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Transitions are never easy. And we’re talking about blockchains and cryptocurrency. As the new finance and operations sector transitions to blockchain technology, challenges keep rising in terms of laws and regulations. Self-executed contracts pose a big gap between traditional regulations and decentralized rules in terms of data distribution. Consequently, uncertainty in compliance with traditional law structure is often compounded by varying regulations across jurisdictions. Despite these hurdles, blockchain projects are mandated to address several common legal and regulatory considerations. This has helped this evolving technology to fight the initial skepticism and rewarded cryptocurrencies as one of the important investment tools in the modern financial world. Today, let us discuss these legal considerations that dictate the creation of cryptocurrencies. The Issues With Crypto Regulations Source FinCEN doesn’t see cryptocurrencies as real money. Nevertheless, since 2012, they have given partial recognition to cryptocurrency, deeming it to be something close to currency. This event implies that cryptocurrency can be treated like traditional money transmitters, which handle various forms of value. These money transmitters are mainly regulated by the Bank Secrecy Act (BSA). Meanwhile, the Commodities Futures Trading Commission (CFTC) views cryptocurrencies as commodities. This gives these digital assets the power to be traded on public markets. Moreover, the CFTC has stepped up regulations by acting against unregistered Bitcoin futures exchanges. It enforced rules against unfair trading practices and dealing with scams like Ponzi schemes. The CFTC believes that to properly handle digital assets, we need to focus on educating consumers. Therefore, the body emphasizes understanding the market better to enforce stricter laws and coordinate the efforts across the government. Federal Regulations In the U.S., cryptocurrencies are being closely looked at by government agencies like the SEC, CFTC, and IRS. Nevertheless, there aren’t many formal rules yet. Since 2022, Congress has put forward several bills to clarify how digital assets should be regulated. One important act that the government introduced is the Responsible Financial Innovation Act. The RFIA or Lummis-Gillibrand bill is a comprehensive legislative proposal. It aims to create a regulatory framework for digital assets in the United States by integrating digital assets into existing law while addressing risks and promoting innovation. Another important proposal is the Toomey Stablecoin Bill, officially known as the Stablecoin TRUST Act. This is a legislative proposal introduced by Senator Pat Toomey (R-PA) aimed at establishing a comprehensive regulatory framework for payment stablecoins in the United States. Moreover, the states have now started to get involved, with Wyoming leading by allowing crypto-focused banks and supporting decentralized organizations. Crypto Regulation In The EU The European Union (EU) has embraced blockchain and digital assets, similar to the U.S. In January 2020, they introduced the 5th Anti-Money Laundering Directive (5AMLD). This implies that cryptocurrency providers must follow regulations and document the identities and addresses of digital asset owners. However, tax rules for cryptocurrencies vary across EU countries. In the European Union, the taxation of cryptocurrency profits varies significantly from one country to another. While some countries such as Finland, Netherlands, Germany, Denmark, etc., impose taxes ranging from 0% to 50%, others such as Slovakia, Luxembourg, Bulgaria, Greece, Malta, etc., do not tax them at all. Also, certain countries such as France and Austria, have specific exemptions. Exchanges for cryptocurrencies aren’t regulated by the EU. Nevertheless, some may need to register with local authorities. As cryptocurrencies become more popular, it’s expected that regulations will tighten, especially when it comes to financial services, money laundering, and digital currencies. Steps To Legally Launch A Cryptocurrency How to legally launch a cryptocurrency involves crucial steps that regulatory bodies require comprehensively. Below is a basic outline to guide you. Define The Purpose And Type Of Your Cryptocurrency Source As simple as it sounds, decide what the overall goal of your cryptocurrency is (is it for payment, a utility, or a security token?). Consider the consequences that your selected type of cryptocurrency will bring, as there are different rules for different types of cryptocurrencies. Choose A Legal Structure Open a business in your region as an entity such as an LLC or a Corporation. This stage is crucial in providing protection from liabilities as well as aiding in tax and regulatory compliance. Register With Relevant Authorities In the U.S. context, registration with FinCEN as a Money Services Business (MSB) may be needed. In India, anti-money laundering (AML) registration with the Financial Intelligence Unit (FIU-IND) may be necessary as well. If the cryptocurrency is deemed a security, compliance may include registration with the SEC in the U.S. or other corresponding legal orders. Implement AML And KYC Procedures Establish money laundering prevention procedures (AML) and know your customer (KYC) policies to mitigate risks of illegal activities. Analyze reporting and tracking systems and flag any dubious transactions for the authorities. Obtain Necessary