A Global System to Prevent Tax Evasion with Bitcoin Receives Support from Argentina

Alexander Salazar
-
0
A Global System to Prevent Tax Evasion with Bitcoin Receives Support from Argentina

Arguing that cryptocurrencies could facilitate tax evasion, the AIFT requires virtual wallets to report information on their Argentine clients. The government included Bitcoin technology within the mission and scope of the Mint by reforming the organic statute of the entity.

The Government of Argentina plans to join the international mechanisms for exchanging information on cryptocurrency users, aiming to avoid tax evasion.

Mercedes Marcó del Pont, the head of the Federal Administration of Public Revenues (AFIP), released the information in Buenos Aires. She did it within the framework of the General Assembly of the Inter-American Center of Tax Administrations (CIAT).

The Argentine economist and lawmaker said the objective is to prevent cryptocurrencies from becoming instruments that facilitate (tax) evasion.

She stated that the AFIP agrees with the proposal that countries must send and share global reports on crypto assets. In turn, they support the reform of the Organization for Economic Cooperation and Development (OECD) automatic information exchange mechanism. The change incorporates cryptocurrencies and investments in crypto assets in its statute.

The official considers the recent experience of Argentina indicates that the automatic exchange of information on financial accounts is crucial. She views it as a tool to combat the evasion maneuvers by the sectors with the highest tax capacity.

The AFIP Collects Tax from Argentines Worldwide

Marcó del Point explained that the access to international mechanisms had helped the AFIP over the last two years. It has allowed them to collect over ARS 800 million in taxes evaded from the financial accounts of Argentines worldwide.

The official also stated that their information regime forces virtual wallets to report information on their clients.

According to the economist, that led to resolving over 5,000 out of 15,000 cases of defaulters who handled crypto assets. The tax collection resulted in the regularization of debts above USD 11 billion.

The lawmaker believes that Argentina has deepened the recovery of the State capacities regarding the control over avoidance and evasion. She said that the focus is on increasing the contribution to the collection by the sectors with the highest tax capacity.

The Argentine Government Moves Forward with More Policies Targeting Bitcoin

The Government of Argentina has recently reported that it would include Bitcoin technology in the mission and scope of the Mint.

To pursue that initiative, Alberto Fernández, the president of Argentina,  decreed a reform in the organic statute of the entity. The need for expanding and updating the corporate purpose of the Mint brought about that change.

Cryptocurrencies are becoming increasingly prominent worldwide, which world governments do not overlook. Many regulators seek to treat those assets as fiat money by breaching user privacy.  It is only a matter of time before the world accepts using Bitcoin as legal tender.

Bitcoin is trading at around USD 38,974 and has accumulated a 0.2% loss over the last 24 hours. Its trading volume is above USD 32.46 billion, and its market capitalization is about USD 741.52 billion, according to CoinGecko.

By Alexander Salazar

Three Reasons Dogecoin Price May Go Up 50% in September

Audy Castañeda
-
0
Three Reasons Dogecoin Price May Go Up 50% in September

The acquisition of Twitter by Elon Musk is one of them.

At least three market catalysts show that Dogecoin (DOGE) could rise by at least 50% by the end of Q3 2022.

The first is the fact that Dogecoin has been drawing a “falling wedge” pattern on its longer timeframe charts since May 2021, hinting at the potential for a bullish reversal in the coming months. The second is the acquisition of Twitter by Elon Musk at the beginning of this week. The third is the increasing enthusiasm of DOGE investors because of Elon Musk’s acquisition of Twitter and its positive impact on the price of Dogecoin.

Breakout of a Falling Wedge Pattern is at Play

Falling wedges appear when the price is trending lower within a range defined by two descending and converging trend lines. Its appearance coincides with declining trading volumes, suggesting that speculative activity has slowed due to the narrowing of the price range.

A breakout of the wedge to the upside, coupled with rising trading volumes, suggests that the asset is rallying. As a rule of technical analysis, a falling wedge breakout can push the price up to the maximum distance between the upper and lower trend line of the setup.

The application of classical theory to Dogecoin suggests that it would rally towards $0.40 if the breakout occurs near the $0.14 level, i.e. about 190% above the current price.

In a worst-case scenario, the breakout of the falling wedge could send DOGE price up a little over 50% to $0.21, as its breakout point comes close to the apex around $0.75.

