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Brazilian City Plans To Invest 1% of City Reserves in Bitcoin

By
Adam Barry
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0

Rio De Janeiro, Brazil, is allocating 1% of the city’s reserves into Bitcoin. The decision was announced by Eduardo Paes, the mayor, during the Rio Innovation week. The mayor revealed that the city was planning to turn the city into a cryptocurrency hub by developing “Crypto Rio,”

During the Rio Innovation Week, Paes also had discussions about cryptocurrencies with Francis Suarez, a BTC bull alongside Miami’s mayor. 

Brazil will exempt crypto from some tax regulations

Via a report published by O Globo, a local news agency, Paes stated that the cities would launch Crypto Rio soon and that everyone, including the Government, had a role to play. Paes added that the country planned to exempt the industry from specific tax regulations. 

The exemptions will assist in creating the proper awareness of the use of cryptocurrencies across the country. The mayor discussed the potential of Rio’s cryptocurrency-related ambitions in a panel with Miami mayor and Bitcoin bull Francis Suarez.

Francis Suarez’s investments in the field began making headway last November when he accepted his paychecks in BTC. Other Brazilian Officials in the panel, such as finance secretary Pedro Paulo.

Paulo pointed out that the administration was considering placing a 10% discount on property tax for any purchase made with Bitcoin. The finance secretary added that every person should learn the legal framework required to use Bitcoin. 

Brazil proposed the bill to regulate crypto fraud

Recently, the Brazilian Government declared its stance on the cryptocurrency industry. But, the Government supports the currency and even proceeded to draft a bill that legalizes any legit forms of cryptocurrency as payments. 

The federal deputy, Luizao Goulart, proposed this bill to regulate the amount of fraud and illegal activity that troubles the industry. The proposed bill also details the regulations required for workers in both the private and public sectors to pay via cryptocurrencies.  

As of December 2021, MercadoPago, a big crypto payment firm in Brazil, enabled Brazilian residents to buy, sell and hold significant cryptocurrencies like BTC. Other countries to accept cryptocurrencies include the U.S. El Salvador is the first country to adopt cryptocurrencies as legal tender. 

Hong Kong Holds Discussions To Introduce a Stablecoin Regulatory Framework

By
Adam Barry
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0

Hong Kong recently announced its intention to create a legal framework that regulates cryptocurrencies in the country. The country plans to have a regulatory framework by 2023/24. In addition, Hong Kong’s central banking institution and the Hong Kong Monetary Authority (HKMA) recently released questionnaires to gauge the public’s opinion on rules and regulations of stablecoins and crypto-assets. 

The Hong Kong Monetary Authority recently published a Discussion Paper on Crypto-assets and Stablecoins that observes the explosive growth of the stablecoin market since 2020. 

Stablecoin has a larger market share since its inception

The discussion paper on crypto-assets and stablecoins also noted that the stablecoin market’s capitalization had also increased since its inception. The paper also considered the concurrent regulatory recommendations made by international regulators such as the U.S.

The U.S. Financial Action Task Force (FATF), The Basel Committee on Banking Supervision (BCBS), and the Financial Stability Board all gave recommendations in creating regulations that aid in the use of cryptocurrencies across the globe. 

The Authority shared a list of questions that sought policy-related recommendations and cited a maximum of five possible regulatory outcomes. The questionnaire shared a maximum of eight questions and even options on different scenarios such as an opt-in- regime. 

The public received the option to choose if they didn’t want the Government to develop a regulatory framework. However, others considered the crypto-assets placed under a blanket ban.

Crypto trading may not be an immediate threat to the economy

The Authority predicted that the trading activity of crypto-assets may not pose an immediate threat to the stability of the world’s financial system.

However, the discussion paper warned that the rising exposure of investors to such assets as an alternative to traditional asset classes for trading only shows growing interconnectedness with the mainstream financial system.

The Authority noted that payment-related stablecoins are more likely to be incorporated into the mainstream financial system. As a result, it is planning to expand the scope of the regulations that determine the legality of financial products. 

Sun Hung Kai, leading Hong Kong’s property developers, complemented the local Government’s intentions by investing $90 million in a Swiss bank dedicated to digital asset holding. 

