News updates February 27, 2022
1. Analysts Warn of Regulatory Risks if Russia Is Able to Use Crypto to Evade Sanctions
Russia could turn to cryptocurrency if it is banned from the SWIFT payments system. Analysts have warned that if Russia is able to use crypto to evade sanctions, “political support in the U.S. for crypto will fall and regulatory risk will rise.”
Crypto Faces Regulatory Risks if Used by Russia to Evade Sanctions
Amid growing talk of banning Russia from the SWIFT global interbank payments system after its invasion of Ukraine, some analysts have warned that Russian President Vladimir Putin could turn to cryptocurrency to evade sanctions.
“We believe Washington is worried that Russia will use crypto to evade sanctions,” Cowen Washington Research Group analyst Jaret Seiberg reportedly said Friday. He added:
Seiberg believes that since most global trade is still dollar-denominated, it could be challenging for Russia to use crypto to evade SWIFT.
“Paying in bitcoin requires a conversion to dollars, which provides a way to track activity … That also works in favor of crypto,” he said.
If Russia is unable to use cryptocurrency to circumvent sanctions, however, analysts believe that it could boost the viability of crypto in the eyes of regulators.
Seiberg explained that political support of crypto would grow if crypto exchanges help uphold U.S. sanctions and if the government could track evasions using blockchains.
Noting that “For crypto, this could be the crisis that determines how the government treats its use for payments and as a store of value,” the Cowen analyst warned:
The U.S. Department of the Treasury sanctioned two Russian crypto exchanges last year. Suex and Chatex were found to have processed transactions tied to ransomware attacks and other illegal activities.
The Treasury Department identified cryptocurrency as a major threat to sanctions programs in a report released last year. “We are mindful of the risk that, if left unchecked, these digital assets and payments systems could harm the efficacy of our sanctions,” the Treasury Department explained.
2. Ukraine accepts Bitcoin, Ethereum, USDT donations to fund ongoing war
The Ukrainian government has reached out to the crypto community on Twitter to raise funds to support its civilians and troops.
Within the first week of the Russia-Ukraine war, the Ukrainian government has reached out to the crypto community on Twitter for raising funds to support its civilians and troops. Ukraine has now started accepting Bitcoin (BTC), Ethereum (ETH) and Tether (USDT) as donations.
As Russia threatens to take over Ukraine’s capital city of Kyiv, the government of Ukraine sought help from numerous international organizations to overpower the imminent threat. However, considering time is of the essence, the official Twitter account of Ukraine extended its call for help to Crypto Twitter.
Additionally, the Vice Prime Minister of Ukraine Mykhailo Fedorov also shared three crypto wallet addresses urging the crypto community to donate and help Ukraine fight against the Russian troops. While the BTC and ETH addresses remain the same, Fedorov’s USDT wallet address is TRC20-based (different from the address shared by Ukraine’s office Twitter handle). Prominent crypto entrepreneurs including Ethereum co-founder Vitalik Buterin initially suspected that the accounts requesting crypto donations were hacked. However, American diplomat Tomicah Tillemann later confirmed its legitimacy from Ukrainian Ambassador Olexander Scherba.
3. Shiba Inu price analysis: SHIB illustrates stable dynamics at $0.00002429
* Shiba Inu price analysis is bearish today.
* Strong resistance at $0.00003348.
* Trading price of SHIB is $0.00002429.
Today’s Shiba Inu price analysis reveals a bearish movement in the market. However, the bulls seem to show some potential as the market fluctuates. As a result, the price of SHIB experienced a decline and reached $0.00002444, from $0.00002566; on February 26, 2022, SHIB/USD continued a declining trend the following day.
Today, on February 27, 2022, the price has been experiencing massive fluctuations, causing the price of SHIB to remain under the $0.00002500 mark. SHIB currently trades at $0.00002429. As a result, Shiba Inu has been down 2.35% over the previous 24 hours, with a trading volume of $1,016,579,442, ranking #14 with a live market capital of $13,316,620,136.