Elon Musk’s Purchase of Twitter

Earlier this week, Twitter announced that it had accepted Elon Musk’s offer to buy his social media platform for $44 billion. Dogecoin’s price reacted higher to the possibility of Musk integrating DOGE as one of the official payment methods for Twitter’s subscription services, based on his recent recommendations to the company’s board of directors.

Noelle Acheson, Head of market insights at Genesis Global Trading, noted that DOGE’s price rally bases on “a lot of speculation” as Musk has yet to confirm whether he will add a Dogecoin payment option on Twitter.

“But the possibility, however remote, is enough to get operators excited about the potential gain in DOGE adoption,” he told Bloomberg.

Excitement among Investors in DOGE

The announcement of Musk’s acquisition of Twitter on April 25 and its subsequent positive impact on the price of Dogecoin, which jumped nearly 20% on the same day, coincided with a pick-up in retail and institutional interest.

For example, internet searches for the keyword “buy Dogecoin” shot up 392% on April 25, according to Google Trends. Meanwhile, DOGE’s on-chain transaction volume worth more than $100,000 hit $2.59 billion on the same day.

“This is the highest volume since March 24, accounting for 94% of the total volume,” data analytics platform IntoTheBlock noted.

CryptoWallet.com, a cryptocurrency card service, also confirmed the same in an email statement to Cointelegraph, noting that, “online interest in buying Dogecoin spiked to almost four times the average volume in one day due to that Musk acquired full ownership of Twitter.”

The price of DOGE fell by more than 12% on April 26. However, the decline came along with lower volumes than the previous day, suggesting weaker profit-taking sentiment.

By Audy Castaneda

Bitcoin Price Fails to Break above $40,000 Level as Dollar Rally Halts at 20-Year Highs

Audy Castañeda
-
0

Bitcoin fails to hold the $40,000 level as the US dollar currency index finally weakens.

The price of Bitcoin (BTC) failed to break above the $40,000 level on April 29, despite the US dollar falling from its 20-year highs.

Bitcoin is back 40% from its all-time high, but on-chain analysts say it is “starting to bottom out.”

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair reached support near $39,300 after failing to hold the $40,000 level.

The pair had managed a modest rise despite a “parabolic rally” in US dollar strength throughout the week.

The US dollar index (DXY) finally started to cool down on Friday after reaching its highest levels since 2002.

Despite its inverse correlation, the BTC/USD pair had yet to show any signs of direct benefit from the change in sentiment.

A Trader Sees $40,600 as a “Crucial” Level to Break

Cointelegraph contributor Michaël van de Poppe was confident that the bullish momentum would return to Bitcoin in the short term.

“Bitcoin is entering a tight playing field and is poised for a big momentum move,” he told his Twitter followers that day.

“I am betting on the upside as DXY is also showing some weakness. First, you have to break through the crucial level of: $40,300-40,600”, he added.

Van de Poppe had previously highlighted that current spot price levels were crucial in opening the way to $42,000 and beyond.

The tailwind for BTC came from Asian markets as the Shanghai Composite Index rose 2.4% and Hong Kong’s Hang Seng gained 10% on the day, in a broad recovery from the previous sell-off induced by the Coronavirus.

On Twitter, Holger Zschäpitz, market maniac and Author of ‘Schulden ohne Sühne?’ a book on states’ addictiveness to debt, posted that, “Hang Seng Tech Index jumps 10% after China makes another pro-market statement. A meeting is set to occur soon between government & major tech comps, raising hopes that the regulatory landscape for this industry is set to ease going forward.”

European indices were flatter; Germany’s DAX rose 1.2% and the FTSE 100 rose 0.35% in London.

An Investigation Warns of Holders’ “Capitulation”

Examining who among Bitcoin holders is selling under current conditions, popular analyst Root identified changing trends among long-term holders (LTHs) — those with coins standing still for 155 days or more.

Those who bought when the Bitcoin price was between $18,000 and all-time highs of $69,000 – a significant part of the LTH base – are being forced out by external forces, he warned.

“They are de-risking/capitulating due to macro conditions,” read part of a Twitter thread, with Root adding that “price has been holding up really well, which is a bullish sign.”

As Cointelegraph reported, the percentage of BTC supply idle for a year or more has hit new all-time highs this month, according to data from on-chain analytics firm Glassnode.

