Daily Archives: March 29, 2022

A Day Late and Nearly $5 Million Short?: Legislation Introduced to Make Permanent the $7.5 Million Subchapter V Debt Limit As Temporary Extensions…

Posted: March 29, 2022 at 1:09 pm

On March 14, 2022, Senator Chuck Grassley (R-IA) introduced proposed legislation thatif enactedwould make permanent the $7.5 million debt limit applicable to debtors under subchapter V of chapter 11 of the Bankruptcy Code that has enjoyed only temporary status under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) for the prior two years. Of course, as bankruptcy practitioners may expect, the Bankruptcy Threshold Adjustment and Technical Corrections Act, S. 3823, 117th Cong. (as introduced to the S. Comm. on the Judiciary, Mar. 14, 2022) (the Act) substantially and permanently expands the scope of Subchapter V relief through an inconspicuous cross-reference to previously enacted legislation (the progeny of which is discussed below). Despite the Acts humble language, the proposed change promises a wider swath of small businesses and business owners a faster and more affordable pathway to reorganization in bankruptcy.

On February 19, 2020, the Small Business Reorganization Act (the SBRA) became effective. The brainchild of the American Bankruptcy Institutes (the ABI) Commission to Study the Reform of Chapter 11, the SBRA established subchapter V of the Bankruptcy Code to address the increasingly prohibitive time and cost reorganizations posed to Main Street mom and pop businesses. However, to ensure only small businesses and business operators accessed the truncated procedures of subchapter V, Section 1182(i)(B)(1) of the Bankruptcy Code limited the term debtor for subchapter V purposes to a person engaged in commercial or business activities with aggregate debts not exceeding $2,725,625.

And thenas with any contemporary storycame the COVID chapter. The CARES Act, which was signed into law by President Trump on March 27, 2020, offered sweeping legislative responses to the predicted economic toll the coronavirus pandemic would wreak upon the United States economy. In connection with this focus, the CARES Act provided for a temporary increase in the subchapter V debt limit from $2,725,625 to $7.5 million. The CARES Act debt limit increase was scheduled to sunset one year later, on March 27, 2021, but was extended to March 27, 2022 by the COVID-19 Bankruptcy Relief Extension Act.

The Act simply refers to the Section 1113(a)(5) of the CARES Actthe sunset provisionand provides simply that it is amended by striking paragraph (5). However, this simple legislative modification would nearly triple the debt limit permanently. In a press release, the ABI applauded the Act for increasing the debt limit and noted that, since the enactment of the SBRA, more than 3,000 debtors have elected to file under subchapter V of chapter 11. The Act likewise has found bipartisan supporthaving been introduced with co-sponsorship from Sen. Richard J. Durbin (D-IL), Sen. Sheldon Whitehouse (D-RI), and Sen. John Coryn (R.-TX).

Yet, the timing could have been better. As of the date of this post, the debt limit has reverted to its original limits under the SBRA due to the sunset provisions in the CARES Act and COVID-19 Bankruptcy Relief Extension Act. As the Act winds its way through Congress, the subchapter V practitioners and potential debtors affected by the debt limit reduction will need to watch with bated breath for a permanent solution. Until then, small business debtors whose debt exceeds the $2,725,625 debt limit but is less than the $7.5 million under the Act have a difficult decision to make: whether to wait until the Act passes and is signed into law before commencing a case under subchapter V, or commencing a case under chapter 11 and then seek to convert the case to subchapter V after the Act passes or dismiss the case and refile under subchapter V. This post will be updated if and when the Act is passed by the Senate and signed into law.

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A Day Late and Nearly $5 Million Short?: Legislation Introduced to Make Permanent the $7.5 Million Subchapter V Debt Limit As Temporary Extensions...

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[COLUMN] Bankruptcy: When you’ve done everything you can but it’s still not good enough – Asian Journal News

Posted: at 1:09 pm

WHEN debts become unmanageable, bankruptcy can become an invaluable financial recovery in helping regain control over your finances. Without the fresh start that bankruptcy provides, it would be impossible for a lot of people to ever pay back what they owe, and they will simply remain stuck in debt with nowhere to go. If youve tried everything you can to pay your debts but nothing has worked up to this point, it may be time to consider legal options.

