Investment Learning

  • October 15, 2024

Argentina Recognizes Legal Validity of Blockchain-Based Smart Contracts

According to BlockBeats, on October 15, the Argentine judiciary has officially recognized the legal validity of blockchain-based smart contracts for the first time. This landmark decision grants legal enforceability to smart contracts in Argentina, paving the way for their application in various commercial fields such as lease agreements and purchase payments.The first legally recognized smart contract is a loan agreement built on the Cardano blockchain. This contract was established by two Argentine Cardano ambassadors, Mauro Andreoli and Lucas Macchia, involving a four-month loan of 10,000 ADA (approximately $3,430) with an annual interest rate of 10%. Andreoli stated, "We have just signed the first legally and judicially binding contract on the Cardano network that fully complies with the laws of the Argentine Republic." He emphasized that any breach of this contract could be enforced in court, requiring obligations to be fulfilled in ADA.To ensure the legal validity of the smart contract, both parties also signed a supplementary legal document detailing the contract's content, the blockchain used, and the transaction IDs of the relevant wallet addresses. This approach may set a standard process for the future legalization of smart contracts.

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  • October 14, 2024

China Begins Taxing Overseas Investment Gains of Super-Rich

According to Foresight News, Bloomberg reports that China has initiated the taxation of overseas investment gains for its super-rich citizens. In recent months, wealthy individuals in major Chinese cities have been asked to self-assess or have been summoned by tax authorities to evaluate potential tax liabilities, including unpaid amounts from previous years. Sources indicate that these individuals could face an investment gains tax of up to 20%, with some also potentially facing penalties for late payments. The final amounts, however, are negotiable.China's tax enforcement measures follow the implementation of the Common Reporting Standard (CRS) in 2018, a global information-sharing system aimed at preventing tax evasion. Although local regulations have long stipulated that residents are subject to taxes on global income, including investment gains, enforcement has only recently intensified.

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  • October 14, 2024

TD Bank Faces Record Fine for Failing to Report Suspicious Crypto Transactions

According to Foresight News, the U.S. Financial Crimes Enforcement Network (FinCEN) has accused banking giant TD Bank of failing to report suspicious activities from an anonymous group of international cryptocurrency traders. FinCEN revealed that TD Bank processed over 2,000 transactions within nine months for a company named 'Customer Group C,' which operates in the sales financing and real estate sectors. Customer Group C had misrepresented its expected international wire transfer activities to TD Bank, claiming its annual sales would not exceed $1 million. In reality, Customer Group C allegedly conducted transactions exceeding $1 billion through TD Bank. The funds originated from a UK-based cryptocurrency exchange, with 60% of the money sent to Colombian financial institutions providing digital asset-related services. TD Bank did not report this suspicious activity until multiple law enforcement inquiries were made regarding Customer Group C. According to the U.S. Department of Justice, on October 10, TD Bank pleaded guilty to violating the Bank Secrecy Act and money laundering regulations, agreeing to pay an $18 billion fine. Additionally, FinCEN imposed a $13 billion fine on TD Bank and implemented a four-year monitoring period to address the same violations. The total $30.9 billion penalty is described as the largest fine under the Bank Secrecy Act to date.

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  • October 14, 2024

India's Central Bank Governor Highlights Potential of Digital Currency for Cross-Border Payments

According to Odaily, Shaktikanta Das, the Governor of the Reserve Bank of India, emphasized the potential of central bank digital currencies (CBDCs) in enhancing efficient cross-border payments. India has once again positioned itself among the few countries that have introduced both wholesale and retail CBDCs. The initiative aims to facilitate cross-border transactions and address significant financial stability concerns associated with cryptocurrencies. A notable challenge, however, is that countries may prefer to design their systems based on national considerations.