By Audy Castaneda

Bitcoin Exchanges Must Follow Certain Procedures to Obtain a License to Operate in Cuba

Alexander Salazar
-
0
Bitcoin Exchanges Must Follow Certain Procedures to Obtain a License to Operate in Cuba

The central bank will be in charge of issuing measures for controlling and safeguarding crypto assets. The financial institution will receive advice from a crypto asset group.

The Central Bank of Cuba stipulated the documents that natural or legal persons must submit to obtain a license as cryptocurrency exchanges.

In Official Gazette No. 43, the financial institution appoints up to 10 records or validations to consider the requests. First, the interested parties must issue a document formalizing the request to the central bank.

That document must provide details about the business proposal with a description of the operating model. It must also indicate the virtual assets it offers, the platform, and the cryptographic standard.

Those interested in the license must also prove that they adhere to the regulations of their country if they are foreigners. The applicants must even provide evidence of the corporate organization, its infrastructure, internal controls, and offices.

Concerning the application of standards, these must include the know-your-customer (KYC), anti-money laundering (AML), and anti-terrorism financing (ATF) protocols. In the latter case, they must present the procedures they plan to apply in their prevention system.

The bank will also force companies to apply the so-called travel rule to reduce the risk of misuse of platforms or services. In that way, any transaction above USD 1,000 must protect the personal data of the originator and the beneficiary.

Interested companies or persons must advance the initial capital for developing authorized activities or operations to the authorities. The bank attempts to distinguish the amount according to the various activities and risks.

Other Procedures to Follow to Operate with Bitcoin in Cuba

Those wanting to be providers of crypto asset services must legalize the documents before the Cuban consular officer in their country of origin. After they do it again at the Cuban Ministry of Foreign Affairs, they must notarize them before a notary public in Cuba.

The Cuban authorities also highlighted that the applicants also need the approval of the General Directorate of Investigation of Financial Operations of the central bank.

In the seventh section of the Gazette, the bank acknowledges that the application process can be less complex. The reason is that there could be fewer bureaucratic mechanisms.

The central bank stated they could simplify the procedures and establish simpler compliance forms depending on the requests for licenses and types of operations.

They indicated that the issued licenses would be valid for one year and extendable for another year. It is relevant to remember that the bank will be in charge of authorizing which cryptocurrencies people can exchange in the territory.

The Caribbean country legalized services with Bitcoin and other crypto assets, opening themselves to new investments in the territory. That decision adds to the legislation already approved in Panama, El Salvador, and the Central African Republic.

Lawyer and advisor Camilo Jorajuría, a partner of the NGO Bitcoin Argentina, gave his opinion on that historic decision. The analyst considers that the new Cuban regulation recognizes the human right to operate with Bitcoin.

By Alexander Salazar

Touadéra Is the Central African Bukele Who Created His Own Bitcoin Law

Alexander Salazar
-
0
Touadéra Is the Central African Bukele Who Created His Own Bitcoin Law

This 65-year-old mathematician has been the president of one of the poorest and most conflictive nations since 2016. Only 8% of Central African citizens have access to the Internet, which hampers the adoption of Bitcoin as legal tender.

Faustin-Archange Touadéra, the Central African President, introduced a bill – approved unanimously – to give Bitcoin (BTC) legal tender status.

Since 2016, that 65-year-old mathematician has ruled one of the poorest and most conflictive countries. There have been frequent coups d’état, rebellions, and two civil wars under his belt.

Touadéra promised to turn the Central African Republic (CAR) into a peaceful and developing country. He included the disarmament of factions in conflict, which his administration has not yet achieved.

The Central African ruler must face the difficult task of keeping peace and ensuring security in his country with no support from the French armed forces. The European country ended the military intervention in the African nation shortly after he took office.

Although Touadéra governs with a heavy, it seems to be hard for him to achieve his peaceful mission. Presumed extrajudicial executions and possible human rights violations by the armed forces in the country tarnish his name.

There is little information about the facet as a bitcoiner of the Central African President. However, he wrote some expressions of support for the cryptocurrency created by Satoshi Nakamoto on his recently-created Twitter account.

Touadéra reveals his shared love of numbers and Bitcoin. He describes mathematics as the language of the universe and Bitcoin as the universal currency.

