House Democrats Planning to Hike Tax on Crypto Assets in Infrastructure Bill

House Democrats Planning to Hike Tax on Crypto Assets in Infrastructure Bill

The trillion-dollar infrastructure bill has moved to the House to pass, and after fighting and losing in the Senate, another big fight is at the crypto industry’s door.

Citing sources with the knowledge of the plans, Politico reported that Richard Neal, chairman of the House Ways and Means Committee, is the one preparing to add these measures.

On Monday, House Democrats released a package of proposed tax increases to help pay for the White House’s $3.5 trillion spending package. Part of the $2 trillion tax hike is a proposal to add currencies, commodities, and crypto assets to the wash-sale rule, which is estimated to raise about $16 billion over a decade. The Ways and Means explainer document notes,

“This section includes commodities, currencies, and digital assets in the wash sale rule, an antiabuse rule previously applicable to stock and other securities. The wash sale rule in section 1091 prevents taxpayers from claiming tax losses while retaining an interest in the loss asset. The amendments made by this section apply to taxable years beginning after December 31, 2021.”

Under US rules, a taxpayer can’t deduct the losses from wash sales which is defined as when a security is sold and within 30 days, “substantially identical” security is then purchased. Cryptocurrencies aren’t currently subject to these rules.

The document further talks about applying constructive sales rules to digital assets, “anti-abuse rules previously applicable to other financial assets.” This rule treats “the adoption of certain offsetting positions to previously owned positions as sales of the previously owned position,” preventing taxpayers from “locking in investment gains without realizing taxable gain.”

House Democrats are also targeting wealthy Americans by proposing raising the tax rate on capital gains and qualified dividends to 28.8%, applied to stock and other asset sales that occur after Sept. 13, 2021.

According to this, starting next year, taxpayers would incur a top federal rate if their taxable income exceeds $400,000 (single), $425,000 (head of household), and $450,000 (married joint), in line with the Biden administration pledging to not raise taxes for households making less than $400,000.

The bill is expected to be revealed before the end of the month.

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Author: AnTy

AMC Planning ‘Serious Involvement’ in ‘Burgeoning’ Crypto, To Accept Bitcoin by End of 2021

AMC Planning ‘Serious Involvement’ in ‘Burgeoning’ Crypto, To Accept Bitcoin by End of 2021

“Many of our new shareholders also are quite enthusiastic about cryptocurrency,” said the CEO of AMC, with around $1.8 billion in cash and around $2 billion in liquidity.

AMC Entertainment (AMC) is planning to accept Bitcoin as a payment for movie tickets and concessions by the end of the year, said the company’s CEO on an earnings call for the period ended June 30, 2021.

The company aims to become the first theater chain to accept cryptocurrency as a payment option with this move.

Adam Aron, Chairman, and Chief Executive Officer shared the plans on Monday while talking about it being high time for AMC to start playing on offense again. And crypto is part of this strategy, as he noted, “Many of our new shareholders also are quite enthusiastic about cryptocurrency.”

The first step towards this is having information technology systems in place to accept BTC online at all of its US theaters.

“I’ve had to learn more in the past six months about blockchain and cryptocurrency than I learned about it in the entire decade before that,” and this increased knowledge has given him the “confidence” to go with this move, said Aron.

But this is not all; while the company has no firm plans in place yet, they are all set to explore the crypto space.

“We also are in the preliminary stage of now exploring how else AMC can participate in this new burgeoning cryptocurrency universe, and we’re quite intrigued by potentially lucrative business opportunity for AMC if we intelligently pursue further serious involvement with cryptocurrency.”

The popular meme stock company is also ready to take part in the gaming opportunity, with the President of Epic Games being a member of the AMC Board of Directors.

“I cannot even count the number of times already that our shareholders have asked us to reach out and partner with GameStop. We’re on the case. More to come.”

In its Q2, 2021 results, AMC actually beat the expectations with loss narrowing at 71 cents than the 91 cents expected and reporting revenue of $444.7 million higher than $382.1 million expected. But the CEO said their journey through the pandemic isn’t finished, and they are “not yet out of the woods.”

AMC said 22 million guests visited its theaters during the second quarter, an increase from 7 million in Q1 but far off of the all-time quarterly record of 97 million tickets sold by AMC in Q2 2019.

“We are not taking a victory lap … We are still losing money; we are still burning cash,” Aron said during the earnings call.

“But we can see a light at the end of the tunnel.”

