Some of the biggest corporate backers of Facebook’s Libra currency have withdrawn from the project, dealing a major blow to Facebook’s plans for a global cryptocurrency. Visa, MasterCard, eBay, and Stripe have all followed PayPal’s lead in bowing out of the Libra Association, just prior to its upcoming inaugural board meeting. These additional exits leave Libra with no major US payment processor.
The American financial regulator has taken legal action against the Telegram company for what it claims was an unregistered securities offering. Telegram raised $1.7 billion Dollars for its TON cryptocurrency. The SEC is seeking a restraining order to prevent the release within the US of the new TON tokens.
The Internal Revenue Service in the US has updated its rules for the taxation of cryptocurrency. The newly-published guidance clarifies how tax applies to new and formerly ignored situations, such as profits from the sale of crypto, income tax on crypto, and how crypto forks and airdrops are taxed. One downside is that people now may be taxed in excess of their gain from airdrops.
And finally, the United Nations Children’s agency announced a new fund for receiving cryptocurrency donations. UNICEF is the first UN agency to accept crypto donations, which they will use to fund open source technology of assistance to young people. UNICEF will hold and disburse donations directly in crypto form – not in fiat.
That’s what happened this week in Bitcoin. See you next week.