Bitcoin News and Finance: What You Need to Know

109 years ago, the U.S. Federal Reserve was created and ever since that day, the purchasing power of the U.S. dollar has dropped a great deal. Since the Fed started, more than 96% of the greenback’s purchasing power has been erased via inflation. The Purchasing Power of the U.S. Dollar After the Creation of the Federal Reserve on Dec. 24, 1913 Dwindles Lower During the last hundred years, economists have blamed the U.S. Federal Reserve for a great deal of America’s rising inflation. American economist and social theorist Thomas Sowell referred to the Fed as a “cancer,” and former politcians like Ron Paul have called on the masses to abolish the Fed. Prior to the creation of the Fed on Dec. 23, 1913, America had two central banks the preceded the current U.S. central bank. The first U.S. central bank started in 1791 which was the First Bank of the United States, a financial institution charted by Congress at the time. The second attempt to create a central bank in America was in 181

By the end of this year bitcoin will have 13 consecutive years of recorded market value under its belt. Seven of those years saw Santa rallies all the way up until New Year’s Eve, and five of the 13 years saw bearish returns from Dec. 1 to Dec. 31. There’s still six more days left until the end of 2022, but current market action seems to point toward negative returns this month. 13 Years of Bitcoin Prices in December 2022 wasn’t the greatest year for bitcoin (BTC) in terms of market value measured in fiat. At the start of the year, BTC was trading for roughly $46K per unit and since then, the price has tumbled 63% since the first of Jan. 2022. According to records , the first recorded nominal value of bitcoin in U.S. dollars was on Oct. 5, 2009 and it was selling for $0.00764 per BTC on New Liberty Standard (NLS). At that rate, whoever was buying bitcoins at that time via NLS could get around 1,309.03 BTC for $1. We cant really count 2009, as seeing gains during the last month

Ahead of the holidays and new year, the former U.S. National Security Agency (NSA) contractor known to the world as a staunch privacy advocate and whistleblower, Edward Snowden, has offered to step up as the new CEO of Twitter after current “Chief Twit” Elon Musk has said he is stepping down. In other news from this week, hedge fund manager Michael Burry — of “The Big Short” fame — said that audits of cryptocurrency exchanges like FTX and Binance are “meaningless.” Get caught up on these hot stories and much more just below in this latest issue of the Bitcoin.com News Week in Review. Elon Musk Promises to Step Down as Head of Twitter — Edward Snowden Throws His Name in the Hat for CEO Tesla CEO and Twitter chief Elon Musk has promised to step down as head of Twitter. As the billionaire seeks a new CEO to run the social media platform, privacy advocate Edward Snowden threw his name in the hat, stating that he takes payment in bitcoin. “The question is not finding a CEO, the question

The enforcement of a requirement for brokers to report gains made by crypto investors has been postponed by the U.S. Treasury Department and the IRS. The new tax rules, incorporated into the $1 trillion infrastructure bill passed by the U.S. Congress in 2021, were to be imposed in 2023. Crypto Brokers Told to Comply With Existing Laws Until Final Regulations Are Issued The U.S. Department of the Treasury and the Internal Revenue Service (IRS) are delaying an obligation for digital asset brokers to start tracking and reporting proceeds from customer transactions. The respective provision was introduced with the Infrastructure Investment and Jobs Act , which was signed into law in late 2021, and was scheduled to enter into force on Jan. 1, 2023. The main purpose of the requirement, imposing on the crypto sector the regulations that currently apply to securities brokers, was to increase tax revenues from coin trading by revealing gains from such operations in a 1099 form. However, ad

Financial institutions in Russia will not be able to communicate with clients through instant messengers based outside the country, local media revealed. A new law passed by the State Duma also prohibits banks from using chats to send personal data and payment documents. Bill Restricts Russian Banks and Brokers From Sending Sensitive Information Through Foreign Messengers Banks in the Russian Federation will not be allowed to contact their customers on a number of popular messengers, according to new legislation approved by the lower house of parliament. The ban applies to foreign-based platforms. A list of the affected apps is yet to be published by Roskomnadzor , the Federal Service for Supervision of Communications, Information Technology and Mass Media, but Telegram , Whatsapp, Viber, and the like fit the description, the business daily Kommersant reported. The draft law, passed by the State Duma in the third reading, also restricts the use of this type of messaging service fo

