Mike Novogratz and Bloomberg LP to set Crypto Price Index

One of bitcoin’s significant figures has signed a contract with an unlikely partner to create a cryptocurrency price index
09 May 2018   1211

Billionaire Mike Novogratz and Bloomberg LP on declared on Wednesday that they are collaborating to launch the Bloomberg Galaxy Crypto Index (BGCI), which will track the aggregate productivity of a basket of large-cap cryptocurrencies. 

Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies. The index brings our rigorous approach to index construction to cryptos and will provide investors with a transparent benchmark to gauge the performance of the broader market.
Alan Campbell
Global Product Manager, Bloomberg Indices

Mike Novogratz, a former hedge fund manager at Fortress Investment Group, recently gained $250 million to found a “cryptocurrency merchant bank” that will be publicly-listed in Canada. He claimed that the cryptocurrency price index will enter  “unprecedented transparency” to the markets. 

The Bloomberg Galaxy Crypto Index brings unprecedented transparency to the crypto markets. We are excited to help drive the decentralized revolution forward through the creation of BGCI.
Mike Novogratz
Ex-Hedge Fund Manager, Billionaire

The BGCI points out ten cryptocurrencies, which are based on market cap as well as other elements. They are: bitcoin (30%), ethereum (30%), XRP (14.14%), bitcoin cash (10.65%), EOS (6.11%), litecoin (3.77%), dash (1.67%), monero (1.66%), ethereum classic (1%), and zcash (1%). The index displays yet another step toward making the nascent cryptocurrency trading market more acceptable to mainstream financial establishments. 

The index’s launch comes in the contrast with the past statements from Bloomberg founder and majority shareholder Michael Bloomberg, who is a card-carrying member of the “blockchain not bitcoin” brigade. Last November, Bloomberg joined Goldman Sachs CEO Lloyd Blankfein in an interview in which the two businessmen took turns bashing cryptocurrencies. 

In the past week, however, both companies have revealed products that demonstrate that others in their firms think otherwise: Bloomberg, a cryptocurrency price index; Goldman, a bitcoin trading desk.

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   132

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.