The Brussels parliamentarian will receive his EUR-5,500 salary through an exchange platform. He thus joins the mayor of Miami, Francis Suárez, and his counterpart of New York, Eric Adams.

The adoption of Bitcoin (BTC) continues to grow and conquer more political spaces worldwide. Belgian Member of Parliament Christophe De Beukelaer recently revealed that he would accept his salary in Bitcoin, thus becoming the first European politician to do so.

A local media outlet reported that the Brussels parliamentarian would receive his EUR-5,500 salary through an exchange platform. The representative of the Humanist Democratic Center (CDH) party hopes to inspire other politicians in the region to take an interest in nascent technology.

In that way, the Belgian deputy is another politician who joins the adoption of Bitcoin in developed countries. Two specific cases in the United States are Francis Suárez, the mayor of Miami, and Eric Adams, his counterpart in New York.

Apple Invests in the Metaverse and Its Stock Price Skyrockets

The stock price of Apple soared after its CEO, Tim Cook, released the results of the first quarter of 2021. At the time, he revealed that he sees considerable potential in the Metaverse space.

The executive said they saw a lot of potential in that space, so they invested in it. He added that they always explored new and emerging technologies and explained that this interested them very much.

Criminals Laundered USD 8.6 Billion Worth of Cryptocurrencies in 2021

A recent report from Chainalysis revealed the trends in crypto crime in 2021, revealing several surprises. Criminals laundered USD 8.6 billion worth of cryptocurrency, a drop from the total of USD 10.9 billion in 2019. Although it was much higher than the USD 6.6 billion laundered in 2020, it represented only 0.05% of all crypto-asset transactions.

Furthermore, data from the analytics portal also indicated that a surprisingly small number of criminals received huge amounts of crypto assets.

Goldman Says Increased Adoption Will Not Boost Crypto Prices

Investment bank Goldman Sachs has warned crypto buyers that further adoption of tokens will not drive prices higher. He pointed out that macroeconomic factors are now exerting a more significant influence on the markets for those assets. Additionally, the interest from the company in launching a stablecoin appears to have waned.

The strategists from the company, Zach Pandl, and Isabella Rosenberg, warned about the price of cryptocurrencies through a note.

The total crypto market capitalization has fallen by around 40% since November 2021. The bank recently said that macroeconomic factors or developments outside of digital markets were the main drivers of that crash.

Although widespread adoption may increase valuations, correlations with other financial market variables may increase. That reduces the diversification benefits of holding digital assets, according to a group of analysts led by Zach Pandl.

The interest in cryptocurrencies like Bitcoin has increased significantly since its inception, and politicians have not overlooked it. Even though many analysts and regulators link them to illegal activities, studies indicate that the percentage is too low.

By Alexander Salazar

Kazakhstan is not a Bitcoin mining paradise, so miners want to relocate to territories like Russia and the United States. The bans against Bitcoin mining lead farm operators to debate whether to take their equipment elsewhere, but they still do not know where.

Once the riots and protests in Kazakhstan ended, the police lifted their operations, and troops from allied countries like Russia withdrew. However, that is not the end of the difficulties for Bitcoin miners in a country concentrating 18% of the hash rate.

The Kazakh government recently suspended the electricity service to Bitcoin mining farms until the end of the month. A blackout also left the entire national territory, Kyrgyzstan and Uzbekistan, in the dark.

For that reason, Bitcoin miners want to move their operations to territories like Russia and the United States. They realized that Kazakhstan was not the same paradise as when they left China two years ago. The political problems and the instability of the electrical system force them to seek better options for their activity.

The Blackouts in Kazakhstan Do Not Affect the Bitcoin Hash Rate

The most recent Bitcoin mining difficulty adjustment indicates that the hash rate has not stopped growing. This increase in difficulty has been the highest since August 2021. Then, the network already showed the first signs of a hash rate recovery after the Chinese government prohibited the activity.

This difficulty adjustment recorded 26.64 T, 9.32% above the previous period, in which it reached 24.37 T. In that way, Bitcoin again exceeds an all-time high of difficulty, making it more difficult to mine that network. Besides, it has never had so much protection against 51% attacks and hacks before.

The same as the hash rate, Bitcoin difficulty adjustments have continued to rise, surpassing the highest levels of 2021. That does not seem to relate to a low hash rate or the difficulty of mining the network but a high volume of incoming transactions.

That could be due to reorganization movements in the positions of Bitcoin traders before the announcements of the US Federal Reserve. Those measures may have been affecting the price of the pioneering cryptocurrency.