As of June 30, AMC had around $1.8 billion in cash and around $2 billion in liquidity available. The company avoided bankruptcy when its theaters were shut last year because it was able to raise cash, in part due to a “meme stock” frenzy.

The retail meme mania has sent the company’s shares surging, which are currently trading at $33.80, halved since the $72.62 peak in early June but still up from about $2 at the beginning of this year.

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Author: AnTy

Green Bitcoin Miner Planning to Raise $200 Million Ahead of Nasdaq Direct Listing This Year

Green Bitcoin Miner Planning to Raise $200 Million Ahead of Nasdaq Direct Listing This Year

Iris Energy Pty has also signed new mining equipment-related contracts that would push its mining capacity from the current 0.7 exahash, which is on track to rise to 4.5 exahash by 2022-end, to 15.2 exahashes per second in a few years.

Bitcoin miner Iris Energy Pty, which uses renewable energy to mine the cryptocurrency, is planning to raise about $200 million in a new fundraising round before seeking a direct listing on the Nasdaq.

A few months back in March, Iris Energy raised A$20 million ($15 million), citing strong investor demand, which was enlarged again to raise $110 million ultimately.

The Sydney-based company is currently working with an adviser on the round and has met with prospective investors, reported Bloomberg citing people familiar with the matter. The proceeds will help them with the listing as soon as this year.

Back in May, co-founder and executive director Daniel Roberts said that the company was exploring Special Purpose Acquisition Companies (SPAC). But now, it is opting for a private placement as a SPAC deal would dilute the stakes of existing investors. In a direct listing, no new shares are offered.

The company has also signed new contracts regarding mining equipment that will allow it to reach a capacity of 15.2 exahash operations per second within some years. It’s on track to reach 4.5 exahash by the end of 2022, up from the current capacity of 0.7 exahash.

Iris Energy’s flagship project is a 50-megawatt data center in British Columbia, Canada, where most electricity comes from hydroelectric power.

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Author: AnTy

Venture Capital Giant Is Planning to Raise $1 Billion to Invest In Cryptocurrencies and Startups

Venture Capital Giant Is Planning to Raise $1 Billion to Invest In Cryptocurrencies and Startups

Andreessen Horowitz, a venture capital giant, is looking to raise as much as $1 billion in cryptocurrencies and crypto startups.

This new fund aims to raise between $800 million and $1 billion from investors, reported the Financial Times, citing people familiar with the matter.

With this latest move, one of Silicon Valley’s highest-profile venture capital firms is introducing one of the largest pools of capital to crypto, potentially twice the size of its predecessor — its third crypto fund, which raised $515 million a year ago.

After the success of Coinbase, currently valued at about $60 billion down from the initial brief valuation of $100 billion, institutional investors such as endowments and foundations are now renewing their bet on the technology.

Founded in 2009 by Marc Andreessen and Ben Horowitz, the venture capital firm, which was also an early investor in Coinbase along with Ripple through traditional funds, was managing $35.8 billion in regulatory assets at the end of last year.

Its latest fundraising would rival the capital raised by Paradigm, a crypto investment firm founded by Coinbase co-founder Fred Ehsram and former Sequoia Capital partner Matt Huang in 2018.

Paradigm has raised $1 billion from investors, including endowments of Harvard and Yale universities.

Another one, Pantera Capital, aims to raise $600 million for a new blockchain fund that will combine investments in private companies and tradable tokens. Its last venture fund raised $175 million in 2018, which surged 3.8x in January this year.

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Author: AnTy

Facebook-Led Stablecoin Project, Diem, Planning A ‘Small-Scale Pilot’ in 2021

Facebook-Led Stablecoin Project, Diem, Planning A ‘Small-Scale Pilot’ in 2021

The pilot will be available to individual customers and merchants. Formerly known as Libra, the project has faced constant regulatory pressure in the past.

Facebook-led digital currency project, Diem is set to launch a small-scale pilot project of its first stablecoin later this year, a source familiar with the matter told CNBC. According to the report, Diem Association, a Switzerland-based firm building the project, plans to launch a dollar-backed stablecoin largely focused on payments between individual clients.

The pilot stablecoin will also be used across merchant shops allowing users to buy goods and services, too, the anonymous source further stated.

Diem is currently in talks with the Swiss regulators to obtain a payment license, CNBC’s report further reads. This follows a difficult period dealing with regulators in the U.S. and constant backlash from global financial authorities who have stated the dangers of the stablecoin on the global monetary system and money laundering.

