In a letter to the Russian Finance Minister, the Head of the Russian Chamber of Commerce called for cryptocurrency mining to be recognized as business and for cryptocurrencies to be studied as a “digital expression of value.”

The Russian Chamber of Commerce has recommended to the government that it should legalize cryptocurrency mining and recognize it as a business. Russian media reported that the head of the Russian Chamber of Commerce and Industry, Sergey Katyrin, sent a letter to Finance Minister Anton Siluanov, asking him to remove it from a “gray area”.

Katyrin said that it was necessary to change the current views on cryptocurrencies, to get it out of that gray area, to enforce taxes and other mandatory payments. This will also allow “to reduce the tension regarding the illegal use of electricity”, reveals the letter.

He emphasized the sovereignty of the ruble and that the value of cryptocurrencies as an asset would have to be studied, stating that:

“It is practical to study the experience of countries where cryptocurrency is a digital expression of value and not a means of payment, while the exchange of cryptocurrencies for goods is treated as a barter transaction.”

Russia has not been as active as other countries in proposing rules for the crypto market. India, in contrast, has placed a 30% tax on cryptocurrencies, while China has banned the asset class entirely.

Russia has had a somewhat ambivalent stance on the crypto asset class. It does not, and it will never consider Bitcoin legal tender, according to country officials. The Russian central bank suggested banning cryptocurrencies, although this received strong public backlash.

However, recent events have been more positive. On Jan. 28, Russian authorities, made up of the finance, economy, digital and interior ministries, collectively agreed to create a roadmap for cryptocurrency regulation, according to the FSB security service.

President Vladimir Putin has called on lawmakers to come to a consensus on the matter, after all these conflicting reports. About 7% of the Russian population owns cryptocurrencies, according to Finery Markets, so regulation may become a priority as adoption grows.

By Audy Castaneda

The AKB Fintech Company is among the trends in Venezuela. There are platform users who have 65 days waiting for their funds.

To make the sending of remittances and making payments in dollars easier in Venezuela has become the goal of several companies and startups. One of those strategies that managed to find solid ground was AKB Fintech, but its performance is now a struggle for its users.

The social network Twitter became a site where users can read the hashtag #AKBDameMiDinero as a trending topic. Everything seems to point at the platform based in Florida, the United States of America, and a prohibition for clients to access their funds for months.

The number of messages against the company, led by Venezuelan Guillermo Scarpanton, has been such that the platform turned his Twitter account private, as did the chairman with his profile.

The company presents itself on its website as a financial alternative created by young entrepreneurs and technology experts who intend to bring security and stability to its users.

Lorena Bornacelly, a Venezuelan journalist who receives her payroll from AKB Fintech, highlighted that she would not rest until she recovers her funds. She says she cannot sleep well because these thoughts come to her head and generate migraines. She also added that her work is worth it, and there are no responses for her money.

AKB Fintech was an Alternative to Avoid Devaluation

Bornacelly explained in various media outlets that AKB Fintech held meetings with the directors of the communication medium in which she works to bring them the services of his platform, and they accepted the proposal.

The journalist stated that receiving payments in bolivars is not an option and foreign currency is hard to achieve, so this type of platform, which gave the possibility of receiving dollars, was a kind of solution.

Bornacelly reported that the problems with AKB Fintech have occurred since the end of November. She also assured that the platform was deficient but, the service worsened to an alarming level.

The agricultural producer José Morales got also affected by AKB Fintech. The producer commented that he did not purchase the seeds and fertilizers for the new planting cycle due to this situation.

Venezuela is facing one of the most worrying economic crises worldwide. It currently has year-on-year inflation of 405%, according to the Venezuelan Finance Observatory (OVF), and that has led to the use of the US dollar over the bolivar, Venezuela’s local currency.

That is where options such as AKB Fintech come into the picture. They allow users to carry out activities with foreign currencies and receive payments from foreign employers or bitcoin and cryptocurrency exchanges such as Binance.

On the part of AKB Fintech, there have been no responses. In some cases, they have chosen to block clients when they demand explanations for their funds.

By: Jenson Nuñez

An all-time high of 40.16 million bitcoin addresses came to light. Bitcoin addresses slightly increased at least 7% since May 2021.

Immediately after the high peak in the Bitcoin price, a prominent reduction impacted addresses with non-zero balances, like the adjustment that took place right after the top of December 2017 and, on a less prominent scale, the one that happened in May 2021.

According to the most recent report made by the analytical firm Glassnode, since the low rate registered last May, of 37.58 million active addresses, their growth has gained sustainability, and, to the date, the figure circles 40.16 million.