A strategist at global investment bank JPMorgan says crypto is effectively nonexistent as an asset class for most large institutional investors. “The volatility is too high, the lack of an intrinsic return that you can point to makes it very challenging,” he added. JPMorgan on Institutional Crypto Investing JPMorgan Asset Management’s head of institutional portfolio strategy, Jared Gross, discussed crypto and institutional investors’ interest in the asset class on Bloomberg Friday. The senior investment strategist described: As an asset class, crypto is effectively nonexistent for most large institutional investors … The volatility is too high, the lack of an intrinsic return that you can point to makes it very challenging. Gross added that it is “self-evident” that bitcoin has not proven itself to be a form of digital gold or haven asset like some have hoped. He continued: Most institutional investors probably are breathing a sigh of relief that they didn’t jump into that mar

The host of Mad Money, Jim Cramer, says he would not touch crypto in a million years. He called investors who own various altcoins idiots and urged the U.S. Securities and Exchange Commission (SEC) to do “a big sweep” on the crypto industry. Jim Cramer’s Crypto Warnings The host of CNBC’s Mad Money show, Jim Cramer, has issued more warnings about cryptocurrency. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website. He said on CNBC Friday: I would not touch crypto in a million years because I wouldn’t trust the deposit bank. He was then asked whether he is making a distinction between centralized and decentralized platforms. “They fought regulation. They didn’t want regulation and you don’t have regulation,” Cramer replied, indicating that he does not trust any platforms that do not want regulation. The Mad Money host continued: I’m just saying you are using a lot of blind faith, and I like to have my money at JPMorgan, and

The European Central Bank (ECB) has published a new report on the progress of its investigation into the possible launch of a digital euro. The research will continue next year with the regulator planning to make a decision whether to proceed to the realization of the project in the fall of 2023. ECB to Develop Rules for Digital Euro Distribution Through Intermediaries The eurozone’s central bank has released a second report on the advance of the investigation phase of its project to issue a digital version of the common European currency. The document presents a set of design and distribution options, recently endorsed by its Governing Council, and defines the roles of the ECB and market participants in the digital euro ecosystem. Just like banknotes today, a digital euro would be a liability on the balance sheet of the Eurosystem, the monetary authority of the eurozone consisting of the ECB and the national central banks of the member states. Therefore, the Eurosystem must be in

Russian lawmakers will consider a draft law on cryptocurrency mining in 2023 despite earlier indications they were going to vote on the proposal in December. The bill is expected to set the rules for the extraction and sale of cryptocurrency in Russia amid sanctions limiting the country’s access to global finances and markets. Russia’s New Crypto Mining Legislation Is Yet to Be Fully Approved Members of the State Duma will review and vote on the draft law designed to legalize cryptocurrency mining in the Russian Federation in 2023, the head of the Financial Market Committee Anatoly Aksakov announced in comments for the crypto section of the business news portal RBC. The high-ranking lawmaker, who has been closely involved in efforts to regulate Russia’s crypto space, explained that the proposed legislation needs additional approvals. He was likely referring to the reconciliation of the positions of the various regulators involved in the process. The bill, which was submitted to

Samsung, the Korean electronics behemoth, has revealed it is currently investing more than $35 million dollars in metaverse initiatives for the Latam audience. The objective behind this move is to help the brand attract and connect with younger audiences, as part of its digital push and growth marketing strategy. Samsung’s Metaverse Push in Latam Many companies have started to put their products and their brands in the metaverse, considering it an important part of their marketing strategy. Samsung, one of the biggest electronics companies in the world, has recently revealed it is investing more than $35 million in metaverse initiatives directed at Latam customers. In an article published on Dec. 20, Anita Caerols, director of marketing and corporate citizenship of Samsung Electronics Chile, explains the motivations behind this virtual reality push for the company. She stated: At Samsung we believe that the metaverse is a concrete commitment to connect with young consumers. That

