by Leroy Prince | Aug 22, 2023 | Cryptocurrencies
Key Points
- Authorities in the South Korean City of Cheongju are set to seize crypto from uncooperative taxpayers.
- These authorities seek to seize crypto from thousands who have over $750 in crypto taxes to the government.
The South Korean City of Cheongju is set to seize crypto holdings from thousands of taxpayers who owe the government more than $750 in crypto taxes.
South Korean City of Cheongju doubles down on tax evasion among crypto enthusiasts
The City serves as the capital of the North Chungcheong province. Its authorities have indicated they intend to enforce a compliance norm among crypto users.
As such, it has requested seven South Korean crypto exchanges to inquire into the holdings of thousands of tax evaders, as a local news source reported on August 22. These authorities seek assistance from exchanges like Bithumb and Upbit to inquire into over 8K crypto users who owe over $750 each.
Following the inquiry, the administrators seek to repossess the crypto assets as they feel it has been a growing culture that citizens of the country are using crypto to evade tax payments. This process is set to enforce a culture of compliance among all citizens of the nations and block loopholes in tax losses.
It is not the first time South Korea has conducted tax-related crypto confiscations. In 2022 and 2021, the national government collected over $180 million worth of crypto assets from tax evaders.
Keep watching Fintech Express for more updates on crypto and other fintech-related developments.
by Samuel Mbaki | Aug 14, 2023 | Cryptocurrencies
Key points
- PayPal is set to launch a cryptocurrencies hub for select users
- The adoption of crypto solutions is part of the platform’s plan to reinvent itself as a crypto-inclusive platform
PayPal recently launched a stablecoin in a push to rebrand as a crypto-inclusive payments platform. On Monday, it also announced it was also rolling out a cryptocurrency hub for select users.
Paypal’s crypto endeavors continue
Paypal’s new cryptocurrencies hub will allow for the sale and purchase of crypto assets, among other crypto-friendly functionalities. The payment company’s recent terms and conditions update detail the prerequisites for crypto users interested in trying out the new platform.
The Cryptocurrencies Hub service will also facilitate the payment of purchases via PayPal using money stored after the sale of crypto assets. It will also be crucial in the conversion between PYUSD and other crypto assets.
PayPal further released a statement explaining that any balances in the Cryptocurrencies Hub represent a user’s ownership of the amount of each crypto asset displayed. As such, users will not hold the digital crypto assets in their crypto asset balance.
Since this feature is still in the pilot phase, not all PayPal users will get to explore it. The eligible users of the Cryptocurrencies HIb must have “a personal PayPal account and a Balance Account in good standing.” Additionally, PayPal will verify the required identifying information like names, taxpayer identification numbers, and physical addresses.
“You can only use your Cryptocurrencies Hub as part of your Balance Account by accessing it through your personal PayPal account. If you are a Hawaii resident, we will not allow you to establish a Cryptocurrencies Hub now.”
Upon launch, the Cryptocurrencies Hub will be connected with PayPal users can access it using existing credentials. These developments come days after the company launched a highly divisive crypto stablecoin pegged on the US Dollar, the PYUSD.
Some feel that it may propel the mainstream adoption of crypto assets, while others believe it may bring trouble in decentralization as the company has its smart contracts infused with functions like “freeze funds” and “wipefrozenfunds” which goes against the spirit of decentralization.
Keep watching Fintech Express for more updates on this and other fintech-related developments.
by Samuel Mbaki | Aug 7, 2023 | Cryptocurrencies
Key Points
- Coingecko has introduced a tracking list of the top alleged coins by the US SEC to be securities.
- The list spans 48 coins and is expected to grow as the authorities keep cracking down on the crypto space.
The new index by Coingecko tracks the biggest crypto assets that the US SEC sees as securities despite there not being a binding crypto regulatory framework in the country. Binance’s CoinMarketCap is also tracking a similar list.
CMC and Coingecko shed light on More coins as SEC sharpens its radar
Coingecko has Joined CoinMarketCap to introduce an index that tracks the crypto assets the US SEC has labeled ‘securities.’ Starting on Monday, Coingecko will be showing the performance of the coins and adding to the list in case the US SEC decides to declare more assets as securities.
The US SEC has been on a hunt since 2020, intensifying its efforts and asking for bigger budgets from the US government to ‘flush’ out bad actors from the US markets. In the process, it labeled assets like XRP, BNB, Cardano, and Solana as securities.
As such, it expects the issuers of these coins to follow securities laws when trading them in the US. It also expects investors and exchanges that trade these assets to be vigilant and do as the law requires. As a result, these coins have been experiencing shaky markets every once the regulator uses them in a major crypto lawsuit.
Due to the price fluctuation, on-chain data platforms CoinMarketCap and Coingecko have decided to add the coins in separate lists from the others so investors can view and use the data for better investment strategies.
Keep watching Fintech Express for updates on this and other fintech-related developments.
by Samuel Mbaki | Aug 2, 2023 | Cryptocurrencies
Key Points
- MicroStrategy has added another 14.5M worth of Bitcoin after adding 12,333 in June.
- The company says it plans to raise upwards of 750 million dollars to invest in the currency, among other corporate duties.
MicroStrategy’s Bitcoin buying spree continues as the company bags 14.5 million dollars worth of Bitcoin amid a bigger plan to invest over $ 750 million more in the coin. The increased interest from MicroStrategy comes as its chair Michael Saylor thinks the next wave of institutional investments is imminent.
