Morning Post - October 11

headlines

▌Iranian Bitcoin Advocate Ziya Sadr Arrested by Iranian Security Forces

Iranian bitcoin advocate Ziya Sadr was arrested by Iranian security forces last month, according to multiple sources. Nima Yazdanmehr, who claims to be a friend of Sadr, said the arrest took place on the streets of Tehran on September 19 and that Sadr has not been released. Sadr is a popular Bitcoin educator and Youtuber, as well as an advocate for the technology. He translates Bitcoin content into Persian and promotes a privacy-focused approach to personal Bitcoin transactions. Sadr is currently being held in Fashafouyeh Prison and is in contact with his family and close friends, Yazdanmehr reported. It is not yet known whether the arrest of Sadr by the Iranian government is related to his Bitcoin claims. Multiple sources said Sadr had not participated in recent protests in Iran at the time of his arrest.

policy

▌Portugal’s new draft budget proposes a 28% income tax on cryptocurrencies held for less than a year

In a draft 2023 budget released on Monday, the Portuguese government proposed a 28 percent income tax on cryptocurrencies held for less than a year, while gains from cryptocurrencies held for more than a year would remain tax-free. Free crypto transactions will also be taxed, with a 4% tax rate applied to commissions charged by intermediaries. According to reports, in the next few weeks, the draft budget still needs to be discussed and approved within the parliament. As previously reported, earlier this month, Portugal’s finance minister, Fernando Medina, announced his commitment to begin taxing cryptocurrencies, stating that the government will work to create a framework that “promotes the crypto economy” to provide “a sense of security and legal certainty.”

▌EU lawmakers voted 28:1 in favor of the Encrypted Asset Market Supervision (MiCA) bill

According to an official tweet, EU lawmakers voted 28-1 on Monday in favor of the Market Regulation in Cryptoassets (MiCA) bill, securing passage of legislation signed by EU governments last week and expected to be published in the Official Journal of the European Union early next year. published and then enter into force in 2024. Market Regulation for Cryptoassets (MiCA), another regulation on money transfers, allows wallets and other crypto service providers to operate across the EU, provided they register with national authorities and meet minimum guarantees aimed at protecting investors and maintaining financial stability. Wallet providers are required by law to check the identity of their customers to reduce money laundering. Lawmaker Stefan Berger, who is leading negotiations in parliament, called the move "great news" in a tweet welcoming the vote.

cryptocurrency

▌Formula 1 plans to enter the field of cryptocurrency mining

Racing giant Formula 1 has applied for a new trademark related to NFTs and cryptocurrencies. According to one of the documents, it plans to offer software for cryptocurrencies, digital collectibles and NFTs. The software will also support cryptocurrency payments and exchange transactions. Another document has to do with retail store services in the Metaverse. Formula 1 intends to create an online marketplace for buyers and sellers of cryptocurrencies. It also plans to use the blockchain to facilitate financial transactions and even venture into cryptocurrency mining. On top of that, Formula 1 may use virtual goods such as NFTs in online virtual worlds and mixed reality environments to provide entertainment services. One of the documents includes licensing services for intellectual property related to cryptocurrencies.

▌Cardano founder: Ripple-affiliated tokens should be regulated as commodities, not securities

Cardano founder Charles Hoskinson gave his opinion on the legal status of XRP. Hoskinson believes that Ripple-affiliated tokens should be regulated as commodities rather than securities. In support of his argument, Hoskinson wrote that most Layer 1 protocols, including XRP, provide utility and have a sufficient degree of decentralization within them that they are not securities. Additionally, they pass the Howie test, which shows whether an asset is a security.

important economic developments

▌Cathie Wood sent a letter to the Fed to stop raising interest rates

Ark Invest CEO Cathie Wood sent an open letter to the Fed on Monday urging them to stop raising rates. In her letter, Cathie Wood focused on two variables: employment and headline inflation. The Fed appears to be making decisions based on these two variables, Wood said. Commodity prices are leading indicators, upstream at the processing stage. Consumers have noticed that various products, such as food, have increased prices over the past few months. Of course, this is a big problem. However, raising interest rates by 75 bps, as the Fed did last month, is not the answer.