The Debate on the Next Elections in Colombia Includes Bitcoin

Alexander Salazar
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The Debate on the Next Elections in Colombia Includes Bitcoin

Two of the candidates for senators met in a virtual encounter and expressed their support for Bitcoin. They believe that the community must participate in creating regulations on crypto assets.

Colombia is currently in the framework of the legislative elections to choose new members of Congress on March 13th. In that regard, the candidates for the Senate recently participated in a virtual debate organized by non-profit organization Asoblockchain.

Edward Rodríguez, from the Centro Democrático (Democratic Center) party, and Didier Carrillo, from the Colombia Justa Libre (Free Fair Colombia) and Mira (Look) coalition expressed their opinions. Both candidates agreed that a priority to advance the cryptocurrency ecosystem in the country is establishing a non-punitive regulatory framework.

They stated that the laws must be clear and adapt to the reality of the market not to affect its dynamics, encouraging entrepreneurship and technological innovation.

Mauricio Toro, who received an invitation to the virtual encounter, is a candidate for Partido Verde (Green Party). The Colombian Bitcoin community knows him as being one of the primary promoters of a bill to regulate the cryptocurrency in the country. However, it has encountered some obstacles and is still waiting to become law.

Congress Must First Enact the Law

The candidates talked about their bill proposals in the blockchain area and the economy of cryptocurrencies.

Rodríguez said he was a promoter of blockchain-based technologies and their use in public administration. He promised to evaluate the cryptocurrency sector, identifying operating companies and their characteristics if he won the elections.

He stated that he would create forums in various regions and work with experts to develop a regulation. He explained that the rules would contemplate possible sanctions for illegal activities without affecting the market.

Carrillo broadly supports that view, admitting he has been an investor in cryptocurrencies for several years, so he knows their economic benefits. He added that the regulation on blockchains and cryptocurrencies should contemplate education about those technologies at schools and universities.

He considers that all investors and entrepreneurs in the cryptocurrency sector must work together to solve social problems. Besides, he believes that the Colombian State is placing impediments through the rules they have issued to the operation of the industry.

The Candidates Discuss the Collection of Taxes for Transactions with Bitcoin

Rodríguez and Carrillo talked about the measure that will enter into force in April. Bitcoin users will have to notify transactions greater than USD 150 (COP 590 thousand) to the Information and Financial Analysis Unit (UIAF).

Carrillo expressed his strong rejection, considering there is still no clear legal basis for this ecosystem. He believes that most senators have that sanctioning attitude because they do not know what trading is or how that technology works.

The candidate for the Senate said he disagreed with placing an impediment to a non-regulated activity. He considers that Congress must first sanction a law that establishes the regulatory framework. He told Colombian senators that not everyone investing in cryptocurrencies is washing assets or committing crimes.

Both candidates agree that the new members of the House of Representatives should not postpone the subject of Bitcoin and cryptocurrencies. He highlighted that they would be part of the Colombian Congress for four years.

By Alexander Salazar

President of Belarus signs Decree Supporting the Free Circulation of Cryptocurrencies in the Country

Jenson Nunez
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President of Belarus signs Decree Supporting the Free Circulation of Cryptocurrencies in the Country

The decree signed by the president of Belarus establishes legal frameworks and considerations for the use of cryptocurrencies at the local level, so the ministers and government entities must make the changes work in the next three months.

The President of Belarus, Alexander Lukashenko approved a decree giving support to the free circulation of digital currencies such as Bitcoin throughout the entire region.

Belarus is More Crypto-Friendly

This information got revealed by the press office of President Lukashenko in a statement published this week, in which he assures that he approved a decree entitled “On the registration of virtual wallet addresses and the circulation of cryptocurrencies, where the measures and considerations got exposed for the use of currencies in the country.

This document provides legal bases for Belarus Hi-Tech Park, a tax and legal regime within the country analogous to what Silicon Valley would be in the US, to establish and manage a registry of crypto wallet addresses that may get associated with illegal activities.