The President also expressed his enthusiasm about the possibilities Bitcoin would offer the Central African Republic. He said that his government is pleased to be among the pioneers of an innovative technology that creates value for everyone. He added that his country would change from being invisible to becoming recognized and appreciated.

That hope of recognition and economic prosperity was also evident when the Ministry of State Obed Namsio released the Central African Bitcoin Law.

It is Hard to Adopt Bitcoin in that Hostile Environment

The price appreciation of Bitcoin over the years and the hope that the upward trend will continue have contributed to its adoption.

The Central African Republic, one of the least developed countries, has an area of 622,980 km² and has almost 5 million inhabitants. Their estimated life expectancy is 51 years for men and 55 for women.

Data from the United Nations (UN) and Amnesty International indicates that about 2.29 million people face acute food insecurity. At least 80,000 Central African children under the age of five are at risk of severe malnutrition.

The lack of resources to ease the use of Bitcoin hampers its adoption as legal tender. Statistics show there are 1.60 million cell phones in the country, an average of 0.34 per person. Meanwhile, the figure is 1.2 per person in the European Union.

Recent data shows that less than 8% of the Central African population has access to the Internet.

Among other things, Toudéra will have to enforce the recently approved law in this hostile context. The 10th article of the document establishes that any economic operator has to accept cryptocurrencies as payment.

In the above environment, the cases contemplated in article 21 could become more of a rule than an exception. It excludes those who have no access to technologies that allow transactions in cryptocurrencies from the obligation to accept Bitcoin.

By Alexander Salazar

What Metaverse is, and what Metaverses are most likely to grow in 2022

Audy Castañeda
-
0
What Metaverse is, and what Metaverses are most likely to grow in 2022

This is the analysis of three booming metaverses.

While changing the name from Facebook to Meta is a forceful move by the blue social network we all know, the concept of the metaverse goes back further in history. Neal Stephenson in the 1992 sci-fi novel “Snow Crash” introduced this concept.

In addition, in that dystopian work, a technology tycoon sought to take control of the world through an application and the metaverse through which he injected a computer virus into people. Let us hope it is not Zuckerberg’s plans to make history come true…

What is the Metaverse?

“The metaverse is the place where the physical world and the digital world converge,” Statista notes. “It allows digital representations of people, avatars, to interact with each other in various scenarios.”

The concept was already flying through the air in the 90s but it took years for the idea to take root. However, it would take a couple of decades for it to materialize in the collective, and excellent companies, such as the current Meta, set out to make it a reality.

We can think of the metaverse as “The Matrix” or “Ready Player One”, an immersive multimedia experience in which we can be the character we want and embark on countless adventures to disconnect from life by connecting – ironically – to a digital world.

Users who have used Habbo or Second Life know what this means. If a 2D experience like that could immerse you for hours in a world of bits, imagine what would happen in a 3D world.

What are some Promising Metaverses?

Decentraland is the reference metaverse in the decentralized market sector. This metaverse began operations in 2015 with a view to recreating real-world land management. In other words, it is a huge universe subject to the laws of the market and the logic of capitalism.

Meilich y Esteban Ordano, the Argentine creators of Decentraland, rely on the Ethereum blockchain to establish decentralized trading mechanisms in which the MANA token acts as an exchange currency. If you want to participate, just transfer your ETH to that currency and start speculating.

The Sandbox is the metaverse of Arthur Madrid and Sébastien Borget with at least a decade of history, but it was not until 2021 that it became a full-fledged metaverse with the release of the SAND token and the DAO.

The Sandbox is quite similar to Decentraland; users can buy land, enjoy interactive experiences, and trade all kinds of goods. It also works with a grid to make sure the plots are identical and uses an auction system.

Somnium Space, possibly The SIMS with a graphical update and NFT as with speculation. What stands out in this metaverse is the graphic design and animations applied to DeFi.

Somniumm Space is different from the competition because it is directly connected to Amazon’s NFT marketplace OpenSea, and because it has the Unity Android SDK on the way. His token is the Somnium Space CUBE, a perfect bet for VR fans.

In short, among the main metaverses, there is a lot of room for growth for the rest of the year and the same happens with the ecosystem tokens. Additionally, the community is very enthusiastic about these developments due to the sheer amount of options, gameplay, and potential for the Metaverse in the coming years.

By Audy Castaneda

1...809810811...1,654Page 810 of 1,654