US SEC Prepares to Accept Bitcoin ETFs, AI Set to Impact Legal Work, IRS Implements Crypto Transaction Reports, South Korea Considers Credit Card Crypto Ban
Summary:
The US Securities and Exchange Commission starts accepting Bitcoin exchange-traded funds applications from major asset managers. US Supreme Court Chief Justice, John Roberts, predicts a significant impact of AI on legal work. The IRS will require reports of cryptocurrency transactions over $10,000 due to the Infrastructure Bill signed by President Biden. South Korea's Financial Services Commission is considering a ban on cryptocurrency purchases with credit cards due to concerns over illegal cash outflows and potential money laundering activities.
The US regulator, Securities and Exchange Commission (SEC), has started accepting applications from exchanges aiming to have Bitcoin exchange-traded funds (ETF) approved. A range of asset management firms including BlackRock, Valkyrie, Grayscale, Bitwise, Hashdex, ARK 21Shares, Invesco Galaxy, Fidelity, Franklin Templeton, VanEck, and WisdomTree have all put forward applications for Bitcoin ETFs. The majority of these firms have also submitted S-1 amendments to the SEC. Some specialists have suggested that approval for these ETFs could be given before the January 10 deadline set for ARK Invest and 21Shares' offering. A Bitwise survey found that just 39% of US financial consultants believe a Bitcoin ETF will get approval this year. Despite this, most believe it will be approved in the future - 87% when all responses are added together. 22% believe approval will happen in 2025, 24% said after 2025 and 2% believed it would be in 2023 - that hasn't happened. Only 12% of respondents believe it will never be approved. Dennis Kelleher of nonprofit, Better Markets, has urged the SEC not to approve a spot Bitcoin ETF because it goes against the regulator's core principles and could expose investors to high fraud risks.
US Supreme Court Chief Justice, John Roberts, has said that artificial intelligence (AI) could have a significant impact on legal work. He included AI in his end-of-year report for the Supreme Court, predicting that it could significantly affect trial level judicial work. As the technology evolves, Roberts believes that the court will have to decide on its appropriate uses in litigation.
The IRS will now require reporting data from cryptocurrency transactions above $10K as part of provisions in the infrastructure bill signed by President Biden. These requirements were originally set to come into effect in January 2023. Jerry Brito, executive director of Coin Center, has said that many people may struggle without guidance from the IRS.
South Korea's Financial Services Commission (FSC), is considering banning cryptocurrency purchases with credit cards because of illegal outflows and money laundering concerns. They're worried about citizens purchasing cryptocurrency on foreign exchanges. The current laws only apply to local cryptocurrency exchanges which means user's identities can be verified. The proposal is open for public comment until February 13 and if approved could be put into effect in the first half of 2024.
Published At
1/9/2024 12:10:00 AM
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