Chinese Police to Seize $1.4M Worth BTC

Cryptocurrency was seized from illegal bookmaker offices, which are banned since the middle of 20th centuary
12 July 2018   1362

Police in Guangdong Province arrested 540 suspects in the participation and organization of a network of online football sweepstakes, at which rates were accepted in bitcoins for a total of more than 10 billion yuan ($ 1.5 billion). This is reported by Xinhuanet.

Organizers of gambling sites were participants of 20 criminal groups. The police froze their assets by five million yuan and seized the crypto currency by 10 million yuan ($ 1.4 million).

Law enforcement agencies also closed about 70 mobile applications, websites, 250 groups in social networks and instant messengers through which suspects conducted their activities. For eight months, about 330,000 participants bets on these platforms.

Since the middle of the XX-th century activity of bookmaker offices is illegal in China. However, in Macau and Hong Kong, sports bets are not banned.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   168

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.