The document also details the process and applicable standards for the government to confiscate digital currencies from criminals who use said assets to carry out criminal activities.

According to several analysts, this decree points at protecting investors within the cryptocurrency space, closing spaces for activities that may constitute scams, and avoiding losses to all those interested in acts that constitute outright crimes.

The decree clarifies that the Council of Ministers of Belarus must adopt the corresponding measures to find effectiveness in this opinion in the next three months.

Commitment to Digital Currencies

Although Belarus expressed its intentions to become a friendly territory for cryptocurrency users, these actions by President Lukashenko aim at laying the foundations for a much fairer regulation.

This fair regulation creates a space where the crypto ecosystem can develop much more fully, including trading activities and crypto mining.

Let’s keep in mind that in September of last year, the president asked the government to promote cryptocurrency mining by making use of additional energy infrastructure. Before this, the largest local bank, Belarusbank, set up an exchange service for digital currencies.

Another noteworthy aspect is that the steps taken by Belarus would be creating a gap between the nation and its neighbors and regional partners in crypto matters. In this sense, the position of Russia stands out, which maintains an ambivalent position towards these assets.

 In recent comments, President Vladimir Putin asked the government to enable the necessary paths to promote greater adoption of digital currencies, this despite the refusal of the Central Bank authorities who chose more to prohibit its use and commercialization.

By: Jenson Nuñez

The CEO of GEM Mining Thinks the United States Is Already Number One in the Cryptocurrency Mining Industry

Alexander Salazar
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The CEO of GEM Mining Thinks the United States Is Already Number One in the Cryptocurrency Mining Industry

Many Chinese cryptocurrency miners who sought favorable conditions for operating found them in the United States. Warren stressed that the high energy consumption in the mining industry worries farm operators, but they can pay low taxes.

John Warren, CEO of GEM Mining, recently expressed his view about the current advantage of the United States concerning legal freedoms for cryptocurrencies. He stated that the country is currently the most prominent regarding the world of crypto assets.

Chinese Miners Find Better Conditions for Operating in the United States

As the sanctions against cryptocurrencies in China and other prominent countries gained momentum, the tide of migrant miners found many obstacles to sustaining the industry. In that regard, the United States has represented a gateway where the community could look for refuge.

The cryptocurrency mining industry moved away from the Chinese territory to find favorable conditions to operate abroad. The GEM Mining firm said that the North American country offered a scenario having many advantages for miners.

This company explained that cryptocurrency mining farms could use the legal advantages of some areas in the United States that opened their doors to the industry.

Besides GEM Mining, various mining groups take advantage of the good legal treatment by the USA to continue with the activity. That happens primarily in the southern part of the country, where farms agglomerate under a friendly regulatory framework.

John Warren Is Optimistic about the Future of the Cryptocurrency Industry

The CEO of GEM Mining reiterated his heartening position on the current role of the United States after the ban on cryptocurrencies in China. He believes that this country has become the mining capital of cryptocurrencies, among which he highlights Bitcoin.

Warren thinks that the arrival of cryptocurrency miners has been something positive thing for the United States. He foresees a scenario representing a labor benefit for creating more job opportunities.

He also stressed the section on energy consumption in the mining industry, which worries those operating farms. The CEO of GEM Mining clarified that miners working in the United States have the advantage of low taxes.

He acknowledges the high level of energy consumed by mining machines and appreciates the facilities granted by the federal governments.

Some States Provide a Favorable Environment for the Activity

The executive explained that reduced taxes allowed cryptocurrency mining farms to maximize their profits in several states. He said that Texas, Georgia, and Kentucky were the leaders in that advantage for the new industry.

The current scope makes the development of the cryptocurrency mining activity in the territory more flexible. Warren said that there are more than USD 300 million in miners, a great sales tax benefit for those not having to pay it.

The mining of cryptocurrencies like Bitcoin has grown exponentially in the United States, now occupying first place in the ranking. Some states in the country welcome the activity and offer miners advantages like low taxes.

