The bitcoin price dropped below $42,000 amid Chinese government repression and the potential default of Evergrande, Twitter implemented the digital gold donation feature through the Lightning Network, the U.S. Department of Treasury imposed sanctions on Suex, and other events of the week.
The price of bitcoin fell below $42,000 amid the situation in China
The first cryptocurrency opened the week falling below $43,000. The price could be affected by the potential default of Chinese developer Evergrande, which has accumulated a debt of $309 billion.
On September 24, reports of another crackdown on China's cryptocurrency industry circulated online. China's State Development and Reform Committee said that mining consumes too much energy and its contribution to the country's economy is "insignificant".
At the same time, the People's Bank of China (PBOC) posted a notice on its website stating that the activities of platforms that exchange digital assets among themselves or for fiat are illegal.
The restrictions also apply to foreign companies that provide services to Chinese residents. Bitcoin exchanges Binance and Huobi have already stopped registering new users in mainland China, and mining pool SparkPool stopped serving clients from the region.
On the same day, Wen Xinjiang, director of the NBK Payments and Settlement Department, said the regulator sees cryptocurrencies as a threat to the traditional financial system.
The price of digital gold reacted by falling below $42,000. As of this writing, the asset is trading near $43,200.
BTC/USDT hourly chart of the Binance exchange. Data: TradingView
Twitter allowed content creators to accept bitcoin donations
Twitter users on iOS devices can now accept donations through the Lightning Network. To do this, you need to connect a third-party service like CashApp to your profile.
The U.S. imposed sanctions against the bitcoin exchange Suex with offices in Moscow and St. Petersburg
The U.S. Department of Treasury included cryptocurrency exchanger Suex with offices in Moscow and St. Petersburg, as well as 25 addresses in bitcoin, Ethereum, and Tether networks in the sanctions list. According to the agency, Suex was used by the operators of at least eight ransomware, scam projects, and darknet marketplaces.
Russian Vasily Zhabykin confirmed his connection with the exchanger but noted that the U.S. Treasury Department had mistakenly targeted the company. The company's co-owner Yegor Petukhovsky stated his intention to defend his business reputation. Later, it became known that Zhabykin was dismissed from his position as the top manager of the NUUM neobank by the mobile operator MTS.
Analytical company Elliptic studied Suex transactions and concluded that over $370 million related to cybercriminals passed through it. At the same time, Chainalysis linked Suex transactions with the now-closed cryptocurrency exchange WEX to the amount of several million dollars.
Ukraine proposed a tax rate on profits from operations with cryptocurrencies
Draft amendments to the Tax Code describe the peculiarities of taxation of operations with virtual assets (VA), declaration of income, and tax payment procedure. According to it, the object of taxation is the profit received from the sale of VAs or their other alienation.
The profit of a service provider is taxed at 5%, provided that the company has no income other than income related to VA activities. For individuals, there is also a 5% tax and an additional 1.5% military fee.
At the same time, the National Bank of Ukraine saw risks for the hryvnia due to the spread of cryptocurrencies but stated its commitment to innovation.
The Bank of Russia came out "categorically against" cryptocurrencies and blacklisted several companies in the sector
Ilya Yasinsky, director of the Department of Financial Monitoring and Currency Control of the Central Bank of Russia, said that due to the high volatility, digital currencies cannot be considered by citizens as an investment tool. He stressed that the regulator is "categorically against" cryptocurrencies.