Brazil’s first ETF of cryptocurrency debuts high in B3 bean after recovering USD 112 million

Brazil’s most significant share price, B3, debuts this month’s April 26, its first collaboration to cryptocurrencies’ stock market (ETF).

The hashtag of mutual funds regulated by Hashdex, in association with Nasdaq, is launching the Hashdex Nasdaq Crypto Index Fund, an ETF that returns the price of six cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). The ETF is an apparent reference to the Nasdaq Crypto Index (NCI) and is trading at the ticker ‘HASH11’.

The Mobile Valuation Commission (CVM) of Brazil, the primary entity taxing the value of these countries, authorized the launch of Hashdex’s ETF cryptocurrencies in March of this year. The first Fund contributed to the ballot box with a digital money box debuting in the ballot box of São Paulo gained the chance to increase the fundraising expectations by 150%.

The First ETF of Cryptocurrencies in Brazil Enters the Market

During the reserve period with the coordinators ahead of the offer, the ETF managed a large sum that surpassed $ 615 million of Brazilian reals, around USD 112.8 million. This figure is pretty slow, reflecting around $ 250 million of real in its first projection. In a press release, the Hashdex company informed on the matter:

“The subscription fees realized by the authorized agents are fully integrated. After deducting the Commission of Instruction (Instruction), the net amount collected is used integrally in the issue of quotas in the Fund.”

The launch of this new currency represents a hit in various aspects; it is the first ETF of cryptocurrencies that appears in the stock market of Brazil. By the way, the total of funds raised now has become the fifth-largest ETF in B3’s patrimony.

According to Forbes Brasil, the offer met its liquidation on April 22, and the value of each fund action totaled R $ 50 (USD 9.18). The shares totaled R $47.02 corresponding to each activity, and R $2 98.

Previously, the banks Itaú, BTG Pactual, and Genial appeared as the official coordinators of the offer, with special participation from BB Investment. The other agents authorized to deal with the Fund are Necton, Safra Corretora, Vitreo, Tullet Prebon, MyCap Investimentos, Easynvest, Órama Investimentos, Mirae Asset Global Investments, Guide y Ativa Investimentos.

Bank of Brazil and cryptocurrency ETF

The ETF of cryptocurrencies launched by Hashdex in association with various banks is counting on the approval of the Commission of Values ​​Mobiliarios de Brasil (CVM) and converts the first of its kind in all Latin America.

According to information published by the Cointelegraph media and the Bank of Brazil, the ETF will count on the participation of Itaú, BTG Pactual and Genial, which will appear as official coordinators of the offer. This product is quotable in the Brazil Ball of Values ​​and receives the identification from the HASH11 ticket.

ETFs structure integrates its cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Stellar (XLM), Litecoin (LTC), Bitcoin Cash (BCH), and Chainlink (LINK). Such a product was a creation between NASDAQ and Hashdex, as well as other interested parties.

By: Jenson Nuñez

Tax evaders in the city of Seoul held Bitcoin, Ether, and other crypto assets on three different exchanges. The tax authorities of the South Korean capital are still trying to identify another 890 tax evaders.

In recent days, the tax collection department of Seoul, the capital of South Korea, seized cryptocurrencies. They seized Bitcoin and other cryptocurrencies from 676 people, out of a total of 1,566 that they are investigating for tax evasion.

Local media reported that the authorities raised USD 22 million, distributed between three Korean exchanges, in the operation.

The crypto asset that tax evaders preferred was Bitcoin, which accounted for 19% of what was seized. Other cryptocurrencies included DragonVein and Ripple with 16%, Ethereum Ether with 10%, and Stellar with 9%, among others.

Since authorities have not yet identified 890 people, they are still working on the investigation. Any exchange that has KYC (know-your-customer) processes has the identity of its users, which they must give to the South Korean State.

The confiscation of the coins was only possible because the exchanges had the private keys in their possession. It would have been more difficult for the authorities to access the cryptocurrencies if users had withdrawn them to personal wallets.