Debt problems can happen to anyone at any time. No one is exempt. Bankruptcy is a fact of life. Without it, people with serious debt problems will remain stuck where they are, unable to move on with their lives. Living with stress every day caused by the burden of debt is a horrible way to live. Bankruptcy can offer hope when the future looks bleak. So, the whole concept of bankruptcy is to give you a fresh financial start when you have done your best to find a way out of debt but have realized that nothing is working anymore. So instead of trying to fix the situation, you just start with a clean slate.

Some people with limited income and resources will qualify for Chapter 7 to completely wipe out their debts. Others may have no choice but to file Chapter 13 and pay their creditors over a 3 to 5- year period. Much of it depends on your income and your assets. You also need to take into consideration your objective in seeking debt relief. Do you need to just wipe out your debts so you can start over or do you just need to consolidate your bills into a more affordable monthly payment?

Under the rules for Chapter 7 bankruptcy eligibility, your current monthly income must be measured against the median monthly income for a family of your size in your state. If your average monthly income is lower than the median, Chapter 7 may be for you. If your income is higher than the median, Chapter 7 is still a possibility, but there is an additional step. You have to pass whats known as the means test, a mathematical formula for calculating your disposable income and determining whether it is high enough to help pay off some of your debts. If the court believes that you are in a position to pay a certain portion of your debts through Chapter 13, then whatever amount you can afford will be good enough and you dont necessarily have to pay everything in full.

Chapter 13 can be the most effective way to consolidate all your debts into one low monthly payment while paying 0% on your credit card and other unsecured debts. As I mentioned above, in a lot of cases, most debts are only paid a small percentage of the actual amount, resulting in significant reduction- a reduction of 50% or more is not unusual. So, for the sake of this discussion, lets say that you owe a total of $50,000 in credit card debts but you can only afford to pay $400 per month. This amount may be acceptable and good enough to satisfy all creditor claims. Call my office and I will explain to you how this might be possible. Just imagine what this will do for you if you can cut your debt payments every month by more than half! Or better yet, if you qualify for Chapter 7, then you may not have to make any payments at all! No more sleepless nights worrying about your bills. No more living paycheck to paycheck and wondering every month how you can afford to pay rent and keep the lights on until the next paycheck comes.

Instead of hopelessly trying to pay your debts and not making progress, you may be better off just filing bankruptcy now to start fresh and rebuild your credit sooner than later. If you need help in getting out of debt, I would like to help you. Call my office at 1-866-477-7772 and lets talk about how I can get you a fresh financial start through either Chapter 7 or 13. Or if bankruptcy is not the best option for you, perhaps I can help you negotiate settlements with your creditors.

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None of the information herein is intended to give legal advice for any specific situation. Atty. Ray J. Bulaon has successfully helped over 6,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call RJB Law Offices at TOLL FREE 1-866-477-7772.

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New Slovak legislation on solving threatened bankruptcy – Lexology

Posted: at 1:09 pm

On 16 March 2022, the Slovak Parliament approved the anticipated new act on solving threatened bankruptcy (the Act) and also amended related legislative documents. It implements the Directive (EU) 2019/1023 on preventive restructuring, whose implementation was postponed by one year to 17 July 2022 due to the COVID-19 pandemic. The Act aims to reform insolvency in Slovakia and make preventive mechanisms effective enough to reduce the number of bankruptcies.

To whom does the Act apply?

The Act applies to all entrepreneurs that are legal entities threatened with insolvency. Certain financial entities such as banks, insurance companies, health insurance companies and state-owned companies are excluded. According to the amended Slovak Insolvency Act, an entrepreneur is threatened with insolvency if illiquidity is possible, i.e. if considering all circumstances it can be reasonably assumed that the entrepreneur will become illiquid (unable to pay its debts) within the next 12 months. This adds to the specification of a company in crisis in accordance with the Slovak Commercial Code, fulfilled if the ratio of its equity and liabilities falls below 8:100.

What possibilities exist?

Under the existing law, a debtor is obliged to take steps to prevent insolvency. However, the specification of appropriate measures adopted in that respect is missing.

Preventive restructuring is split into public preventive restructuring and non-public preventive restructuring, whereby the public preventive restructuring is governed by secondary legislation.