Jamaica Plans to Launch Central Bank Digital Currency After Successful Pilot Project

By
Adam Barry
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0

The prime minister of Jamaica, Andrew Holness, has expressed his confidence about adopting Central Bank Digital Currency (CBDC) in the country. His announcement comes after Jamaica’s central bank successfully finished a pilot for CBDC this month.

Holness believes that Jamaicans will quickly adopt CBDC with 70% of the country’s solutions using it in five years. In addition, the prime minister gave the benefits of CBDC. These include higher government accountability as the public could easily track resources and reduce bank costs.

Jamaica conducted an eight-month pilot project

Despite this, Holness admits that a CBDC could come with some difficulties initially. For instance, the government has to decide how to increase access to the internet and digital devices.

Jamaica has become a world leader in CBDC effects. Moreover, the country is one of the first to complete a pilot project. The country partnered with eCurrency Mint, an Irish cryptographer, in March 2021 to start the eight-month pilot project.

The pilot project started in May and ended on December 31. Jamaica tested various services such as distributing CBDCs to retail customers, minting and issuing to wallet providers. The country also enlisted the help of the National Commercial Bank for the project.

Jamaica plans to rollout CBDCs

So far, the central bank of Jamaica has minted $1.5 million worth of CBDC. This amount is to issue to payment service providers and institutions that take deposits. Bank of Jamaica (BoJ) also issued $6500 worth of currency to employees in its banking department. It also issued $32,000 of CBDC to the prominent National Commercial Bank.

The bank will issue these CBDCs at the inaugural minting ceremony on August 9, 2022. It will issue the CBDCs to staff on August 10.

The National Central Bank, which became the first wallet provider in the pilot, managed to onboard 57 customers. These included 53 customers and 4 small merchants. These customers carried out one-on-one cash-in/ cash-out transactions using 37 accounts during the pilot.

BoJ plans to add two wallet providers for its digital currency.  The back will follow this with a nationwide rollout of CBDC in the first quarter of 2022. Furthermore, it will evaluate interoperability by testing transactions btw people with different wallet providers.

The U.S Has Scheduled a Hearing to Discuss Environmental Impact of Cryptocurrency

By
Adam Barry
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0

The Subcommittee on Oversight and the Investigations of the Committee on Energy and Commerce has scheduled a hearing for January 20 to discuss the impact of energy consumption in the crypto mining industry.

The investigation title is Clearing Cryptocurrency: The Energy Implications of Blockchains. Committee members are interested in learning about energy consumption in blockchain and its effect on the environment. They will also hold the meeting live on YouTube.

The American Committee on Energy and Trade, which began in 1795, is linked to the U.S Congress. It debates topics on public health and international commerce. Moreover, it discusses the market interests of the leading economies in the globe.

More investors are concerned about climate change

After the U.S developed an energy committee, the committee now addresses energy consumption in organizations. In addition, more investors are aware of climate change thus want to adopt funds that hold sustainable companies under the Environmental, Social, and Governance (ESG) body instead of making fossil fuel investments.

The committee has also noted the re-entry of miners into the U.S after China cracked down on cryptocurrency and forced miners to exit the country. The U.S is now the most extensive miner in the world. Several mining firms intend to increase their capacity in the country this year.

Critics of Bitcoin are concerned about climate change 

Bitcoin has been a source of scrutiny for the last 13 years. The currency has faced many questions of being a scam. The latest accusation against Bitcoin is that mining consumes high amounts of energy which is bad for the environment.

However, people who support Bitcoin have painted out that many critics don’t acknowledge the energy consumed in transferring paper money worldwide. They might also have not considered the technological costs differences between Bitcoin and traditional banking systems.

In 2021, the U.S mining industry came up with the Mining Council, which proponents of cryptocurrency such as Elon Musk and Michael Saylor oversee. This move was a response to the increase of mining operations in the U.S after China’s crackdown on the industry.

The U.S government will not implement the same prohibitions as China since most mining companies are already publicly-traded. However, the hearing could lead to more regulations in the cryptocurrency sector.