Bank of England Deputy Governor Sir Jon Cunliffe has revealed that the British central bank is planning to step up its efforts to regulate cryptocurrency trading with new laws. “We should think about regulation before it becomes integrated with the financial system and before we could have a potential systemic problem,” he stressed. Sir Jon Cunliffe on Crypto Regulation Sir Jon Cunliffe, Bank of England (BOE)’s deputy governor for financial stability, talked about cryptocurrency in an interview with Sky News Thursday. He explained that the British central bank plans to step up its effort with new laws to regulate crypto trading following the collapse of crypto exchange FTX. “Trading of crypto assets was not big enough to destabilize the financial system, but it was starting to develop links,” Cunliffe said, elaborating: We had banks and investment funds and others who wanted to invest in it and I think we should think about regulation before it becomes integrated with the financi

Tesla CEO and Twitter chief Elon Musk says the Federal Reserve’s recent rate hikes “might go down in history as most damaging ever.” The billionaire has urged the Fed to cut interest rates immediately, emphasizing that the U.S. central bank is “massively amplifying the probability of a severe recession.” Elon Musk on Fed Rate Hikes Tesla, Spacex, and Twitter boss Elon Musk warned Thursday about the damaging impact of the Federal Reserve rapidly raising interest rates. His warning was in reply to a tweet by former investment manager Genevieve Roch-Decter stating that “the Fed has never raised rates faster” than this year. Musk wrote: At the risk of being repetitive, these Fed rate increases might go down in history as most damaging ever. Roch-Decter also included a chart with her tweet showing that the Fed has hiked interest rates further and faster this year than at any other time in modern history. Many people agreed with Musk. “I agree, Elon. The mortgage industry is takin

On Dec. 23, 2022, Matthew Russell Lee from the Inner City Press published the recently unsealed guilty plea transcript of Caroline Ellison, Alameda Research’s former CEO. In her statements, Ellison describes that she was the co-CEO and CEO of Alameda, and under those roles, she reported directly to the former FTX CEO Sam Bankman-Fried (SBF). The ex-Alameda CEO’s testimony details that she was fully aware from 2019 to 2022, that Alameda Research had access to a special borrowing facility that allowed the company to maintain an unlimited line of credit with zero collateral. The ‘borrowing facility,’ according to Ellison, was FTX’s customer funds. Caroline Ellison Details FTX’s Misconduct With Alameda and the Co-Mingling of Customer Funds Started From the Very Beginning Following the unsealing of Caroline Ellison’s plea deal, Inner City Press reporter Matthew Russell Lee published a tweet storm that featured screenshots of Ellison’s unsealed guilty plea transcript. Russell Lee said

President Jair Bolsonaro has approved law 14.478, which regulates cryptocurrency-related operations and virtual asset service providers (VASPs) in Brazil. The document, approved on the last day of the period allowed, will begin to be applied 180 days after its sanction. This will give all parties a period to adapt to compliance. Cryptocurrency Law Finally Sanctioned in Brazil Brazil has, at last, approved its cryptocurrency law in the nick of time. After having completed almost the whole period for taking action, President Jair Bolsonaro signed bill 14.478 into law on Dec. 21, when it was published in the Official Journal of the Union, the government publication of the country. With Bolsonaro’s sanction, exchanges and other organizations subject to the law will have 180 days to prepare to comply with the new directives. However, if Bolsonaro had not sanctioned the law, the project would have returned to Congress, with the opportunity of being sanctioned by the Senate and the Deput