Licenses And Permits Ensure that you cover any region where your business operates and acquire appropriate permits and licenses as stipulated by local or regional authorities. If you are undertaking some activities in New York, you are required to obtain the BitLicense. Maintain Compliance With Taxes Some tax considerations may apply to your cryptocurrency holdings depending on the region where you live, such as in the US, where cryptocurrencies are regarded as a capital asset for taxation purposes. Record every transaction in detail, along with the supporting documents, to ease the tax reporting process. Develop A Legal Compliance And Risk Team Develop a team that includes legal and compliance practitioners with relevant expertise in contemporaneous cryptocurrency regulations. This will help to maintain compliance as well as respond to legal challenges, if any arise. Audit And Secure Your Blockchain Audit the blockchain code for weaknesses in order to eliminate security risks. Make sure that your cryptocurrency complies with appropriate laws and regulations. Launch And Maintain Compliance Revisit your compliance measures regularly and ensure that they align with evolving regulations. Maintain open communication lines with your stakeholders and regulatory authorities to build trust and mitigate legal risks. The post Legal Considerations When Creating A Cryptocurrency appeared first on Coinfomania.

The Strategic Digital Assets Reserve bill establishes a fund overseen by the state treasurer to hold bitcoin confiscated by law enforcement and money allocated by the legislature. Under the bill, the treasurer may invest up to 10% of the fund’s deposits in bitcoin annually and possibly loan them to generate returns, provided such actions do not heighten financial risks. SB 1373 differs from a related proposal, SB 1025, which seeks to allow state entities to invest public funds in bitcoin. Instead, SB 1373 focuses on managing assets already in state custody, such as those seized during criminal investigations. The Senate’s narrow approval reflects bipartisan contention over the state’s role in handling volatile digital currencies. Sponsored by Republican Sen. Mark Finchem, the bill aligns with broader efforts by states like Utah to integrate cryptocurrencies into public finance. Proponents argue the fund could generate revenue through strategic investments while streamlining management of seized assets. Critics, however, question the risks of state involvement in crypto markets in general. This type of maneuver is also being looked into on the federal level. SB 1373 now faces scrutiny in the Arizona House, where amendments or further debate could shape its final version. If enacted, Arizona would join a small group of states hoping to experiment with frameworks for strategic bitcoin management. 免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到[email protected]，本平台相关工作人员将会进行核查。

TL;DR Cardano’s ADA dropped by double digits in a week, with whales offloading over 170 million tokens, potentially signaling more downward pressure. Hopes for a rebound rest on the potential approval of a spot ADA ETF filed by Grayscale, which could attract traditional investors and boost demand. More Pain Ahead? Cardano’s ADA was trading well above $0.80 towards the end of last week. However, the start of the new business week offered a lot of pain for the bulls, with the asset plunging to as low as $0.63 (per CoinGecko’s data). ADA slightly rebounded over the past several hours to the current $0.67. Still, this represents a 15% decline on a seven-day scale. ADA Price, Source: CoinGecko According to some factors, the negative trend could be far from over. The popular analyst, going on X as Ali Martinez, estimated that whales dumped more than 170 million ADA in the span of 96 hours. The stash equals almost $115 million (going at current rates). Continued efforts of that type would create an influx of tokens on the open market, potentially overwhelming demand and having a negative effect on the price. Additionally, the whales’ actions are closely monitored by some smaller players who could follow suit and intensify the selling spree. Earlier this month, Martinez maintained that ADA’s most critical support stands between $0.67 and $0.70. “As long as this level holds, the bull run remains intact,” he claimed at the time. As mentioned above, though, the valuation briefly tanked below the depicted level. The Potential Price Catalyst While the overall environment looks quite grim, one important factor might bring back the green candles. This is the possible launch of a spot ADA exchange-traded fund (ETF) in the United States, whose chances of approval before the end of 2025 have risen to 67% lately. The improved odds result from the SEC’s acknowledgment of Grayscale’s application to introduce such an investment vehicle. The product will allow investors to gain exposure to ADA without needing to directly purchase, store, or manage the cryptocurrency. This simplifies the process, especially for traditional investors unfamiliar with crypto wallets and exchanges. Additionally, the world’s largest digital asset manager – Grayscale – operates under regulatory frameworks, providing a layer of security and transparency. That might be particularly attractive to risk-averse investors who might be hesitant to enter the volatile crypto market. The post Millions of ADA Sold by Cardano Whales During Market Crash – Will the Decline Continue? appeared first on CryptoPotato.

