๐ฌ๐ช Georgia joined CRS, but still good option for crypto
๐ฑ From September 2024, Georgia started exchanging information on financial transactions with foreign tax authorities using the CRS framework. Now information on bank accounts and financial transactions in Georgia in 2023 can be provided by requests through CRS. This includes crypto-to-fiat transactions if they were conducted in Georgia.
๐งฎ At the same time, Georgia has convenient tax regimes for digital nomads and cryptocurrency companies. For example, a developer can open a sole proprietorship here and pay tax at a rate of 1% (up to $170k per year). There is also a good option for corporates: an IT company may be interested in a special tax regime of a virtual zone with 0% profit tax and 5% tax on dividends. Finally, income from foreign sources is not taxed.
๐ฆ In addition to the fact that cryptocurrencies are legal in Georgia, both individuals and legal entities can legally perform operations with crypto through barter transactions and declare income from them to the tax authorities. Although the Central Bank of Georgia has formally banned direct crypto payments, barter transactions are still permitted. So you can get crypto rewards in Georgia and declare them as your official income.
๐ช By the way, there is also a special tax regime for wealthy foreigners, who can obtain Georgian tax residency and get total tax exemption from foreign sources without living a single day on Georgian territory.
๐ฑ From September 2024, Georgia started exchanging information on financial transactions with foreign tax authorities using the CRS framework. Now information on bank accounts and financial transactions in Georgia in 2023 can be provided by requests through CRS. This includes crypto-to-fiat transactions if they were conducted in Georgia.
๐งฎ At the same time, Georgia has convenient tax regimes for digital nomads and cryptocurrency companies. For example, a developer can open a sole proprietorship here and pay tax at a rate of 1% (up to $170k per year). There is also a good option for corporates: an IT company may be interested in a special tax regime of a virtual zone with 0% profit tax and 5% tax on dividends. Finally, income from foreign sources is not taxed.
๐ฆ In addition to the fact that cryptocurrencies are legal in Georgia, both individuals and legal entities can legally perform operations with crypto through barter transactions and declare income from them to the tax authorities. Although the Central Bank of Georgia has formally banned direct crypto payments, barter transactions are still permitted. So you can get crypto rewards in Georgia and declare them as your official income.
๐ช By the way, there is also a special tax regime for wealthy foreigners, who can obtain Georgian tax residency and get total tax exemption from foreign sources without living a single day on Georgian territory.
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๐ฐ Bitcoin > $90,000. It looks like $100,000 will be coming very soon.
๐ Bitcoin has finally broken the psychologically important mark of $90k. Apparently, $100,000 is already close - after all, the inflows in ETF are growing at a furious pace, only in the first 2 days of this week more than $2 billion - something like this happened only in March 2024. In general, some period of hot growth apparently awaits us further - waiting for decisions on Bitcoin reserve in the United States and rate cuts by monetary regulators.
๐ฉIn addition, $100,000 is a very beautiful figure to overcome (and take out traders playing with the leverage along the way). Be careful.
๐ Bitcoin has finally broken the psychologically important mark of $90k. Apparently, $100,000 is already close - after all, the inflows in ETF are growing at a furious pace, only in the first 2 days of this week more than $2 billion - something like this happened only in March 2024. In general, some period of hot growth apparently awaits us further - waiting for decisions on Bitcoin reserve in the United States and rate cuts by monetary regulators.
๐ฉIn addition, $100,000 is a very beautiful figure to overcome (and take out traders playing with the leverage along the way). Be careful.
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๐ฌ๐ง UK: Mission Impossible
๐ UK legislators are going to provide new regulations on stablecoins and NFTs. According to Circle sources in Parliament, adoption of new rules for stablecoins will take time - stablecoin upgrades are still not approved. However, a new version of the UKโs Property Bill will contain the terms 'cryptocurrency' and 'NFT'. These types of digital assets will be qualified as personal property.
โ๏ธ The UK remains a tough jurisdiction for the crypto business. For the whole of 2024, the FCA granted only 1 VASP registration, and 87% of new VASP registrations were rejected in 2023. The reason for this high rejection rate is potential AML violations.
๐ณ Fortunately, cryptocurrency companies do not have to obtain an FCA VASP registration for all activitiesโthe UK has an e-money license, which can be used for some crypto operations. In addition, businesses can enter into partnership agreements with companies that already have FCA registration as a VASP or an e-money license.