Launched as Libra in 2019 and rebranded to Diem last December, the project has backtracked its steps in creating a Libra stablecoin backed by several fiat currencies such as the dollar and euro multiple “stablecoins” backed by a range of assets. Speaking to CNBC, Ran Goldi, CEO of First Digital Assets Group, stated the vision and goals of Diem have “changed dramatically over the past year and a half from a naive blockchain to a very sophisticated blockchain” to be in line with financial regulators across the globe.

Ironically, the launch of the Facebook-led project was the match that set a fire to central banks looking into CBDCs in a push to challenge Diem.

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Author: Lujan Odera

Private Messaging App Telegram Ready to Go Public In Next Two Years, Valuation Between $30-$50B

Instant messaging app Telegram is reportedly planning to go public.

According to Vedomosti, a Russian business newspaper that cited multiple sources familiar with the matter, Telegram plans to launch an Initial Public Offering (IPO) within the next two years with a possible valuation in the region of $30 to 50 billion.

The details of the intended IPO are yet to be made public or finalized, according to Vedomosti. Amongst the possible scenarios for Telegram’s listing are market dynamics, a traditional IPO model, direct listing, or a merger with a special purpose acquisition company (SPAC).

While details of the IPO are yet to be made known, Telegram is reportedly conducting pre-IPO analysis and is looking to decide on the most appropriate region for going public.

Telegram’s Historic User Growth

Telegram has had an exponential year after an additional 25 million new users were onboarded on its platform within three days. According to a report, these new users were spread out across all parts of the world, with 38% from Asia, the largest of the entire figure. Pavel Durov, CEO of Telegram, stated,

“We’ve had surges of downloads before, throughout our 7-year history of protecting user privacy. But this time is different.”

Durov did not fail to acknowledge that the influx of new users was due to the changing of WhatsApp’s privacy policy, its rival app.

At the time, WhatsApp threatened users that they were now required to share their data with Facebook or stop using the service. This prompted concerns from users, such that they opted for Telegram instead.

Why Telegram May Snub US For China

Although Vedomosti’s sources said a preferable choice for Telegram’s shareholders would be a direct listing on either Nasdaq or Hong Kong Stock Exchange, the latter is more likely the destination due to the platform’s Asia-centric user base.

At the moment, 40% of Telegram’s users are based in Asia. Due to a projection that the number would reach 50% in two years, and with the total number of users expected to have grown to 1 billion, Hong Kong may be the messaging app’s destination.

Another reason why the US may not be a preferred place for the company to be listed is its long-running confrontation with the country’s Securities and Exchange Commission (SEC). The company had to abandon its Telegram Open Network (TON), an ambitious project that raised $1.7 billion from investors in a private Initial Coin Offering (ICO), which the SEC labeled illegal and subsequently folded up.

With TON, Telegram aimed to integrate a decentralized economy, thereby enabling its users to move money around outside of governments’ purview. But the project was dead on arrival as the SEC forced Telegram to shut it down.

The post Private Messaging App Telegram Ready to Go Public In Next Two Years, Valuation Between -B first appeared on BitcoinExchangeGuide.

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Author: Jimmy Aki

NBA’s Sacramento Kings to Pay Players and Staff Salary in Bitcoin

The Sacramento Kings is planning to offer a Bitcoin payment option to all of its players and staff. This move will make it the first major sports franchise to do so.

Just late last year, Russell Okung became the first NFL player to receive half of his salary into Bitcoin.

Last month, as we reported, American professional baseball team Oakland A’s President Dave Kaval announced that they are also adopting Bitcoin. Instead of paying its staff and players, they will accept BTC as payment on fans’ demand.

“We are believers in it,” said Kaval at the time, adding that they will be HODLing any BTC they receive.

Now, the basketball team has entered the arena as shared by team chairman Vivek Ranadivé on Clubhouse on Monday.

“I’m going to announce in the next few days that I’m going to offer everyone in the Kings organization, they can get paid as much of their salary in bitcoin as they want, including the players,” reads a tweet about the same.

This, however, isn’t Kings’ first foray into crypto, as they have been involved with cryptocurrencies since 2014 when they started selling their tickets for BTC through its partnership with BitPay. In 2019, they also launched reward tokens for their fans.

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Author: AnTy

Pakistani Province Planning to Build Two Hydroelectric-Powered Crypto Mining Farms

Pakistani Province Planning to Build Two Hydroelectric-Powered Crypto Mining Farms

It’s just the government not participating right now; people are all over trading and mining cryptocurrencies.

In order to capitalize on the cryptocurrency market, the Pakistani province of Khyber Pakhtunkhwa is planning to build two hydroelectric-powered pilot “mining farms.”

