining operations in the country will soon have to register with the tax authorities and start paying taxes that could be as high as forty-seven percent of the total value of the coins they mine. Reportedly, the official government position is that this new taxation will help to reduce the amount of digital currency crime in the country.
FCA Issues OneCoin Warning; Company Responds
The UK Financial Conduct Authority (FCA) recently issued a warning to the public about OneCoin, urging citizens to avoid trading the cryptocurrency for other digital or more traditional currencies. The beleaguered cryptocurrency has been under scrutiny for some time now, and has been compared to MLM and other fast-money schemes. A number of other governments have already issued warning about the coin, and things have now progressed to the point where the London Police have reportedly opened a formal investigation of the company’s activities. The company has been accused of making fraudulent claims about its actual market position, and has reportedly engaged in unusual sales practices as it sells off-exchange tokens that come with unrealistic promises of high return on investment.
In response, the company has announced that it is disappointed in the FCA’s warning – and claims that no one from the Authority even bothered to contact company representatives. In a recent release, OneCoin also claims that the London Police have yet to provide any details about the nature or size of the investigation. The release did, however, suggest that OneCoin is prepared to cooperate with any investigation, and remains committed to working within the lawful regulations and rules of the nations where it does business.
Dash Partners with Coinfirm
Dash has announced a new partnership with blockchain-based compliance firm Coinfirm in a move that will provide the digital currency with the compliance capabilities it needs to appeal to a broader audience of financial and other commercial enterprises. At the same time, the cryptocurrency will maintain the privacy features that have helped it to become one of the world’s most popular offerings in the digital currency marketplace. While the Coinfirm partnership won’t fundamentally change Dash, it will provide an option for companies to access the digital currency using services that are AML and KYC compliant
CME Group Bitcoin Index Adds OKCoin Exchange
CME has announced that it is adding Chinese cryptocurrency exchange OKCoin to its Bitcoin pricing indexes, joining other important digital currency exchanges like Kraken, Coinbase, Bitstamp, Genesis Global Trading, and others. OKCoin is reportedly the largest exchange of its kind in Asia, so the addition could be an important move for the index. The CME indexes include the CF Bitcoin Reference Rate and the CF Real Time Index – both of which are expected to enter beta early this month before entering the public beta a month later.