Saylor keeps filling MicroStrategy’s Bitcoin bags
Saylor’s MicroStrategy now holds 152,800 bitcoins worth over $4.53 billion after adding 467 more coins at $14.5 million. The company has also released a filing indicating that it plans to raise as much as $750 million via share sales to invest in the coin, among other general corporate purposes.
The $750 million would be allocated to Bitcoin investment and other roles like working capital deployment and debt repurchase. Saylor has been vocal about investments in Bitcoin for multiple years now. He started buying Bitcoin in 2020, citing the need for the company to hold cash due to an eroding threat of inflation.
He was bashed for the company losing millions in unrealized losses over the bear market from November 2021 through 2023. However, MicroStrategy continued “filling its bags” till Q2 2023, when it added over 12.3K bitcoins. It has now added 467 more coins and plans to keep buying as it is raising money to add to its capital.
Saylor is a strong believer in Bitcoin, and now that BlackRock and other TradFi institutions have started flocking into Bitcoin ETFs, he thinks that it’s “the best thing that ever happened to Bitcoin,” meaning he would keep buying the coin. Keep watching Fintech Express for more updates on this and other fintech-related developments.
by Melissa Adams | Aug 1, 2023 | Cryptocurrencies
Key Points
- Tron network founder Justin Sun has introduced a stUSDT liquidity pool on Curve Finance to save the DeFi protocol from impending financial doom.
- Curve Finance has been losing the value of its tokens due to a Sunday exploit that puts the founder’s $168M loan on the verge of liquidation which has created a bearish sentiment over CRV tokens.
Justin Sun has introduced a stUSDT liquidity pool on Curve Finance to help prop back the DeFi protocol’s balances to normal after a Sunday exploit pushed the prices of CRV tokens down.
Justin Sun starts a liquidity pool to save Curve Finance
A Tuesday tweet from Justin Sun indicates that the Tron blockchain network founder was in to help Curve Finance to sail back to normalcy. Curve suffered a major hack on Sunday that could doom the DeFi sector if Curve collapses.
Blockchain data confirms that Sun bought about 5 million CRV tokens from a “Curve.fi Founder” wallet at an average of $0.4 in an OTC transaction. The whole amounts to about $2.3 million. This development comes as he tries to lend his hand to save Egarov Curve.Finance founder from an almost imminent liquidation of a massive $168M loan that could be gone at a $0.37 price level.
At the time of writing, the price of CRV tokens was $0.58, which is still far from the liquidation price but unsafe. Following Justin Sun’s OTC purchase, other DeFi players stepped in to pick up the discounted CRV tokens. Machi Big Brother bought 3.57 million tokens DeFi protocol, and DWF Labs bought 2.5M Curve tokens each.
Egorov managed to sell $15.8 million worth of CRV tokens via OTC. The tweet from Justin Sun read:
“Excited to assist Curve!,” “As steadfast partners, we remain committed to providing support whenever needed. Our joint efforts will introduce an stusdt pool on Curve, amplifying user benefits. Together, we aim to empower the community and forge decentralized finance.”
Keep watching Fintech Express for more updates on this and other fintech-related developments.
by Chelsea Florence | Jul 31, 2023 | Cryptocurrencies
Key Points
- US SEC reportedly asked Coinbase to delist all cryptocurrencies it trades, alleging all cryptos apart from BTC are securities.
- The regulator took the incentive shortly before filing a lawsuit against the exchange, alleging it was acting as an unregulated securities broker.
- The US SEC now believes that over 70 cryptos are securities.
The US SEC now believes that all cryptos apart from BTC are securities, which led it to ask Coinbase to delist them before filing a lawsuit against the exchange in June 2023, per a statement by CEO Brian Armstrong.
US SEC believes all cryptos apart from BTC are securities- Coinbase CEO
The US SEC has already classified over 70 crypto assets as securities but has yet to prove its claims. However, it doesn’t go without mentioning that it has, on several occasions, had its officials say that almost all cryptos apart from Bitcoin are securities.
According to a report first featured by Financial Times, the regulator had asked Coinbase to halt trading all crypto assets apart from Bitcoin, claiming they were securities. The report claims that the exchange’s chief executive officer Brian Armstrong said the SEC had made the recommendations before filing the lawsuit last month.
According to Armstrong, delisting all cryptos was not a move they could have afforded, and they had to accept to head to the courts and see the ruling. He explained that bending to the will of the US SEC would have “meant the end of the crypto industry in the US,” making it “an easy choice” for them to head to the court.
The US SEC has been going after the crypto space more vehemently in recent years, scoring over $100B in settlements and court fine wins. It recently asked the US government for an even bigger budget as it plans on weeding out ‘bad actors’ from the industry.
However, the move has yet to be widely received as many think the regulation could have its side issues with the crypto industry. Lawmakers House Majority Whip Tom Emmer and Rep. Warren Davidson have filed a motion to restructure the SEC. At the same time, the US Chamber of Commerce has called out the regulator on the grounds of smothering the crypto industry in the Coinbase case.
While these steps have been taken against a hawkish and readily recharged SEC, no major court battles have been decided on the legislative abilities of the SEC over the crypto industry apart from a partial loss to Ripple that the regulator is now planning on appealing.
Keep watching Fintech Express for more updates on this and other fintech-related developments.
