Bitwise Hires Service Providers for Bitcoin ETF Trust Including BNY Mellon

  • Bitwise filed an amendment to the SEC listing several service providers for its bitcoin ETF Trust.
  • Bank of New York (BNY) Mellon will serve as the Trust's administrator.

Cryptocurrency index and fund provider Bitwise has hired several service providers to manage its forthcoming bitcoin exchange-traded fund (ETF) Trust, assuming the latter can gain approval. 

Bitwise Bitcoin ETF 

According to an amended S-1 form filed by Bitwise with the US Securities and Exchange Commission (SEC) on Sept. 11, the firm has hired the services of Bank of New York (BNY) Mellon to act as the Trust’s administrator. Foreside Fund Services will serve as the marketing agent for the bitcoin ETF Trust, with Cohen & Co. acting as the auditor. 

Despite announcing the hires, Bitwise, along with the rest of the crypto industry, has hit a regulatory roadblock in gaining approval for the ETF. Bitwise first filed an application for the Trust with the NYSE in January. However, the SEC has continually delayed making a decision on bitcoin ETF approvals, with the Bitwise ruling being scheduled for mid-October. 

Earlier in the week, SEC Chairman Jay Clayton told CNBC that “progress is being made” on approving a bitcoin-based ETF but there is “work left to be done” before the product can get the regulatory green light. 

He said, 

People needed to answer these hard questions for us to be comfortable that this was the appropriate kind of product.

Clayton highlighted price manipulation and lack of clear custody as his primary concerns for approving the proposed fund.

Featured Image Credit: Photo Via Pixabay

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Two Brazilian Crypto Exchanges Close Following Change in Tax Laws

  • Two Brazilian exchanges have been forced to close in the face of strict new regulations.
  • Exchanges are required to keep track of all transactions made with cryptocurrency or pay fines. 

Two Brazilian cryptocurrency exchanges have been forced to shut down following the enactment of new tax laws. 

Following reports of rampant cryptocurrency-related fraud in 2019, Brazilian politicians have created and enforced new tax regulations for the industry of cryptocurrency. 

According to a report by Bitcoin.com, exchanges Acesso and Latoex are two of the first casualties of the increased regulation. Both exchanges have decided to end operation, rather than pay the hefty fines and comply with strict regulation in the face of shrinking trading volume. 

Pedro Nunes, co-founder of Acesso Bitcoin, told Portal do Bitcoin, 

After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume. We also feel that the market has cooled off for smaller exchanges.

The new regulations, implemented in August 2019, require traders and brokerages to report all transactions involving cryptocurrencies. Failure to comply results in penalties ranging from 500 BRD to 1500 BRD ($120 - $360). 

Exchanges say that compliance with the new regulation requires expensive investment into new resources, which has been untenable for smaller and less profitable organizations.

Featured Image Credit: Photo via Pixabay.com