Elon Musk, Bill Ackman, Peter Schiff Caution US Fed, and FDIC Ahead of FOMC Rate Hike
The ongoing banking crisis has induced a lot of uncertainty in the financial markets around the world. The signs of a market recession continue to pop from the developed markets, including the United States. With the fear of more bank runs, confidence in Bitcoin, among other risky assets, has significantly spiked in the recent past.
Moreover, Bitcoin price has printed its largest weekly gain amidst the banking crisis. Additionally, United States federal officials are exploring ways to allow the FDIC to temporarily insure deposits beyond the current $250,000 cap on most accounts without having to get approval from Congress.
With the risk of hyperinflation similar to Venezuela, Sri Lanka, and Argentina, among other nations, the value of Bitcoin is expected to skyrocket in the coming years. Furthermore, mainstream adoption is expected to kickstart the next parabolic crypto bull run.
Uncertainty from the Elite
The Fed monetary policy statement on interest rates is expected to be released tomorrow, as economists argue whether the Fed should pause or drop the rate to bolster the financial crisis. Accor to billionaire Bill Ackman, the Fed should pause the interest rate hikes or decline during tomorrow’s FOMC statement.
“I continue to believe that the best course of action is a temporary FDIC deposit guarantee until an updated insurance regime is introduced, for if bank number five is closed, the market’s attention will move to banks six, seven, and eight,” Ackman noted.
His argument was, however, countered by Peter Schiff, who noted a pause would be catastrophic for the dollar.
As such, Elon Musk noted that the Fed should drop the interest rate by at least 50 bps to save the economy.
Breaking! India Joins Forces With The US And IMF To Frame Country’s First-Ever Crypto Bill
India has seen a surge in cryptocurrency trading and investment in recent years. While the potential of cryptocurrency and blockchain technology is widely recognized, the Indian government has expressed concerns about the risks associated with cryptocurrencies, including money laundering, fraud, and terrorism financing. As a result, the Indian government is now exploring ways to regulate the cryptocurrency industry in the country.
According to a recent report from the Indian Government, at the current G20 Presidency, India has asked the IMF and Financial Stability Board (FSB) to collaborate on a technical document concerning crypto assets. This paper will aid in developing a unified and thorough approach to regulating these assets.
India Finally Pushes Toward Crypto Bill
During the two-day talks of the Group of 20 (G20), India’s efforts to regulate cryptocurrencies received backing from the International Monetary Fund and the United States. The Indian government has called for a worldwide collaborative approach to addressing the challenges posed by digital currencies like bitcoin. To facilitate this, India’s finance ministry organized a seminar for G20 members to discuss the development of a shared regulatory framework.
According to a statement from the Indian finance ministry, the collaborative paper from international organizations is anticipated to be presented at the 4th Finance Ministers and Central Bank Governors Meeting in October 2023.
The report states, “To complement the ongoing dialogue on the need for a policy framework, the Indian Presidency has proposed a joint technical paper by the International Monetary Fund (IMF) and the FSB, which would synthesize the macroeconomic and regulatory perspectives of crypto-assets. This would help in the formulation of a coordinated and comprehensive policy approach to crypto assets.”
IMF And FSB To Integrate With The Indian Crypto Regulatory Framework
According to the statement, the IMF’s discussion paper, policy seminar, and joint paper with the FSB will collectively address macro-financial and regulatory aspects of crypto assets and help establish a worldwide agreement on a unified and thorough policy approach to these assets.
Although the crypto world is rapidly changing, there is currently no comprehensive global policy framework in place for digital assets. As crypto assets become increasingly intertwined with traditional finance and as their volatility and complexity persist, policymakers are advocating for stricter regulation.
In an interview with Reuters during the G20 meeting in Bengaluru, U.S. Treasury Secretary Janet Yellen emphasized the importance of establishing a robust regulatory framework for crypto assets. However, she also stated that the United States had not proposed any prohibitions on these assets.
Yellen said, “We haven’t suggested outright banning of crypto activities, but it is critical to put in place a strong regulatory framework. We’re working with other governments.”
During the event, Tommaso Mancini-Griffoli, a speaker from the IMF, presented a discussion paper that discussed the potential effects of crypto adoption on a country’s economy, internal and external stability, and financial system structure.
