U.S. Congressman Matt Gaetz has introduced a bill to allow federal income taxes to be paid with bitcoin. Inspired by El Salvador’s success with the cryptocurrency, the lawmaker believes this move will modernize the U.S. tax system, promote innovation, and maintain America’s technological leadership. Lawmaker Proposes Bill to Allow Federal Income Taxes to Be Paid […]
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Bitcoiners Seek Constitutional Reform to Allow Swiss National Bank to Purchase Bitcoin
Yves Bennaïm, founder and chair of 2B4CH, a Swiss pro-Bitcoin think tank, is launching a popular initiative to amend the country’s constitution to allow its central bank to purchase and hold bitcoin. The initiative is also supported by Bitcoin Suisse President Luzius Meisser, who believes the bank should add bitcoin to its reserves. A Reform […]
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Spanish Treasury Proposes Tax Reform to Allow Cryptocurrency Seizures
The Spanish Treasury is proposing a tax reform to allow the seizure of cryptocurrency assets when liquidating tax debts. According to local sources, the proposal would also allow the state administration to embargo these digital assets as it is giving the first steps by declaring electronic money entities as tax collection agents.
Spanish Treasury Seeks to Seize Cryptocurrency for Tax Debts
The Spanish Treasury is seeking to gain control and oversight over cryptocurrency assets owned by taxpayers. The institution proposes reforming the current tax law to allow Agencia Tributaria, the national tax watchdog, to seize the cryptocurrency holdings when executing taxpayers’ debts.
The proposal, made in 2021 to the European Union (EU), will be implemented soon, as local sources explain that the government is quickly moving to create the conditions needed for the reform to be applicable.
The Spanish administration issued a royal decree that now declared electronic money entities as tax collection agents, meaning that these would have to execute embargo actions on the customer’s digital money and crypto assets when required by the government, a duty only required from traditional banks and credit institutions before.
Also, this year, taxpayers will be required to declare, for the first time, the cryptocurrency assets held outside of the country, data that will be useful to apply this new regulation when passed. Data from crypto tax statements obtained since 2021 will also be used to collect money from tax debts when needed.
However, the quick application of these cryptocurrency laws will establish a burden on Spanish regulators, who will have to change their definitions and adapt to the new tax framework and its rules due to their incompatibility with the concepts introduced in EU-wide rules like MiCA, the Markets in Crypto-Assets regulation, which has a different definition of cryptocurrency, and the general EU tax directive to be applied in 2026.
What do you think about the tax reform proposal to allow the Spanish administration to seize and embargo cryptocurrency assets from taxpayers? Tell us in the comments section below.
Latam Insights: El Salvador Passes Bitcoin Citizenship Law, Argentina to Allow Crypto Denominated Contracts
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: El Salvador passes a Bitcoin donation citizenship law, Argentina will allow the settlement of crypto-denominated contracts, and President Milei moves to deregulate Argentina.
El Salvador Passes Bitcoin Citizenship Law
The government of El Salvador has passed a law that allows foreign investors to become Salvadoran citizens. The project, approved with Bukele’s Nuevas Ideas party majority in the Congress, offers foreigners the possibility of sidestepping the ordinary requirements to receive Salvadoran citizenship by making Bitcoin donations to social and economic programs in the country, without mentioning a determined number.
Before, the only way of becoming a Salvadoran citizen involved having five years of residence for immigrants from a non-Spanish-speaking country. On December 8, the country announced a program called “Adopting El Salvador,” which would allow foreign Bitcoin millionaires to fast-track their access to a Salvadoran Passport by investing million USDT. However, the program will be available only for 1,000 applicants each year.
Argentina to Allow Crypto-Denominated Contracts
The government of Argentina will allow contracts to be settled in Bitcoin or any cryptocurrency or asset agreed between the parties involved. This is a consequence of the recent deregulation executive order that Argentine President Javier Milei inked this week.
Minister of Foreign Affairs, International Trade and Worship of the Argentine Republic Diana Mondino announced this, stating that contract payments could be settled in currencies and assets different from the Argentine peso. She stated:
We ratify and confirm that in Argentina contracts can be agreed in Bitcoin. And also any other crypto and/or items such as kilos of meat or liters of milk.
President Javier Milei Issues Mega Executive Order to Deregulate Argentina
Argentine President Javier Milei has issued an emergency national executive order modifying dozens of laws to deregulate and free the country’s economy. The order, titled “Decree of Necessity and Urgency – Bases for the Reconstruction of the Argentine Economy,” has over 360 articles and modifies several relevant aspects in the Argentine regulatory framework, including rent, pricing, and work determinations.
