This update is brought to you by Bridge Protocol (BRDG) as part of a series on cryptocurrency regulations.

Bridge is a RegTech company specializing in identity services and compliance for Know-Your-Customer (KYC), Anti-Money-Laundering (AML) and identity verification on/off the blockchain.

Read last month’s update here.

United States

IRS Turns Critical Eye Toward Crypto ATMs and Kiosks.

IRS Criminal Investigation Chief John Fort said his team is working with its law enforcement partners to police the illicit activity enabled by the technology. Investigators said they are “very” focused on the potential tax issues raised by Bitcoin ATMs, whether they are connected to bank accounts or not.

“They’re required to abide by the same know-your-customer, anti-money laundering regulations, and we believe some have varying levels of adherence to those regulations,” Chief John Fort said. The agency is “interested in looking at the compliance issues” related to the people that actually operate the kiosks.

Fidelity opportunities widen as approval for New York Trust License is granted.

Fidelity’s crypto unit is the latest custodian to secure a license from New York state to operate a trust. Fidelity’s Digital Asset unit announced that New York regulators approved its application to operate a trust license in the state. They plan on continuing growth and outreach to other institutions.

The House Financial Services Committee introduced new legislation called the “Managed Stablecoins are Securities Act of 2019.”

The mission from the press release makes mention of the aim to “protect consumers against certain cryptocurrencies, such as Facebook Libra Project.”

The U.S. Securities and Exchange Commission (SEC) has appointed a new chief of its cyber unit.

Kristina Littman, an internal hire from SEC will be taking over the Robert Cohen role. Robert left with cases like Kik Interactive on deck.

“Kristy’s innovative thinking and extensive experience within the Commission have made her an invaluable advisor and, most importantly, a tireless defender of America’s investors,” said Clayton, adding: “She will be an excellent leader for the Cyber Unit as it continues its work in this critical and continually evolving area.”

Anti-crypto Congressman elected to chair Subcommittee on Investor Protection.

United States Congressman Brad Sherman (D-CA), who has called for a blanket ban on cryptocurrency buying has been elected as chairman for a Subcommittee on Investor Protection.

The Subcommittee on Investor Protection oversees the Securities and Exchange Commission and self-regulatory organizations, such as the New York Stock Exchange and the Financial Industry Regulatory Authority.

WorldWide

The South Korean government wants to start taxing residents’ cryptocurrency-related profits.

The country’s Ministry of Economy and Finance is pushing for the measure to be implemented next year, local news outlet The Korea Times reported Sunday, citing “government sources.”

The China Central Bank orders probe of cryptocurrency activities in Shanghai.

The Shanghai government is inspecting some cryptocurrency-related activities, including trading and token sales, according to an official announcement verified by Chinese financial news site Caixin.

The target is to find businesses that conduct cryptocurrency trading, token sales and distributions from initial coin offerings (ICOs). Once found, they will be required to halt business operations.

China’s government will offer rewards to whistleblowers exposing illegal crypto crowdfunding campaigns.

According to sources cited by Sino Global Capital’s CEO Matthew Graham, China’s inter-ministerial office looking after the disposal of illegal fundraisers sent letters to provincial and municipal offices on Monday. The documents prompted the regional departments to reward those who actively report fraudulent fundraisers in the blockchain and cryptocurrency space, otherwise known as Initial Coin Offering (ICO).

Singapore to regulate trades in cryptocurrency derivatives.

The Monetary Authority of Singapore plans to allow the trading of derivatives involving bitcoins and similar cryptocurrencies on select platforms, paving the way for regulatory oversight as these products become increasingly popular among investors.

The agency is seeing trading of favored digital tokens in unregulated exchanges that opens everyday buyers to fraud schemes.

MAS’s consultation period ends Dec. 20 and the new rules are expected to take effect sometime next year.