Evaders Hope that the Price of Cryptocurrencies Will Rise

The Seoul government said in a statement that many taxpayers promised to “pay their taxes.” They are requesting the authorities not to sell their cryptocurrencies in the hope of being able to recover them.

Defaulting citizens hope that the value of their cryptocurrencies in the market will increase even more. With the profits that they make, they would pay the taxes that they owe and release the amount that the tax-collecting agency seized from them.

In the early days of April, Bitcoin was trading at around USD 58,000 on a global scale. However, the pioneering cryptocurrency was worth USD 66,000 in South Korea.

The prices of Bitcoin and other cryptocurrencies in the markets of the Asian nation are not the same as in other parts of the world. This difference in the prices is called the Kimchi Premium.

There Will Be More Taxes on Earnings with Digital Assets by 2022

According to the South Korean English-language daily Korea Herald, the South Korean Ministry of Economy and Finance issued a message in February. They said that those who earn more than USD 2,260 in the cryptocurrency market will have to pay a 20% tax from next year.

Likewise, they noted that those who receive inheritances and donations of cryptocurrencies must declare those holdings.

South Korea Is Against the Privacy Cryptocurrencies

Although the government of South Korea accepts the use of cryptocurrencies, they consider that it is necessary to control them.

In late 2021, the South Korean Financial Services Commission (FSC) decided to ban privacy-focused cryptocurrencies. They considered at that time that they pose a high risk of money laundering. That situation seriously affected users of altcoins Zcash, Monero, and Dash.

South Korea is not the only country that shows intolerance towards cryptocurrencies that ensure the privacy of users. The US government also signed a contract with the Internal Revenue Service (IRS) to track Monero. Furthermore, they seem to have started a silent war against the most private cryptocurrencies in the ecosystem.

By Alexander Salazar

The company has in custody a guarantee fund with 50,000 million XRP. The CEO of Ripple believes that the United States is at risk of remaining out of the cryptocurrency market.

Ripple CEO Brad Garlinghouse recently stated that the company is open to new ideas and insights on its XRP reserves. They have a whopping 50 billion XRP in a fund under their custody.

The executive said that Ripple does not dismiss any approach that is beneficial to its environment. They would even be willing to burn or distribute the funds in their reserve fund. “It is possible to evaluate everything as things with a new meaning for the XRP ecosystem emerge,” he added.

In 2017, Ripple placed 55 billion XRP in a deposit guarantee fund to create security over the supply in circulation. They sought to allay fears that bulk assets could saturate the market. The company provided details on the matter in a statement that it published at the time.

The company then set a schedule to release 1 billion XRP each month. They also contemplated selling a part to finance their operations and invest in startups and return the rest to the fund.

Garlinghouse explained that they created the guarantee fund to provide transparency to the XRP ecosystem. He considers it necessary to fully understand the message of this action so that other projects in the cryptocurrency industry can replicate it.

There are currently almost 6.8 billion XRP in the company and there are around 47.8 billion XRP left in its escrow fund. According to the company’s website, they had already distributed more than 46 billion XRP on April 11^th.

The United States Could Remain Out of the Cryptocurrency Market

Garlinghouse also spoke about the lawsuit that the US Securities and Exchange Commission (SEC) filed against Ripple. They accuse the firm of selling XRP, which they classify as a security, and for selling the token without registering it as an investment offering.

In this regard, the CEO of Ripple spoke about the baseless and flawed arguments that the regulator is using against the firm. He said that such a situation could put the nation out of the cryptocurrency market.

Given that the US judicial system is usually not fast enough, the executive believes that the legal battle will continue for a long time. For that reason, he hopes that the US regulation will gain clarity and certainty about the cryptocurrency ecosystem over time.

Additionally, Garlinghouse said that regulators should admit that nothing in the Securities Act of 1933 refers to cryptocurrencies. Likewise, he believes that they should ask Congress to clarify the statute. However, the SEC has decided to make an unfounded determination instead.

