News updates February 9, 2022

1. Spanish Treasury Postpones the Definition of Crypto Tax Declaration Models Until Next Year

The Spanish treasury ministry has announced it will postpone the establishment of the complete framework for declaring taxes related to cryptocurrency assets until 2023. While the Spanish government has advanced when it comes to cryptocurrency regulation, the specifics of what will be taxed and in which way are still a mystery for traders and holders. The organization is still looking for information to control these tax statements effectively.

Spanish Treasury Ministry Will Begin Formulating Crypto Tax Requirements Next Year

The Spanish Treasury has announced it will hold off till next year to formulate the specifics of how crypto-related taxes will have to be declared. The organization announced this decision in its Annual Tax and Customs Control Plan for 2022, surprising analysts that expected this to be executed this year due to the relevance that cryptocurrency has taken on in the country.

Now, with this resolution, traders and holders of cryptocurrency will have to wait until the elaboration of these models to declare their holdings and earnings and establish how much they will have to pay. The models are derived from the anti-fraud law approved in July, which establishes several obligations for cryptocurrency users regarding holdings outside Spain, and also for VASPs (Virtual Asset Service Providers).

2. PayPal Establishes Advisory Committee, Focusing on Crypto Affairs

Major U.S. payment processor PayPal has established a blockchain, cryptocurrency, and digital currency advisory committee.

In an official Tuesday announcement, PayPal said it warmly welcomes leading experts in distributed technology, economics, and regulation to join the committee with the aim of improving current and future products and creating a more inclusive digital financial ecosystem.

At present, six top talents from various industries have joined them, including Peter Briger, Co-CEO of Fortress Investment Group, Chris Brummer, Professor of Georgetown University Law Center. All six members have related achievements in the crypto industry.

3. Saudi Arabia Medical Institution Implements Blockchain-Based ‘Digital Credentialing Solution’

The Saudi Arabian medical institution, King Faisal Specialist Hospital and Research Centre, (KFSHRC) recently completed a deployment of blockchain tech when it implemented “a digital credentialing solution” for all patients that use its facilities. The implementation was carried out via the recently launched Blockchain Lab which has already identified several viable use cases for the technology.

As a result of the deployment of this solution, the hospital can now publish digital certificates directly on the blockchain where they can be verified by residents. The deployment of this solution, according to a statement released by the hospital, aligns with Saudi Arabia’s goal of building blockchain know-how as well as the adoption of this technology in healthcare.

4. Russian government and central bank agree to treat Bitcoin as currency

The government and central bank in Russia have reached an agreement on how to regulate cryptocurrencies, according to a Tuesday announcement.

Russia’s government and central bank are now working on a draft law that will define crypto as an “analogue of currencies” rather than digital financial assets set to be launched on Feb. 18. Cryptocurrencies would function in the legal industry only if they have complete identification through the banking system or licensed intermediaries.

Kommersant noted that Bitcoin (BTC) transactions and possession of cryptocurrency in the Russian Federation are not prohibited; however, they must be done through a “digital currency exchange organizer” (a bank) or a peer-to-peer exchange licensed in the country.

The report also highlights that cryptocurrency transactions of more than 600,000 rubles (roughly $8,000) would have to be declared; otherwise, it could be considered a criminal act. Those who illegally accept cryptocurrencies as payment will incur fines.

5. U.S. Cracks One Of The Biggest Crypto Heists, Arrests Couple For Laundering $4.5 Billion In Bitcoin

The US Justice Department has cracked one of the biggest cryptocurrency heists worth a staggering $3.6 billion in bitcoin tied to the 2016 hack of digital currency exchange Bitfinex. In addition, the Justice Department has arrested a husband-and-wife team on money laundering charges. Ilya “Dutch” Lichtenstein, 34, and his wife, Heather Morgan, 31, residents of New York, were arrested in Manhattan on Tuesday morning. The couple spent the ill-gotten wealth on a range of luxuries ranging from gold and non-fungible tokens to a $500 Walmart gift card, prosecutors said.

6. Kazakhstan president calls for hefty taxes on crypto miners

Crypto mining activities in Kazakhstan have skyrocketed over the past few months, with the country now ranking as the second-largest Bitcoin miner by network hash rate. The president of Kazakhstan, Kassym-Jomart Tokayev, has advocated for higher taxes on crypto mining activities.

This announcement could have a major impact on the Bitcoin mining activities in Kazakhstan, given that a few weeks back, another levy was introduced targeting the crypto industry.

7. Indian Government 'Constantly Monitoring' Crypto Sector, Says Finance Minister

India’s finance minister, Nirmala Sitharaman, has reportedly revealed that the government is “constantly monitoring” and “watching the crypto sector.” Referring to her budget speech, she noted that crypto taxation will be implemented before the central bank, the Reserve Bank of India (RBI), issues its digital currency.

Indian Finance Minister on Monitoring Crypto Sector and RBI’s Digital Currency Launch.

8. Lawmaker Takes Aim at Puerto Rico as Crypto Tax Haven

Nydia Velaquez called for tougher action against crypto millionaires using Puerto Rico as a tax shelter.

* A Congresswoman's comments reveal growing hostility to Puerto Rico's crypto millionaires.

* But it's unlikely that policy change will follow anytime soon.

Stories about crypto millionaires decamping to Puerto Rico have become commonplace in recent years. The island's attraction lies in its sandy beaches, mild climate—and its reputation as a place for U.S. residents to avoid paying taxes.

But not everyone is happy about this. On Tuesday, Brooklyn lawmaker Nydia Velazquez (D-NY) complained that Puerto Rico has become a haven for rich crypto speculators from the mainland—and asked a Treasury Department official if Congress could help "go after crypto investors trying to use Puerto Rico as a tax shelter."

9. Ireland's Central Bank 'Highly Unlikely' to Allow Retail Investors to Hold Crypto.

The Central Bank of Ireland is "highly unlikely" to allow retail investors to be exposed to crypto assets, it said in a report published on Tuesday.

* The bank cited "the specific risks attached to crypto assets" and "the possibility that appropriate risk assessment could be difficult for a retail investor without a high degree of expertise."

* The central bank's position applies to "Undertakings for Collective Investment in Transferable Securities," or UCITS, which are organizations that invest in securities and are regulated by the European Union. It also includes alternative investment funds (AIFs), which aren't regulated by the UCITS directive and include hedge funds, private equity and real estate funds, according to the European Commission.

* Crypto assets are "highly risky and speculative" but "at the moment" are considered suitable for wholesale and professional investors, the Irish central bank said.

* The statement was part of the central bank's second annual Securities Markets Risk Outlook Report, but was also stated in two reports on UCITS and AIFs in December.

* Several crypto exchange-traded funds have made their debut in Europe in the last year.