Mancini-Griffoli acknowledged that while crypto assets have the potential to offer benefits such as faster cross-border payments, more integrated financial markets, and increased financial inclusion, these advantages have yet to be fully realized.
He also emphasized that private sector entities cannot guarantee interoperability, safety, and efficiency, and therefore, the critical digital infrastructure and platforms for ledgers should be considered a public good.
Furthermore, Mancini-Griffoli identified information gaps in the global crypto asset landscape and highlighted the need for a greater understanding of the interconnections, opportunities, and risks related to these assets under the auspices of the G20.
The Indian government, led by Prime Minister Narendra Modi, has been deliberating on drafting a law to regulate or potentially prohibit digital currencies for several years but has now prepared to reach a definitive decision. However, on the other hand, the Reserve Bank of India remains on the statement “that cryptocurrencies should be banned”, as they are similar to a Ponzi scheme.
Bill Miller Says Bitcoin’s Current Price Levels Are ‘Pretty Remarkable’
Despite Thursday’s carnage on the US stock market, the price of bitcoin (BTC) remained stable. The unanticipated breakthrough of BTC last week led to a rally to almost $18,357 before a severe fall at the end of the week. In the end, BTC ended the week at $16,781. At the time of writing, Bitcoin was trading at $16,843 and was up by more than one percent.
According to investor Bill Miller, one catalyst will probably help Bitcoin (BTC) to reverse and perform better. Miller said that despite its volatility, Bitcoin may be included in investment portfolios as a “sound speculation”.
In a recent interview with Barrons, he recalled that Bitcoin was $5,800 at the market low in 2020. The price of one bitcoin is currently roughly $17,400. Since then, Bitcoin has increased by 190%, and the market has gained by 70%.
He added, “If anyone has a time horizon of longer than a year, you should do quite well in Bitcoin. I wouldn’t call that an investment. I would call it speculation, but I would call it sound speculation.”
Despite the upheaval in the cryptocurrency markets over the past year, Miller believes Bitcoin is still holding up well. Miller said that a change in the policies might be the catalyst that turns BTC around. Interest rates are rising as the Federal Reserve works to combat inflation.
“I’m surprised Bitcoin isn’t at half of its current price given the FTX implosion. People have fled the space, so the fact that it’s still hanging in there at $17,000 is pretty remarkable,” he added.
The upcoming weekend falls on the same day as the Christmas break. One might anticipate that volumes will be even lower throughout this weekend if they are already low on typical weekends. Will the market catastrophe once again shake the entire industry?
European Crypto Providers Should Report Tax Details As per New EU Bill
The post European Crypto Providers Should Report Tax Details As per New EU Bill appeared first on Coinpedia Fintech News
Crypto providers will have to report details of their EU clients’ transactions to national tax authorities within the bloc, under a bill set to be proposed by the European Commission next week.
The new law, inspired by international standards designed to curb crypto tax evasion, could also apply to stablecoins, derivatives, and non-fungible tokens (NFTs), and force even non-EU-based crypto providers to register within the bloc, the document reveals.
Under the plans, crypto asset providers would have to collect and verify information about their users such as names, addresses, social security numbers, and dates of birth, which would then be sent to the tax authorities in the user’s country of tax residence.
El-Salvador submits New Bill to legalize Cryptocurrencies
El Salvador’s Economy Minister, Maria Luisa Hayem Brevé, has proposed a Digital Assets Issuance Bill. In this extensive document, a legal framework for the acceptance of all cryptocurrencies in El Salvador has been formally detailed and laid out.
Nayib Bukele, the president of El Salvador, declared on November 16 that his nation would begin buying one Bitcoin (BTC 4.81%) per day, starting from November 17, despite the historic collapse of the cryptocurrency market. This country has already invested over $100 million in Bitcoin.
The Need For Revamping Digital Asset Laws
The law would govern any digital asset transfer operation in order to “promote the efficient development of the digital asset market and protect the interests of acquirers.”
It creates a specific regulatory framework for cryptocurrencies by separating them from all other assets and financial goods. The regulation is unambiguous since a digital asset must make use of a distributed ledger or a similar technology in order to be included in this category.
