The Swiss City of Lugano Pays taxes in Cryptocurrencies through a Partnership with Tether

Audy Castañeda
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The Swiss City of Lugano Pays taxes in Cryptocurrencies through a Partnership with Tether

The city of Lugano, the economic capital of Italian-speaking southern Switzerland, is adopting cryptocurrencies for tax payments as part of a new collaboration with stablecoin provider Tether (USDT).

The city of Lugano in southern Switzerland plans to have many local businesses accept some cryptocurrencies as “de facto” legal tender as part of a partnership with Tether.

In fact, the Lugano and Tether Operations Limited, the issuing company of the stablecoin USDT, today signed a partnership to develop actions linked to Blockchain and cryptocurrencies in the city. Among them, that citizens and companies can pay taxes or any good and service with cryptocurrencies. Such partnership, the note indicates, makes Lugano one of the first places in the world to implement a full cryptocurrency payment economy. The main difference with El Salvador is that the Central American country declared Bitcoin legal tender.

In this regard, both announced the upgrade, dubbed “Lugano Plan B”, in a live broadcast on Thursday before Tether posted a tweet. Citizens and businesses in Lugano will be able to use Bitcoin, Tether, and LVGA to pay for all goods, services, and taxes “in the near future,” a press release confirmed. When citizens use crypto assets as currency, the funds will become local fiat through a third-party intermediary.

Speaking at the city’s Plan B event, Tether’s CTO Paolo Ardoino stated that, “We want to show that these tools, these instruments, these currencies that were created can really be put to work in a vibrant [locally controlled] environment like the city of Lugano.”

Lugano Plan B will see the city and Tether collaborate in hopes of making Lugano a hub for blockchain adoption in Europe. Through the partnership, Lugano and Tether hope to demonstrate the real utility of blockchain within the local community. The press release said that the collaboration would mark the “first large-scale urban use case” of Tether.

The Swiss city is also focusing on helping businesses integrate payment solutions for stablecoins, and plans to leverage Bitcoin’s Layer 2 Lightning network for scalability. Lugano and Tether have also committed to various other initiatives, including the creation of a blockchain business hub and a fund for startups. Additionally, Lugano plans to use green energy for Bitcoin mining.

Lugano, Tether and Cryptocurrencies

The agreement between Lugano and the company Tether also includes the opening of a center of excellence for Blockchain adoption in Europe. Said center will house companies and act as a catalyst for everything related to the Blockchain, in order to facilitate their daily operations. The objective of the collaboration, the statement indicates, is to demonstrate the real use of Blockchain technologies, applying them in a practical way among the population of Lugano. The city, which has 64,000 inhabitants, is the third financial center of Switzerland. The town, where Italian is the main language and enjoys a high standard of living, wants to become the place of reference for the global crypto community. In other words, the place where you can grow and prosper.

Tether also reports that it will lead the creation of a multi-million dollar fund to help finance new Blockchain-based companies focused on creating services with this technology in the region. The company will lead this fund together with a group of prominent players in the crypto industry. The USDT developer is also committed to educating new generations, through collaborations with local universities and research institutes. To achieve this, it will launch 500 scholarships in the immediate future.

Bitcoin Green Mining

The city will also host other innovative initiatives, such as the Lugano Living Lab, a platform designed to encourage innovation, in order to improve the quality of life of citizens and the attractiveness of the region. Tether indicates that the ecosystem of the city allows working hand in hand to develop the first large-scale urban use case.

According to Tether, the initiative will also serve as a green financing model, promoting Bitcoin mining through environmentally friendly alternatives. For now, Lugano will start working with Tether and other service providers to help local businesses integrate their existing payment services with permitted stablecoins. Lightning Network, the statement indicates, will be one of the solutions that the city, with the support of Tether, will integrate into the services.

A More Open City

Regarding the agreement, Michele Foletti, mayor of Lugano, has asserted that the city is investing in its future. “In recent years, we have implemented Blockchain-based solutions, such as the MyLugano app and its LVGA points payment token. The digital franc of Lugano and the 3Achain infrastructure. We strongly believe in this technology and our collaboration with Tether will contribute to the creation of a better, more open, transparent, and intelligent city”, said Foletti.

