Connect with us

Cryptocurrency

Cryptocurrency Law Approved in Brazil Leave Cases of Green Mining Tax Credits and Asset Separation Regulating Bitcoin News

Avatar

Published

on

The cryptocurrency law, which has been under discussion for several months, has been approved by Brazil’s Chamber of Deputies after overturning some changes introduced by the Senate. The proposal excluded planned tax breaks for green mining operations and the issue of separating customer assets from company funds for virtual asset service providers (VASPs).

A cryptocurrency law has finally been approved in Brazil

The cryptocurrency bill named 4.041/2021 was approved by the House of Representatives in its session on November 29. The bill discussed and approved Delayed many of times Because of last month’s general elections, it will now have to be ratified by President Jair Bolsonaro, who must sanction it before it can be declared law.

Representatives voted to overturn most of the changes proposed by the Senate, allowing the law to be approved more generally, and allowing more specific rules to be drafted at a later time. Representative Expedito Neto, rapporteur of the bill, commented on the importance of this law for the country. He said:

We are voting on a historical matter. Today, the state is ahead of others when regulating activity using digital assets. We have current and future government support for this.

According to local media reports, it was a discussion of the law rushed Due to the unknown position of the government of President-elect Luiz Inácio Lula da Silva on the matter, some deputies claimed that the bill might find resistance with the new government, which is scheduled to be inaugurated on January 1.

Advertisement

Exclude separation of assets and other items

An issue left out of the final document was a proposed tax cut to apply to cryptocurrency mining industries that use green energy in their operations. The project rapporteur acknowledged the necessity of defining regulations related to taxes in another draft law in this regard.

Another challenge was the issue of customer asset segregation, which would force virtual asset service providers to separate customer funds from their own funds. This was one of the focal points of the discussion, with many MPs supporting it to allow users to avoid losing money as happened in the recent crash of leading cryptocurrency exchange FTX.

The anti-isolation side prevailed, where analysts stated that not taking advantage of clients’ funds for work may limit the portfolio that brokerage firms and other companies in the region can offer, limiting them to offering spot trading products. Currently, the regulation of these products and the type of guarantees these companies must provide to their users must be determined by the regulator on a case-by-case basis.

implications for the future

The approval of the cryptocurrency law is a stepping stone to the regulation of VASPs and other companies using crypto in the country, which will now be supervised by a regulator who will be appointed by the executive, which could be the Central Bank of Brazil or another specified institution.

Many analysts believe that this is only the first phase of this system, and they expect that the enforcement of the law, and the emergence of specific rules, will begin to be implemented in the coming years. This is the opinion of Isac Costa, Partner at Warde Advogados, who announce:

Advertisement

It may take up to two years for the law to have any practical effect, which leads me to believe its approval is merely a symbolic act.

This is because the bill was approved with very general guidelines, and they will have to be developed further in subsequent bills. However, according to Marcelo Castro, a digital law attorney, the bill creates a rule that would serve to “provide support for legal regulation in the future.”

What do you think about the recent approval of the cryptocurrency law in Brazil? Tell us in the comments section below.

Sergio Gushchenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as being late to the game, getting into the crypto world when the price spike occurred during December 2017. Having a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency boom on a social level, he offers a different perspective on the success of crypto and how it helps people. Those who do not deal with banks and the disadvantaged.

Image credits: shutterstock, pixabay, wikicommons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com It does not provide investment, tax, legal or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.



Source link

Advertisement

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Cryptocurrency

New research suggests that baby boomers make better crypto investors

Avatar

Published

on

By

As a millennial, this is hard to say, but baby boomers do the coding better. They’re taking research methods used in traditional markets and applying them to crypto projects, according to a new report from Bybit and consumer research firm Toluna.

The report says that 34% of Boomers spend “a few days” doing due diligence on a project before investing – 50% more than other generations. Even more troubling, “64% of North American investors spend less than two hours or not at all on DYOR.”

Boomers are also likely to focus their research on technical factors such as tokens, revenue, and the competitive landscape. Contrast this with their younger compatriots, who are more likely to appreciate reputation items like a charismatic founder and “website aesthetics.”

This goes to show that being a digital and hands-on native is not as much of an advantage as people think. It actually pales in comparison to some of the Warren Buffet-style skills that older investors have honed over the years.

Advertisement

Related: 5 tips for investing during a global recession

Baby boomers are probably more likely to retire and therefore have more free time than younger generations. It’s hard to say, but it seems the best way forward for young people is to be humble and learn from their elders.

Although crypto has many distinct characteristics that set it apart from other capital markets, it still has enough in common to allow for a decent crossover in analytical skills. After all, the price of digital assets is highly dependent on the balance of supply and demand in the market, just like the traditional markets.

Digging in Technologies This can prevent the kind of bad decision making that led to big losses in 2022. Several times I felt good about buying a token based on the project white paper and the solid narrative that drove it, but I found, upon further research, that there is a lot of capital involved. The investment unleashes imports so that selling pressure will influence prices for years to come.

Newborns who are used to analyzing company numbers and calculating price-to-earnings and price-earnings-to-growth ratios can apply these skills to data from CoinGecko or CoinMarketCap. Young generations need to know why “circulating supply” vs. “maximum supply” important and why size is critical.