๐ UK legislators are going to provide new regulations on stablecoins and NFTs. According to Circle sources in Parliament, adoption of new rules for stablecoins will take time - stablecoin upgrades are still not approved. However, a new version of the UKโs Property Bill will contain the terms 'cryptocurrency' and 'NFT'. These types of digital assets will be qualified as personal property.
โ๏ธ The UK remains a tough jurisdiction for the crypto business. For the whole of 2024, the FCA granted only 1 VASP registration, and 87% of new VASP registrations were rejected in 2023. The reason for this high rejection rate is potential AML violations.
๐ณ Fortunately, cryptocurrency companies do not have to obtain an FCA VASP registration for all activitiesโthe UK has an e-money license, which can be used for some crypto operations. In addition, businesses can enter into partnership agreements with companies that already have FCA registration as a VASP or an e-money license.
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Would James Bond get FCA crypto license?
Anonymous Poll
43%
No, he was a state servant
12%
No, he leaded an immoral life.
12%
No, he could been involved in AML/CFT violations
33%
Yes, he could convince anyone (including FCA)
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๐ฎ Will Trump make crypto tax-free?
๐บ๐ธ This week, the media discussed new possible changes in crypto policy that the Donald Trump administration can provide. He can cancel capital gain tax for all cryptos issued or registered in the United States. Gains from sale of cryptos like Ripple and Cardano will, in this case, be tax-free for US tax residents. This looks like a great move for the industry in the US.
๐Although this information has not been officially confirmed yet, it mainly refers to unnamed sources in the Trump team, so it could be a fake.
๐บ๐ธ This week, the media discussed new possible changes in crypto policy that the Donald Trump administration can provide. He can cancel capital gain tax for all cryptos issued or registered in the United States. Gains from sale of cryptos like Ripple and Cardano will, in this case, be tax-free for US tax residents. This looks like a great move for the industry in the US.
๐Although this information has not been officially confirmed yet, it mainly refers to unnamed sources in the Trump team, so it could be a fake.
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Do you think it's a fake?
Anonymous Poll
53%
It's a fake.
47%
It's true. And we will get confirmation soon.
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I've asked Trump and some GOP officials. Please, subscribe my X account to support this activity.
https://x.com/crypto_pen_on/status/1857841906362818892?t=DVBd0pNcEmDgSYwMK1IUqQ&s=19
https://x.com/crypto_pen_on/status/1857841906362818892?t=DVBd0pNcEmDgSYwMK1IUqQ&s=19
X (formerly Twitter)
Crypto Penetration (@crypto_pen_on) on X
@realDonaldTrump Mr. President, will your exempt gains from sale of US cryptos from tax? Is it fake or not?
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๐ช๐บ VASP transition to CASP
๐ Requirements for crypto entities in the EU are getting stricter under MiCA. Registered VASPs are obligated to get CASP (Crypto Asset Service Provider) license. Apart from the name change, this implies stricter licensing and auditing procedures - more restrictions and costs.
๐ The picture shows how many months different EU countries give for this transition.
๐ต๐ฑ๐ฑ๐นPoland, Netherlands, and Lithuania gave companies only half a year. Probably such small terms for Poland and Lithuania are caused by too many operating crypto entities in these countries and the desire of EU to introduce stricter control over VASP there. Probably the number of licenses in Lithuania and Poland will decrease significantly.
๐ On the contrary, France, Luxembourg, Malta, Estonia, Czech Republic and Cyprus (it is not in the table) have a long transition period for VASPs - 18-19 months.
๐ Requirements for crypto entities in the EU are getting stricter under MiCA. Registered VASPs are obligated to get CASP (Crypto Asset Service Provider) license. Apart from the name change, this implies stricter licensing and auditing procedures - more restrictions and costs.
๐ The picture shows how many months different EU countries give for this transition.
๐ต๐ฑ๐ฑ๐นPoland, Netherlands, and Lithuania gave companies only half a year. Probably such small terms for Poland and Lithuania are caused by too many operating crypto entities in these countries and the desire of EU to introduce stricter control over VASP there. Probably the number of licenses in Lithuania and Poland will decrease significantly.
๐ On the contrary, France, Luxembourg, Malta, Estonia, Czech Republic and Cyprus (it is not in the table) have a long transition period for VASPs - 18-19 months.