Singapore Stops Crypto-related Businesses From Advertising to the Public

By
Adam Barry
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0

The Monetary Authority of Singapore (MAS) wants to stop crypto-related businesses from advertising to the public. For this reason, the regulator had released new guidelines to prevent retail speculation for volatile assets.

Guidelines that MAS has set

As per the guidelines, the MAS has declared that crypto-related businesses will not use physical ATMs,  physical advertisements, and online platforms in public spaces. These entities should instead advertise on their social media accounts, mobile applications, and websites. MAS has not stated what the consequences of non-compliance will be.

However, MAS has stated that it still stands behind the innovation part of blockchain technology. These guidelines affect crypto exchanges, affect payment service providers and banks.

According to Lol Siew Yee, the Assistant Managing Director at MAS, the regulator supports blockchain technology development and crypto token application in value-adding use cases. However, crypto trading is not appropriate for the public as it is perilous.

Yes adds that providers of DPT services should avoid portraying Digital Payment Tokens (DPT) trading in a way that minimizes the risk. Moreover, they should stop targeting the public through their advertising.

This incident is not the first where MAS has shown skepticism for crypto trading. The body has regularly warned against trading while still supporting innovation in the industry.

For example, MAS Managing Director, Ravi Menon, expressed doubts about cryptocurrency functioning as money. Menon also pointed that digital currency had failed in many ways in its role as a store of value.

Businesses have applied for DPT licenses 

MAS has revealed that it received about 180 applications for businesses seeking a license to offer DPT services. They have given four of these businesses in-principle approval and rejected three. Furthermore, sixty have withdrawn their applications.

The companies that have received licenses include DBS Vickers, Independent Reserve, Triple A, and Fomo Pay.

MAS’ strict regulations have made many crypto-related businesses, such as Binance, reluctant to venture into the country. As a result, it withdrew its application for a crypto permit in December 2021. The firm also plans to cease its operation in Singapore on Feb 13, 2022.

Until now, Singapore has remained a popular location for crypto firms as it offers clear regulations.

Fidelity Canada Adds Bitcoin Exposure to EFTs

By
Adam Barry
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0

The Canadian branch of the investments management firm, Fidelity Investments, will allocate a part of Bitcoin exposure to its All-in-One Balanced ETF and All-in-one Growth ETF. In addition, the firm will make the products available as exchange-traded funds (ETFs) and mutual funds.

Fidelity Investments is the first regulated institutional Bitcoin custodian in Canada. Its All-in-One Balanced ETF exposes its clients to various asset classes worldwide with 40% actively managed fixed income and systematic ETFs and 60% equity factors.

This move allows Fidelity to diversify its clients’ products and improve future risk-adjusted returns. It will also adjust risk ratings for its All-in-One Growth ETF Fund and All-in-One Growth ETF from low-to-medium to medium.

Fidelity has failed in its repeated attempts to launch an ETF in the U.S

This launch is not the first Fidelity had attempted in the U.S. however, it has been impossible due to tight regulations. Fidelity intended to launch an ETF in the U.S that would track Bitcoin’s performance through the movement of its Bitcoin Index. The firm came up with the index to monitor Bitcoin’s price.

Despite this, the U.S Securities and Exchange Commission approved Bitcoin-linked ETFs. However, these offer indirect exposure to Bitcoin as they allow people to invest in futures contracts of Bitcoin.

According to Nicole Abbott, a spokeswoman for Fidelity, more investors are trying to access Bitcoin. As a result, this has emphasized the need for products giving exposure to digital currency.

Fidelity has launched other Bitcoin-related products

This latest product demonstrates Fidelity’s support for Bitcoin. The firm has launched several products in the past to track Bitcoin performance. For example, the firm unveiled the Fidelity Advantage Bitcoin ETF in November 2021. It also released a fund for directly investing in cryptocurrency in the same month.

Fidelity manages assets of over $4 trillion; thus, its willingness to venture into the crypto space shows the continued acceptance of digital assets into traditional asset spaces. Incorporating digital assets into the conventional financial sector has contributed to the industry’s growth. For instance, Bitcoin saw a tremendous increase in value in 2021. However, experts are still waiting to see if this trend will remain since cryptocurrency is experiencing volatility in 2022.