Unless the debtor obtains the required creditors consent with the moratorium, it must engage a professional advisor with adequate experience and liability insurance. The details are subject to contract, but certain provisions on liability and fees can be adjusted only with the approval of the creditors committee.

Public Preventive Restructuring

Public preventive restructuring has two phases subject to court approval: (i) approval of public preventive restructuring; and (ii) approval of the restructuring plan.

Only the debtor can file a motion together with the outline of the restructuring plan on the form which will be published by the Ministry of Justice on its website: vod - Ministerstvo spravodlivostiSR (gov.sk). The court will/must/should approve the public preventive restructuring if certain conditions are met, in particular if the debtor is not insolvent, cancelled, in liquidation or enforcement proceedings. In the same decision, if requested the court will/must/should grant a moratorium for three months (which can be extended up to six months in total) provided that certain creditors agree and conditions are met. The Act replaces the existing Act on Bankruptcy Moratoria about which you can find more information here. The moratorium can be accompanied with a preliminary injunction if necessary and justified.

The court selects at random and appoints a trustee only in certain situations (moratorium, expectation of cram down, request by the debtor or majority of creditors).

Following a meeting of affected creditors and the creditors committee, the debtor prepares the restructuring plan to be subsequently approved by the creditors meeting and the court (including the cross-class cram down if necessary).

Certain creditors, such as employees, small creditors and non-monetary creditors, are considered by law or by the plan itself as unaffected by the plan.

Non-public Preventive Restructuring

This tool is available only to creditors subject to supervision by the National Bank of Slovakia or similar foreign institutions. The debtor notifies the court of the initiation of such proceedings (if the affected creditors agree) and must submit the restructuring plan to the court within three months of the notification. If the court does not reject the plan within 15 days of its submission, it is deemed approved with effect against the creditors agreeing to it in writing.

Innovation

The Act envisages more transparency and simplification in insolvency proceedings through the mandatory publication of information in the Insolvency Register, mandatory electronic forms for most actions, as well as the possibility of videoconferences for creditors meetings.

Public preventive restructuring will be supervised by special trustees that have to pass an exam to ensure higher professionality and transparency; the special committee will prove the competence of such future special trustees with the mandatory re-testing every five years.

Final Observations

The Act intends to fulfil the long-desired reform of Slovak insolvency law and provide some guidance for debtors to avoid potential insolvency. Success will depend on the seriousness of their approach, openness and quality of the proposed solution.

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Two Recent Chapter 15 Cases Clarify Just How Low the Bar Is for Recognition – JD Supra

Posted: at 1:09 pm

Two recent bankruptcy cases have further established the perfunctory nature of a petition to recognize a foreign bankruptcy petition in the United States under Chapter 15 of the U.S. Bankruptcy Code (the Bankruptcy Code). In these recent appellate decisions, both the U.S. Bankruptcy Appellate Panel for the Ninth Circuit and the U.S. District Court for the Middle District of Florida found that so long as a foreign debtor meets the minimal requirements for filing a Chapter 15 bankruptcy petition under the Bankruptcy Code, the Chapter 15 petition is a valid filing in U.S. bankruptcy courts.1

Based upon these recent cases, creditors wishing to object to actions taken by foreign debtors are cautioned that the Bankruptcy Code provides bankruptcy court judges with little discretion in recognizing a foreign proceeding. Every case is different, but concerned creditors may be required to focus on other tools available if a foreign debtor has acted in bad faith in seeking recognition of its proceeding in the United States or if those creditors believe it necessary for a court to dismiss the case.

Charter 15 of the Bankruptcy Code provides insolvent foreign debtors with a mechanism for dealing with U.S. assets, claimants and other parties of interest while their insolvency proceeds in their home country.2 Pursuant to Chapter 15, a foreign creditor must seek recognition of its foreign insolvency proceeding in the United States before receiving the benefits of the Bankruptcy Code in the United States.

The Bankruptcy Code, specifically section 1517(a), is clear in its requirements for bankruptcy court approval of a recognition petition, and requires that for recognition in the United States: (1) a foreign insolvency proceeding exists, (2) the foreign representative applying for recognition is a person or body and (3) the petition meets perfunctory requirements of Section 1515 of the Bankruptcy Code.3 However, if a petition meets these three requirements, a U.S. bankruptcy court may refuse to recognize a proceeding if it would be manifestly contrary to U.S. public policy. Procedural and substantive differences between U.S. bankruptcy law and a foreign countrys insolvency law are not sufficient to permit a bankruptcy court to reject a petition.