SHIB/USD 4-hour analysis: Recent developments
The Shiba Inu price analysis revealed the market following a bearish trend as the market volatility increases, forcing the resistance and the support to open up, making the cryptocurrency’s price will remain stable until the volatility fluctuates, as of now, it is getting more prone to volatile change of either exchange. Consequently, the upper limit of the Bollinger’s band is present at $0.00002581, which acts as the strongest resistance for SHIB. Conversely, the lower limit of the Bollinger’s band is available at $0.00002213, which acts as the strongest support for SHIB.
The SHIB/USD price appears to be crossing under the Moving Average curve, making the market bearish. Again, the price has entered a bearish trend with the potential to maintain it. The price seems to be following a downward movement indicating a declining market.
The Shiba Inu price analysis reveals that the Relative Strength Index (RSI) score is 47, making SHIB/USD fall in the lower-neutral region. However, the price follows an upward trend indicating an increasing market and equivalence of selling and buying activity.
Shiba Inu price analysis for 1-day: Market enters squeeze
The Shiba Inu price analysis has revealed a bearish market. Moreover, the market’s volatility appears to follow a declining trend, making Shiba Inu’s price less vulnerable to volatility fluctuations. As a result, the upper limit of the Bollinger’s band is present at $0.00003348, which serves as the strongest resistance for SHIB. Conversely, the lower limit of the Bollinger’s band exists at $0.00002205, which acts as the strongest support for SHIB.
The SHIB/USD price appears to cross under the curve of the Moving Average, signifying a bearish movement. On the other hand, the price seems to be following a downwards activity, showing signs of a declining market
SHIB/USD 1-day price chart source: TradingView
The Shiba Inu price analysis reveals the Relative Strength Index (RSI) score to be 42, signifying a stable cryptocurrency. Furthermore, the RSI falls in the lower neutral region, but following a linear approach, signals stability and represents the buying activity equaling the selling activity, causing the RSI score to remain constant.
Shiba Inu Price Analysis Conclusion
The Shiba Inu price analysis reveals the market following bearish movement, showing stable dynamics. The bears currently dominate the market but have grown tired. However, the market shows massive upside potential and might reverse the movement soon, making the bulls rulers of the market.
4. Bitcoin and cryptocurrencies, are they taxed? All there is to know
The situation regarding taxation on the use of Bitcoin and cryptocurrencies is quite varied.
The first thing to keep in mind is that every country has its own rules, and there are even countries or territories where there are no taxes of any kind on the use of these currencies.
However, if we consider only those countries where they are taxed, we need to make at least another couple of distinctions.
Specific laws or old regulations
Before delving into this kind of maze, it is worth noting that only a few countries have laws specifically dedicated to cryptocurrencies, while the vast majority still apply old laws designed for other assets.
Generally, where there are no specific laws, those on foreign currencies apply, rather than those on security. In many countries, the tax treatment of cryptocurrencies is similar to that of foreign currencies.
Natural and legal persons
The first important distinction to be made is between the regulations that apply to natural persons (citizens) and those that apply to legal persons (companies, bodies, associations, organizations, etc.).
As far as legal persons are concerned, cryptocurrencies usually have to be recorded in the balance sheet as assets, and their market value should be recalculated each year at the end of the fiscal year. This treatment means that cryptocurrencies are effectively treated as any other asset with a value recorded in the balance sheet on which taxes are payable.
For legal entities, therefore, there are no particular provisions or problems, except in those countries where specific laws regulate their use.
The only problem could be in those rare cases where states prohibit the use of cryptocurrencies, or even tax individual transactions, but these are very few cases.
For individuals, however, taxation follows more complex rules.
Transactions and capital gains
There is a second distinction to be made here, namely the taxation of transactions and capital gains.
In fact, transaction taxes are now only levied in very rare cases. Until recently, some states treated cryptocurrencies as commodities for tax purposes, in some cases even applying taxes on individual transactions. But lately almost all of them are equating cryptocurrencies with currencies, on whose transactions state taxes obviously cannot be applied.
