Crypto
Mexican cryptocurrency platform Bitso launches in Colombia
BOGOTA, Might 18 (Reuters) – Mexican cryptocurrency alternate platform Bitso has begun working in Colombia, its fourth market, the place it hopes to build up 1 million shoppers simply this month, co-founder and Chief Government Daniel Vogel mentioned.
Bitso is amongst Latin America’s rising assortment of “unicorns” – firms with a valuation of no less than $1 billion – and is value some $2.2 billion, following a 2021 funding spherical the place it raised $250 million.
Bitso will supply clients instantaneous transfers by way of the PSE cost system, gross sales of cryptocurrencies equivalent to bitcoin and ether, in addition to use of its new funding platform Bitso+.
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Bitso at the moment has 4 million clients in Mexico, Brazil and Argentina.
“With our launch in Colombia we hope to hit 5 million clients and we predict we are able to try this this month,” Vogel instructed Reuters in a cellphone interview.
“We see Colombia as a key marketplace for us, which we’re coming into with this growth plan from the standpoint of our merchandise, hiring individuals (and) rising within the nation – it’s a very dynamic market by way of cryptocurrencies,” he added, although he declined to say how a lot Bitso would put money into the Andean nation.
Vogel, an economist and techniques engineer who graduated from Stanford College, dominated out extra funding rounds in Bitso’s rapid future.
“We’re actually centered on persevering with to develop this enterprise however for now there isn’t a want to boost extra capital,” he mentioned.
Funds together with Cometa, Pantera, Coinbase Ventures, QED Traders, Kaszek, Tiger World, Coatue and Bond have invested in Bitso to this point.
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Reporting by Nelson Bocanegra in Bogota
Writing by Oliver Griffin
Enhancing by Matthew Lewis
Our Requirements: The Thomson Reuters Belief Rules.
Crypto
FIT21 Act Aims to Streamline Cryptocurrency Regulations in the U.S.
This month marks a potential turning point for the cryptocurrency industry as the House of Representatives gears up to vote on the Financial Innovation and Technology for the 21st Century Act (FIT21).
The FIT21 bill, formally designated as HR 4763, seeks to streamline cryptocurrency regulation across the United States. It aims to establish a clear regulatory framework for digital assets, addressing their unique characteristics and ensuring consumer protections.
Regulatory Roles and Classifications
A primary objective of the bill is to delineate the regulatory roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). This distinction is critical because it determines whether digital assets are classified as securities or commodities, thereby affecting their regulation.
Under the proposed legislation, the CFTC would regulate digital assets if the associated blockchain or digital ledger is both functional and decentralized. Conversely, the SEC would oversee assets as securities if the blockchain is functional but not decentralized. Decentralization, as defined by the bill, means that no single entity controls more than 20% of the digital asset or its voting power.
Support and Criticism Over The FIT21
The bill has garnered bipartisan support but also faced criticism, particularly from the crypto community. Some stakeholders are concerned about the bill’s strict decentralization requirements, fearing it grants the SEC excessive power to withdraw support from tokens or projects that shift towards centralization. Additionally, there are worries that the bill does not clearly delineate the boundaries between the SEC and the CFTC’s authorities, potentially leading to regulatory confusion.
Despite these concerns, proponents of FIT21 argue that the bill will provide the regulatory clarity the crypto industry needs to thrive in the U.S. They believe that clear rules will help crypto businesses gain public trust, innovate with confidence, and ensure accountability for bad actors. As the House of Representatives prepares to vote, the entire crypto industry is watching closely, hopeful that FIT21 will usher in a new era of clear and effective regulation.
Comparison with the EU’s Approach
This development is particularly significant considering that the European Union (EU) has made substantial strides in creating a comprehensive regulatory framework for cryptocurrencies, leaving the United States trailing with a fragmented and uncertain regulatory landscape.
The EU has taken a proactive approach to cryptocurrency regulation with the introduction of the Markets in Crypto-Assets (MiCA) framework. MiCA aims to establish a clear and harmonized set of rules across all EU member states, providing legal certainty for both cryptocurrency businesses and investors.
This regulation covers a wide range of crypto assets, including utility tokens, stablecoins, and other digital assets, ensuring they are subject to robust consumer protection, transparency, and anti-money laundering (AML) requirements. MiCA’s comprehensive nature and its focus on consumer protection and market integrity make it a pioneering piece of legislation in the crypto space.
In contrast, the regulatory approach in the United States has been piecemeal and inconsistent. Multiple regulatory bodies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Financial Crimes Enforcement Network (FinCEN), have jurisdiction over different aspects of the cryptocurrency market.
This fragmented regulatory environment has created uncertainty for crypto businesses and investors, as they must navigate a complex web of regulations that can vary significantly from one state to another. Additionally, the lack of clear guidance on the classification of certain crypto assets has led to legal disputes and enforcement actions that further complicate the regulatory landscape.