The decree also prepares to privatize state companies, converting them into limited companies. Milei defended his actions, stressing that they were touching elites’ interests. He explained:
They complain because they lose privileges. We make markets more competitive and end some privileges. And some who see their interests affected complain.
Due to its size and scope, the order is already being criticized, being labeled as unconstitutional by some experts who believe it could face heavy opposition in Congress, which can repeal it if both chambers decide against it with a simple majority.
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What do you think about this week’s Latam Insights report? Tell us in the comment section below.
Epic Games Store Changes Policies to Allow Blockchain Games in Its Platform Again
The Epic Games Store, the digital distribution storefront owned by Epic Games, has made changes that will allow some blockchain games to be listed on its platform again. Epic Games has announced that it will now admit games rated as “Adults Only” due to having non-fungible tokens (NFT) and blockchain elements.
Epic Games Stores Change Guidelines to Readmit Blockchain Games
The Epic Games Store has decided to open its doors for blockchain and Web3 games again. The digital storefront owned by the makers of Fortnite has decided to change its policies to readmit this kind of game into its platform.
According to the ESRB, some blockchain games are receiving the “Adults Only”(AO) rating due to the possibility of presenting the opportunity of exchanging the digital currency won for “real money.” The store excluded all games rated as AO by the Entertainment Software Rating Board (ESRB) from its platform, having a blanket ban on this kind of product.
However, it recently announced a change, adding an exception for blockchain and non-fungible token (NFT) games. Nonetheless, these games still have to comply with the already existing guidelines and the prohibitions on pornography, gambling, and hateful content.
The change allowed two games pulled due to receiving the AO rating, Unchained Gods and Striker Manager 3, to be included again in the platform. Immutable, a layer 2 Ethereum expansion layer and developer of Gods Unchained, celebrated this development, considering it an acknowledgment of the relevance of this tech in the gaming arena.
It stated:
We are pleased with Epic Games’ policy decision, and Gods Unchained has relisted on their store. This policy change shows that the space recognizes the experience of web3 gaming, and we are one step closer to adoption.
Steam, another digital distribution platform, has had a blanket ban on blockchain and NFT games since 2021. However, even with this ban enacted, developers are still finding ways to launch crypto-related games on this leading storefront.
What do you think about Epic Games’ policy change? Tell us in the comments section below.
China and Singapore Team Up to Allow Tourists to Spend Digital Yuan
Singapore and China have teamed up on a pilot to allow tourists in both countries to spend China’s central bank digital currency, the digital yuan. “This will enhance convenience for travelers when making purchases during their overseas travel,” Singapore’s central bank described.
Tourists in China and Singpoare Can Spend Digital Yuan
Singapore’s central bank, the Monetary Authority of Singapore (MAS), announced Thursday “new digital finance and capital markets initiatives to expand its financial cooperation with China.”
One of the initiatives is a “cross-border e-CNY pilot between China and Singapore,” the MAS explained, adding that it and People’s Bank of China’s Digital Currency Institute (PBCDCI) signed a Memorandum of Understanding (MOU) on digital finance cooperation in 2020. The announcement details:
MAS and PBCDCI are embarking on a pilot that will allow travellers from both countries to use e-CNY for tourism spending in Singapore and China. This will enhance convenience for travellers when making purchases during their overseas travel.
China is at the forefront of central bank digital currency (CBDC) development, actively testing its e-CNY project. Since initiating digital yuan research, the People’s Bank of China (PBOC) has steadily expanded the pilot program’s reach. Presently, there are 26 pilot areas for digital yuan spread across China.
PBOC Governor Yi Gang disclosed in July that transactions utilizing China’s central bank digital currency reached 1.8 trillion yuan (0 billion) at the end of June. In November, Standard Chartered Bank said that it had begun offering digital yuan exchange services in China. Moreover, the Chinese central bank and the Hong Kong Monetary Authority (HKMA) have entered the second phase of integrating digital yuan for payments and cross-border transactions within Hong Kong.
What do you think about the collaboration between China and Singapore to let tourists in both countries spend digital yuan? Let us know in the comments section below.
Boomers Interested In Bitcoin, Market Won’t Allow BlackRock To Buy BTC Below $60k
As institutional interest in Bitcoin grows, Fidelity and BlackRock’s proposed spot Bitcoin Exchange-Traded Fund (ETF) faces an unexpected hurdle: the crypto market’s unwillingness to let go of the coin at bargain prices.
