India Plans To Impose A 30% Tax On Cryptocurrencies

 

CoinDesk: India Edges Toward Crypto Legalization With 30% Tax, Announces Digital Rupee Indian 

Finance Minister Nirmala Sitharaman announced a 30% tax on any income from the transfer of virtual digital assets, a first for the nation. 

Sitharaman also said that the digital rupee will most likely be issued in the 2022-2023 time frame, which is the first time the Indian government has given a timeline on the launch of a central bank digital currency (CBDC). 

"There has been a phenomenal increase in transaction in virtual digital assets. 

The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime," Sitharaman said in the Indian budget speech, which lasted for over two hours.  

Read more ....  

Update #1: India wants to launch a digital rupee and tax crypto profits (CNN)  

Update #2: Cryptocurrency slapped with 30% tax (RT)  

WNU Editor: An easy prediction. Most countries will be imposing taxes and regulations (or bans) on crypto in the coming years.

Kazakhstan's Internet Shutdown Deals A Serious Blow To Global Bitcoin Mining Operations

The extent of BitCoin mining in Kazakhstan has been revealed by the country's crisis. Pictured is a crypto mining rig. 

The Guardian/Reuters: Kazakhstan internet shutdown deals blow to global bitcoin mining operation 

Unrest in the central Asian country – the second-largest centre for mining of the cryptocurrency – led to an internet blackout. 

The global computing power of the bitcoin network has dropped sharply as the shutdown this week of Kazakhstan’s internet during a deadly uprising hit the country’s fast-growing cryptocurrency mining industry. 

Kazakhstan became last year the world’s second-largest centre for bitcoin mining after the United States, according to the Cambridge Centre for Alternative Finance, after China clamped down on crypto mining activity.  

Read more ....  

Update #1: Kazakhstan internet shutdown sheds light on a big Bitcoin mining mystery (Fortune)  

Update #2: Internet blackouts amid Kazakhstan crisis ‘knock 13.4% off Bitcoin hashrate’ (BNE Intelligence)  

WNU Editor: Forget about the impact on crypto because of the unrest in Kazakhstan. The real impact is on uranium, a resource that Kazakhstan is responsible for producing 40 percent of the world’s supply .... Uranium prices surge on Kazakhstan unrest (Al Jazeera). More here .... Uranium prices surge after deadly protests in top producer Kazakhstan (Fortune).

The U.S. Government Has A Massive, Secret Stockpile Of Bitcoin

(Pic: Shutterstock)  

CNBC: The U.S. government has a massive, secret stockpile of bitcoin — Here’s what happens to it 

* The U.S. government regularly holds auctions for its stockpile of bitcoin, ethereum, litecoin and other cryptocurrencies it seizes. 

* Auctions kicked off in a big way with the 2013 takedown of Silk Road, a dark web marketplace that traded in illegal goods. 

* “It could be 10 boats, 12 cars, and then one of the lots is X number of bitcoin being auctioned,” said Jarod Koopman, director of the Internal Revenue Service’s cybercrime unit. 

For years, the U.S. government has maintained a side hustle auctioning off bitcoin and other cryptocurrencies. Historically, Uncle Sam has done a pretty lousy job of timing the market. 

The 500 bitcoin it sold to Riot Blockchain in 2018 for around $5 million? That’s now worth north of $23 million. Or the 30,000 bitcoin that went to billionaire venture capitalist Tim Draper for $19 million in 2014? That would be more than $1.3 billion today. 

The government has obtained all that bitcoin by seizing it, alongside the usual assets one would expect from high-profile criminal sting operations. It all gets sold off in a similar fashion. 

“It could be 10 boats, 12 cars, and then one of the lots is X number of bitcoin being auctioned,” said Jarod Koopman, director of the Internal Revenue Service’s cybercrime unit.  

Read more ....  

Update: Feds Dabbling in Bitcoin Through Crime Seizure and Sales (Newsmax)  

WNU Editor: Wow! The U.S. government is seizing a lot of crypto .... 