The company is under scrutiny from regulators but they consider that their future is secure, said the CEO of Ripple. The executive clarified that they do not depend exclusively on the US market but also on business with other countries.

By Alexander Salazar

There are already more than 115 BTC and cryptocurrency active ATMs in Spain. BitBase operates 29 ATMs and 18 physical establishments in the Iberian region.

The BitBase Company now operates 25% of Bitcoin and cryptocurrency ATMs in Spain, owning 29 devices of 116 that, according to its sources, exist in the country.

An installation of a considerable number of ATMs occurred in Spain. Some of them are operating independently, and one of them accompanies a new BitBase establishment in the city of Vitoria, capital of the Basque Country.

The other 7 ATMs, which allow users to exchange the cryptocurrencies bitcoin (BTC), ethereum (ETH), tether (USDT) and ripple (XRP), are located in Barcelona (Av. De Madrid, 120), Sant Boi (Av. De la Marina, 42), Castelldefels, (Passeig Marítim, 86), Madrid (Calle de Bretón de los Herreros, 19), Valencia, (Carrer de Cirilo Amorós, 52), Murcia, (Plaza Martínez Tornel, 1) and Torremolinos (Calle Casablanca, 9).

The Vitoria store’s location is at Calle Eduardo Dato, 38-B, Bajo 4, being the store number 18 that they open in Spain and another establishment that is a franchise in L’Hospitalet de Llobregat, Barcelona.

 An Expansion of ATMs is Taking Place in Spain

According to Álex Fernández, CEO of BitBase, the main goal of BitBase is to become “the first cryptocurrency bank” in the Iberian region. This status will grant the company the opportunity to allow the purchase and sale of cryptocurrencies through these devices.

The opening of BitBase’s 15th store in Spain happened recently; this store is the second of its kind in Madrid. The added value of this company is that the user can access the purchase and sale of cryptocurrencies and have specialized advice on the subject in their physical establishments to assist users.

There are currently 18,813 ATMs for BTC and other cryptocurrencies distributed in 73 countries worldwide, as shown by CoinATMRadar.

According to various reports, Spain ranks as the fifth country with the most ATMs, with 140, behind Austria (156), the United Kingdom (200), Canada (1,396), and the United States. Unidos (16,170), which ranks first.

 A Brief Story about the Bitcoin ATMs

A bitcoin ATM is very similar to any other ATM that users can find in Spain. The difference is that these ATMs work with cryptocurrencies and cash but applying similar technology to a standard ATM. A bitcoin ATM counts on the Bitcoin network and the blockchain to be able to make its exchanges. Some users call these ATMs BTMs, to highlight their relationship to bitcoin. Like many other technologies, there is nothing standardized, and each ATM has its features.

Some ATMs only allow users to purchase bitcoin. These devices usually come with the message “Buy Bitcoin Here!” (Buy bitcoins here!). Other ATMs are bidirectional bitcoin ATMs, which means they allow the purchase and sale of bitcoins but Less than half of these devices are bidirectional.

By: Jenson Nuñez

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Sources assure that President Biden could impose taxes of at least 39.6% on capital gains. This decision would play an essential role in his financing plan for social programs.

 A series of recent reports indicate that US President Joe Biden will propose double the tax rate on capital gains per year, which could substantially affect the cryptocurrency trade in the North American nation.

According to a report published by the Bloomberg news agency, federal tax rates could reach high peaks and increase to 39.6% for those who earn USD 1 million or more per year.

This change would represent an increase of 20% in parallel to margins managed for these operations during President Donald Trump’s administration.

Although this is part of the current plan, sources revealed that the announcement could start working in the coming weeks and that the tax reform would reverse the trend that has been present during all these years.

This trend imposes margins of higher taxes on income derived from work activities than on those that relate to investments in primary and secondary markets.

Tax Changes and Coherent Measures

According to local media, this plan would connect with the campaign promises that Biden has been promising. Biden proposed to equalize these tax margins and create fairer conditions for middle-class workers.

