Russia to negotiate Venezuela about Using ‘El Petro’

Venezuelan Foreign Ministry reported that Petro is being regarded by Russia as an instrument of international transactions
04 April 2018   1285

The cryptocurrency Petro was launched by the government of Venezuela in February 2018. A number of issues is reviewed at a Russian-Venezuelan high-level intergovernmental meeting which takes place in Caracas. Among the problems to discuss are bilateral cooperation in the military area, railroad projects in Venezuela, and food production.The Bolivarian Government of Venezuela is also adding the cryptocurrency Petro to the discourse. 

The conference objects at strengthening the the 2 countries` union and the partnership conception of major companies, such as the Petromonagas project between Russian energy company Rosneft and Petroleos de Venezuela S.A. (PDVSA). Petro is reckoned as a possibility to consolidate the strategic alliance and the trade relations between Venezuela and Russia.

According to the information published in Time magazine, there is an evidence to suppose that the Venezuelan oil-backed cryptocurrency was helped into creation by Russian businessmen, officials and bankers. The  hypothesis is that Russia aims to use the currency as an experiment in bypassing US sanctions.

Despite Petro is a national cryptocurrency, there is constantly growing request for Bitcoin in Venezuela. The country is suffered by huge inflation, which makes the Venezuelan people to look for safe ways of keeping value. Another kind of cryptocurrency is also planned to be launched in Venezuela.  It is supposed to be backed by gold and other precious metals. Like with Petro, cryptocurrency enthusiasts argue that a centralized government creating a decentralized currency breaks the purpose of the technology completely. 

The US officials have admonished investors that Petro comes to be an extension of credit to the Venezuelan government. President Donald Trump let the law prohibiting US citizens from involving in transactions with Petro as part of a current campaign to pressure the Venezuelan government.

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   171

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.