 .... “In fiscal year 2019, we had about $700,000 worth of crypto seizures. In 2020, it was up to $137 million. And so far in 2021, we’re at $1.2 billion,” Koopman told CNBC in August. The fiscal year ended Sept. 30.

CIA Director Admits The Agency Has "A Number Of Different Projects Focused On Cryptocurrency"

Vice: The CIA Is Deep Into Cryptocurrency, Director Reveals  

CIA Director William Burns said the agency has "a number of different projects focused on cryptocurrency" on the go.  

There's a long-running conspiracy theory among a small number of cryptocurrency enthusiasts that Bitcoin's anonymous inventor, Satoshi Nakamoto, was actually the CIA or another three-lettered agency. 

That fringe theory is having a fresh day in the sun after CIA Director William Burns said on Monday that the intelligence agency has "a number of different projects focused on cryptocurrency" on the go. Burns made his comments at the tail end of a talk at the Wall Street Journal's CEO Summit. 

After discussing everything from the possible Russian invasion of Ukraine to the challenges of space, someone in the audience asked if the agency is on top of cryptocurrencies, which are currently at the center of the ransomware epidemic that U.S. officials are attempting to get a handle on and stamp out. Here's what Burns said:  

"This is something I inherited. My predecessor had started this, but had set in motion a number of different projects focused on cryptocurrency and trying to look at second- and third-order consequences as well and helping with our colleagues in other parts of the U.S. government to provide solid intelligence on what we're seeing as well."  

Read more ....  

Update #1: The CIA confirms rumors that it's working on cryptocurrency projects (Insider)  

Update #2: CIA director says agency currently has ‘a number of different projects’ focused on crypto (Coin Telegraph)  

WNU Editor: Would love to know what those "different projects" are. I suspect that they want to track where the money is going.

El Salvador's President Proposes Making Bitcoin As Legal Tender In His Country

(Left) El Salvador President Nayib Bukele speaks during a news conference in San Salvador, El Salvador, June 6, 2021 © REUTERS/Jose Cabezas (Right) A Bitcoin illustration © REUTERS/Dado Ruvic 

CNBC: El Salvador looks to become the world’s first country to adopt bitcoin as legal tender  

 * El Salvador President Nayib Bukele plans to introduce legislation that will make it the world’s first sovereign nation to adopt bitcoin as legal tender. 

 * Bukele broadcast his intentions on a video at the Bitcoin 2021 conference in Miami. 

 * Bukele said the country is partnering with digital wallet company, Strike, to build modern financial infrastructure using bitcoin technology. 

MIAMI -- El Salvador is looking to introduce legislation that will make it the world’s first sovereign nation to adopt bitcoin as legal tender, alongside the U.S. dollar. 

In a video broadcast to Bitcoin 2021, a multiday conference in Miami being billed as the biggest bitcoin event in history, President Nayib Bukele announced El Salvador’s partnership with digital wallet company, Strike, to build the country’s modern financial infrastructure using bitcoin technology.

“Next week I will send to congress a bill that will make bitcoin a legal tender,” said Bukele.  

Read more .... 

WNU Editor: I can understand why big countries with their massive resources want to establish a cryptocurrency that they can control and regulate. But for smaller countries like El Salvador with their limited resources, it may make more sense for them to use a cryptocurrency like Bitcoin and to partner up with a reliable organization to make this feasible.