In most cases, however, any capital gains are taxed.
However, it is not always clear how these capital gains are to be calculated, although they are usually calculated in the same way as those relating to the buying and selling of other financial assets. Sometimes it can also be very complex to make these calculations, partly because the tax authorities often tend to take into account not only the sale of cryptocurrencies in exchange for fiat currencies, but also when exchanging them for other cryptocurrencies.
Capital gains taxation only applies when there are gains from sale, and generally has a fixed rate. In some countries, it is also possible to deduct capital losses from capital gains in order to reduce the taxable income.
For private individuals there is usually a threshold of ownership below which no tax is levied even on capital gains.
Declaration of ownership
Finally, a third distinction must be made.
In many countries, it is necessary to declare the possession of cryptocurrencies to the tax authorities even if no capital gains are made. However, the declaration of ownership does not imply the payment of taxes at all, as these are generally paid only on any capital gains due to sales, and not on mere possession.
Unfortunately, as there are no uniform regulations in place, every cryptocurrency holder needs to find out which regulations apply in their own country and how they apply. In many cases, private individuals only pay a fixed rate on any capital gains from the sale, but even in these cases it is necessary to at least check what the rate is, and what, if any, ownership threshold is below which tax is not triggered. In addition, it is also necessary to check whether there is anything to declare.
5. Russian Rubles Could Become 'Worthless' as Allies Target Central Bank After SWIFT Move After the EU, Canada, and the US agreed to remove selected Russian banks from the SWIFT messaging system, the Russian Central Bank is to be targeted next, which could make rubles "close to worthless."
In a joint statement on Saturday evening, the allies said they commit to ensuring that the Russian banks are disconnected from the international financial system and harm their ability to operate globally.
But what comes as a more unexpected and possibly more painful move is that the allies also said they "commit to imposing restrictive measures that will prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of our sanctions."
According to Rob Person, an Associate Professor of International Relations at the US Military Academy in West Point, this would mean that the central bank won't be able to access most of its reserves for currency interventions or exchange dollars and euros for rubles.
Elina Ribakova, Deputy Chief Economist for the Institute of International Finance, also said that sanctioning Russia’s central bank is likely to have a dramatic effect on the Russian economy and its banking system.
"This would likely lead to massive bank runs and dollarization, with a sharp selloff, drain on reserves -- and, possibly, a full-on collapse of Russia’s financial system," she told Bloomberg
However, it’s not clear how severe these restrictions will be.
Meanwhile, traders are preparing for "a catastrophe" on the Russian currency market on Monday.
"I think they will stop trading and then the exchange rate will be fixed at an artificial level just like in Soviet times," former Russian Central Bank Deputy Chairman Sergei Aleksashenko, told Reuters.
At 06:56 UTC, bitcoin (BTC) traded at USD 38,797 and was down 1% in a day and 3% in a week. Ethereum (ETH) stood at USD 2,735 and was down almost 2% in a day and 1% in a week.
Meanwhile, Ukrainian Vice Prime Minister and Minister of Digital Transformation Mykhailo Fedorov said yesterday that the "Ukrainian crypto community is ready to provide a generous reward for any information about crypto-wallets of Russian and Belarusian politicians and their surroundings."
6.
Dogecoin price analysis: DOGE expected to test $0.128 resistance before next retracement
* Dogecoin price expected to test $0.128 resistance over the next 24 hours
* Price went up more than 2 percent to as high as $0.130 during the day’s trade
* Trading volume fell 42 percent and market cap rose 3 percent
Dogecoin price analysis showed neutral to bullish sentiment during the day’s trade, with price rising 2 percent to reach as high as $0.1301. Currently, price sits on the cusp of the $0.128 resistance, as it looks to recover from the February 24 decline that took price as low as $0.107. Since then, buyers have formed some consolidation to reach back above the $0.12 mark and will expect to test the $0.128 resistance over the next 24 hours.
