SEC measures, crypto taxes, PayPal stopping stablecoin development, Celsius creditors payout, and Siemens reliance on Polygon, hit the headlines this week.
This was an eventful week in the crypto space is coming to a close. Below are the most important events around Bitcoin, Ethereum and Co. at a glance.
The SEC is Cracking Down on the Crypto Space
Currently, the US is cracking down on the cryptocurrency sector. Lawsuits are being filed against cryptocurrency companies like Kraken, long-awaited licenses like Paxos are being denied, and banks like Signature are being pressured not to do business with cryptocurrency companies.
In the meantime, there is talk of concerted action by the US Treasury Department, the US Federal Reserve, and the US Securities and Exchange Commission against the cryptocurrency sector, as noted in BTC-ECHO editor-in-chief Sven Wagenknecht comments.
Crypto Taxes Are Being Negotiated at the Federal Fiscal Court
For the first time in its history, the Federal Tax Court, Germany’s highest financial court, has to comment on the taxation of cryptocurrencies. Basically, the question is whether Bitcoin and co. are considered economic goods and are, therefore, relevant under tax law. The decision could have far-reaching consequences for crypto investors.
This was preceded by a lawsuit filed by a Bitcoin investor who, almost a year ago, claimed taxes from a cryptocurrency exchange from the tax office. Bitcoin is not an economic good, he argues. The competent court of finance in Cologne dismissed the claim and the investor turned to the BFH. A total of 3.4 million euros is at stake.
PayPal Stops Stablecoin Development
As Bloomberg reported, payment service provider PayPal will stop working on its own stablecoin until further notice. The reason for this is the recently stricter attitude of the regulators, as they say.
As an example, PayPal worked with Paxos, the operator of Binance’s BUSD stablecoin, to develop the dollar token. However, after the attack on crypto exchange Kraken, PayPal itself became a target of the SEC.
Former Celsius Chief Will Pay Millions
Celsius bankruptcy trustees and company creditors are demanding millions in payments from the former boardroom of the bankrupt crypto lending service, including Alex Mashinsky, former Celsius CEO, and his wife.
According to a court document dated Feb. 14, Mashinsky and Celsius co-founder S. Daniel Leon are accused of, among other things, artificially inflating the token of crypto lender CEL. They also made “negligent, reckless and selfish investments” when Celsius was already threatened with bankruptcy.
Siemens Issues Crypto Security on Polygon
A current press release claims that on February 13, Siemens AG issued a crypto security for the first time, in accordance with the Electronic Securities Act, eWpG for short. The issue volume of the digital security is 60 million euros. The private bank Hauck Aufhäuser Lampe acted as registrar and paying agent for the transaction. DekaBank, DZ Bank and Union Investment invested in the bearer bond.
By Audy Castaneda