Advertisement

In fact, cryptocurrency projects that are similar to traditional value investments have held up relatively well in the bear market. Investors are becoming more aware of the difference between protocols that issue tokens as a glorious way to raise funds and those that generate revenue and share it with their holders. So-called “real-yield” crypto projects are not unlike dividend-paying companies — something boom investors may be familiar with and possibly drive some of their investment decisions.

This is not to ignore the importance of narrative and community in modern investing and cryptocurrency in particular. For example, perennial decentralized trading platforms such as GMX, Gains, and ApeX Pro benefited from the pro-decentralization sentiment after the FTX bankruptcy.

Researching this aspect requires a good knowledge of social media, especially Twitter, which is one of the main ways to reach crypto analysts, founders, and downstreamers. Investors use these tools to find the narrative, assess where the narrative is in its life cycle, and gauge overall market sentiment.

Related: Five reasons why 2023 will be a tough year for global markets

But Millennials and Generation Z don’t really have an edge when it comes to using social media to assess trends because it’s not that new anymore. it’s a Web 2Everyone already knows how to use social media. In fact, young adults are turning their familiarity with social media into a disadvantage by overestimating it as a research tool, while baby boomers are more likely to stick to the facts.

Advertisement

Traditional investing due diligence continues to distinguish men from boys, just as it has throughout history. As long as that happens, baby boomers will outpace the younger generations because they do more research and tend to be more patient when it comes to investing, resulting in higher returns than the younger generations, who may jump into investing without fully understanding what they are getting into. If you are looking for someone who is reliable and knowledgeable about due diligence, look no further than your parents or grandparents.

Nathan Thompson He is the lead technical writer at Bybit. He spent 10 years as a freelance journalist, covering mostly Southeast Asia, before turning to cryptocurrency during the COVID-19 lockdowns. He holds a Joint Honors degree in Communication and Philosophy from Cardiff University.

This article is for general information purposes and is not intended and should not be considered legal or investment advice. The views, ideas and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Source link

Advertisement
Continue Reading

Cryptocurrency

Bitcoin investor sentiment remains steady with BTC stalling at $16,000

Avatar

Published

on

By

Bitcoin investor sentiment is deadlocked amid price faltering in the market. While the digital asset continues to hold the $16,000 level, investors retreat from the market, ensuring that there is no big move either up or down, and as a result, investor sentiment has not moved.

Bitcoin investors are still in fear

the Encryption of fear and greed It shows that Bitcoin investor sentiment has not moved much in the past month. He finished November with a score of 29 which put him right in the fright zone but since then he has been unable to break out of that trend.

The score in this indicator over the course of December ranged between 26-30 mostly, maintaining an almost straight line trend over the period. So far, the Fear and Greed Index is at a score of 28 which is up one point from last week’s close of 27.

Bitcoin Fear & Greed indicator

Fear & Greed Index trends in an almost straight line | Source: alternative.me

What this trend in the Fear and Greed Index shows is that bitcoin investors are not willing to take any risk. This is why the indicator could not move into the greed zone. On the flip side, selling sentiment has not been as strong as one would expect during a time like this. If investors were to sell more of their bitcoins, it would be obvious given that the index would slide further. Instead, it continues to maintain a roughly consistent point level, which means that the hold sentiment is now dominating the market.

Will BTC See A Recovery Soon?

Bitcoin is still finding it difficult to regain the momentum it lost over the past month. This reluctance on the part of investors to do anything with the tokens has led to the price of the digital asset following the same path as sentiment. BTC has now refused to break out from the $16,000 price level.

Advertisement

Bitcoin price chart from TradingView.com

BTC price maintains $16,000 level | Source: BTCUSD on TradingView.com

As a result, Bitcoin’s volatility dropped to all-time lows. So it is likely that the last two days of 2022 will follow the same trend. A recovery should not be expected in any way as the momentum will continue to decline as people take a break from the markets to celebrate with family.

Instead, it is important that BTC holds above $16,000 to close the year. Anything below this level would be very bearish and could lead to more declines in the market as the bears take control. But finishing above $16,000 strengthens investors’ resolve to hold on to their coins.

BTC is trading at $16,519 at the time of writing. Its price has decreased by 0.43% in the last 24 hours and 2.01% in the last 7 days.

Featured image by Finbold, chart from TradingView.com


Source link

Advertisement
Continue Reading

Cryptocurrency

Valkyrie proposes to run GBTC – Bitcoin’s grayscale magazine

Avatar

Published

on

By


Valkyrie Investments has submitted a proposal to take over the troubled GBTC Bitcoin trust.

“We understand that Grayscale has played an important role in the development and growth of the Bitcoin ecosystem with the launch of GBTC, and we respect the team and the work they put in,” said Stephen McClurg, Valkyrie co-founder and CIO. In a statement posted on the company’s website. “However, in light of recent events involving Grayscale and its family of companies, it is time for a change. Valkyrie is the best GBTC management firm to ensure that its investors are treated fairly.”

Source link

Advertisement



Continue Reading
Advertisement

Trending