More News On El Salvador's President Proposing To Make Bitcoin As Legal Tender In His Country  

El Salvador's President Proposes Using Bitcoin As Legal Tender -- NPR/AP  

President of El Salvador Says He’s Submitting Bill to Make Bitcoin Legal Tender -- Yahoo

El Salvador's president announces plan to make bitcoin legal tender -- Axios  

El Salvador will adopt bitcoin as legal tender, president says -- CNN  

Bitcoin to Become Legal Tender in El Salvador, President Says at Cryptocurrency Event -- Newsweek  

'Shot heard around the world': El Salvador aims to become first nation to adopt bitcoin as LEGAL TENDER, may set global precedent -- RT

Crypto Markets Crash In Overnight Trading

Bitcoin has plunged below $40,000 for the first time in more than three months after China declared a crackdown on transactions in cryptocurrency  

Daily Mail: The Crypto crash: Bitcoin plunges 28%, Ethereum 38% and Dogecoin 47% after China cracked down on payments and Elon Musk said Tesla would not accept Bitcoin 

* China announced Bitcoin will not be allowed in transactions due to fluctuations 

* Financial institutions also warned investors against trading in cryptocurrency 

* Elon Musk announced last week Tesla would not accept bitcoin as payment 

* He spoke out amid environmental concerns involved in mining the currency 

Bitcoin has plunged below the $40,000 mark for the first time in more than three months after China banned financial and payment institutions from providing cryptocurrency services. 

The cryptocurrency tumbled more than 50 percent from a record high of $64,895 hit on April 14, and erased all of its gains since February 8, when Tesla announced it had acquired a stake costing $1.5 billion. 

Tesla boss Elon Musk indicated that Tesla would not sell any of its Bitcoin holdings despite the market turbulence, tweeting on Wednesday morning: 'Tesla has [diamond hands]'.  

Read more ....  

Update #1: Bitcoin’s plunge intensifies, tanks 30% to $30,000 in single day amid broad cryptocurrency sell-off (CNBC)  

Update #2: Cryptocurrency exchanges report blackouts as bitcoin prices lead the digital currency free fall (Kitco)  

WNU Editor: You know it is bad when Coinbase, one of the world's largest crypto traders, crashed this morning .... Coinbase was down for over an hour amid massive cryptocurrency plunge (The Verge). 

Another crypto-trader that I am familiar is Newton, and they have suspended e-transfer deposits because their provider that handles these transactions has suspended operations. 

Yup. This is what I call a crash.

Cryptocurrencies Are Now Worth More Than All US Currency In Circulation

Cryptocurrencies are now worth more than all U.S. dollars in circulation.https://t.co/bpoOGpc3km pic.twitter.com/jexWohagHp

— Christopher Mims (@mims) May 8, 2021

The Byte: Cryptocurrency Is Now Worth More Than All US Currency in Circulation 

Experts warn it could be signs of a bubble. Cryptocurrency has hit a significant milestone: It’s now worth more than all US dollars currently in circulation. 

Cryptocurrencies hit a valuation of $2 trillion on April 29, according to The Wall Street Journal. That’s about the same valuation as all US dollars in circulation. However, it has since hit as high as $2.25 trillion — and in the process actually exceeding dollars in circulation.  

Read more ....  

WNU Editor: This stat only refers to physical cash and coins. Most US cash is stored electronically. But this is just more proof that cryptocurrencies are gaining in popularity.

Washington Imposes New Sanctions On Venezuela's Cryptocurrency

President Trump has signed an executive order banning US citizens from buying Venezuela's newly created cryptocurrency, the petro -- the world's first sovereign digital currency https://t.co/KIYJ3kZ3F6 pic.twitter.com/tGTtDPErHf

— CNN International (@cnni) March 19, 2018

Miami Herald: Washington aims at Venezuela’s cryptocurrency in new round of sanctions

BOGOTA, Colombia: The White House on Monday continued tightening financial sanctions on Venezuela, banning U.S. citizens from using the Petro, the socialist administration’s newly launched cryptocurrency.

The presidential executive order, which went into effect at 12:15 p.m. on Monday, prohibits Americans from dealing in “any digital currency, digital coin, or digital token” issued by Venezuela after January 9, 2018.

Venezuela launched the Petro last month, and President Nicolás Maduro had touted the initiative as a way to raise international financing amid Washington’s crackdown.

Read more ....

WNU Editor: This analysis is spot on .... Maduro's cryptocurrency scam will fail with or without sanctions (Dany Bahar, The Hill).