By Alexander Salazar

Wells Fargo Considers that There Is Still Time to Buy Crypto Assets

Alexander Salazar
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Wells Fargo Considers that There Is Still Time to Buy Crypto Assets

The analysts concluded that cryptocurrencies are close to a mass adoption phase and still attract small and large investors. They explained that only 1% of citizens worldwide had access to the Internet in 1995, like what happens with the current crypto market.

Analysts from banking institution Wells Fargo made a report detailing the current development stage of the cryptocurrency market. The results from the study helped them determine whether it is too late to start investing in cryptocurrencies.

The experts concluded that cryptocurrencies are a financial instrument close to a phase of mass adoption. Likewise, Wells Fargo found that small and large investors still feel attracted to those digital assets.

They explained that, even at the beginning of 2022, cryptocurrencies are in a not too early development stage. The high volatility of cryptocurrencies in recent months allowed them to prove that.

The institution compared the volatility of Bitcoin against that of gold, the US dollar, and MSCI market indexes. Many investors use the latter to measure the health of the actions of the world market.

In addition, the volatility of Bitcoin caught the attention of analysts, as those drastic changes in the BTC price reflect its lack of maturity.

The Growth of Bitcoin Will Be Similar to That of the Internet in the 1990s

Wells Fargo stated that the cryptocurrency market would continue to grow exponentially as the Internet did in the 1990s.

The report from the banking institution says that the creation of the Internet occurred in 1983. The analysts explained that only 14% of Americans and less than 1% of citizens worldwide had access to that technology in 1995. Curiously, the position of the Web in 1995 is similar to that of the current cryptocurrency industry.

The experts also highlighted the similarity in the growth rate of Internet users and cryptocurrency traders.

The analysts consider that investors want to know whether the world is ahead or behind in cryptocurrency investments. They believe that the investment on the Internet in the late 1990s seemed reasonable, as it reached a hyper-adoption phase and has never looked back.

In addition, Wells Fargo warned that many projects could disappear in the context of market development. The analysts recalled the crypto winter following the rise to USD 20,000 in the price of Bitcoin in December 2017. At that time, around 40% of the cryptocurrencies on the market ceased to exist.

Education Is Necessary Before Investing in the Cryptocurrency Sector

The analysts stressed that traditional and institutional investors should learn everything possible about the cryptocurrency market.

They acknowledged that the traditional stock market has a limited number of cryptocurrency-related investment products. They also explained that futures rather than digital assets back the current investment products listed on the US stock exchange.

The experts stated that they do not recommend investing in mutual funds, ETFs, grantor trusts, and speculation on individual cryptocurrencies. They said they hoped greater regulatory clarity in 2022 would provide new higher-quality investment options.

The American banking institution considers that it is neither early nor late to start investing in cryptocurrencies. Besides, they believe that their massive adoption is underway and may have already reached a positive turning point as the Internet did in the 1990s.

By Alexander Salazar

Police in Spain Captured Eight Criminals for Fraud and Money Laundering Using USDT

Jenson Nunez
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Police in Spain Captured Eight Criminals for Fraud and Money Laundering Using USDT

The alleged criminals got captured in Madrid and Valladolid. The authorities revealed that the criminal group operated using the change of cryptocurrencies to USDT to get away from volatility.

The Spanish Police captured eight individuals for alleged money laundering and fraud. According to a report revealed this Tuesday, February 15, the detainees play different roles in a gang that carried out illegal activities such as laundering money that would later go to other criminal organizations using digital currencies.

The authorities highlighted that the capture took effect in the framework of the MAUNA operation, through which the total disabling of the criminal group with based activities in Madrid got achieved. According to the researchers and investigators, the group became a reference to know the location where all this dirty money got moved in Spain.

The investigations revealed an extensive network of contributors with different roles, hierarchies, and goals, from the ones working with everything related to the management of cryptocurrencies to entire groups of experts in designing complex operations in the international financial system. This move was the tactic they used to hide the origin of the funds.