Furthermore, Paolo Ardoino, CTO of Tether, pointed out that Lugano is a vibrant city, full of innovators and future thinkers. “As the world’s largest stablecoin, we envision a future where all businesses, large and small, can leverage Blockchain platforms to improve the quality of life for citizens by providing more sustainable, transparent, and reliable financial and everyday services. . We hope that Lugano will become a model for global adoption,” Ardoino said.

While Lugano is the first Swiss city to announce that it will use crypto assets as legal tender, it is not the first place in the world where crypto becomes a kind of currency.

As an example, let us recall that El Salvador made history when it officially recognized Bitcoin as a legal tender in September 2021. Since then, the country’s crypto adoption has faced intense criticism from Salvadoran citizens and officials. In this regard, it is worth following how the users will receive the Lugano crypto move.

By Audy Castaneda

50 Cryptocurrency Exchanges under UK FCA Investigation

Audy Castañeda
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50 Cryptocurrency Exchanges under UK FCA Investigation

The UK Financial Conduct Authority, or FCA, has announced that it has 50 active investigations as part of its efforts to crack down on unregistered crypto businesses.

The UK financial authority is keeping a close eye on unregistered crypto firms and has reviewed more than 300 cases of potential crypto frauds. This is how the authority announced it in a statement dated March 3, announcing that its officials have opened hundreds of cases about companies suspected of non-compliance.

According to the statement, the regulatory agency received 16,400 inquiries about possible swindles during April and September 2021, of which three hundred possibly related to cryptocurrencies. The number of inquiries represents nearly a third more than during the same period in 2020, the FCA said.

FCA investigates Unregistered Crypto Companies

The financial watchdog reported that it has fifty ongoing investigations, including “criminal investigations” into companies that handle digital assets and have not registered with them. The cases became active investigations after the FCA received thousands of complaints about possible frauds, the regulator said.

“The main types of scams reported to the FCA included crypto-asset scams, boiler rooms, and recovery rooms,” reads the body’s consumer investment data review statement. The FCA also added in a separate entry detailing the data that the complaints brought about an increase in crypto fraud reports.

According to a previous report by The Block, businesses had to register or go out of business by January 2021, a date revised to March 31, 2022. Last year, in an effort to strengthen these measures, the agency created a list of unregistered cryptoactive companies with the aim of penalizing them.

As part of the latest investigations, the regulator said it has added more than 100 businesses to its list. “During the same period, we added 172 companies to our list of unregistered crypto asset companies,” the FCA reported on Thursday, March 3.

Heavy Hand for the Cryptocurrency Sector

On Twitter, the FCA stated that they are, “taking a more assertive approach to tackling harm in the consumer investments market, including stopping a quarter of new firms from entering the market.”

Currently, there are 33 cryptocurrency companies registered with the FCA, according to data cited by CoinDesk. The agency has also approved temporary registrations for twenty-two companies in the sector, effective on March 2.

In January this year, the financial watchdog opened consultations on proposals, which included the application of its financial promotion rules for “high-risk investments, including crypto assets.” The group will accept comments until March 23.

Crypto exchanges and companies that provide crypto-related services must register with the FCA in order to trade for UK-based users. Cointelegraph reported that as of Feb. 23, 32 companies had received approval as registered crypto asset service providers in the country out of the roughly 200 that applied. This year, the regulatory group granted crypto licenses to the UK subsidiaries of Uphold and eToro, as well as Light Technology.

UK regulators have taken increasingly strong measures to regulate the growing cryptocurrency sector. Earlier this year, the FCA issued a draft aimed at strengthening its rules on how users trade high-risk financial products, including crypto. The rules essentially limit the promotion of cryptocurrency products, as The Block picked up.

In general, English regulators have been paying close attention to advertisements about crypto projects, and have even banned various campaigns from exchanges and other companies in the crypto space. The FCA also announced last year that it will spend just over half a million dollars to train staff to detect illicit activity related to Bitcoin.

By Audy Castaneda

Australian Advisory Committee Lists Key Factors To Facilitate Crypto Adoption

Audy Castañeda
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Australian Advisory Committee Lists Key Factors To Facilitate Crypto Adoption

The Cyber ​​Security Industry Advisory Committee, the Australian cyber security adviser, highlights several cryptocurrency-related opportunities for the government to pursue as it prepares for the global integration of cryptocurrencies.

The study published by the Australian Department of the Interior and titled Exploring Cryptocurrencies cites the rise in cryptocurrency adoption, as the country undergoes a rapid transformation to an advanced digital economy, “there is a need for regulatory setups that provide greater clarity and confidence in how the cryptocurrency market in Australia can operate.”

