Fight against bank card selling

Fight Against Bank Card Selling Threatens China's OTC Crypto Trading Industry

The PRC Ministry of Public Security announced the launch of a national campaign to prevent transactions and the sale of bank cards to combat telecommunications fraud. According to local journalist Colin Wu, the event will have “devastating” consequences for OTC cryptocurrency traders in China.

As Wu explains, criminals in China often use cryptocurrencies to launder money. OTC traders, on the other hand, are forced to buy bank cards as their names quickly end up on unwanted lists at banks.

"National harassment can make a difference in China's over-the-counter industry, but preventing black money from entering exchanges is not bad for ordinary investors," Wu explains. "The problem is that bans in China are often broader in scope, leading to the freezing of investors' bank accounts for risk control reasons."

According to the statistics presented, since the beginning of the year, the Chinese authorities have investigated 155,000 cases of telecommunications fraud and arrested 145,000 suspects, an increase of 65.6% and 74.1% over the same period last year, respectively. Payments of more than 100 billion yuan ($ 14.8 billion) were also frozen.

Earlier it was reported that traders' accounts were being blocked due to foreign exchange irregularities based on a small number of corruption cases, but now it is clear that the reason lies in the national plan at the highest level, says Wu.

“Industry insiders say the OTC market will face a tough reshuffle in the near future, but this is not a negative event for the cryptocurrency industry in the long term,” he writes, adding that firms that have successfully survived this process will eventually be able to continue operating in a more favorable environment. ...

Japanese MP: "laws need to be changed to issue digital yen"

According to a Reuters publication, Yamamoto said the potential amendments to the Bank of Japan Law are a good opportunity to consider other changes to the central bank's mandate. The MP said that the revised Bank of Japan law should include provisions on the inflation rate:

“Like the US Federal Reserve, the Bank of Japan should mandate job creation and inflation. The new law should clarify that 2% inflation is a policy target of the Bank of Japan. 

US Department of Homeland Security Provides Grants to Five Blockchain Startups

The research division of the department - Science and Technology Administration (S&T) - cooperates with the companies. As part of the joint work, startups will be allocated funds to finance development, and the total investment will be $ 817,712.

Initially, the department selected from 80 applications. The list of companies includes Mattr Limited, Mesur io, SecureKey Technologies, Mavennet Systems and Spherity GmbH. Mattr Limited will work on the digitization of Citizenship and Immigration Services working licenses.

Mesur io plans to use blockchain to track toxins, pathogens and other hazardous substances across various supply chains. SecureKey Technologies is developing a digital version of the social security number, while the owner will have full control over the identity.

Mavennet Systems will use blockchain to track the supply of natural gas between the US and Canada, and Spherity GmbH will create a system for backing up packages of documentation for the supply of goods.

The amount of grants differs for each company. Mattr Limited will receive the most funds - $ 200,000. The smallest amount will be transferred to Mavennet - $ 86,100.

Residents of Spain will be obliged to disclose information about investments in cryptocurrencies

The Spanish authorities intend to oblige residents of the country to disclose information about cryptocurrency assets and income from them. This is reported by Reuters with reference to the spokesman for the Spanish government, Maria Jesus Montero.

According to the publication, the requirement will be formalized into law and will be included in a broader package of legislative measures aimed at preventing tax fraud.

In April it was reported that the Spanish tax authorities had sent 66,000 letters to cryptocurrency holders. Last year, there were 14,700 such letters. Cryptocurrencies do not have an official status in Spain, but they are subject to capital gains tax at a rate of 19 to 23%. The withdrawal of cryptocurrencies into fiat currency and vice versa is not subject to VAT.

Bloomberg published similar information about the plans of the Spanish authorities back in October 2018. Then the government came up with a proposal to establish new regulation in relation to digital assets, according to which investors will be required to disclose the relevant information.

Shortly before this, the Spanish Tax Authority approached financial companies with a request to provide information on customers buying cryptocurrency. Such appeals were received by 60 companies, including banks. The representative of the department then noted that the measure is aimed at preventing money laundering and tax evasion using cryptocurrencies.