The blockchain companies in Canada are eager to understand more about how the national government stands on the crypto space, a new report made by the Canadian Digital Chamber of Commerce has shown.
According to the new report, which was devised to comprehensively analyze the national blockchain market, several new companies appear very bullish about their own futures, however, they want to know if the government shares this sentiment with them.
Almost 40% of the survey’s responders affirmed that the main issue for their growth were “legal and regulatory challenges”. So far, Canada has been reticent in creating crypto laws that are any different from other major countries, so progress is pretty slow in the country.
Michael Gord, the CEO of MLG Blockchain, a consulting firm in the country, affirmed that the regulation of digital assets in the country is very ambiguous and that the local lawyers often are unable to give simple yes or no answers to entrepreneurs. This has been a major issue and local companies are championing more attention from the government to this matter.
Tanya Woods, the managing director of the Canadian Digital Chamber of Commerce, there are still a few missing pieces of data for the government to decide on in the industry. Lawmakers want to know if the blockchain can create jobs and if there is enough talent in the country to create a strong industry and people often don’t have the answers for that yet.
Fortunately, the research was able to find some of these answers. 96% of the companies that have over 500 employees have considered the technology and 25% of them are spending on blockchain solutions. There is certainly room for growth, the market is only waiting for the right regulation.
Author: James W
The U. S. Internal Revenue Service (IRS) has finally decided to publish its first guidance about how to pay crypto taxes in five years. After years and years of people asking the IRS how to pay their taxes, it seems that the entity decided to comply.
Charles Rettig, an IRS commissioner, affirmed that the agency was working on the guidance a few months ago, but most crypto investors were simply disheartened after waiting for so long.
One of the main updates on the legislation is that now people will finally know how to pay taxes over hard forks. Hard forks happen when there is no consensus in a network and one token is split in two. So far, investors often didn’t how to proceed in these cases.
It was stated that if the token went through a hard fork but you did not “receive” any new token via the fork, airdrop or something similar, the income is not taxable. If you got any new token, however, it is.
However, some people, such as the director of Coin Center, Jerry Brito, affirmed that the IRS was not clear enough. According to him, the new guidance offers some clarity but it doesn’t seem to acknowledge what hard forks and airdrops are very well, which can cause problems. The main issue is that it does not clarify what “receive” means.
More rules for determining how to pay taxes when you bought crypto on several occasions some time ago are also stated in the new report, as well as some other minor updates.
Author: Hank Klinger
Telegram is finally ready to talk about its long-awaited Telegram Open Network (TON). After raising $1.7 billion USD last year in one of the most successful Initial Coin Offerings (ICOs) ever, the Telegram network has decided to finally go public with its involvement with TON.
This week, the company mentioned the project officially for the first time, as Terms of Service page for the Gram wallet was created on the company’s site. According to it, the wallet will be integrated into Telegram’s main app, but it can also be used as a standalone product for people who are not interested in it.
The document affirmed that Telegram has no direct control over the TON blockchain, as it is a decentralized product, so people are responsible for the safety of their own information and the company can ensure that any transaction will be confirmed.
Gram’s new wallet will be created by Telegram FZ-LCC, one of the subsidiaries of Telegram which works as an official publisher for Android-based Telegram applications.
Telegram will not keep any kind of private information of the users nor its public and private keys on its servers, affirming that the user is fully responsible for handling this information by itself, just like it would be with a Bitcoin or Ethereum wallet.
The company also clarified that it has no control over the verification of each transaction that will happen on the TON blockchain. In order to keep the network as decentralized as possible, all transactions cannot have any kind of interference made by the company.
This was the first time that the TON blockchain was officially acknowledged by Telegram, despite how everybody knows that it was in development. So far, only the private investors who bought GRM tokens have a connection to it.
Author: Gabriel Machado
The chair of the Financial Stability Board, Randall Quarles, recently spoke about the rise in popularity stablecoins are having, including very prominent projects such as Libra. According to him, the future can have significant regulatory challenges because of these projects.
He talked about this issue during a recent presentation that happened at the European Banking Summit, which reunites in Belgium several important people in the sector.
Quarles affirmed that Libra may not have been released yet, but that it has certainly raised the public interest in the matter. According to him, this could spark a new scale of and scope to the stablecoin space and the community has to carefully consider which way to follow to achieve the best results.
The regulator is far from anti-Libra, though. He affirms that these assets bring a “small financial risk” but also acknowledges that there is potential to Libra and the other projects.
At the moment, both the G7 and the G20 are currently investigating stablecoins and the FSB was tasked with leading the initiative to understand these assets better and spearhead the regulatory changes.
You may not know, but the FSB was created at the same time that Bitcoin was. Both of them were a response to the 2008 global crisis and both aimed to ensure that an event like that would never actually happen again.
Because of this, the FSB deserves some credit on policing governments and private actors to reduce the potential for a future economic crisis that can cause devastating effects on the world. If it depends on the organization, stablecoins will definitely be tightly regulated.
Author: Gabriel Machado
The creator of the Litecoin network, Charlie Lee, recently talked about his creation. He was interviewed by podcaster Dan Gambardelo, known as the founder of Crypto Capital Venture, and talked about the benefits of the cryptocurrency.
Gamberdelo asked his Twitter followers to come up with unique and original questions for him, so they did. One person asked a pretty interesting question: why Litecoin does not need to pay to be listed on any platform while most altcoins do?
Lee’s answer was, that it makes business sense, basically. Exchanges see Litecoin as a highly traded asset that can bring in a lot of revenue because people actually use it. The same cannot be said for many cryptocurrencies in the market.
The community also came up with several other questions. For instance, someone asked Lee if Binance charged him for listing the asset. He affirmed that they did not. When asked if he still mined LTC, Lee confirmed that he had stopped to mine tokens himself around 2016 or 2017.
Someone also asked him if he ever talked to Satoshi. Charlie Lee affirmed that he did not have the chance to do it because Satoshi was already gone when he entered the crypto space.
Unfortunately, though, the situation is not looking good for Litecoin, despite what Charlie Lee states. The token is entering a bearish trend after losing some of its value recently and several LTC investors are already bracing for a long Winter ahead at this point. After the BTC sell-off, LTC went down together and it is now the 6th largest token by market cap.
Author: Hank Klinger