Bitcoin To ,000 In Progress?
According to Mike Alfred, who claims to be a value investor and a board director, the market will “unlikely” allow BlackRock to purchase BTC below ,000. Taking to X on December 4, Alfred said BlackRock and other Wall Street players keen on issuing spot Bitcoin ETFs would have to “buy for Boomer’s 401k plans for at least ,000.”
This preview stems from the rapidly growing demand among institutional investors, as seen by the number of Wall Street players willing to issue complex derivatives tailored for, among other investors, “baby boomers,” most of whom are “approaching retirement.” With their substantial retirement savings, baby boomers increasingly recognize BTC’s potential as a hedge against inflation and a store of value.
Following Federal Reserve intervention during the COVID-19 pandemic, inflation rose to multi-year levels in 2021. To preserve purchasing power, the central bank began hiking interest rates. Although inflation has fallen and the economy stabilized, it remains higher than the target of 2%. The Fed continues to track this metric and may further intervene by raising rates to lower inflation. This might impact Bitcoin prices, as seen in the past months.
Nonetheless, the potential influx of boomer money into Bitcoin via a Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) approved derivatives product is a big boost for the coin. Though the SEC has yet to authorize multiple spot Bitcoin ETFs, the crypto and Bitcoin market expects the strict regulator to greenlight the first product in the next few weeks.
BlackRock And Company To Buy BTC At A Premium
Accordingly, ahead of this milestone development for the Bitcoin and crypto market, Alfred thinks BlackRock, Fidelity, and other players won’t secure Bitcoin at spot rates. Instead, the market anticipates that BlackRock, one of the world’s largest digital asset managers, will make their “bi-weekly purchases at prices above ,000.”
The coin is trading at April 2022 levels, ripping above ,000 over the weekend as bulls step up. Looking at the BTC candlestick arrangement on the daily chart, the first clear resistance is around ,000.
The coin trades within a bullish breakout formation following gains above ,000. As buyers step up and investors anticipate the SEC approving the first batch of spot Bitcoin ETFs, the coin will likely continue increasing toward all-time highs of around ,000.
Coinbase CEO Says Binance Settlements Allow Crypto Industry to ‘Turn the Page’
Coinbase CEO Brian Armstrong says the enforcement action against Binance has allowed the crypto industry to “turn the page.” He emphasized: “There are many, many companies in crypto that are helping build the crypto economy and update our financial system globally. But many of them are still small startups, so I think getting regulatory clarity is going to help bring in more investment in the crypto space.”
Coinbase’s CEO Shares Crypto Industry Outlook
The CEO of cryptocurrency exchange Coinbase (Nasdaq: COIN), Brian Armstrong, discussed the crypto industry outlook following Binance’s settlements with the U.S. Department of Justice (DOJ) during an interview with CNBC on Monday. Noting that there have been “a few bad actors in crypto,” the Coinbase executive said:
The enforcement action against Binance, that’s allowing us to kind of turn the page on that and hopefully close that chapter of crypto history.
“It’s a good moment for us to turn the page as an industry and recognize that building a company offshore, skirting regulation, is just not going to work. We’ve seen that now through these high-profile companies that have really gone bust or ended up with regulatory enforcement actions as they should,” Armstrong continued. The executive added that many companies that sought to establish themselves responsibly, legally, and with trustworthiness from the outset now have the opportunity to grow as they should.
Armstrong also addressed concerns by some that cryptocurrency is being used in illicit activity. “It’s true that there has been some small amount of illicit activity in crypto, but it’s actually about less than 1% from what we’ve seen. If you look at the illicit use of cash, for instance, it’s actually, oftentimes, it’s 3% or 4%. That’s much higher than what’s happening in crypto,” he pointed out. The Coinbase CEO noted:
So we’ve now seen millions of people around the globe … that are using crypto and these are just ordinary people.
He emphasized: “There are many, many companies in crypto that are helping build the crypto economy and update our financial system globally. But many of them are still small startups, so I think getting regulatory clarity is going to help bring in more investment in the crypto space.”
Regarding the U.S. Securities and Exchange Commission (SEC) lawsuit against Coinbase, Armstrong shared: “We feel very good about our case with the SEC and our chances there … this is a civil matter, it’s really just trying to understand the technicality of which assets are commodities, which are securities.” He opined: In the U.S. we have the unfortunate thing of there’s two federal regulators for the commodities and securities.” While reiterating that he believes Coinbase’s chances against the SEC “are very good,” he stressed:
Regardless of the outcome, it’s going to help us with our goal of getting regulatory clarity.
