News Updates February 22 & 23, 2022

  1. Bitcoin price could ‘probe lower’ as volumes dip and macroeconomic issues loom overhead
    BTC price is holding slightly below $38,000, but analysts warn that mounting macroeconomic issues and a lack of buyers could lead the price to “probe lower.” Bitcoin's sell-off appears to be taking a pause even though the United States rolled out new sanctions against Russia on Feb 22. Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) continues to hover slightly below $38,000, which some analysts have identified as a significant support and resistance zone.
  2. China courts improve evidence collection through blockchain. 

    China’s supreme court released on Tuesday a set of rules allowing courts to verify and recognize evidence submitted through a blockchain-powered platform.

    Last year, a court in Guangzhou, the capital city of China’s southeastern Guangdong province, started using a blockchain system in a lending dispute case where some evidence submission and cross-examination were conducted online.

    More courts in various cities of China have adopted blockchain in facilitating legal proceedings in the past.

    Guangzhou joins numerous courts in at least seven different regions including harbor city Hangzhou and capital Beijing in adopting blockchain for evidence preservation.

    China has come early to incorporating blockchain to the legal game on the backdrop of President Xi Jinping’s “national priority” label given to the technology.

    As early as September 2018, China’s supreme court recognized blockchain technology as a legitimate means to collect, fix and tamper-proof data.

  3. EU Wants Anti-Money Laundering Regulator to Monitor Crypto. The EU is hoping to bolster its crypto oversight efforts by giving its new anti-money laundering watchdog more power to oversee the industry. 

    The European Union is developing plans to regulate crypto more stringently as part of its efforts to prevent money laundering and terrorist financing.

    The 27-country organization wants to include cryptocurrency firms within the purview of its new anti-money laundering watchdog over concerns digital assets are linked to illicit activity, Bloomberg reported Tuesday.

  4. UK financial regulator issues warning shot on crypto mergers following Bitpanda deal. Crypto unicorn Bitpanda announced it has agreed to buy the FCA-regulated DeFi custodian Trustology. The regulator issued a release, warning that it “can take steps to suspend or cancel the registration of a cryptoasset business if it is not satisfied the firm or its beneficial owner is fit and proper.”Bitpanda told The Block that it and Trustology are “confident that no issues with the acquisition will arise.”
  5. Indian Police Arrest 11 People in Cryptocurrency Scheme Defrauding 2,000 Investors

Indian police have arrested 11 people so far in connection with a fraudulent cryptocurrency scheme that has duped about 2,000 investors out of $5.4 million.

11 People Arrested so Far in Cryptocurrency Scam in India

Indian police have cracked down on a cryptocurrency investment scheme that has duped over 2,000 investors out of 40 crore rupees ($5.4 million).

The number of arrests reached 11, seven of whom were arrested on Sunday in Maharashtra’s Nagpur, according to PTI.

The main accused, Nishid Wasnik, and his wife Pragati, along with two other associates, Gajanan Mungune and Sandesh Lanjewar, were arrested one day prior in Pune. They went into hiding in March last year and had been on a run until they were arrested Saturday, the police said.

An official described that Wasnik used to flaunt his luxurious lifestyle to lure people to invest in a firm he claimed to be dealing in ether (ETH) cryptocurrency. The official was quoted as saying:

The police said all 11 people were charged under IPC, Maharashtra Protection of Interest of Depositors Act and Information Technology Act provisions by Yashodhara Nagar police.

6. Portugal, 2 European Countries Continue to Ride the Crypto Wave

* PTA reminds constituents that BTC capital gains are not taxed in Portugal.

* El Salvador’s GDP sees an increase after making BTC its legal tender.

* Ukraine trades more crypto than fiat as digital assets are now legal. While the public has yet to see an all-country, global adoption of cryptocurrency, countries that are willing to take risks to reap the benefits of crypto are increasing in numbers. Here are the latest updates on countries backing cryptocurrency.

Portugal: No Tax on BTC Capital Gains Portuguese Tax Authorities (PTA) clarified that the buying and selling of crypto would not be subject to capital gains tax or value-added tax (VAT).

In a PTA position released in 2016, capital gains from the sale of cryptocurrencies are not taxable under the Personal Income Tax Code, under Category E, which covers dividend and interest income. In addition, crypto sales are also not subject to being taxed within the sphere covered by Category G (capital gains).

However, entities that provide crypto-related services, as a professional or a business, are taxed on capital gains between 28%-35%.

With this reminder, Portugal continues to stand its ground as a crypto-friendly country, joining other European countries like Germany, Switzerland, and Malta.

El Salvador GDP Increased after Making BTC Its Legal Tender

True enough, a report showed that the El Salvador GDP is projected to reach around $26.80 billion from its 2021 trend of around $25.60 billion. Although reports have not specified if this was caused by the move to make BTC a legal tender, El Salvador’s financial authorities continued to insist that the crypto would be an asset to the country’s economy.

El Salvador made headlines last year in September after announcing it would make Bitcoin an official currency. Ukraine Trades More Crypto Than Fiat According to an article, Ukraine is processing more cryptocurrency transactions a day than its fiat currency, hryvnia.

This development is in relation to the Ukrainian parliament’s recent approval of the legislation that legalizes cryptocurrencies. The parliament is now preparing regulatory and management frameworks for crypto like Bitcoin.

This news came via Twitter from Ukraine’s Deputy Prime Minister and Minister of Digital Transformation, Mykhailo Fedorov.

Important to note is, unlike El Salvador’s legislation, the Ukraine bill does not recognize cryptocurrencies as legal tender. However, this development is considered a win as entities involved in the crypto business are reassured of proper regulation.

Meanwhile, countries like India have yet to fully embrace cryptocurrency, imposing heavy taxes and calling for the ban of the use of digital assets.