More News On Washington Imposing New Sanctions On Venezuela's Cryptocurrency

White House Bans Venezuela's Digital Currency and Imposes Further Sanctions -- New York Times
Trump Prohibits U.S. Purchases of Venezuelan Cryptocurrency -- Bloomberg
U.S. bans transactions with Venezuela's digital currency -- Reuters
Trump issues action blocking Venezuela cryptocurrencies within US -- CNBC

Report: Iran May Establish A National Cryptocurrency To Bypass U.S. Sanctions

© Morteza Nikoubazl / Reuters

Futurism: Iran May Move to Create Its Own National Cryptocurrency

A government official in Iran recently tweeted that the country will be establishing a national cryptocurrency. If so, Iran would join Venezuela in creating a means of circumventing financial sanctions.

Digitized Loophole

Another nation may be working on the formation of a national cryptocurrency. Following a meeting with Iran’s central bank’s board of directors, Iranian Information and Communications Technology Minister MJ Azari Jahromi tweeted the bank was planning to “implement the country’s first cloud-based digital currency using the capacity of the country’s elite.”

However, shortly afterwards, the country’s Central Bank released a statement saying that the bank was not pursuing the creation of a national cryptocurrency. The statement notes: “The wild fluctuations of the digital currencies along with competitive business activities underway via network marketing and pyramid scheme have made the market of these currencies highly unreliable and risky.” The bank continued by warning Iranian citizens that the volatility in the crypto market could cause investors to lose their assets.

Read more ....

Update: Iran developing national cryptocurrency to bypass US sanctions (RT)

WNU Editor: The Iranian Central Bank is saying no .... that due to “The wild fluctuations of the digital currencies along with competitive business activities underway via network marketing and pyramid scheme have made the market of these currencies highly unreliable and risky.”

The Iranian Central Bank's position is the right one .... cryptocurrencies are still in the infancy stage, price points are all over the place, and it is only a question of time before they are regulated. But this story also exposes the difficulties that Iran is facing if it wants to work in the international banking system. On the one hand they want to support groups that are on terror watch lists, but on the other hand they want to enjoy the benefits of being plugged into the international banking system. They have to realize that they cannot have both.

Update #2: Iran's eastern shift shows patience running out with the West (AFP)

Venezuela Launches The ‘Petro’ Cryptocurrency

The new Venezuelan cryptocurrency the Petro logo is seen as Minister for University Education, Science and Technology Hugbel Roa talks to the media during a news conference in Caracas, Venezuela, January 31, 2018. REUTERS/Marco Bello

Reuters: Venezuela cryptocurrency to draw investment from Turkey, Qatar-official

CARACAS (Reuters) - Venezuela’s new “petro” cryptocurrency will attract investments from Turkey, Qatar, the United States and Europe, the country’s cryptocurrency regulator said on Friday.

The government of President Nicolas Maduro, which says the petro will help skirt financial sanctions by Washington, has scheduled the first petros sale for Tuesday.

Skeptics say that concerns about Venezuela’s financial solvency will likely limit investor interest, while the U.S. Treasury Department has warned the petro may violate sanctions against the OPEC nation.

Read more ....

Update: Venezuela launches the ‘petro,’ its cryptocurrency (Washington Post)

WNU Editor: This is the golden rule when it comes to investing. Is the product sound .... cryptocurrencies are hot right now, and there are many who are interested in investing. What are the conditions behind the sale .... in this case there is a 60% discount .... that is excellent ... too good to be true. The third rule (and most important one) is to look at the people .... in this case it is the same government that wrecked the Venezuelan economy who are now pushing this product. Oh! Oh! Investor beware!

Has The NSA ANd Other National Security Agencies Infiltrated Cryptocurrencies?