The framework of the law excludes dealings with CBDCs, transactions involving non-tradable or non-exchangeable assets, transactions involving restricted assets, such as securities and transactions involving sovereign assets subject to foreign law.
The following are some of the more intriguing aspects of the law:
- Creation of a registry of digital asset suppliers/providers.
- Full crypto legalization.
- Definition of stablecoins and tokens.
- Regulation of public offerings of digital assets.
- Tax exemption in some cases.
El-Salvador submits the Bitcoin bill
The initiative to bring capital and investors to El Salvador was first mentioned in the announcement of the bill one year ago. It intends to issue $1 billion in bonds on the Liquid Network, a federated Bitcoin sidechain. Of the proceeds from the bonds, $500 million would be allocated directly to bitcoin, while the remaining funds will be used to develop the area’s energy and bitcoin mining infrastructure.
El Salvador will be able to serve as the financial hub of Central and South America, thanks to the digital securities law. To be able to handle and list the bond issuance in El Salvador, Bitfinex will be granted a license. The bonds will offer a 6.5% interest and allow investors to obtain citizenship quickly.
Tether Reacts to Stablecoin Law
The new regulations seek to expand the market for digital assets accepted in El Salvador beyond Bitcoin. Stablecoins, which are obviously of significant importance to the Tether team, are among the digital assets that will now be officially permitted.
Bukele’s apparent desire to provide a safe haven for companies dealing in digital assets who prefer to avoid more highly regulated jurisdictions may potentially contribute to the popularity of the new rules.
Crypto Oversight Bill Introduced In California Vetoed By Governor
The post Crypto Oversight Bill Introduced In California Vetoed By Governor appeared first on Coinpedia Fintech News
California Governor Gavin Newsom vetoes a crypto oversight bill, ‘Assembly Bill 2269’. The bill was intended to ensure that crypto businesses and exchanges acquire a special license from the California Department of Financial Protection and Innovation. The ’Digital Financial Assets Bill’ was aiming to tighten oversight over crypto companies in California. Notably, the bill had passed the assembly (with a 71-0 vote) and the state senate.
The reason behind the veto was the rising popularity of cryptocurrencies. Newsom emphasized the need for transparent regulation to protect Californians and a more flexible approach is needed to inculcate a balance between protection and innovation. He said that the bill will draw a loan worth tens of millions from California’s general fund. The community has applauded the Governor for his decision.
California Assembly Passed Crypto Licensing Bill, Now Awaits Governor’s Signature – Coinpedia – Fintech & Cryptocurreny News Media
The California assembly has passed a crypto regulating bill that now requires cryptocurrency-related businesses to gain a special license to offer services to users in California. The crypto bill is now in the final process of becoming law in California.
California Is Aiming For Crypto Regulation
On Monday, California Assembly member Timothy Grayson produced the bill, AB 2269, with support from the Consumer Federation of California with a 71-0 majority. The crypto bill will establish the Digital Financial Assets Law in California.
The Digital Financial Assets Law is known as California’s “BitLicense.” A simple pen stroke is left to create a full-fledged law in California. The bill now requires Governor Gavin Newsom, who has until 30 September to sign or veto the bill. California will become one of the first states to require crypto platforms to obtain a special license to offer services in the state.
What Does This Crypto Bill Say?
The crypto law will tighten crypto regulations and bring more transparency to the crypto industry in California. If the governor signs the bill, it will take effect from 1 January 2025. Companies of digital-asset exchanges will get license approval from the state’s Department of Financial Protection and Innovation.
The Department will also be allowed to enforce drastic actions against those who are unlicensed. A non-licensed corporation engaging in digital financial asset business activity will be charged a civil penalty of up to $100,000 daily. Furthermore, if a licensee breaks the rule, they will have to pay a fine of $200,000 for each day of violation.
Stablecoin issuers holding securities as a reserve must have a total amount of stablecoins not less than the amount of all outstanding stablecoins sold or issued in the United States.
Tim Grayson stated, “While the newness of cryptocurrency is part of what makes investing exciting, it also makes it riskier for consumers because cryptocurrency businesses are not adequately regulated and do not have to follow many of the same rules that apply to everyone else.”
Regulators and governments are framing crypto space. Crypto bill provides the user with more closure looks of the crypto space. However, The California BitLicense now completely depends on the governor whether to sign it or not.