The U.S. Regulatory Landscape
One of the key areas where the EU has outpaced the U.S. is in the regulation of stablecoins. MiCA includes specific provisions for stablecoins, recognizing their potential to facilitate payments and enhance financial inclusion while also addressing the risks they pose to financial stability and monetary policy. In the U.S., however, stablecoin regulation remains largely undeveloped, with various proposals and reports yet to culminate in a cohesive regulatory framework.
Moreover, the EU’s regulatory approach reflects a more collaborative and forward-looking stance. European regulators have engaged with industry stakeholders to develop regulations that foster innovation while ensuring robust oversight. This approach contrasts with the U.S., where regulatory actions have often been reactive and enforcement-focused, potentially stifling innovation and driving crypto businesses to more favorable jurisdictions.
As the House of Representatives prepares to vote on FIT21, the outcome could significantly influence the future trajectory of the cryptocurrency industry in the United States, potentially aligning it more closely with the comprehensive and proactive regulatory framework established by the EU.
Crypto
Nirmala Sitharaman Advocates For Worldwide Understanding In Crypto Regulation – Forbes India
In a recent interview with businessline, India’s Finance Minister Nirmala Sitharaman shared her perspectives on the future of cryptocurrency regulation in India. She emphasised the need for a global consensus and collaboration to manage this borderless technology effectively.
Recognising the growing importance of crypto assets, the Finance Act 2022 introduced tax regulations for these assets in India. Under the Income Tax Act of 1961, they are classified as “virtual digital assets” (VDAs). According to Section 115BBH, income from the transfer of VDAs is taxed at a flat rate of 30 percent. Taxable events include converting digital assets to fiat currency, trading between different types of VDAs, and using them to purchase goods and services.
Starting July 1, 2022, a 1 percent Tax Deducted at Source (TDS) is also applied to Virtual Digital Assets (VDAs) transfers. This TDS applies to transactions exceeding Rs10,000 and Rs50,000 for specified persons.
Crypto exchanges handle TDS deductions on sell transactions, while buyers are responsible for peer-to-peer deals. Adhering to TDS obligations ensures compliance and avoids potential financial or legal issues.
FM Sitharaman highlighted the ongoing discussions within the finance ministry and among various regulators since 2020, even before India assumed the G20 Presidency. The Reserve Bank of India (RBI) has consistently expressed concerns over the stability of cryptocurrencies, aligning with the government’s cautious stance. The Securities and Exchange Board of India (SEBI) has also contributed to the discourse, suggesting that multiple regulators should oversee the sector.
During India’s G20 Presidency, significant efforts were made to foster a global understanding of cryptocurrency regulation. The International Monetary Fund (IMF) and the Financial Stability Board (FSB) were brought into the conversation, and well-researched papers supported extensive discussions.
Sitharaman reiterated that a regulation confined to a single country would be insufficient for a technology that inherently transcends borders. She firmly believes effective regulation can only be achieved through a globally coordinated effort.
Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
Twitter: @bhardwajshash
Crypto
Bonk, Pepe Outstrip Gains Of Bitcoin, Ethereum Amid Searing Hot Rally — Beat Biggies Dogecoin And Shiba Inu In Trading Volumes
Memecoins took center stage on one of the best days for the cryptocurrency market, with the likes of Pepe PEPE/USD and Bonk BONK/USD turning out to be the highest gainers.
What Happened: The market rallied on higher expectations of an Ethereum ETH/USD spot ETF approval by the SEC, resulting in the highest market cap growth in three months, according to Santiment.
Price Action: While the rally was spurred by developments around Ether, memecoins stole the highlight yet again, as popular coins like PEPE and BONK grew by 27% and 23% respectively, according to data from Benzinga Pro.
Ethereum ETH/USD-based PEPE rose to an all-time high of $0.000011, while the Solana SOL/USD-based meme coin BONK bumped to a two-month high of $0.000031. The rest of the meme coin market also reported significant gains.
Cryptocurrency | Gains +/- | Price (Recorded at 10 p.m. EST) |
Bonk BONK/USD | +27% | $0.000031 |
Pepe PEPE/USD | +23% | $0.000011 |
Floki FLOKI/USD | +10.48% | $0.000211 |
Pepe’s trading volume surged to $2.16 billion in the last 24 hours, exceeding bigger coins with larger market caps like Dogecoin DOGE/USD and XRP XRP/USD, Bonk clocked a volume of $850 million, trumping Shiba Inu SHIB/USD
Why It Matters: The latest rally reflected a strong appetite for meme coins, the class of cryptocurrencies that has witnessed significant gains in the year.
Social analytics platform LunarCrush highlighted bullish social media discourse around the two coins, with 82% of all BONK posts, and 80% of PEPE posts being positively weighted.
Such degrees of optimism could potentially help sustain the rally for the two meme coins.
Image via Shutterstock
Read Next: Bitcoin, Ethereum, Dogecoin Shoot Up On One Of The Best Days For Crypto In 2024 Amid Ether ETF Approval Buzz: Analyst Flags ‘Robust’ US Investor Demand for King Crypto
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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