Ari10 Weekly Newsletter #103 (Crypto Business Insights, Crypto Market News and Ari10 Company Update)

What happened this week in the crypto space?

GM! This is Mateusz Kara.

And you've just found the best place in the crypto space to know more about the blockchain industry. I'm also giving you updates on my biz.

In Today's edition:

1/ Will we finally know the ETH classification?

2/ KuCoin is on the SEC's target

3/ Bitcoin ETFs Still Popular

4/ Sam Bankman-Fried to Serve 25 Years in Prison

+ Crypto Business Insights & Ari10 Company Update

Sounds interesting? I think so.

Let's dive deeper into the crypto rabbit hole:

1/ Will we finally know the ETH classification?

Although every cryptocurrency enthusiast knows what ether is – the cryptocurrency of Ethereum – the matter is not so simple for regulators in the USA. At the same time, determining the legal nature of ETH becomes urgent because several companies are applying to create ether ETFs.

Therefore, a group of congressmen has sent a letter to the SEC requesting a clear answer on whether ETH is a security or a commodity. The CFTC considers it to be the latter. However, the SEC is reluctant to answer this controversy.

It is possible that we will soon learn the final verdict.

2/ KuCoin is on the SEC's target

The above news is related to another one. KuCoin, one of the top cryptocurrency exchanges, is accused by US authorities of not complying with KYC and AML regulations. As a result, it allegedly allowed money laundering on its platform.

The above is bad news. However, the good news is that ETH has been defined as a commodity in the case documents. Theoretically, this increases the chances of ETH ETFs being established. These may appear on the market in May.

3/ Bitcoin ETFs Still Popular

At the same time, BTC ETFs remain popular. For example, on March 26, a net inflow of USD 418 million was recorded. Interestingly, the biggest winner of the day was Fidelity's fund, which received USD 279.1 million. BlackRock, the market leader, collected only USD 162 million.

4/ Sam Bankman-Fried to Serve 25 Years in Prison

We conclude with Sam Bankman-Fried. The former CEO has finally received his sentence. The court sentenced him to 25 years in prison.

How should this verdict be assessed? Is it not too lenient? After all, we are talking about a person who caused one of the biggest crashes in the financial market and huge losses for investors and clients who entrusted him with their funds.

On the other hand, Ross Ulbricht, the founder of Silk Road, a dark web platform where drugs were traded using BTC, received a life sentence in 2015. Meanwhile, on June 29, 2009, Bernard Madoff, the creator of the largest financial pyramid scheme in recent years, was sentenced to 150 years in prison.

Crypto Business Insights ??

Cryptocurrencies, and PIT and CIT

As mentioned in earlier chapters, since January 1, 2019, cryptocurrencies have a formal definition. In the context of the definition of virtual currency already known to us, it is worth explaining what constitutes the disposal of a cryptocurrency for consideration. Indeed, according to Article 17(1)(f) of the Personal Income Tax Act (PIT), disposing of a cryptocurrency for consideration means exchanging virtual currency for legal tender, goods, services, or other property rights other than virtual currency, or settling other obligations using virtual currency.

The classification of income obtained in this way is extremely significant as it allows for the correct tax settlement and avoidance of negative consequences from the tax authorities. However, there may be some doubts in this regard. Virtual currencies appear twice in the PIT Act. On the one hand, there is income from capital gains. On the other hand, within the scope of income from capital gains. Additional questions arise in the context of entities conducting business activities in the form of cryptocurrency exchanges or other services related to their exchange or account management.

Income from capital gains and income from capital gains

According to the Personal Income Tax Act, there are eleven different elements considered income from capital gains. Among them is income from the disposal of virtual currency for consideration. The same principle applies to income obtained in the course of conducting business activities, with the exception of activities involving the exchange of virtual currencies, the management of related accounts, brokerage in exchange, etc., are classified as non-agricultural business activities.

Furthermore, based on Article 7b of this regulation, income from capital gains includes, among other things, income from the exchange of virtual currency for legal tender, goods, services, or other property rights other than virtual currency, or from settling other obligations using virtual currency. In the case of entities conducting business activities consisting of providing services in the field of: exchange between virtual currencies and legal tender, exchange between virtual currencies, brokerage in the aforementioned exchange, or managing virtual currency accounts, the income is classified as other income than income from capital gains.

ARI10 COMPANY UPDATE ??

Krypto Raport'?? ???????????????????? ?????? ??????!

Held at the Holiday Inn hotel in Lodz, Poland, the event held special significance for us. We were proud partners with our own booth and Grzegorz's perfect pitch about Ari10, which WON ??

We'd like to congratulate the organizers, especially Marta Jackowska, for putting together such a fantastic event. It brought together prominent figures from various sectors of the PL business, including crypto, real estate, tax matters, and even collectible liquor.

Kudos to all the speakers, including Patryk Kempiński, John (Janusz) Zielinski (?itcoin), Daniel Makowski, Pawe? Tomaszewski, Aleksander Wilner // papuga.eth, Micha? Wiseman, and Jacek Kubrak ??

It was also a pleasure to connect with new projects such as Champion Invest, Vantastic sp.z o.o., AgioFunds TFI SA, and ONLYBESTMINERS. Additionally, reconnecting with old friends like KryptoEkipa, Wymienbitcoina.pl, Bitcoin.pl, Biuro Rachunkowe TAXO, and our esteemed Kantor Kryptowalut Ba?tyk Poznań Ari10 was truly delightful!

Thanks to everyone for voting for us, and of course, our on-site team consisting of Janusz Zieliński, Grzegorz Wojtyniak and Jakub Martenka for their commitment! ??

P.s. If you missed Janusz's compelling lecture on crypto-nomad life, you will have a 2nd opportunity at the upcoming Invest Cuffs conference!

??????????! (it's GM in Khmer) ????

As you may guess, we are expanding to Cambodia, and as part of it, we are proud to partner with Relocatify! But who are they?

While it's impossible not to notice them on PL crypto Twitter, for those who may not know, it's a company helping Poles who want to live, invest, or open a business in this beautiful country.

Yes, we deliver on our promises, as this is the next step in line with the announced global expansion of Ari10 Cryptoterminal - our network of stationary and mobile crypto exchange offices. (Disclaimer: Our PoS devices will operate there on the same basis as in PL, except the crypto-exchange will be only in USD ??)

To summarize, we really like such a partnership, which, together with Relocatify, actually can help our compatriots in Cambodia develop their own crypto business, and also meet some entrepreneurial Cambodians. (very friendly people)

P.s. Words of appreciation are due to our co-founder and Cryptoterminal Product Owner - John (Janusz) Zielinski (?itcoin) who personally supervised the entire process! ??

And that’s all for today. Thanks for your time, investors & Crypto Geckos! ?? ????

Please rate this newsletter with a reaction

?? - well done, Matt

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Thanks for your feedback and see you next week!

Mateusz Kara