Moody's Warns El Salvador, PayPal in Ireland, Crypto Investment Flows + More News

Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news. Proclaiming bitcoin (BTC) legal tender reflects El Salvador’s weakened governance and has raised tensions with international partners, including the United States, as well as jeopardized progress toward an agreement with the International Monetary Fund (IMF), said major ratings agency Moody’s. They added that this means that risks associated with El Salvador's need to access sufficient external financing ahead of bond redemptions beginning in January 2023 have materially increased. Moody's downgraded the Government of El Salvador's long-term foreign-currency issuer and senior unsecured ratings to Caa1 from B3. The outlook remains negative.
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The EU’s Cryptoasset Tax Strategy Needs Coordination

As the cryptoasset industry awaits a much-discussed European Commission proposal that would extend EU tax reporting rules to cryptoassets and e-money, at least one tax-tech startup is courting investors in anticipation. Austria-based Blockpit is one of a growing number of companies providing automated tax calculations for cryptocurrency trades, income generated...
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Winklevoss twins run into British crypto trouble

Banks are widening their crackdown on digital currencies with Monzo banning payments to Gemini, the US cryptocurrency exchange founded by the billionaire Winklevoss twins. Gemini, which is worth about $2bn (£1.4bn), has been blocked by the challenger bank since July 21. The block on Gemini payments, one of the few...

MTV marks 40th anniversary with a new ‘Moon Person’ design

NASA footage of the historic Apollo 11 landing in 1969, with the MTV flag added to the mix, were the first images to appear on MTV back on August 1, 1981, and the first video was the Buggles’ “Video Killed the Radio Star.” MTV vastly expanded the power of visual images in the music industry and has since broadly expanded its reach, broadcasting worldwide and adding such influential channels and programs as VH1, Comedy Central and the early reality show “The Real World.”

Cryptoasset markets moving too fast for clear regulation and valuation

Experts compare challenges of crypto explosion to 1990s dot-com bubble. At a recent panel discussion, Dan Berkovitz, commissioner at the Commodities and Futures Trading Commission, raised the challenges surrounding the need for imminent regulatory clarity on cryptoassets, while also recognising their lack of underlying value. Berkovitz was speaking at an event jointly hosted by the OMFIF Digital Monetary Institute and Kroll (formerly Duff & Phelps) on the risks, opportunities and valuation of cryptoassets, alongside experts from Barclays and Kroll.
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Japan’s Crypto Titans Post High Crypto Biz Profits, Pivot Towards Altcoins

Two of Japan’s biggest crypto players – the financial giants the SBI and Monex groups – have posted high crypto profits in their second-quarter reports. Both firms have a range of diverse crypto interests, both at home and abroad. SBI operates two domestic crypto exchanges: SBI VC Trade and the TaoTao platforms, in addition to an international mining arm named SBI Crypto and the UK-based liquidity provider B2C2. It also operates a number of joint-venture initiatives with America’s Ripple.

'Don't Be Lulled' as European Commission Mulls a Crypto KYC Trap

Exchanges would be obliged to report suspicious transfers to an "unhosted wallet." A transfer from your wallet to an exchange would not be accepted without KYC. Whether the proposal will make it through the legislative process remains to be seen. While the European Commission (EC) says it is not targeting...
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Did people break up with COVID-19? | Coronavirus News COVID-19

Many believe all the changes to everyday life could have been avoided had stronger action been taken sooner. “One of the big problems we are having is that it’s politicized to such a degree,” said Teel. “If you are unmasked, you have to be a republican. If you are masked, you have to be a democrat. I’m like, we’re all people struggling with this thing.” “A lot of people lost lives,” said Hunter. “I worked in the medical field for a long time, so I’ve seen a lot. I feel like it should have been done when it needed to be done.”

On Monday, Managers of USD 2trn Get Access to Crypto + More News

Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news. Starting Monday, 4,000 of Germany’s Spezialfonds will be allowed to invest up to 20% of their portfolios in cryptoassets. These special funds, available to institutional investors only, manage around EUR 1.8trn (USD 2.1trn) worth of assets. Deutsche Bank AG’s asset manager DWS Group is monitoring developments, but is not currently planning to offer any funds that buy crypto, a spokeswoman told Bloomberg. Meanwhile, DekaBank, one of the country’s biggest asset managers, has been considering investing in crypto but hasn’t made a decision yet, per the report.

Malaysia takes aim at Binance chief executive as global crackdown escalates

Sign up to myFT Daily Digest to be the first to know about Binance news. Scattered global efforts to crack down on cryptocurrency exchange Binance were again on show on Friday after Malaysia censured chief executive Changpeng Zhao for “illegal” operations and the group also announced plans to close its European derivatives business.

IMF warns against adoption of crypto as legal tender

The organisation said the adoption of crypto as legal tender could bring volatility and macroeconomic instability. It called the move “a step too far” and “an inadvisable shortcut.”. The International Monetary Fund (IMF) has issued a warning against countries using cryptocurrencies as a legal tender. This follows El Salvador’s recent...
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The current state of evolution of cryptoasset taxation

The IRS began sparingly providing tax guidance on cryptoasset reporting standards beginning in 2014 with Notice 2014-21. The notice applied the general tax principles for property to transactions involving cryptoassets or, as the IRS calls them, "virtual currency." As the asset class evolved, questions began to emerge on the income tax implications of more complex transactions. In 2019, five years after the notice was issued, the IRS released Rev. Rul. 2019-24 and a series of FAQs on its website (available at www.irs.gov) intended to clarify U.S. tax reporting obligations with regard to specific transactions. The revenue ruling addressed the IRS's perspective on the taxation of hard forks and airdrops, whereas the FAQs expanded on information provided within the notice for those who hold cryptoassets as capital assets. While the guidance was welcome, it fell short of illuminating the tax treatment of many common transactions.

Cryptoasset mining and state tax incentives

The popularity of blockchain and cryptoassets such as bitcoin has increased significantly over the past few years, as has their utility. Cryptoassets have become more mainstream, as evidenced by the fact that some financial institutions, including Goldman Sachs and Barclays, enable their customers to purchase them, and J.P. Morgan has created the "JPM coin," a digital coin for payments. In addition, Coinbase, one of the largest cryptoasset exchanges, had an initial public offering in 2021. Cryptoassets also have been a focus of governments' policymaking attention, with some placing regulations and prohibitions on owning cryptoassets.

Tax-Free Bitcoin Mining, Robinhood Debuts on Nasdaq + More News

Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news. Crypto platform Choice and Compass Mining, a marketplace for Bitcoin (BTC) miners, said that their US-based clients can now mine bitcoins directly to their individual retirement accounts (IRAs) "without ever triggering a taxable event." "By mining in a Choice account, Compass miners can avoid income taxes on their mining revenue in the short term or indefinitely, depending on the type of IRA they use," the marketplace said. The Choice extended platform powers over 125,000 retirement accounts, with assets under custody of over USD 18bn across more than 20,000 assets, per the announcement.
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Zodia Custody receives FCA registration

SC Ventures and Northern Trust’s institutional cryptoasset custody solution, Zodia Custody, is now registered with the Financial Conduct Authority (FCA). The registration means that Zodia Custody is authorised to provide commercial services to clients as a cryptoasset business following a testing period. Launched by Northern Trust and SC Ventures, the...