Over the day’s trade, DOGE trading volume fell more than 42 percent, highlighting a bullish sight, while market capitalisation rose by 2 percent. Sell offs and profit taking action could be seen if price can breach the resistance zone. Otherwise, Dogecoin price will consolidate towards resistance and form a potential 18 percent upturn from there.
The larger cryptocurrency market showed positive outcomes during the day’s trade, as Bitcoin consolidated further towards $39,000 and Ethereum rose 3 percent towards $3,000. Ripple rose 6 percent up to $0.745, while Cardano and Litecoin rose 2 percent each to sit at $0.89 and $107.67, respectively. Big moves upwards were seen by Terra (9 percent), Polkadot (10 percent), and Avalanche (6 percent).
Dogecoin price analysis: 24-hour chart indicates little chance of upturn
On the 24-hour candlestick chart for Dogecoin price analysis, price can be seen targeting the crucial 25-day exponential moving average (EMA) as the next short-term destination. At the current trend, there seems not to be enough impetus in the market for DOGE to breach the resistance zone at $0.128 and form a consolidation, which is also indicated by the lowly market valuation in place with a relative strength index (RSI) of 36.69. DOGE faces a test to maintain the current price range and will be subject to formation of a rectangular pattern over the coming trade sessions.
The moving average convergence divergence (MACD) also shows a bearish outlook for Dogecoin, exhibiting bearish highs below the neutral zone. Support and resistance sit in a tight range at current trend, with support at $0.121 and resistance at $0.128. Any movement below support could trigger further sell offs towards the 3-month low of $0.109 as buyers are expected to be hesitant to enter the market at current price.
7. Russian Politicians’ Crypto Wallets Targeted By Ukraine – Hefty Reward Up For Grabs
Ukraine is exploring more means of thwarting Russia’s onslaught on their country by running after government official’s crypto wallets.
Ukrainian authorities are attempting to stay ahead of crypto-savvy Russian officials who may shift to digital currency in order to evade rising efforts to financially isolate the Kremlin and its allies.
Wars can be waged on numerous fronts, as few stones are left unturned in the pursuit of the most effective techniques for gaining the upper hand.
Ukraine demonstrates resourcefulness in this aspect, as it fights Russia’s recent unprovoked invasion with conventional military techniques.
The country – which is unparalleled in terms of military capacity – is now hellbent on crippling Russian political figures by actively pursuing information about any digital wallets they may possess.
Ukraine Dangles Reward For Crypto Wallets Info
Vice Premier Mykhailo Fedorov announced on Saturday that the Ukrainian crypto community will reward those who give information.
The government has already begun soliciting cryptocurrency donations via social media and has advertised in online hacker forums that it is seeking assistance in defending against cyberattacks.
Federov also indicated that Ukraine is assembling an “IT army.”
Russia’s policy of combating adversaries using digital assets and online means has been in place for a long time, and the Ukrainian hope is that it may be turned around on them in a significant way.
Sanctions are among the most potent measures available to the United States and its Western allies for influencing the behavior of states they regard as threats.
And in this instance, a bounty for anyone who can provide information about crypto wallets belonging to Russian and Belarusian politicians can be a very effective instrument.
Bounty To Be Paid By Private Donors
According to Artem Afian, a Ukrainian attorney in charge of the project, the incentives for politicians’ crypto wallet information will be paid by private donations rather than by the Ukrainian government.
Afian did not disclose the total amount raised thus far, but said that donations were made primarily in Ether (ETH), but also in Bitcoin (BTC) and other cryptocurrencies.
Ukraine’s actions demonstrate how cryptocurrencies can cross borders and be used by both those seeking assistance and those attempting to evade the law.
Afian said he intends to publish a list of politicians’ addresses over the next two to three days and distribute it to major cryptocurrency exchanges.
Putin May Not Fall Into The Trap
The primary goal is to flag these addresses as “unsafe” and to deter individuals and businesses from transacting with them.
However, it is unlikely that Russian President Vladimir Putin will fall victim to this dragnet.
According to credible grapevines, Putin is notoriously averse to technology and reportedly does not own a cellphone.