Authorities in Italy and Albania have hit a fraud scheme enticing victims with promises of low-risk investments in cryptocurrencies. During an operation coordinated by Eurojust, investigators from the two countries searched a dozen locations and seized assets and computer equipment. Fraudsters Contacted Investors From a Call Center in Tirana, Albania Law enforcement officers in Italy and Albania have taken down an online fraud scheme offering fake investment opportunities related to cryptocurrencies. The investigation was carried out with the support of Eurojust, the EU agency responsible for judicial cooperation in Europe. Authorities participating in the joint operation have seized €3 million (almost $3.2 million) worth of assets from the crime group that organized the scam. The total losses resulting from its activities have been estimated at €15 million (over $15.9 million), Eurojust detailed in a press release. The perpetrators operated a call center in the Albanian capital

The province of Buenos Aires in Argentina will begin taxing cryptocurrency mining and possibly staking, in 2023. A new proposal modifies the tax law to introduce cryptocurrency mining as a taxable activity that will levy 4% on the income calculated via these operations. However, it is still unclear if staking will be taxed. Buenos Aires Adds Cryptocurrency Mining as Taxable Activity The province of Buenos Aires in Argentina approved a project to add cryptocurrency mining as a taxable activity for the next year. A document , presented by the governor of the province, Alex Kicillof, establishes that the activity formally described as “Processing and validation services for crypto assets and/or cryptocurrency transactions (crypto asset and/or cryptocurrency mining)” will require a 4% aliquot over income produced in these operations. The taxes would be paid to the government of the province, and would not be related to any other taxes established by the Argentine national government. T

The governor of India’s central bank, the Reserve Bank of India (RBI), has warned that the next financial crisis will come from cryptocurrencies, like bitcoin and ether. The central bank chief added that cryptocurrencies pose “huge inherent risks” to India’s macroeconomic and financial stability. Indian Central Bank Warns About Crypto Causing the Next Financial Crisis Reserve Bank of India (RBI) Governor Shaktikanta Das warned about the danger of cryptocurrency Wednesday. The central banker cautioned: Cryptocurrencies have … huge inherent risks for our macroeconomic and financial stability. The RBI is primarily concerned about cryptocurrencies having no underlying value, Das clarified, emphasizing that crypto is “speculative” and should be banned. Indian authorities refer to any non-government-issued cryptocurrencies, such as bitcoin and ether, as “private” cryptocurrencies. Commenting on crypto trading, Das said: It is a hundred percent speculative activity, and I would stil

A U.S. senator has introduced a bill to “establish the first federal regulatory framework for payment stablecoins.” The lawmaker explained: “This bill will also ensure the Federal Reserve, which has displayed significant skepticism about stablecoins, won’t be in a position to stop this activity.” Stablecoin TRUST Act of 2022 U.S. Senator Pat Toomey (R-PA), ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, introduced the “Stablecoin Transparency of Reserves and Uniform Safe Transactions Act of 2022” on Wednesday. The bill is also known as the “ Stablecoin TRUST Act of 2022 .” According to the lawmaker, the legislation would “establish the first federal regulatory framework for payment stablecoins and guide Congress towards a path for sensible regulation of cryptocurrencies.” Senator Toomey opined: I hope this framework lays the groundwork for my colleagues to pass legislation next year safeguarding customer funds without inhibiting innovation … This bi

After close to two years, following the U.S. federal government accusing the Crypto Six of unlicensed money transmission, the case is seemingly coming to an end. According to multiple reports, Keene resident and libertarian activist, Ian Freeman, the last member of the Crypto Six case to be tried, was found guilty on all counts which included unlicensed money transmission, money laundering, and tax evasion. Freeman faces eight years in prison but he was not taken into custody on Thursday afternoon (ET). Reports detail that he must appear for sentencing on April 14, 2023, or appeal the verdict. Ian Freeman Found Guilty of Unlicensed Money Transmission, Sentencing Hearing Scheduled for April 2023 During the first week of Dec. 2022, Bitcoin.com News reported on the Crypto Six case and how the co-host of the radio broadcast Free Talk Live, Ian Freeman, was preparing to head to trial. Freeman was the only defendant left that remained in the Crypto Six case, as he decided to take the iss