News updates February 7, 2022
1. Crypto Users and Exchanges Must Now Report Transactions in Colombia
The Colombian government has issued new regulations that force exchanges and individuals to report cryptocurrency transactions to the UIAF, the anti-money laundering watchdog in Colombia. The transactions must be reported via an online reporting system, and exchanges will be required to issue periodic reports of suspicious transactions made by users.
New regulations that direct users and exchanges to report cryptocurrency transactions over a certain amount have been approved in Colombia. Resolution 314 establishes that cryptocurrency transactions over $150, or cryptocurrency transactions made with multiple tokens whose value goes over $450, will have to be reported to the UIAF, the anti-money laundering watchdog in Colombia.
This new regulation, which will take effect on April 1st, seeks to bring about greater control over what is happening with cryptocurrency assets in the country and stop possible money laundering and terrorism financing activities that could be leveraging these assets to go unnoticed. Regarding this, the resolution states:
Exchanges will also have to issue a report of suspicious transactions that would deliver the UIAF a detailed list of operations considered unusual, and the users that effected them.
The law also establishes penalties for exchanges and people that fail to comply with these directives. If money laundering is detected in these activities, noncompliant users will have to pay between 100 and 400 minimum monthly wages, with other fines deriving from these crimes.
Resolution 314 states that in 2019, the bitcoin national market registered transactions for $124 million, almost 1.7 times the amount registered in 2018. This growth caused concern in the government about the use of these assets for illegal purposes due to the newfound liquidity in these markets.
However, the crypto oversight of the institutions in Colombia has also reached the tax environment. The DIAN, which is the tax regulator of the country, announced recently it was taking measures to detect tax evasion regarding the use of cryptocurrencies for trading or transacting.
2. Binance Warns Crypto Investors of 'Massive Phishing Scam via SMS'
investors of a “massive phishing scam via SMS.” The scammers sent SMS messages to crypto users informing them of a withdrawal request from an unknown IP address they may want to cancel.
Massive Phishing Scam Targeting Crypto Investors
Binance CEO Changpeng Zhao (CZ) tweeted Friday:
There is a massive phishing scam via SMS with a link to cancel withdrawals.
According to the Binance boss, scammers sent SMS messages to cryptocurrency investors stating that a withdrawal has been requested from an unknown IP address. The message then asks investors to click a link to cancel the withdrawal request. However, the link leads to a phishing website that will attempt to steal credentials from investors.
The Binance CEO further advised that users should always go directly to the Binance website via a bookmark or type the URL into the browser. He stressed:
Never click on links from SMS.
3. US Senator Ted Cruz Bought the Bitcoin Dip, Discloses BTC Purchase Worth up to $50K
U.S. Senator Ted Cruz has declared his bitcoin purchase worth up to $50,000. “I’m also particularly proud that my home state, Texas, is becoming an oasis for the blockchain community, for bitcoin miners, for innovators and entrepreneurs in the crypto world,” said the senator
Senator Ted Cruz Declares Bitcoin Purchase
U.S. Senator Ted Cruz has bought the bitcoin dip. A Periodic Transaction Report filed on Friday shows that the senator from Texas personally bought bitcoin worth between $15,001 and $50,000 on Jan 25.
4. Cryptocurrency Theft Remains Key Revenue Source for North Korea, UN Report Says
Cyberattacks on cryptocurrency exchanges have been a major source of funds for North Korea in the past year, a United Nations report has unveiled. According to the document, the sanctioned nation has also been developing its nuclear and missile programs.
North Korea Hits Cryptocurrency Exchanges, Sanctions Monitors Say
Hackers controlled by the Democratic People’s Republic of Korea (DPRK) have continued to target financial institutions and crypto platforms such as exchanges, Reuters reported citing a confidential U.N. report. Its annual edition, produced by independent sanctions monitors and submitted to the Security Council North Korea sanctions committee on Friday, claims:
Cyberattacks, particularly on cryptocurrency assets, remain an important revenue source [for DPRK].
The report further details that according to a member state, “DPRK cyberactors stole more than $50 million between 2020 and mid-2021 from at least three cryptocurrency exchanges in North America, Europe and Asia.”
5. Russians Mining Crypto to Pay at Least 15% Tax, Companies – No Less Than 6%, Lawmaker Says
Private individuals mining cryptocurrency may expect a higher tax burden than businesses involved in the industry, a high-ranking member of the Russian parliament has indicated. While the extraction of digital currencies is yet to be regulated in Russia, authorities lean towards recognizing it as an economic activity, which will allow the government to tax mining profits.
Profits from Cryptocurrency Mining in Russia May Be Taxed Like Those From Securities
The personal income tax levy for individual crypto miners withdrawing their profits into the traditional financial system cannot be less than 15%, the head of the Industry Committee at the State Duma, Vladimir Gutenev, has recently stated. The lawmaker added that the minimum tax rate for companies or sole traders engaged in the minting of digital currencies as a business activity should be at least 6%.
Quoted by the business news portal Finmarket, Gutenev explained at a press conference that if cryptocurrencies are to be treated as securities in the Russian Federation, income tax must be paid when the mined coins are cashed out.
The deputy was referring to the mining rewards which can be received by both natural persons and legal entities. These payments for the processing of blockchain transactions are credited to cryptocurrency wallets. Miners can choose to convert the digital coins into fiat currency.
6. Russian Government to Present Regulatory Scenarios for Cryptocurrencies Within a Week, Report
The federal government of Russia should be ready with different regulatory scenarios for the country’s crypto market by the end of next working week, documents from a recent meeting have indicated. The executive power in Moscow favors regulation over the prohibition of cryptocurrencies and related activities.
Government Inclined to Legalize Rather Than Ban Cryptocurrency in Russia
The Russian government, which is hosting the ongoing debate on the future of decentralized digital money in Russia, is going to produce alternative scenarios for crypto regulation by Feb. 11. The Russian business daily Kommersant broke the news, quoting documents from a meeting held at the White House in Moscow last week.
The fate of cryptocurrencies in the country is likely to be decided by the outcome of a clash between two opposing views. While the Central Bank of Russia proposes a blanket ban on crypto-related activities such as issuance, exchange, and mining, the Ministry of Finance pushes for legalization under strict rules and without recognizing bitcoin as a means of payment.
Most government institutions, including relevant ministries, have supported the approach suggested by the treasury department. If it is adopted, Russians owning digital coins will be able to operate with them as with investment assets under the watchful eye of the government, make transactions through Russian banks and pay taxes.
7. Bitcoin Price Gains Bullish Momentum
Bitcoin price started a major increase after there was a close above the $38,500 level. BTC gained bullish momentum and was able to surpass the $40,000 zone and the 100 hourly simple moving average.
The upward move was such that the price even rallied above the $41,200 resistance. It traded as high as $42,694 and is currently consolidating gains. It seems like the price is preparing for the next move and trading well above the 100 hourly simple moving average.