The cost of the mining project hasn’t been determined yet, reported Reuters, citing a minister overseeing a new government crypto policy.

The country has also formed a federal committee to prepare a new crypto policy.

“People have already been approaching us for investment, and we want them to come to Khyber Pakhtunkhwa, earn some money and have the province earn from that as well,” said Zia Ullah Bangash, an advisor to the local government on science and technology.

Federal authorities, however, have to first legalize the sector before it could be formally opened to investors.

Back in 2018, the State Bank of Pakistan said cryptos weren’t legal tender and that they had not authorized anyone to deal in them.

“It’s really just our government that is not participating right now; people all over Pakistan are already working on this, either mining or trading in cryptocurrencies, and they are earning an income from it,” Bangash said.

The idea is to bring this to the government level so that things can be better controlled and online fraud and scams can be prevented.

Pakistan is on the grey list of the global Financial Action Task Force, and cryptocurrency is one of the areas the global money-laundering watchdog has asked them to better regulate.

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Author: AnTy

Paid Network Planning to Redeploy Smart Contract After the Exploit

Paid Network Planning to Redeploy Smart Contract After the Exploit

The token minting feature exploit led the price of the PAID token to crash 97% to $0.1. The team asks not to buy the dip and to pull out the liquidity.

DeFi protocol, The Paid Network that describes itself as a “borderless legal toolkit,” has been exploited. The hackers exploited the contract’s token minting feature to create some 60 million PAID tokens.

This resulted in the price of the PAID token losing nearly 97% of its value to crash to $0.1. Just a fortnight ago, the token made a new all-time high at $5.85, as per CoinGecko.

“The team is planning to deploy the new minting contract then redeploy it to everyone”, said Kyle Chasse, founder of the protocol. In the early hours of Saturday, he tweeted,

“There was some exploit or attack on PAID token contract, Certik is actively helping us identify the issue. Please DO NOT buy or sell PAID tokens right now. This issue will be resolved, be calm, don’t worry. Feeling gutted, but handling it.”

It was during the late hours of Friday when the reports of the hack came, and the team announced that they are investigating the issue.

“We pulled liquidity, are creating a new smart contract, & will be restoring everyone’s original balances to before the hack. Those with staked, Lpool & UniFarm PAID will have their tokens be sent to them manually.”

The team has been asking the community not to buy the dips as it can expose the buyer to negative impacts. Not to mention, the team is planning to reissue the Paid Network smart contract. Users and buyers are urged to wait for the next update. The team said,

“Rest assured Kyle and the whole team is actively investigating, we removed all our liquidity, will take a snapshot right before the first dump happened, and will be restoring balances to that amount.”

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Author: AnTy

Cboe Feeling the Bitcoin FOMO; Will Launch a Crypto Index Next Year With CoinRoutes

Now, CBOE wants in on crypto, too, again.

Cboe Global Markets is planning to launch a suite of tools including crypto indexes, real-time ticks, and historical data by the end of the first quarter of next year, in partnership with CoinRoutes. Catherine Clay, Senior Vice President and Head of Information Solutions at Cboe Global Markets, said,

“Together, we can help bring transparency to the asset class and its market models by using RealPrice data to potentially create indices and tools that help clients better understand cryptocurrencies and encourage their participation in a nascent market.”

As Bitcoin continues to rally, up 175% YTD just blew right through the all-time high, hitting $20,800, along with the rest of the crypto market, institutions have been rushing in to jump on this bandwagon.

Everyone is long on Bitcoin, and earlier this month, S&P 500 revealed its crypto index plans through Lukka in early 2021.

Now, Cboe wants to provide data for the explosive cryptocurrency market. Interestingly, Cboe launched Bitcoin futures, along with CME, at the peak of the last bull market, in December 2017. But only to close its bitcoin futures in March 2019.

Now, Cboe wants back in, although apparently their corporate interest in digital currencies never declined.

Cboe has signed an exclusive licensing agreement with CoinRoutes, a New York-based trading software firm.

One of the largest stock exchange operators in the US, Cboe aims to reach a customer base of at least thousands initially with its real-time index data and then grow it to a global level. Michael Holstein, Chief Revenue Officer, CoinRoutes said,

“We believe existing arbitrarily weighted indices that do not take into account the different fees or actual liquidity available on crypto exchange platforms do not represent the true cost of buying or selling a given cryptocurrency.”

The company’s algorithmic products are built for both spot and derivatives products.

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Author: AnTy