In the study, the Industry Advisory Council explores cybersecurity considerations with respect to the following aspects: What cryptocurrency is; the risks associated with cryptocurrency; the nexus between cryptocurrency and crime; the current state of domestic and international cryptocurrency regulation; and the opportunities cryptocurrency presents.

Finally, the recommendations provide some forward-facing steps to help foster the secure adoption of cryptocurrencies in Australia, address crypto-related crime, as well as support crypto-driven opportunities in Australia.

Cryptocurrencies, according to the study, are crypto-assets (crypto), also known as coins or tokens. They are an emerging asset class without a physical form – they are digital tokens stored in a digital ‘wallet’ and are both speculative and opaque.

As of the risks associated with cryptocurrencies, the study lists the following: volatility – because of the speculative nature of cryptocurrency, in that its value does not come from physical or tangible assets; storage in digital wallets – which become an attractive target for cybercriminals due to anonymity issues; and exchange risk – which can wipe huge amounts off cryptocurrency values in a matter of hours.

Regarding the nexus between cryptocurrency and crime, the study suggests that cryptocurrencies are being widely used for cybercrime exploits, including ransomware attacks, business email compromise, malicious cryptocurrency mining and the sale of malware. To prevent such risks, the Advisory Council highlights the need to adapt traditional law enforcement methodologies, as well as implement appropriate regulation of cryptocurrencies, their use and exchange, among other actions.

About the current state of domestic and international cryptocurrency regulation, the study mentions that Australia’s approach to regulating crypto-assets to date has been ‘light-touch’, seeking to expand existing financial services regulation to digital assets. As of the international context, global bodies such as the Financial Action Task Force (FATF) and Basel Committee continue to express their concern over the current crypto regulatory environment.

Finally, cryptocurrencies present opportunities to use the Blockchain technology, with a decentralized record of transactions and currency ownership that underpins cryptocurrency. The study also mentions the increase in use of cryptocurrencies as a means of payment alongside fiat currency, as consumers, with quick and irreversible payments, low transaction fees and improved transactional security, start to benefit. In addition, the significant energy used by some cryptocurrency mining has been a concern for many large players in the crypto industry, who are actively attempting to offset carbon emissions, including positioning themselves as buyers of excess power.

Four Highlights

The federal advisory recommends exploring four key areas that can “help ensure the safe adoption of cryptocurrencies in Australia”: minimum cybersecurity standards, capacity (awareness through specialized training), operator monitoring and transparency approach. .

With the primary goal of reducing cybersecurity threats targeting cryptocurrencies, the committee recommended mandatory minimum cybersecurity standards for Australian cryptocurrency exchanges and companies holding cryptocurrencies. Kraken managing director for Australia crypto exchange Jonathon Miller believes that, “minimum security standards and increased resourcing to combat sophisticated cybercrime will go a long way in protecting investors.”

Additionally, the notice suggested an increased focus on increasing public awareness through specialist training on available crypto opportunities and corresponding cybercrimes and threats. It recommends a “follow the lead” approach in which Australia learns and implements international best practices in the crypto space.

Highlighting the inherent pseudonymity of cryptocurrencies, the committee calls for greater transparency around registered cryptocurrency exchanges and Blockchain-based companies:

“Educational programs with accurate and consistent messaging will enable investors to better understand investment and cybersecurity risks, while helping to demystify cryptocurrency for all Australians.”

Other Suggestions and Ideas

In addition to the recommendations, the Cyber ​​Security Industry Advisory Committee highlighted a number of opportunities that accompany the incorporation of cryptocurrencies. The study reveals the disruptive potential of Blockchain to tokenize financial assets, including loans, carbon credits, and real estate.

In addition, accepting cryptocurrencies “allows companies to access a new group of customers.” Finally, the study reveals that offsetting carbon emissions is one of the biggest opportunities as cryptocurrencies make their way into the mainstream.

Voyager Digital Co-Founder and CEO Stephen Ehrlich weighed in on why patience is key for crypto businesses. He explained that, “In 2021, Bitcoin outperformed every major asset class, outperforming crude oil, NASDAQ, the S&P 500, and gold. Also, the number of “hodlers” is trending positively, indicating the long-term viability of cryptocurrencies.” Ehrlich also notes that the overall growth of the crypto ecosystem manifests in the introduction of benefit programs that allow companies to let employees take a portion of their paychecks in Bitcoin (BTC).

