In a speech, the ECB president noted that Europe is experiencing an unusual recession. Meanwhile, in the United States, the IRS is requiring cryptocurrency users and investors to file tax returns. These and more news in this practical daily summary so that you are always informed with the most recent events that occur within the crypto world.
📍 The president of the European Central Bank (ECB), Christine Lagarde, said Europe is experiencing an unusual recession caused by the COVID-19 pandemic. Due to this, new policies will be implemented and long-term currency inflation is expected. Faced with this reality, several investors and fund managers they point out that Bitcoin and gold will be the main stores of value in the face of the collapse of fiat currencies.
📍 The Tax Law Office of David W. Klasing, points out that the Internal Revenue Service (IRS) of the United States is taking very seriously the payment of taxes for the possession and holding of cryptocurrencies, and digital assets in the country. In a release, the tax law office warns investors about the importance of complying with tax and reporting requirements, in order to avoid future legal problems with the regulator.
The firm's lawyers also warn that users must report their holdings in Bitcoin and other cryptocurrencies in a timely manner, as the IRS, along with the FBI and the CIA, is requesting information from the exchanges, such as Coinbase, to compare data provided by exchange services with their own data, and to detect discrepancies in information on taxpayer returns.
📍 DMG will launch a mining pool of Bitcoin (BTC), and as indicated by its release, intends to comply with all requirements of the United States Office of Foreign Assets Control (OFAC), so it will not validate transactions containing Bitcoin addresses that the government has marked as "suspicious."
The new Bitcoin mining pool, in partnership blockseer, will be the first mining pool for this cryptocurrency, based in the United States, that will not only comply with OFAC requirements, but will exceed compliance with these regulations, guaranteeing "the highest level of transparency, auditability and governance."
📍 Ray Dalio, founder and co-chairman of one of the world's largest hedge funds, Bridgewater Associates, he pointed that in the future it is more feasible to appreciate digital currencies issued by governments in the markets, than Bitcoin and other current cryptocurrencies. Dalio, supports his statements on 3 reasons: first, he highlights the fact that there is still no mass adoption of cryptocurrencies, so not everywhere you can buy things with them; second, he points out that the volatility of cryptocurrencies is a factor that plays against the adoption of these assets as an "effective store of wealth." And finally, he points out that if cryptocurrencies become "material" then governments will "outlaw" them; that is, they will prohibit them.
📍 China Construction Bank (CCB), the second largest and most important bank in the world, announced which will issue $3 billion in bonds on a network blockchainThe bonds issued by the bank will be redeemable for bitcoins and US dollars through the Fusang exchange in Hong Kong. The bank also announced that it will use blockchain technology for the issuance of the bonds, as this makes stocks and bonds more accessible to retail investors.
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