(Click on Image to Enlarge)

Investopedia: Leaked Photo Suggests NSA Infiltrated Cryptocurrencies

Recent news that the National Security Administration (NSA) may have successfully launched investigations into "Tor, I2P, and VPN," with an additional pending request for projects focused on cryptocurrencies, is likely to go over poorly with the cryptocurrency community.

For cryptocurrency investors, privacy, security, and anonymity are some of the biggest draws. As decentralized, largely unregulated vehicles, cryptocurrencies like bitcoin were designed to be unencumbered by many of the traditional apparatuses that govern mainstream currencies.

Read more ....

WNU Editor: This information comes from the message board 4chan .... a source that I am not familiar with. But it would not surprise me if U.S. agencies have been focused on what is happening in cryptocurencies for years, starting with Wikileaks requesting Bitcoin donations at the beginning of the decade. And as for today .... it is not only because of concerns that criminal and terror groups may use  crptocurrencies to finance or hide their operations, it is just that there is now so much money in cyrptocurrencies .... with no control or oversight .... that it is a given that governments would get  involved.

Russian And Venezuelan Officials Are Hoping Virtual Currencies Can Help Them By-Pass U.S. Sanctions

New York Times: Russia and Venezuela’s Plan to Sidestep Sanctions: Virtual Currencies

SAN FRANCISCO — Russian and Venezuelan officials are hoping virtual currencies can help their countries make an end run around American sanctions.

Both governments, with ambitions to create state-sponsored cryptocurrencies, are looking to take advantage of the promise that Bitcoin introduced to the world financial system: a new kind of money and financial infrastructure, outside the control of any central authority, particularly the United States.

The Russian and Venezuelan plans may sound outlandish, even in the financial Wild West of Bitcoin and its online competitors. But they underscore how the rise of virtual currencies is pushing governments around the world to rethink the most basic elements of their own currencies and financial infrastructure.

What has seemed like a fringe concept is starting to gain some level of acceptance in global finance. Several of the largest central banks in the world, including the Bank of England and the People’s Bank of China, have said they are looking at using the technology introduced by Bitcoin to track and issue their own digital currencies.

Read more ....

Update: Russia And Venezuela Hope To Use Digital Currency To Defang Sanctions (PYMNTS)

WNU Editor: The experts are not optimistic that this Russian - Venezuelan venture will fly .... Over 860,000 Have Signed Up to Mine the Venezuelan Petro (Bitcoinist).

To Beat Sanctions Venezuela Has Announced That It Will Launch An Oil-Backed Cryptocurrency

BBC: Venezuela unveils virtual currency amid economic crisis

Venezuelan President Nicolás Maduro has announced the creation of a new virtual currency in a bid to ease the country's economic crisis.

He said the Petro would be backed by Venezuela's oil, gas, gold and diamond wealth.

Opposition lawmakers, however, poured scorn on the plan.

Venezuela's economy has been hit by falling oil revenue and the plummeting value of its existing currency, the bolivar.

President Maduro has also railed against US sanctions which he describes as a "blockade".

In a televised announcement on Sunday, Mr Maduro said the new crypto-currency would allow Venezuela "to advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade".

"The 21st Century has arrived!" he added to cheers from supporters.

Read more ....

WNU Editor: What's my take. The Venezuela government can now screw up two currencies instead of one .... Venezuela’s cryptocurrency plan means it could have two mismanaged currencies (Quartz).

More News On Venezuela Announcing That It Will Launch An Oil-Backed Cryptocurrency

Enter the 'petro': Venezuela to launch oil-backed cryptocurrency -- Reuters
Venezuela to Launch Cryptocurrency to Fight U.S. Sanctions -- VOA
Maduro Announces Creation of the Petro, Venezuela’s Cryptocurrency -- Latin American Herald Tribune
Venezuela to launch ‘Petro’ cryptocurrency to fight Trump’s ‘financial blockade’ -- RT
Venezuela's Petro cryptocurrency tipped as way out of economic crisis -- ZDNet
Venezuelan President Announces Its Digital Currency Is Backed by Oil Reserves -- Futurism