Citing economic equality as one of the main advantages, Ehrlich also stated that cryptocurrencies provide access to segments of investors who missed previous booms.

By Audy Castaneda

Bitcoin Managed to Surpass all Russia’s Money Currently Circulating

Jenson Nunez
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Bitcoin Managed to Surpass all Russia’s Money Currently Circulating

In a week, the ruble went from having a value registered in USD 0.012 to USD 0.0091, 24% less. The capitalization of bitcoin now reached a high of 40%, which means that it is more significant than rubles.

Among the side effects of the crisis surrounding Russia, the ruble has crumbled down at least 24% against the US dollar in just seven days due to a series of financial punishments applied by the US and other European regions.

Considering that a currency like bitcoin has faced many changes in the last week, the final amount of rubles now has a weaker dollar value than the market capitalization of bitcoin.

According to information received from the Central Bank of Russia, the whole amount of currencies in rubles, or the M2 money supply, was around 65.31 trillion rubles at the beginning of this year, when one dollar was parallel to 83 rubles.

On February 1, at least 110 rubles get required to equal a dollar due to the decay of the Russian national asset. The currency of 65.31 billion rubles would equal USD 593,727 million today. An amount that lies 40% below the market capitalization of bitcoin, which currently circles USD 835,260 million.

A week ago, before the war began, the capitalization of bitcoin was around USD 727,000 million, while the money supply M2 of rubles showed parallelisms with USD 783,000 million.

The whole currency in rubles surpassed the capitalization of bitcoin by 8%. A few days later, the panorama showed different and mixed perspectives since the monetary capital of a powerful nation like Russia couldn’t get counted.

The ruble’s decay against a currency like a dollar was 24%, and it reached that point in just one week, while the price of bitcoin increased by 25% at the same time. The mixture of the two elements led to the market value of bitcoin surpassing the total currency of Russian currencies.

The bitcoin price in rubles experienced significant changes on Tuesday and managed to reach a new all-time high of RUB 4,888,185. Bitcoin gained at least 50% in rubles, compared to the relatively stable value registered on February 24.

The ruble’s decline in international markets is considerable, especially when it gets compared with new financial alternatives such as bitcoin. Specialists also highlighted that the Russia-Ukraine war appears to be one of the powerful detonators for changing the crypto industry.

The Russia-Ukraine War is one of the significant game-changers that Crypto Industry experienced this year. From receiving digital assets as donations and for international trade medium besides SWIFT, growth begins to manifest in DAO to manage the War crisis and mitigate all the problems that war causes.

By: Jenson Nuñes

Although Europe Is in Chaos, the Global Crypto Market Registers Inflows

Alexander Salazar
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Although Europe Is in Chaos, the Global Crypto Market Registers Inflows

While North American investment products got USD 95 million in inflows, European ones registered USD 59 million in outflows. Bitcoin received USD 17 million despite the volatility causing the price to drop below USD 34,000.

A report from CoinShares indicates that the crypto market got USD 36 million worth of inflows in the last week. The global economic recession due to the invasion of Ukraine by Russia has not prevented that from happening.

There were sharp differences in the fund flows between North American and European investment products. The former experienced USD 95 million in inflows, and the latter suffered USD 59 million in outflows.

In the case of cryptocurrencies, Bitcoin got inflows for the fifth consecutive week, registering USD 17 million. The numbers remain optimistic despite the volatility that led the price of the pioneering cryptocurrency below USD 34,000.

Bitcoin is trading at around USD 42,487 and has accumulated a gain of 10.8% in the last seven days. Its daily trading volume is above USD 22.11 billion, and its market capitalization is about USD 806.13 billion, according to CoinGecko.

Israel Seizes Cryptocurrencies from 30 Wallets Funding Hamas

The Israeli authorities recently seized 30 cryptocurrency wallets from 12 exchange accounts. They confirmed the connection of those addresses with the terrorist group Hamas, whose headquarters is in the Gaza Strip.

A local media outlet stated that al-Mutahadun had helped Hamas with funds amounting to tens of millions of US dollars.

The exact amount and the specific crypto assets that the authorities seized are still unclear. However, the Israeli officials believe that Hamas uses tens of millions of US dollars worth of crypto funds to finance its military.

