Brazil Signs Overseas Crypto Bill, SafeMoon Falls 31% In 5 Hours After Bankruptcy Filing

Here are some of the major developments from the world of crypto over the past few days
Some of the major developments from the world of crypto
Some of the major developments from the world of crypto

The President of Brazil, Luis Inácio Lula da Silva, has signed a law introducing taxes on crypto assets held abroad by Brazilian citizens. Under the new taxes, Brazilian citizens will pay the state up to 15 per cent of their crypto profits.

President Lula signed the law on December 12, 2023 which was then published the following day in the Diário Oficial da União, or the Official Diary of the Union. The law will come into force from January 1, 2024.

According to Cointelegraph, the new taxes will not apply exclusively to crypto, but also to profits and dividends gained by Brazilian taxpayers from investment funds, platforms, real estate or trusts abroad. The Brazilian government intends to collect around 20 billion reals or $4 billion of new taxes in 2024.

Those who begin paying the taxes in 2023 are also being offered an early-bird advantage. They will pay a levy of 8 per cent on all income made up to 2023 in instalments, with the first instalment beginning in December 2023. Starting in 2024, the tax rate will be set at 15 per cent. Overseas earnings up to 6,000 Brazilian reals ($1,200) will be exempt from taxation.

SafeMoon Falls 31% In 5 Hours After Bankruptcy Filing

The SafeMoon token (SFM) fell by a whopping 31 per cent within five hours after it was announced that the company behind it had filed for bankruptcy. However, the token has regained slightly since then.

Decetralised finance protocol SafeMoon had officially applied for Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” in a December14, 2023 filing to the US Bankruptcy Court for the District of Utah. The voluntary petition was filed by attorney Mark Rose, with Judge Joel Marker assigned to the case.

A screenshot of a letter to employees purportedly written by the firm’s chief restructuring officer surfaced on Reddit, explaining that its bankruptcy run was why it could no longer pay employee wages before the filing. “You will need to file a claim in the bankruptcy court for your unpaid wages,” the document said.

The latest blow comes only a month after the US Securities and Exchange Commission (SEC) charged SafeMoon, its founder Kyle Nagy, CEO John Karony, and chief technology officer Thomas Smith with violating securities laws in what the regulator described as “a massive fraudulent scheme”.

Solana Phone Sales Skyrocket As Degens Scramble For Pumped-Up BONK

Memecoin hopefuls have been snapping up Solana’s crypto phone in droves after a recent price hike for Solana memecoin Bonk (BONK), which has risen more than 1,100 per cent in the last 30 days.

Since the Solana phone was launched on May 8, 2023, this year, new owners have been able to claim a free 30 million airdrop of the memecoin, but a recent rise in the token’s price has presented an interesting arbitrage opportunity for buyers.

“Solana phone sales have > 10x’d in the past 48 hours, and are now on track to sell out before the new year,” wrote Solana co-founder Raj Gokal in a post on X (formerly Twitter) on December 15, 2023.

Related Stories

No stories found.
Outlook Business & Money