US Securities and Exchange Commission chair Gary Gensler said his country would not follow China’s lead in banning cryptocurrencies. Photo: Reuters
US Securities and Exchange Commission chair Gary Gensler said his country would not follow China’s lead in banning cryptocurrencies. Photo: Reuters
US Securities and Exchange Commission chair Gary Gensler said his country would not follow China’s lead in banning cryptocurrencies. Photo: Reuters
US Securities and Exchange Commission chair Gary Gensler said his country would not follow China’s lead in banning cryptocurrencies. Photo: Reuters

Business

Cryptocurrencies

US will not ban cryptocurrencies, SEC chief says

Government’s focus is to ensure industry follows investor and consumer protection rules, Gary Gensler says

Bloomberg

October 06, 2021

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The US Securities and Exchange Commission chairman Gary Gensler has had numerous dust-ups with cryptocurrency companies but even he says the US won’t follow China’s lead in banning digital tokens.

Mr Gensler said on Tuesday that the government’s focus is on ensuring that the industry follows investor and consumer protection rules, anti-money laundering regulations and tax laws.

He made the comments at a House hearing after a Republican politician asked whether a China-like prohibition was on the table in the US.

  • Bitcoin slid about 8 per cent to $40,237 in early Asian trading on September 21, 2021, dropping to its lowest level since the beginning of August. Reuters
    Bitcoin slid about 8 per cent to $40,237 in early Asian trading on September 21, 2021, dropping to its lowest level since the beginning of August. Reuters
  • Vitalik Buterin, the co-founder of Ethereum, became the world's youngest crypto billionaire after Ether breached the $3,000 level in May this year. Bloomberg
    Vitalik Buterin, the co-founder of Ethereum, became the world's youngest crypto billionaire after Ether breached the $3,000 level in May this year. Bloomberg
  • Tether, also known as USTD, is considered a stablecoin as it was designed to always be worth $1. Unsplash
    Tether, also known as USTD, is considered a stablecoin as it was designed to always be worth $1. Unsplash
  • Cardano is growing in popularity with cryptocurrency investors after reaching a market cap of $77 billion in May this year. Unsplash
    Cardano is growing in popularity with cryptocurrency investors after reaching a market cap of $77 billion in May this year. Unsplash
  • Binance Coin is one of the biggest cryptocurrencies in the world. Alamy
    Binance Coin is one of the biggest cryptocurrencies in the world. Alamy
  • US technology company Ripple created the XRP cryptocurrency in 2012. Today, it is trading at about $0.94, according to Coinbase. Unsplash
    US technology company Ripple created the XRP cryptocurrency in 2012. Today, it is trading at about $0.94, according to Coinbase. Unsplash
  • Solana, a programmable blockchain cryptocurrency, hit a record $80.12 in August. Bloomberg
    Solana, a programmable blockchain cryptocurrency, hit a record $80.12 in August. Bloomberg
  • The USD Coin is a stablecoin with about $27 billion worth of coins in global circulation. Unsplash
    The USD Coin is a stablecoin with about $27 billion worth of coins in global circulation. Unsplash
  • The Polkadot cryptocurrency is built on a multi-blockchain network and has a market cap of about $28.8 billion. Alamy
    The Polkadot cryptocurrency is built on a multi-blockchain network and has a market cap of about $28.8 billion. Alamy
  • Originally designed as a meme joke in 2013, Dogecoin today trades for about $0.21 and has a market capitalisation of about $27.6 billion. Getty Images
    Originally designed as a meme joke in 2013, Dogecoin today trades for about $0.21 and has a market capitalisation of about $27.6 billion. Getty Images

“Our approach is really quite different,” Mr Gensler said. Any ban would probably have to be legislated by Congress, he said.

China issued its ultimatum against cryptocurrency trading last month, saying all transactions were off limits and that it would move aggressively to root out token mining. The announcement followed months of escalating Chinese warnings about virtual currencies.

Mr Gensler’s remarks mirror those of Federal Reserve chairman Jerome Powell, who said during a September 30 congressional hearing that he had “no intention” of banning cryptocurrencies.

While you're here
25%20Days%20to%20Aden
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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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While you're here
Bert van Marwijk factfile

Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder

Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia

Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands

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Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last

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Farage on Muslim Brotherhood

Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.

Company Profile

Company name: Yeepeey

Started: Soft launch in November, 2020

Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani

Based: Dubai

Industry: E-grocery

Initial investment: $150,000

Future plan: Raise $1.5m and enter Saudi Arabia next year

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Updated: October 06, 2021, 5:18 AM
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