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๐ Bitcoin > $97,000 and $100k is waitingโฆ
๐๐๐ Bitcoin continues to update its ATH today, November 21, breaking through the $95k mark to reach over $97k. There is almost no doubt that $100k will also be breached this week, and most likely today.
๐ One of the main reasons is the changes in cryptocurrency regulation in the US. Donald Trump met with Coinbase CEO Brian Armstrong the other day and Bloomberg messaged yesterday about Armstrong's possible appointment as the White House's head of crypto policy. Meanwhile, Congress and the Senate are preparing to discuss a Bitcoin Reserve.
๐๐๐ Bitcoin continues to update its ATH today, November 21, breaking through the $95k mark to reach over $97k. There is almost no doubt that $100k will also be breached this week, and most likely today.
๐ One of the main reasons is the changes in cryptocurrency regulation in the US. Donald Trump met with Coinbase CEO Brian Armstrong the other day and Bloomberg messaged yesterday about Armstrong's possible appointment as the White House's head of crypto policy. Meanwhile, Congress and the Senate are preparing to discuss a Bitcoin Reserve.
Bloomberg.com
Trump Team Mulls Creating First-Ever White House Crypto Role
President-elect Donald Trumpโs team is holding discussions with the digital asset industry about whether to create a new White House post solely dedicated to cryptocurrency policy, according to people familiar with the transition efforts.
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๐ฝGreat resignation
๐ Gary Gensler will resign on January 20. He announced the news in his X account. Apparently Bitcoin will reach $100,000 pushed by this fact.
๐ Gary Gensler will resign on January 20. He announced the news in his X account. Apparently Bitcoin will reach $100,000 pushed by this fact.
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๐ท๐ด Romania attracts crypto users
๐ช๐บ Amid the implementation of MiCA in the EU and tough compliance rules, good news coming from Romania. The country's parliament has amended the tax code to eliminate tax on personal income from cryptocurrency transactions.
๐ The benefit will be valid until July 31, 2025. So if you want to live in the European Union, maybe you urgently need to get a Romanian residence permit.
๐ช๐บ Amid the implementation of MiCA in the EU and tough compliance rules, good news coming from Romania. The country's parliament has amended the tax code to eliminate tax on personal income from cryptocurrency transactions.
๐ The benefit will be valid until July 31, 2025. So if you want to live in the European Union, maybe you urgently need to get a Romanian residence permit.
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๐ปBitcoin price decline
๐ Today, BTC's price is moving down sharply. Currently, itโs about $92,500 and there is a risk of continuously drop to $90,000 and below.
๐ซณ The reasons are quite simple - Bitcoin didnโt break the $100,000 mark. In addition, there is a risk that the Fed will keep its current interest rate after its meeting on the 18th of December. However, in a volatile market like crypto, a reversal is always possible.
๐ฒ๐ฆ Despite the price decline, global regulation continues to improve - Morocco Central Bank plans to cancel its crypto ban.
๐ Today, BTC's price is moving down sharply. Currently, itโs about $92,500 and there is a risk of continuously drop to $90,000 and below.
๐ซณ The reasons are quite simple - Bitcoin didnโt break the $100,000 mark. In addition, there is a risk that the Fed will keep its current interest rate after its meeting on the 18th of December. However, in a volatile market like crypto, a reversal is always possible.
๐ฒ๐ฆ Despite the price decline, global regulation continues to improve - Morocco Central Bank plans to cancel its crypto ban.
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Tornado Cash case: will mixer regulation change?
The US Court of Appeals made a striking decision: it recognised OFAC sanctions against Tornado Cash as illegal. The Court's reasoning is that sanctions can be imposed on something that is property and belongs to someone, and immutable smart contracts are not on the list of property specified in the IEEPA law.
This is good news for the crypto industry and especially blockchain developers, as it limits the ability to sue them for creating code. Some go even further - they hope that this decision will change the approach to crypto mixers in the future (for instance). If so, it will lead to creation of legal โcoin anonymizersโ for large crypto holders and hedge funds.
TORN's value has multiplied by 12 after the Court's decision - from $3 to $36. More details about the Tornado Cash court case and its history are in my research.
The US Court of Appeals made a striking decision: it recognised OFAC sanctions against Tornado Cash as illegal. The Court's reasoning is that sanctions can be imposed on something that is property and belongs to someone, and immutable smart contracts are not on the list of property specified in the IEEPA law.