Bitcoin Miners in Kazakhstan and Kosovo Find Options in Latin America

The bans against Bitcoin mining in Kosovo worry miners, who debate whether to sell their equipment or take it elsewhere. However, they still do not know the best destination for their activity.

The answer could be in Latin America, where miners from Kazakhstan, Iran, and other countries arrive. Regions like Paraguay, Argentina, and Costa Rica offer better conditions for developing that business.

The municipal government of Borgo D’Anaunia, Italy, decided to mine Bitcoin from a regenerated power plant. Although it was not a private sector initiative, it is an excellent example of recycling energy to operate a mining farm.

The above occurs when the European Union is thinking about banning Bitcoin mining, alleging that it is inefficient and harmful to the environment. However, studies reveal that this is far from reality, as 58% of that activity uses renewable energy.

By Alexander Salazar

 The Salvadoran Bitcoin portfolio is in the red, but the dilemma goes beyond the price of the pioneering cryptocurrency. Many citizens wonder whether the end justifies the means, referring to the incorporation of Bitcoin in the Salvadoran economy by Bukele.

Many people received the news that the Bitcoin portfolio bought by Bukele in El Salvador is in the red angrily. He acquired the cryptocurrency at an average price close to USD 48,000, and it is now trading below USD 40,000.

Some said that analysts should not speak of losses for not selling BTC while wondering whether they would say when Bukele is in profit. They will do it in the future, the same as they have done it in the past.

The problem with that view is that not discussing losses would imply not mentioning gains either. However, they could know of some sales at a price hike that the president has made without anyone else knowing.

Bitcoin Does Not Justify the Means

The issue goes beyond the current price or the color that the graph might impose on the purchases by Bukele. That is a matter of approach and management of public money, as many people do not like that seemingly arbitrary investment.

Salvadorans have the right to question the steps their president takes with the nation’s money. Many think their president handles money like a macroeconomic gambler. Bukele said he might have missed the dip but reported that he bought when the price fell a little more.

Bitcoiners see the Central American president as a visionary hero for incorporating Bitcoin into the Salvadoran economy. They do not seem to question custodian wallets in the hands of companies both external to the state and foreign.

Not many people seem to be uncomfortable with the many failures of the tools created by the government to manage the pioneering cryptocurrency among citizens. The math of Salvadoran bitcoiners is simple as they consider that the adoption of Bitcoin justifies the means.

Putting the Figures in Perspective

Currently, figures are not at stake to bankrupt El Salvador with the so-called Bitcoin experiment. However, denying a high risk in that bet is against the maxim of entering with money the investor will not need.

The ability to answer for actions taken in the name of a greater good, among other things, implies responsibility. That is one of the other primary problems of the management of Bukele regarding the investment in BTC. Salvadorans do not have another choice but to fully trust his word, as Bitcoin provides the transparency they demand from their ruler.

A public address anyone could audit through a block explorer would make it possible to confirm whether El Salvador has the 1,801 bitcoins that Bukele has bought. The operations with the cryptocurrency have been so dark that the entire community wonders where the BTC of El Salvador is.

Cryptocurrencies play a crucial role in the economy, evident in countries like El Salvador. The government of Nayib Bukele adopted Bitcoin as legal tender in 2021, which led many analysts and organizations to lash out at him. However, the Central American head of state has kept buying the crypto asset to include it in the national coffers.

By Alexander Salazar

The CJEU considers that some fines confer an extremely repressive character due to their high level. That institution could also annul Model 721, which requires citizens to declare cryptocurrency holdings that they have abroad.

The Court of Justice of the European Union (CJEU) recently annulled Form 720, which forced citizens to report their assets abroad. That regulation also threatened those who did not do so with the application of excessive penalties.

The magistrates of Luxembourg consider the Spanish model failed to comply with the obligations concerning the principle of free movement of capital. It has a sanctioning regime against investors that has proven too repressive.

The ruling by the CJEU describes the obligation to submit Form 720 and the penalties derived from non-compliance with it. The document states they represent a difference in treatment between residents in Spain, depending on the location of the assets.

The ordinance explains that Spaniards must declare real estate, bank accounts, securities, assets, stocks, and rights representing their capital stock abroad through Form 720. They must do the same with other funds or assets and life and disability insurance outside Spain.

They argue that they fight against tax fraud, tax evasion, and money laundering, among other financial crimes.