The authorities executed a series of investigations in Madrid and Valladolid, which resulted in the capture of the eight individuals deeply involved in the crime, the blocking of at least nine properties, and the seizure of at least EUR 300,000 in cash, along with many cryptocurrency cold wallets. In addition, at least 30 bank accounts got blocked, along with more than one million euros that come from illegal activities.

A Group that Worked for other Organizations

The group operated due to the reception of capital from organizations focused on financial scams, with which it acquired cryptocurrencies. The police revealed that these criminals even started to change digital currencies to the stable coin Tether, an item with a value adhered to the US dollar, to protect themselves from the volatility the bitcoin and altcoin market always experience.

At the same time, these criminals began to deceive citizens that showed interest in exchanging cryptocurrencies for cash, thereby earning a reward.

The press report of the Civil Guard highlighted that once the victims starts to show trust in this type of investment and received a bit of return, the criminal group vanished, along with all the cryptocurrency investment. The capital that the users invested in the activity ended up being exchanged with other criminal groups, thus achieving a double return.

The detainees allegedly had briefcase companies in Spain, Belgium, Germany, and Lithuania, to hide their illegal procedures. The massive crime would have harmed citizens in a precarious economic situation and elderly citizens. The police highlighted that the MAUNA operation is alive and open until all the victims in Spain get identified.

Jenson Rivas

Central Bank and Ministry of Finance in India, Agree to New Cryptocurrency Policies

Jenson Nunez
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0
Central Bank and Ministry of Finance in India, Agree to New Cryptocurrency Policies

Crypto exchanges met with the ministry asking for a reconsideration of the crypto tax, but they received zero response.

In India, it seems that an official agreement regarding cryptocurrencies got achieved. Or at least that is what the Finance Minister, Nirmala Sitharaman, said when commenting that the Finance Ministry and the Central Bank of India, RBI, agree with the new policies aimed at cryptocurrencies framed in the budget proposal, which include new taxes.

Sitharaman told a news conference after addressing the RBI central board The RBI, and the government agreed that discussions are still ongoing, even before the budget discussions were underway and will continue. Any point that the government or the Reserve Bank takes happens only after a debate.

New Rules in a Country Like India

These new crypto policies, expected to take effect in March, got revealed as part of the annual budget speech on Feb. 1. The policies add at least 30% tax on any income from the operations with virtual digital assets, the first tax of this nature for the nation. In addition, there is a deadline to enter the digital rupee for April 2023 and a 1% tax.

According to these new announcements, the minister minimized clashes about different opinions between the central bank and the ministry. He said they have to respect their stances, without ignoring what they must do regarding the priorities of citizens and in the interest of the nation.

Exchanges in Disagreement with Tax

The Indian crypto community has disagreed with the resolution that includes tax and even signed a petition on Change.org, which counts on more than 80,000 signatures. Coindesk says the meeting between some representatives of the Indian crypto environment and the policymakers was the first contact between the crypto industry and lawmakers since Finance Minister Nirmala Sitharaman revealed the new crypto tax policies.

The exchanges are also planning a more detailed initiative, helped by the industry entity Council and other auditing firms, which take part in the Internet and Mobile Association of India, leading meetings with the government on behalf of the industry.

According to sources, the framework relies on convincing the government to drop the 1% TDS clause from the finance bill.  Gaurav Mehta, the founder of Catax, said he does not think exchanges should see 1% TDS as an obstacle.

According to him, the tax will only be a complication for those exchanges that count on custody operations, airdrops, Initial Cryptocurrency Offerings, among others. However, “for exchanges that engage in standard exchange trading, TDS should be a piece of cake,” Mehta said.

Sidharth Sogani, the founder of Crebaco, thinks that the government may come up with an alternative procedure saying that the potential of the crypto space is just getting ignored. If they just adjust and simplify compliance, the industry will grow faster and would expand in a better way.

By: Jenson Nuñez

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