Within the framework of this growth in active addresses with non-zero balance, those addresses with less than 1 BTC do not present any damage generated by a correction. According to the report, these addresses are still alive due to their sustained growth.

The rise of Retail Investor Portfolios is  a Real Thing

The portfolios under investors’ hands are called shrimp. Those Shrimps that carry out activities with less than one Bitcoin handle with a procedure that has not been affected by a previous adjustment. The rate of growth for this cohort went through at least two macro increases: The first one happened after March 2020, and it repeated the process in May 2021.

There are two declining changes in the growth of portfolios that has less than one bitcoin: In March 2020, after the apparition of the Covid 19 pandemic and its subsequent outbreak, and in May 2021, when the most prominent bitcoin price adjustment of that year happened.

According to previous reports, at the beginning of 2018, the amount of supply in wallets with less than 1 BTC showed less than 3%. Four years later, wallets that carry on less than one bitcoin surpassed 5% of the current supply.

A brief retraction in the bitcoin price took place in November 2021 but before, a prominent bull run started and skyrocketed the bitcoin prices high above the all-time high peaks of December 2017. The analyst Willy Woo explained that a sudden increase in BTC purchases by shrimps could happen soon.

The well-known analyst Willy Woo highlighted that, along with the recent adjustment on the price of the first cryptocurrency, there was considerable buying behavior coming from smallholders. These purchasing behavior aimed at taking advantage of the low prices of bitcoin.

In November 2021, the price of the first cryptocurrency went through a slight decline that reached a point registered at 15%, as it went from USD 65,500 to USD 55,713 on Thursday 18. After a rebound, the price fluctuated around USD 59,000.

By: Jenson Nuñez

The government must find specific targets, so it needs money. The cryptocurrency industry embraces at least one-quarter of Argentine funds.

2022 would get marked in Argentine economic history, and it could also be the year the country refinanced its most prominent historical debt with the International Monetary Fund. The Latin American nation must comply with some measures that would affect bitcoin (BTC) holders.

In 2018, during the ruling of Mauricio Macri, Argentina arranged an agreement with the IMF on a loan of at least 57.1 billion dollars. According to Christine Lagarde, which is its former director, the loan appeared to be the most prominent disbursement in the history of the IMF.

The expiration of the payments to seal its debt, one of them of at least USD 2,800 million scheduled for March 2022, pushed the Argentine State to connect through a series of conversations with the multi-national fund to reach an understanding to comply with the required guidelines and find a solution to the problem.

The government led by Alberto Fernández promised to execute some changes in monetary, economic, and financial policy. In the next years, exactly the next two years, Argentina would have to achieve some goals connected to the fiscal deficit, money issuance, and even tax administration. The cryptocurrency environment could become a vital player in the game on this last point.

The Role that Bitcoin Would play in Argentine Taxation

According to various sources, bitcoin and other cryptocurrencies could get harmed by these new measures taken in Argentina. Some of these projects set up strategies to regulate cryptocurrencies and are now waiting for a proper advance in Congress.

The main reason for the failed attempts to take these measures to Congress is the growth of this industry in the country. According to various reports, the blockchain data analyst company called Chainalysis highlights that the cryptocurrency market in Argentina approached a figure marked at USD 68,000 million.

This amount got only exceeded by Brazil. The figure in Argentina represents more than 25% of Argentine funds in dollars outside the system. The amount currently runs in parallel with 17% of the country’s foreign assets and is 10% higher than the valuation of Mercado Libre, which is a company currently listed at USD 60,000 million.

Considering the urgency the nation has to get more dollars, and with its current reserves in the Central Bank crumbling down consistently, the Federal Administration of Public Revenues could set up more harsh controls on cryptocurrency holders.

This measure got already clarified before reaching the agreement with the IMF.  Those who carry out activities with bitcoin and other cryptocurrencies in Argentine regions know that they must comply with these taxes.

The Argentine provinces have already started to play a vital role in the bitcoin environment. Some of the mentioned areas, such as Córdoba, Tucumán, Entre Ríos, and recently Catamarca, have already made legislations on the payment of Gross Income from the profits that come mostly from arranging trades and other activities with cryptocurrencies.

2022 may turn into a crucial year for bitcoin in a country like Argentina. The country is currently required to achieve goals like cutting spending, raising money, and preventing more taxpayer funds from abandoning the current system.

Although there is no official statement at the moment, there is a slight possibility that the State will see this industry as an oasis filled with benefits.

By: Jenson Nuñez