Analysts and experts expect the announcement to come in next week, as Biden will present the reform in the framework of tax increases to create new financial support. Meanwhile, the nation’s Congress is debating the “American Jobs Plan,” which involves tax changes applicable to businesses and corporations for financing.

Biden and his Measures

President Biden’s new measures would apply as considerations of a high level, which could lead to much higher tax margins depending on the jurisdiction handled by each state.

The report published by Bloomberg also highlights that citizens who earn more than USD 1 million from their participation in the financial markets could see an increase in the tax margin above 50%, as the case may be. For New York City residents, both rates (federal and state) could bring this tax to 52%, while in California, it would be 56.7%.

The Future of Cryptocurrency Operations

Capital gains taxes apply when there is a successful sale of an asset; it applies to the corresponding amount when balancing between the time the purchase happened. In this way, the rate’s calculation gets its completion on the derived earnings.

Under this premise, commercial operations with cryptocurrencies would also join to apply this modality, which would force people who regularly operate in this market to adjust to the new tax margins if this measure gets its application.

Regulatory changes in nations with great economic power always have a more significant impact on this ecosystem. This impact hits the price of essential assets such as Bitcoin, Ethereum, and other currencies. Currently, neither the White House nor the Treasury Department representatives have made a statement on this possible tax reform.

By: Jenson Nuñez

Contessoto invested USD 180,000 in Dogecoin when its price was around USD 0.045 but his investment increased by 870%. Investing in Dogecoin was extremely risky but he plans to continue doing so as he believes this will continue to grow.

In recent days, Glauber Contessoto told CNBC how he became a millionaire thanks to the meme cryptocurrency Dogecoin (DOGE). This crypto asset has resonated in the community almost as much as Bitcoin, or even more. The main reason for that is the promotion that Elon Musk has made on his social networks.

Unbelievably, DOGE has experienced an increase of about 4,600% so far in 2021 alone. Tesla CEO Elon Musk is the one who has primarily encouraged this growth by showing his support on social media.

Glauber Contessoto stated that he became a Dogecoin millionaire by investing USD 180,000 in Dogecoin. When he invested, the cryptocurrency was trading at around USD 0.045. Given that DOGE increased in value to USD 0.45, his investment experienced an 870% appreciation.

Reasons that Led Contessoto to Invest in DOGE

The millionaire explained to CNBC that Dogecoin particularly intrigued him mainly because of the Reddit crypto community and Elon Musk. Although the crypto investor’s case was a successful one, his investment was undoubtedly extremely risky.

Although Contessoto did not know whether Musk’s tweets in support of DOGE were serious, he took the risk. In that sense, he told the television channel that he believes that the man is a genius.

The investor used all of his savings and positions in assets such as Tesla and Uber stocks to invest in Dogecoin. In addition to that, he used the RobinHood margin.

It is public knowledge that the size of the risk margin is proportional to the potential profit or loss. In this way, Contessoto is one of the success stories that managed to increase his investment to more than USD 1 million.

Concerning the question of whether he will continue to risk losing everything, he told CNBC that he will. He plans to take 10% out once he reaches USD 10 million as he believes this will continue to grow.

Dogecoin Caused a Surprise for the Crypto Community

Because of its performance in the market, Dogecoin has steadily made headlines since January. In a few months, it has gone from being a curiosity to being one of the best-performing virtual currencies. It is gathering around it a huge community of crypto users who are betting on its future.

Elon Musk, the CEO of Tesla and SpaceX, bears much of the responsibility for this situation. He has used his Twitter account to constantly speak in favor of cryptocurrency. This has allowed him to boost the confidence of small investors gathering on social networks like Reddit.

When Dogecoin mania seemed to be declining, Coinbase went public and Elon Musk wrote a tweet. These two factors were enough to stir up a new speculative frenzy for DOGE. Its price went from USD 0.06 to USD 0.41 but it was not able to withstand its drop on Doge Day.

By Alexander Salazar