This is good news for the crypto industry and especially blockchain developers, as it limits the ability to sue them for creating code. Some go even further - they hope that this decision will change the approach to crypto mixers in the future (for instance). If so, it will lead to creation of legal โcoin anonymizersโ for large crypto holders and hedge funds.
TORN's value has multiplied by 12 after the Court's decision - from $3 to $36. More details about the Tornado Cash court case and its history are in my research.
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๐ณ๐ฑ ะกhange residence and pay exit tax
๐ช๐บ Another EU country will impose an โexit taxโ on citizens who move abroad. Last month, the Dutch parliament discussed such a legislative proposal to stop tax evasion, and most members supported it. The government will prepare a bill.
๐ This tax already exists (in various forms) in several countries around the world, including:
๐ Italy
๐ Spain
๐ Canada
โ๏ธ Finland
๐จ Australia
๐ฆ South Africa
๐งญ Norway
๐ณ๐ด Sweden
๐ซ๐ท Some countries are also considering stricter exit criteria, such as those proposed for 2025 in France.
๐งฎ Basically, it works as a tax on capital - shares, stakes in companies - and thus applies to cryptocurrencies as well. Such tax is paid if a person has lived in the country for (typically) more than 5 years and has an income of over $1 million (average figure). So if you are holding a bunch of crypto, you should be careful choosing your country of residence. Last, but not least, sometimes legal entities also pay exit tax.
๐ช๐บ Another EU country will impose an โexit taxโ on citizens who move abroad. Last month, the Dutch parliament discussed such a legislative proposal to stop tax evasion, and most members supported it. The government will prepare a bill.
๐ This tax already exists (in various forms) in several countries around the world, including:
๐ Italy
๐ Spain
๐ Canada
โ๏ธ Finland
๐จ Australia
๐ฆ South Africa
๐งญ Norway
๐ณ๐ด Sweden
๐ซ๐ท Some countries are also considering stricter exit criteria, such as those proposed for 2025 in France.
๐งฎ Basically, it works as a tax on capital - shares, stakes in companies - and thus applies to cryptocurrencies as well. Such tax is paid if a person has lived in the country for (typically) more than 5 years and has an income of over $1 million (average figure). So if you are holding a bunch of crypto, you should be careful choosing your country of residence. Last, but not least, sometimes legal entities also pay exit tax.
NieuwRechts
Emigreren? Dat kost je straks duizenden euro's aan belasting
De Tweede Kamer heeft een motie aangenomen die de invoering van een emigratiebelasting mogelijk maakt. De motie, ingediend door Laurens Dassen (Volt) en Pieter Grinwis (ChristenUnie), richt zich op he
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Do you think "exit tax" is good for crypto?
Anonymous Poll
47%
Indeed, not.
30%
Wealthy individuals should pay more taxes.
24%
In some form it may be OK. Depends on details.
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๐บ๐ธ US government is going to sell BTC?
๐ง According to Arkham Intelligence US government has transferred almost 20k BTC (about $1,9 bln) to Coinbase Prime. Probably, these Bitcoins will be sold soon.
๐ Some experts qualify this action as an attempt by the outgoing administration to reduce the amount of BTC on USA's balance sheet before the Bitcoin Reserve Act is passed. However, it's only 10% of current US Bitcoin holdings, so it may be simply a planned action.
๐ง According to Arkham Intelligence US government has transferred almost 20k BTC (about $1,9 bln) to Coinbase Prime. Probably, these Bitcoins will be sold soon.
๐ Some experts qualify this action as an attempt by the outgoing administration to reduce the amount of BTC on USA's balance sheet before the Bitcoin Reserve Act is passed. However, it's only 10% of current US Bitcoin holdings, so it may be simply a planned action.
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๐บ๐ธ New SEC chair
๐ฆ Donald Trump has nominated crypto lobbyist Paul Atkins as new SEC chair. Paul is leader of Token Alliance and was already SEC chair in 2002-2008.
๐ His nomination may push BTC price above $100,000 this week.
๐ฆ Donald Trump has nominated crypto lobbyist Paul Atkins as new SEC chair. Paul is leader of Token Alliance and was already SEC chair in 2002-2008.
๐ His nomination may push BTC price above $100,000 this week.
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