Bitcoin Daily: Bank of China Issues $2.8B Via Blockchain; Brazil Fines Failure To Declare Crypto

Brazil cryptocurrency tax

Bank of China announced that it has issued 20 billion yuan ($2.8 billion) in blockchain-based bonds for small- and micro-sized businesses using its own blockchain platforms.

The two-year bond will come to the market with 3.25 percent coupon rate. “We have used our own blockchain-based bond issuance system in the process,” the bank said in the statement, according to CoinDesk. “This is also the first bond issuance ledger system that is based on blockchain in the country.”

The bank’s blockchain system was used to issue digital certificates proving ownership, as well as create groups of underwriters and document proof of transactions. The move comes as China is trying to help entrepreneurs gain more access to funding. As of September, Bank of China has lent 404 billion yuan ($57.7 billion) to more than 410,000 small- and micro-sized enterprises.

In other news, Brazil has released a new tax code that includes regulation that will fine anyone who does not declare their bitcoin and other crypto transactions.

The move follows an announcement in August that all transactions involving cryptocurrencies would have to be reported to the Department of Federal Revenue (RFB). The regulation applies to individuals, companies and brokerages, and includes crypto-related activities such as buying and selling, donations, barters, deposits, withdrawals and more. Taxpayers that don’t comply will face penalties ranging from 500 Brazil reals (BRD) to 1,500 BRD, or from $120 to $360.

Cointelegraph has previously reported that the RFB was in danger of running out of money, and had warned citizens that if it didn’t receive help from the government it might have to end agreements with contractors, stop issuing individual taxpayer registry identification numbers and quit paying income tax refunds. In addition, the head of the Federation of Industries of the State of São Paulo also voiced concerns that Brazilians could start using crypto to evade taxes.


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.