UK Treasury Budget Discusses Separate Reporting of Crypto Assets in Tax Documents

Jeremy Hunt, the finance minister, delivered the spring budget 2023 on Wednesday amid chaos in the banking industry following the collapse Silicon Valley Bank’s U.K. branch. said that Hunt was responsible for the bank’s collapse and explained to BBC journalists that the U.K. shutdown had been caused by Hunt.

The British financial system was not at risk from any financial institution. The budget published by Treasury discusses the U.K. government’s decisions to’restore financial stability, support public service and lay the foundations for long-term economic growth’.

The budget discusses spending and tax, and specifically addresses “tackling promoters for tax avoidance”. The U.K. government plans to create new criminal offenses against tax evaders and will consult soon on the matter.

According to the Treasury budget, ‘The government will also consult about expediting the disqualification for directors of companies involved with tax avoidance promotion, including those who exercise control over a company’.

The Treasury document also mentions that the U.K. will amend its self-assessment tax forms in order to account for cryptocurrency assets. The Treasury notice explains that the government will make changes to self-assessment tax return forms to require amounts related to crypto assets to be identified separately.

“The tax forms for the tax year 2024-25 will reflect the changes.” Self-assessment tax returns in the United Kingdom are due by January 31 every year. The Government Gateway Service is used by taxpayers in the United Kingdom to file tax records. Cryptocurrency assets must be separately listed under the new rule.

The U.K. Treasury and finance ministers submitted the budget to follow Joe Biden’s annual budget 2024. This budget also included proposed tax policies for cryptocurrency investors.

Biden’s budget aims at eliminating the Section 1031 (also known as the like-kind exchange provision) from the Internal Revenue Code. President Biden’s administration believes closing the loophole will stop the ‘ultra-wealthy exploitation of the like-kind Exchange Provision.

Regardless Of Price, Bitcoin Is A Lifeline For Eritrean Refugees

There is a common misconception that bitcoin users who are new to the market are often western traders obsessed with bitcoin’s price. The bitcoin adoption rate has grown faster in Africa than any other region over the past few years. In countries such as Nigeria and Kenya, bitcoin is gaining popularity. However, many African refugees turn to bitcoin for cross-border assistance when other tools fail. This is what is happening with refugees fleeing Eritrea. Meron Estefanos, an Eritrean journalist who is also a human rights activist, told me that bitcoin is a valuable tool for her efforts to rescue Eritreans fleeing from Eritrea.

Every month, more than 5 000 Eritreans leave the country for Ethiopia, Sudan, or the trail to Europe via the Saharan Desert. The unluckiest are either killed along the way, or sold into slavery, in Libya. Tens of thousands are trapped in conflict and are attacked by various factions, such as the Eritrean army and Tigrayan troops.

Estefanos is also the founder and CEO of the International Commission on Eritrean Refugees. She told me that many years ago, refugees kidnapped from human traffickers started contacting her to pay their ransoms. She was inspired to create the diaspora-based nonprofit to rescue Eritrean refugees who have been victim to human traffickers. These rescue efforts are made more difficult by the surveillance system of the Eritrean government.

“As an activist, my interactions with people from all walks of the world, including researchers, sources, and those I help, are very important. Estefanos stated that sending and receiving money can cause people to lose their lives. Transactions via traditional remittance and banking services as well as the bank system are all recorded. The recipient could be charged with being a foreign merchant and sent to prison.

Estefanos saw bitcoin as a great way to help refugees. Especially those who couldn’t use government-issued identifications to send money through traditional remittance system, Estefanos considered it a brilliant solution. Her bitcoin-savvy company allows her to help families send funds to their loved ones to save them from further repression by the Eritrean government.

Bitcoin transactions can be traced. Every transaction is permanent and transparently documented. However, it’s possible to send bitcoin without any third-party crypto exchange. This adds an extra layer of privacy.

African users can rely on many platforms that don’t collect or store user information. This allows them to send funds faster using the Lightning Network than with banks. The International Commission on Eritrean Refugees now offers bitcoin education to East African refugee communities. Estefanos explained to me that the next step will be developing bitcoin mining operations for rural areas using renewable energy. She expressed her hope that her non-profit will be able increase its impact and help more refugees in dire need.

Although this refugee rescue operation is still small and serves a few dozen people, rather than thousands of people, it is not alone in spreading bitcoin education across Africa. Operations like Bitcoin Mountain (Cameroon) and Bitcoin Daa in Kenya, both of which began and increased their operations in 2022, demonstrate that grassroots initiatives will drive the rapid growth of bitcoin adoption across Africa, regardless of the global bear market.

New Nigerian Central Bank Document Discusses Regulation of Stablecoins and ICOs

The Central Bank of Nigeria (CBN), in its recently released payments system document, stated that it would be open to creating a regulatory framework for potential stablecoin implementations. According to the document, such stablecoin implementations “are likely to be successful payment mechanisms,” so it is necessary to create a regulatory framework.