North Securities Administration Association (NASAA) Says That Cryptocurrency is the Biggest Investment Risk

By
Adam Barry
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0

The North Securities Administrators Association (NASAA), which includes regulators from Mexico, Canada, and the U.S, has stated that the biggest threat to investors in 2022 is cryptocurrency investments.

Investors are hoping to get rich from cryptocurrency

NASAA explains its stance by saying that while crypto has made people rich, there are too many scammers in the market who take advantage of people wanting to invest. In addition, the volatility of the industry is another cause for concern.

According to Joseph Rotunda, the Vice-Chair of the Enforcement Section Committee at NASAA, tales of investors becoming millionaires has made many people invest in the crypto space. As a daily, there are many stories of people investing large amounts which they lose. NASAA expects to see this trend more in 2022.

Scams are common in specific sectors

Rotunda states this the riskiest product in the industry are securitized tokens, crypto depository accounts, crypto mining pools, and cryptocurrency trading programs. For this reason, investors should be more careful when dealing with them.

The regulatory body adds that investors who are the targets of scams are lured in by the promise of lucrative, safe, guaranteed returns in a short period. Moreover, NASAA has linked many threats to private offerings. These are not in the federal law registration requirements.

Furthermore, investors expressed concerns over fraud offerings associated with scams from social media, promissory notes, and financial schemes linked to retirement accounts. However, NASAA Admits that the lack of regulation on crypto has led to the rise of scams.

The crypto market experienced increased growth in 2021 and reached a market capitalization of $3 million. Bitcoin and other meme cryptocurrencies were responsible for this growth. Despite this growth, investors lost about $2.8 billion in the same year because of crypto scams.

NASAA is now asking investors to be cautious when buying unregulated, volatile, and popular crypto.

 The President of NASAA, Melanie Senter Lubin, investors should learn to spot a scam. One way of doing this is by filtering out investments that guarantee no risks and high returns. It is also crucial to know who or what they are investing in. Lubin adds that the best defense for an investor is information and education.

Investors Sue Kim Kardashian After Promoting a Fake Cryptocurrency Through Her Social Media Platform

By
Adam Barry
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0

Investors are now taking matters into their own hands following the rapid rise of scams in the cryptocurrency market. Such actions include the class action suit filed against Kim Kardashian for marketing a fraudulent cryptocurrency to her followers. 

The plaintiffs Ryan Huegerich filed a class-action suit against celebrities such as Paul Pierce, Floyd Mayweather Jr., and Kim Kardashian. The lawsuit filed in California District Court on January 7 states that the three stars promoted an Ethereum knockoff. 

Kardashian vigorously promoted the tokens through her Instagram 

The investors who purchased EMAX tokens between May 14, 2021, and June 27, 2021, alleged that the Defendants touted the prospectus of the organization and the investor’s ability to make outstanding returns due to the tokens. 

 After the alleged hoax, the Plaintiffs joined classaction.org, which serves as a consumer resource for class-action litigation. Other than the celebrities, Huegerich and his co-plaintiffs are suing the organization behind the production of EMAX tokens. 

However, Plaintiff plans to identify the appropriate organization involved in the discovery phase of the trial. In May 2021, the EMAX cryptocurrencies arrived at an all-time high of 0.0000008546; unfortunately, during publication, the tokens were trading at 0.0000000197, which is 97% less than the previous figure. 

 Kardashian thoroughly promoted the tokens via a post on her Instagram account, which led to a 19% conversion. In addition, a recent survey reported that 19% of the Respondents invested in the tokens due to the post. 

Other celebrities’ involvement in the tokens’ promotion

In September 2021, Charles Randell, the chairman of the Financial Conduct Authority in the U.K, slammed Kardashian for promoting the risky token. Randell claimed that the promotion may have encountered the largest audience in history. 

Mayweather promoted the tokens by wearing a shirt with the EthereumMax logo and other celebrities enjoined in the suit, while Pierce tweeted out his support. The Plaintiffs allege that the Defendants promoted the tickets to potential investors to sell their portion to get profit. 

Celebrities and influencers usually seek to promote a particular cryptocurrency. However, they are likely to be sought out if the advertised product turns out to be a hoax. 