The University of Cambridge Launches a New Crypto Project

The University of Cambridge recently announced it would launch a new cryptocurrency research project called The Digital Assets Program.

Over 16 leading companies and international organizations will work together to provide data on industry challenges and ecosystem trends. The International Monetary Fund (IMF) and the World Bank will sponsor the research project.

The new program will primarily research the environmental impact of cryptocurrencies, their infrastructure, and DeFi mechanisms.

The Sanctions of the US Department of the Treasury against Russia Include Cryptocurrencies

The US Department of the Treasury requested US-based companies and individuals not to transfer cryptocurrencies to certain Russian citizens and banks.

Residents of the United States cannot use crypto assets to help the government and the central bank of Russia circumvent US sanctions. The guidelines will equate crypto transactions with deceptive transactions or deals seeking to avoid the restrictions.

Janet Yellen, the Secretary of the Treasury, said their actions aimed to prevent Russia from using crypto assets to fund destabilizing activities. They also seek to target the funds on which Putin and his inner circle depend to enable their invasion of Ukraine.

Last week, President Joe Biden announced that the United States and its allies would impose sanctions against five large Russia-based banks. He also said that those restrictions would affect several elite citizens that had become rich at the expense of the Russian state.

By Alexander Salazar

The Global Crypto Market Becomes Bullish Thanks to the Rise in the Bitcoin Price in Russia

Alexander Salazar
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The Global Crypto Market Becomes Bullish Thanks to the Rise in the Bitcoin Price in Russia

Bitcoin proved to be an option for Russians to avoid the adverse effects of the war with Ukraine. The trading volume of the RUB/BTC pair has risen to highs not seen since mid-2021, reaching USD 1.5 billion until now.

The Russian authorities recently changed their position on Bitcoin, which they regulated, stigmatized, and even criminalized. They now consider the leading crypto asset a completely legal, regulated, and permitted currency.

Many thought it was a measure Russia took to solve a problem and raise capital. First, they would reduce the sanctions imposed in 2014 due to the annexation of Crimea.

Second, they would encourage Bitcoin miners to establish their businesses in the Siberian area. That zone had a high production of gas and a high amount of excess electrical energy. Besides, the polar climate would make the closing costs insignificant.

The conditions were in place for Russia to embrace BTC and other cryptocurrencies without the control of the Kremlin. In other words, the organic adoption by the population without pressure would begin to develop throughout the former Soviet territory.

The Invasion of Ukraine by the Russian Troops

In late February, sources from the US intelligence announced that Russia was planning to invade Ukraine.

Part of the conflict began with the dissolution of the Soviet Union in 1991 and the annexation of Crimea in 2014. In addition, Ukraine recently requested its inclusion in the European Union (EU) and the North Atlantic Treaty Organization (NATO).

That led many members of the crypto ecosystem to consider the increase in international sanctions another factor to legalize Bitcoin.

The History of the Conflict between Russia and Ukraine Evolves Every Day

Experts inside and outside the cryptocurrency world predicted the consequences of the conflict between the two former Soviet nations. The Russian government decided to legalize BTC against the possible war movement and subsequent sanctions.

One of the sanctions imposed by the West consists of removing some leading Russian banks from SWIFT. The restrictions also include freezing the capital of those financial institutions in the western territory.

That situation could affect the entire Russian status quo and the general population. The latter will have to unwillingly suffer the consequences of the war and the sanctions.

Immediate Economic Consequences of the Sanctions against Russia

Amid globalized interconnection, leading Russian banks had a large part of their capital in subsidiaries worldwide.

Besides removing Russia from SWIFT, the sanctions also blocked the funds of Russians. For that reason, they left banks holding billions of US dollars from the Eurasian country in the red.

Following the announcement of the war and the sanctions, investors from Russia and other countries began to dump their Russian stocks. Besides, panic quickly spread among people, who stood in long lines to withdraw their money from banks.

Bitcoin Proves Its Value in the War between Russia and Ukraine

Russian citizens cannot exchange the ruble for the US dollar or the euro due to its decline and the risk of higher inflation. Besides, they cannot take their capital and investments abroad, which has led them to look for other options.

Bitcoin (BTC) seems to be one of the options with which Russians try to circumvent the effects of international sanctions.

While other countries traded BTC below USD 40,000, people in Russia bought it at USD 41,000 or higher. A similar situation occurred with the pioneering cryptocurrency on the Ukrainian side.

By Alexander Salazar

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