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  • October 13, 2024

TD Bank Admits to Violating Bank Secrecy Act and Money Laundering

According to Odaily, last week, U.S. Attorney General Merrick B. Garland announced in Washington that TD Bank, one of the largest financial institutions in the United States, has pleaded guilty to multiple felony charges, including conspiracy to violate the Bank Secrecy Act and money laundering. Garland confirmed in a statement that TD Bank has agreed to pay a criminal fine of $1.8 billion, along with civil enforcement actions, bringing the total penalties to approximately $3 billion. He highlighted that this resolution includes the largest fine ever imposed under the Bank Secrecy Act and marks the first time the Department of Justice has assessed daily fines against a bank. TD Bank is the largest bank in U.S. history to admit to violating the Bank Secrecy Act and the first to acknowledge conspiracy to launder money. The Department of Justice emphasized the bank's compliance failures, which created an environment conducive to rampant financial crimes.

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  • October 13, 2024

South Korea to Establish Virtual Assets Committee This Month

According to Foresight News, South Korea is set to establish the Virtual Assets Committee within this month, with the first meeting expected to take place soon. The committee will operate under the jurisdiction of the Financial Services Commission (FSC). Analysts believe that the formation of this committee will expedite discussions on approving Bitcoin and Ethereum spot ETFs. Industry insiders have also indicated that the committee will address the issue of allowing corporate investments in virtual assets.

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  • October 13, 2024

Brazil Central Bank Expands Drex CBDC Pilot Program

According to PANews, the Central Bank of Brazil is opening its Drex CBDC pilot program to new participants. This initiative aims to test more advanced use cases and privacy solutions in the project's second phase. Currently, 13 use cases have been confirmed, including carbon credits, agricultural bonds, and foreign trade platforms.

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  • October 11, 2024

Man on The Run After Tampering with Ankle Bracelet in $150 Million Crypto Fraud Case

According to Cointelegraph, a man under home detention for his alleged involvement in a $150 million cryptocurrency fraud scheme is reportedly on the run after tampering with his ankle bracelet, New York prosecutors said. Horst Jicha, the former CEO of the purported crypto mining and trading firm USI-Tech, is believed to have tampered with his ankle bracelet on October 4 and absconded in violation of his pretrial conditions, according to an October 10 court filing. Pretrial Services alerted the government approximately 12 hours after Jicha’s bracelet stopped working, prompting an immediate request for an arrest warrant against the fugitive.Jicha, a German national, was arrested on December 23, 2023, in Miami, Florida, after entering the United States for the first time in more than five years to vacation there. He had not been in the US since fleeing the country in 2018 after receiving cease-and-desist letters from US authorities. Jicha was placed under home detention in New York on a $5 million bond guaranteed by his domestic partner and children, CNBC reported on October 11. John Marzulli, a spokesman for the Brooklyn US Attorney’s Office, stated that there is a very active investigation underway to capture him. The 64-year-old was also forced to surrender his German passport in December, making an attempt to flee abroad more difficult.Jicha’s case was scheduled for trial on March 31, where he faces several securities fraud and money laundering conspiracy charges tied to his alleged involvement at USI-Tech. Prosecutors claim Jicha promised investors a 1% return on their investments daily by participating in USI-Tech’s mining and trading scheme. New York authorities claim 1,774 Bitcoin (BTC) and 28,589 Ether (ETH) — worth more than $180 million at current prices — are missing from USI-Tech’s alleged fraud scheme. Prosecutors allege Jicha transferred those funds to a crypto exchange deposit address controlled by him. USI-Tech was supposedly founded in Europe in May 2017 before being aggressively marketed to US investors a few months later. After receiving regulatory scrutiny from US authorities, USI-Tech shut down on January 8, 2018, blaming investors for making misleading comments about USI-Tech’s products. Investors were left unable to withdraw funds from USI-Tech’s portal.

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  • October 11, 2024

Federal Reserve Likely to Cut Rates by 25 Basis Points in November

According to BlockBeats, the CME's 'FedWatch' tool indicates a 95.6% probability that the Federal Reserve will cut interest rates by 25 basis points in November. The likelihood of maintaining the current rate is 4.4%. By December, there is an 84.1% chance of a cumulative 50 basis points rate cut, while the probabilities for a 75 basis points and 100 basis points cut stand at 0%.

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