The Highest Court stated that Form 720 might not be justifiable to achieve those objectives. Despite mechanisms for exchanging information or assistance between European countries, the holding of assets abroad is notably lower than within their country.

The Non-Compliance Penalties Are Extremely Repressive

The CJEU noted that Spain failed to comply with the free movement of capital by sanctioning 150% of the tax calculated on assets abroad. That applied to those who had not declared their holdings or had done so outside the established period.

The Court highlighted that the imposition of this fine is due to the non-compliance with the declaration. They said it only applies to taxpayers who have not complied with the obligation to report their holdings.

The high amount of the fine that Spaniards must pay gives it an extremely repressive character. Besides, its accumulation with the planned fixed-amount fines can lead the total amount owed by the taxpayer to exceed 100 %.

The entity also criticized the fixed amount fines, saying that Spain intends to penalize with sums ranging from 5,000 EUR to 10,000 EUR. Those who have provided omitted, incomplete, inaccurate or false data to the Tax Administration of that country have to pay those amounts.

In addition, they must pay 100 EUR for each data that they have declared outside the period. If they have done so through another means not prescribed by the tax authority, they must pay a minimum of 1,500 EUR.

The CJEU stated that those fines are not proportional to the sanctions for non-compliance with similar obligations within Spain. Therefore, those fixed financial penalties establish an excessive restriction on the free movement of capital.

The CJEU Annuls Forms 720 and 721

The ruling against Model 720 introduced in 2022 by former Minister Cristóbal Montoro was already underway. There had been statements against the document since 2017. Besides, a magistrate of the Court said the sanctions were contrary to Union Law in 2021.

Anticipating that move by the CJEU, the Spanish government brought forward Form 721, together with the Ministry of Finance. It is entirely identical, even regarding sanctions, but with the difference that citizens now must declare cryptocurrency holdings, which qualify as assets.

Two weeks ago, the Spanish government had planned to begin forcing investors to declare their cryptocurrency holdings. They specified that they had to do so through the new model if they were higher than 50,000 EUR.

Curiously, tax economist José Antonio Bravo, who knew the move of the Spanish State, asked to resort to 721 immediately. Due to the details of the sentence, they could also annul Form 721. The CJEU urges Spain to present a model framed in the principles and rights of the Union.

By Alexander Salazar

An IRS agent in the United States of America expressed that cryptocurrencies would be the economy’s future but thinks it could be a space dominated by fraud and other criminal activities.

Special agents for the United States Internal Revenue Service (IRS), the federal tax collection and enforcement agency, view the digital asset space as a terrain dominated by fraud.

Ryan Korner, an agent with the IRS criminal investigation division in Los Angeles, shared the vision among the agency’s investigators during a recent conference. According to the representative, cryptocurrencies and non-fungible tokens create a perfect scenario for illegal activities like fraud and other tax crimes such as money laundering,  and market manipulation. These statements got quoted in a Bloomberg report.

Celebrities and the Investigations of the IRS

The official said the office recognizes the significant growth that the digital currency market has had; however, it considers that there is currently a wide use of said assets for illicit operations.

According to the report, US law enforcement showed concern about many space-related criminal activities, including when they see active users paying millions of dollars for assets like NFTs, which do not seem to have that kind of value. He added that bad actors could be using NFTs as tools to launder money from criminal operations such as drug trafficking.

Korner also spoke about the high-profile investors and their ability to influence the prices with just a simple tweet. In this line, the federal agency warned that social media influencers and celebrities are not immune from criminal investigations by the IRS.

Federal agencies have been targeting celebrities for promoting cryptocurrency projects in the past. Last year, boxer Floyd Mayweather and DJ Khaled had an encounter with the US Securities and Exchange Commission (SEC) for failing to disclose that they paid to encourage a crypto scheme through online campaigns in social networks.

US Agencies Unite to Fight Crypto Crimes

During his speech, Korner admitted that this digital space has potential. The IRS responds to the growth in the sector by strengthening its capabilities to fight against cryptocurrency and NFT-related crimes.

In this context, the agent explained that the division actively educates its officers with a strong focus on the digital space.

The representative also explained that the IRS is currently looking for greater contributions from other federal agencies, including the Justice Department, to make sure every single player involved in the situation stands aware of these activities and applies their measures against the criminals.

The report suggests that watchdogs are increasingly cracking down on fraud and fraudulent activities involving cryptocurrencies and other digital assets. The IRS investigations team managed to seize at least $3.5 billion confirmed in cryptocurrencies during the fiscal year 2021.

By: Jenson Nuñez