Tokyo Bay Capital Founder Predicts a Broader Adoption of Bitcoin As It Heralds the New Era

By
Adam Barry
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0

Tokyo Bay Capital is the most recent private equity firm to invest in the high-growth potential industry despite the recent downturn in the cryptocurrency market. As a result of the constantly changing cryptocurrency market, various venture capital firms are now getting involved. 

However, despite Bitcoin’s latest volatility, many private equity financing firms believe that blockchain is bringing in a new era where Bitcoin will be accepted and widely spread as a result.    

More industries are adopting Bitcoin

In an interview with Bloomberg, Lucy Gazmarian, the Managing Partner of Token Bay, stated there is Gazmarian added that even though Bitcoin was still considered a new asset, it heralds a new future of placing any valuable crypto into the blockchain. Furthermore, being a decentralized money system, its adoption has been more successful than anticipated.  

More investors and consumers purchase crypto assets through the exchanges listed in the Nasdaq stock market. In addition, the purchase of cryptocurrencies such as Coinbase creates a positive spin for the market. 

As of now, asset managers and large Nasdaq-listed Corporations are investing in Bitcoin and placing it as an asset in the balance sheets. Although these are positive developments, Gazmarian believes that the most significant adoption of Bitcoin happened when El Salvador adopted the currency as a legal tender. 

Analysts predict an increased interest in the Metaverse

The cryptocurrency market is constantly changing, making it volatile, especially with many venture capital firms (VC) entering the industry. The loose monetary policy assisted Bitcoin’s 13-year run, and the other cryptocurrencies are falling into place. However, the shifting climate and interest rise allow investors to keep their options open. 

At the end of 2020, several experiments and protocols were put in place to adopt crypto assets properly. However, in 2021, investors mainly focused on non-fungible tokens (NFTs), which turned into Metaverse products, which is a move that blockchain assets can gain from the developments. 

Analysts predict that Metaverse products will be primarily adopted as Bitcoin is not the only asset in the digital ecosystem. The critical factor right now is to enhance the consumer experience of Blockchain based-products across the globe. 

Study Reveals That the Number of Countries That Outlaw Bitcoin Has Increased in Three Years

By
Adam Barry
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0

The rapid growth of the crypto industry has several policymakers torn between restricting its usage or welcoming its advantages. In the last three years, the number of countries that have partly or wholly banned Bitcoin has increased. 

A recent study published a list of countries with proper regulations to authorize crypto’s use and governments that have prohibited their use. The study also classified the prohibition into two categories: implicit and absolute. 

The list indicates that by November 2021, nine countries had either vetoed or prohibited every commercial venture that utilized cryptocurrency. Countries that have banned the use of cryptocurrencies include Algeria, Morocco, China, and Iraq.

Some countries have completely banned cryptocurrency

The study revealed that in 2018, only fifteen countries had implicitly prohibited cryptocurrencies and eight countries with absolute prohibition. However, the 2021 study updated the list and indicated that nine countries had absolute prohibition and 42 implicit bans. 

Countries with Absolute prohibition put rules in place to define its usage and activities determined as criminal offenses. Absolute regulations usually have an absolute veto over the use of cryptocurrencies. 

On the other hand, countries with implicit prohibitions employ implicit rules that prohibit financial organizations from using cryptocurrencies but do not stop people from owning them. 

Some countries have adopted and encouraged the acceptance of cryptocurrencies, such as El-Salvador and Central America. Other countries, such as Costa Rica, are developing strides in the same direction, and analysts state that it has the best crypto policies.  

Other countries have made rules on the taxation of cryptocurrency

The review also published a list of countries that have not prohibited the use of cryptocurrency but have created regulations along with the taxation and anti-money laundering areas. Approximate 103 countries have developed comprehensive legislation on anti-money laundering. 

Cryptocurrency supporters have criticized the move as they can potentially jeopardize the anonymity of a few Bitcoin consumers’ demands. However, in 2018, 33 countries had created this legislation implying a 300% rise in only three years. 

 AML regulations have not placed any implications on the use of cryptocurrency as its exchanges have their application on crypto-trading platforms. 

Despite the crypto ban, many countries, including El Salvador and Singapore, have been friendly to the industry.

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