The Senate Committee in Texas voted by an unprecedented vote of 9-0 to forward Senate Bill 21 (SB-21) to the Senate floor, where debate can continue. Senate Bill 21 is sponsored by Senator Charles Schwertner to put in place the Texas Strategic Bitcoin Reserve to invest in Bitcoin in the economic policy of the state. A Satoshi Club tweet brought attention to the passage of the bill and its significance in solidifying Texas’ status as a Bitcoin hotspot. Considering Texas’ presence in the sector of crypto-mining, this bill is in accordance with the state’s continued push to incorporate Bitcoin into its economic system. Texas Senate Bill 21 (SB-21) passed the Senate Banking Committee in a 9-0 vote and now heads to the Senate floor. The bill would allow the state to acquire, sell & trade $BTC as part of a strategic reserve. pic.twitter.com/Y12VAzeOpZ SB-21 offers permission to the Comptroller of Public Accounts in Texas to purchase, sell, and exchange cryptocurrencies , including Bitcoin. Under this act, these cryptocurrencies can be used to hedge inflation and economic uncertainty. This bill offers an additional guarantee in that in case the state does acquire Bitcoin, this is to be done in cold storage to protect against cyber attacks and unauthorized access. In making a reserve in Bitcoin to be maintained by the state, Texas can diversify beyond traditional cash and bond holdings. Bitcoin is regarded by lawmakers as offering additional reserve-holding potential because of its decentralized status. Enactment of this bill can encourage additional states to follow this type of action. The legislation also raises considerations to take into account, such as price movements in Bitcoin that can influence the value of the state’s holdings. Additionally, regulatory policy by the federal authorities can influence the state’s management of its reserve in Bitcoin. Steps in the act to secure digital assets against threats include cold storage. The passage in Texas of SB-21 would have that jurisdiction join among the top US jurisdictions to have Bitcoin in reserve. Whereas El Salvador has adopted Bitcoin as its official currency, this action by Texas has the potential to ignite debate in other US jurisdictions regarding integrating cryptocurrencies. Passage is an indicator of ongoing legislative momentum to address digital assets in public finance. DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

#SEC posts Staff Statement on MEME Coins. States they are not securities. A “meme coin” is a type of crypto asset[2] inspired by internet memes, characters, current events, or trends for which the promoter seeks to attract an enthusiastic online community to purchase the meme coin and engage in its trading. Although individual meme coins may have unique features, meme coins typically share certain characteristics. Meme coins typically are purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation. In this regard, meme coins are akin to collectibles. Meme coins also typically have limited or no use or functionality. Given the speculative nature of meme coins, they tend to experience significant market price volatility, and often are accompanied by statements regarding their risks and lack of utility, other than for entertainment or other non-functional purposes. The offer and sale of meme coins does not involve an investment in an enterprise nor is it undertaken with a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others. First, meme coin purchasers are not making an investment in an enterprise. That is, their funds are not pooled together to be deployed by promoters or other third parties for developing the coin or a related enterprise. Second, any expectation of profits that meme coin purchasers have is not derived from the efforts of others. That is, the value of meme coins is derived from speculative trading and the collective sentiment of the market, like a collectible. Moreover, the promoters of meme coins are not undertaking (or indicating an intention to undertake) managerial and entrepreneurial efforts from which purchasers could reasonably expect profit.[9] Notwithstanding the foregoing, this statement does not extend to the offer and sale of meme coins that are inconsistent with the descriptions set forth above, or products that are labeled “meme coins” in an effort to evade the application of the federal securities laws by disguising a product that otherwise would constitute a security.  As noted above, the Division will evaluate the economic realities of the particular transaction. Further, although the offer and sale of meme coins may not be subject to the federal securities laws, fraudulent conduct related to the offer and sale of meme coins may be subject to enforcement action or prosecution by other federal or state agencies under other federal and state laws.