Roundup – 21/01/2019 – South Africa Establishes Anti Crypto Policies & more

South Africa Establishes Anti Crypto Policies

The Central Bank of South Africa has released a consultation paper that establishes an entirely new approach to cryptocurrencies in the country. It classifies cryptocurrencies as assets, recommends taxation and strong AML regulations. A very unorthodox approach is the Reserve Bank’s approach to make wallet providers liable to monitor the transactions of their customers and to report suspicious transactions. A handling of cryptocurrencies that strongly conflicts with the idea of Bitcoin. The paper is not yet set into law but the government of South Africa supports and exerts strong centralist/socialist policies. 

Coinbase Hires New UK Head of Compliance – Step to Expand in Europe

Coinbase hired a new head of compliance for the market in the United Kingdom. The new head of compliance, Mark Kelly, had previously been the director of the financial reporting firm Abide Financial. Kelly advised clients on regulations and the legal framework of financial operations in the UK and in Europe. Reportedly, he has over thirty years of experience in his branch. Coinbase just acquired its licence to operate in the UK in March 2018 and is trying to expand its operations from there in Europe.

Denmark Scrutinizes Three of Its Crypto Exchanges

Danemark’s Tax Council gave an investigating agency the permission to inspect three Danish exchanges. The decision came as part of an agenda to identify and charge tax defaulters in the country. Last month, the Tax Council confirmed that it investigated about 2700 individuals that traded cryptocurrencies on an unknown Finnish exchange. The Tax Council investigates the Danish exchanges not only to identify tax defaulters but also to gain insight on how individuals use cryptocurrencies to evade taxes. 

Two Korean Executives Convicted for Fraud

Two Executives of the Korean exchange Komid received a prison sentence for faking the trading volume on the exchange. Komid began operating on the 5th January last year. According to the judges, Choi Hyunsuk, the CEO of Komid, created five bot accounts on the exchange to boost the volume of the exchange and to attract customers. This way the exchange generated a profit of up to $45 million. Another Korean exchange that is currently under investigation is Upbit. However, the case is still ongoing. Trading bots accompany the cryptocurrency market ever since the launch of Mt. Gox.