Expressing the view that it would have been preferable for the regulator to publish clear guidance, he suggested that in the absence of that regulatory clarity could come from case law in court or Congress passing legislation.
What do you think about the statements by Coinbase CEO Brian Armstrong? Let us know in the comments section below.
Google to Allow NFTs in Apps and Games on Play Store
Google will let developers expand offerings of blockchain-related content including through support for non-fungible tokens (NFTs) in apps on its store for Android devices. The change will allow users to earn and transact with digital collectibles, potentially reviving interest in the NFT market.
Google Play Marketplace Announces NFT Integration
Google unveiled that it’s updating its app store policy to “open new ways to transact blockchain-based digital content within apps and games.” The amendment means that developers will be able to offer users opportunities to earn and trade NFTs as part of loyalty and rewards programs, for example.
“Google Play hosts a variety of blockchain related apps, and we know that our partners are excited to expand on these offerings to create more engaging and immersive digital experiences with tokenized digital assets such as NFTs,” the tech giant said in an announcement on Wednesday. Google added:
We’re excited to see creative in-app experiences flourish and help developers expand their businesses.
At the same time, the company emphasized it will require developers to provide safe experience with the tokenized digital assets. This includes informing players about the value of an NFT at the time of purchase and refraining from promoting potential earning from playing or trading activities.
Google also promised to continue to engage with developers to support them in their efforts to build sustainable businesses using blockchain technology. Further improving its support of blockchain-based app experiences is part of Google’s plans, according to the statement.
The popularity of NFTs took a hit during the latest crypto winter but Google’s new policy may help revive the waning market. According to blockchain data provider Cryptoslam, the monthly global sales volumes were down 38% in June over the same period of last year, to 3 million, Bloomberg noted in a report.
Google has clarified its rules for non-fungible tokens, which will take effect on Dec. 7, after Apple introduced new guidelines on crypto trading and the use of NFTs within apps and games in October, 2022. In mid-March, 2023, the owner of social media networks Facebook and Instagram, Meta, announced it’s winding down support for digital collectibles on its platforms amid turbulence in the crypto space.
Do you think Google’s NFT integration will have a positive effect on the NFT market? Share your thoughts on the subject in the comments section below.
Russia’s Largest Bank to Allow Retail Investors to Trade Digital Assets
Majority state-owned lender Sberbank is preparing to allow Russian citizens to buy and sell digital assets. Private individuals will be provided access to its proprietary blockchain platform as early as this month, a top executive of the bank announced.
Sberbank to Open Digital Assets Platform to Private Individuals
Retail investors will be able to transact with digital financial assets (DFAs) on the distributed ledger platform built by Sberbank by the end of the current quarter, according to the Deputy Chairman of the bank’s Board, Anatoly Popov.
“If we talk about individuals, then in the second quarter, in June, we believe this function will be open,” Popov said, quoted by the Tass news agency. They will have the opportunity to buy digital financial assets, sell them and exchange them for fiat, he detailed.
DFAs are a relatively new financial instrument for Russia which was regulated with the law “On Digital Financial Assets” in 2021. Unlike decentralized cryptocurrencies, they have an issuing entity and represent tokenized traditional assets such as gold, for example.
The Central Bank of Russia (CBR) has already authorized several operators of DFA platforms such as the tokenization service Atomyze, the fintech company Lighthouse, Masterchain, and Alfa-Bank. Sberbank, which is Russia’s biggest bank by assets, was added to the regulator’s register in March 2022. Last week, the bank opened access to its in-house decentralized finance (defi) platform for developers.
Since it was licensed, Sberbank has issued DFAs for billions of rubles, Popov noted. In May, the CBR said it expects a significant growth in the Russian digital assets market. The forecast came after in a single month, April, seven DFA placements were made for a total of around 1 billion rubles ( million).
Russia has been taking steps to develop this regulated market but it’s yet to define the legal status of crypto assets like bitcoin. Several bills aiming to achieve that are now under review in parliament with sanctions pressures working in favor of legalizing crypto payments, at least in cross-border settlements, and regulating certain activities such as crypto mining.
Do you think retail investors in Russia will benefit from the access to Sberbank’s DFA platform? Tell us in the comments section below.