The CBN’s Nigeria Payments System Vision 2020 document discusses stablecoin implementations and also the creation of a regulatory framework for initial coin offerings (ICOs). Although acknowledging the importance of ICOs, the document stated that regulation was necessary if investors are to revive interest in this type of fundraising.

ICOs are not regulated so there is no appetite for them to be adopted. The document states that ICOs are an asset class and there is potential to adopt the technology of ICOs for new fundraising methods. This could include peer-to-peer lending, crowdfunding, or capital projects in the wholesale market.

The document states that ICOs can be used to raise capital and attract foreign direct investment (FDI), once a proper regulatory framework has been in place.

Regulating Initial Coin Offerings

Although the CBN used to discourage or bar financial institutions from facilitating transactions that involved cryptocurrencies in the past, the most recent payments system document indicates that the central bank’s position towards private-issued digital currencies has changed.

Some Nigerian commentators accused CBN of eroding the power of Nigerian Securities and Exchange Commission. The document however, which envisages a cashless economy in 2025, states that the CBN will regulate the digital currency market alongside the NSEC.

The document states that the CBN would play a role in payment, but the SEC would need a regulatory framework, since tokens are a new asset type.

Bitcoin, Ethereum Technical Analysis: BTC Rallies to 1-Month High, as ETH Nears $1,300

After the recent FTX crash, Binance has been dealing with rumors, speculation and FUD (fear and uncertainty and doubt). Social media has been abuzz with speculation about Binance’s proof of reserves (POR), and criticism regarding the company’s POR efforts.

CZ was Changpeng Zhao (also known as CZ) who addressed the FUD via Twitter on December 13. CZ tweeted that FUD helped them grow, even though it was extremely annoying. You can make a FUD about anyone without mentioning their name. This spreads awareness. This helps to unify their supporters and creates a common defense alliance.

CZ insists Binance was targeted relentlessly with FUD since day one – some of it allegedly sponsored by a large exchange. “Since then there has been almost no week without FUD. CZ shared his thoughts via Twitter.

CZ’s comment follows the Reuters report, published Dec. 12. It claims that the U.S. Department of Justice has been investigating Binance. Reuters reported Monday that four sources familiar with the matter said that DOJ prosecutors were at odds over the alleged investigation. Angus Berwick, Reuters reporter, wrote that the reported split between DOJ prosecutors was ‘delaying conclusion of a long-running penal investigation’ into Binance.

The speculation and confusion surrounding Binance’s largest crypto exchange, BNB have taken a huge hit to Binance’s exchange token . In the past two weeks, the crypto exchange token BNB lost 8.5%.

The seven-day stats show BNB has lost more than 8% against USD. However, BNB is down 6.9% since Tuesday’s U.S. inflation data. This trend is opposite to what other leading cryptos such as BTC or Ethereum have done. Both coins rose in value between 5-7% and 9:01 AM on Tuesday. ET).

BNB is outperforming crypto assets BTC, Ethereum in terms losses from last year’s all-time highs. BTC is up today but the top crypto asset is still 74% below the all-time high (ATH). While Ethereum ( ETH is down 72% from last years ATH, Binance’s BNB is only down 60% since the crypto asset’s $686 per-unit high price printed on May 10, 2021.

Bitcoin, Ethereum and Stocks Rebound as Inflation Shows Signs of Turning

Bitcoin and Ethereum surged Tuesday, along with stocks, on positive news from the U.S. regarding inflation.

According to CoinGecko, the largest cryptocurrency market cap by value was $17,014, up 3.4% over 24 hours.

After the news about the collapse of FTX, a prominent digital asset exchange, the coin has fallen more than 17% over the past week.

Ethereum, the second largest cryptocurrency, rose 2.6% in 24hrs and was priced at $1,269. In the last week, the cryptocurrency that powers smart contract platform and blockchain was hit more than Bitcoin: It’s fallen nearly 20% in seven days.

Many of the crypto markets, including the largest digital assets by market capital, were in the green today.

This small recovery is due to U.S. stocks being buoyed Tuesday by new data from Labor Department’s Producer Price Index report showing a decrease in the cost for goods excluding energy and food. Experts believe this could indicate that inflation is finally under control.

Mati Greenspan, Quantum Economics CEO, stated that “inflation data seems to be turning,” which is really good for asset prices.

This year, the cryptocurrency market has largely followed the U.S. stock markets; inflation in the States is at an all-time high of 40 years. The Federal Reserve has been aggressive in raising interest rates.

Investors have resorted to holding onto greenbacks instead of taking on risk assets like Bitcoin and tech stocks. The U.S. Dollar has seen a significant increase in value over the past year, but today it is losing ground to other currencies based on new Labor Department data.