In two recent cases, Black Gold and Zawawi, the courts continued in a long line of cases in finding that these Chapter 15 requirements are merely perfunctory and that, although a bankruptcy court may refuse to recognize a proceeding based on public policy, the public policy exception should be involved under only exceptional circumstances concerning matters of fundamental importance for the United States.4

In fact, in Black Gold, the Ninth Circuit BAP found that misconduct or bad faith, standing alone, is insufficient to deny a Chapter 15 petition.5 In Black Gold, the bankruptcy court had dismissed the underlying Chapter 15 petition, finding that the petition was not a legitimate use of Chapter 15, after noting its belief that the real purpose of the petition was to preclude a substantial creditor from recovering on a judgment that it had received base wrongful conduct by the principals of the debtor. Those principals allegedly had transferred assets out of the debtor to themselves to avoid the judgment.6 The Ninth Circuit BAP found that the bankruptcy court erred in its analysis and should not have looked beyond the Chapter 15 recognition requirements in determining eligibility.

Similarly, in Zawawi, Al Zawawi, who had been adjudged a bankrupt in an English bankruptcy proceeding and objected to a Chapter 15 filing in the United States by a foreign representative, asserted that in addition to the other Chapter 15 requirements, a threshold requirement is that the debtor must also have property in the United States. The district court found that owning property in the United States is not a prerequisite to a Chapter 15 filing.7

In both Black Gold and Zawawi, the courts determined that so long as a foreign representative has met the filing requirements under section 1517(a) of the Bankruptcy Code and no provisions in the foreign insolvency law are manifestly counter to U.S. public policy, the bankruptcy court should not look behind the Section 1517(a) filing requirements before recognizing a foreign proceeding.

While Zawawi and Black Gold reinforce the low bar to recognition, recognition is just the entry point to Chapter 15. To gain access to the tools that make Chapter 15 useful for instance, imposition of the automatic stay under Section 362 the foreign debtor must satisfy the additional Chapter 15 requirements. Bankruptcy courts are not therefore devoid of mechanisms for dealing with bad actors, though the low bar to recognition makes it challenging to keep such actors out of U.S. courts entirely.

FOOTNOTES

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Many Cryptocurrency Players Need To Grow Up – Forbes

Posted: at 1:08 pm

Female manager selling cryptocurrencies through mobile phone app. Stock market, investment and ... [+] cryptocurrencies concept

The other week brought a curious outburst from part of the online cryptocurrency industrythose who spend expansive time promoting their holdings as the only choice in an uncertain world and challenging people who have any other view, even when, as with some Ive seen, the doubtful hold extensive expertise in areas of finance.

Heres how Reuters put it: LBRY Inc, a blockchain publishing company accused by the U.S. Securities and Exchange Commission of selling unregistered securities, tweeted on Wednesday that it is done being nice and that it would engage in psychological warfare as it fights the lawsuit.

Thats may be a bit too harsh of a recounting. The people at LBRY do seem convinced that the SEC has been unfair and unreasonably punitive.

And the psychological warfare was supposedly a joke about meeting the SEC sweaty and after eating garlic, although if youre asking your lawyers if you could do it and they said no, was it as much of a joke?

In any case, trying to build a PR campaign to the cheers of those who follow you is a poor way to approach regulators. As journalist and CPA Francine McKenna put it, Swagger is not a strategy. As she notes, it hasnt proven itself for multiple companies to date.

Many people in the crypto industry dont seem to grasp how regulation works, other than seeing it as a blockade to what they want, run by people who are slow to embrace something new out of spite.

They certainly are slow about things because of the nature of regulations. The intent is to ensure predictable behavior that meets a standard in order to achieve a specific result. For the SEC, there are two primary goals. One is to ensure the long-term interests of Main Street investors, otherwise known as retail or consumer investors. These are the people who dont have massive assets, expertise help, and other resources to keep their retirement funds safe.

(And even the supposedly well-prepared can fall flat on their faces. Although not crypto, think of the investment disaster that was Theranos.)

The other main goal (there is a third that addresses enhancing the agencys analytic abilities, but that can sit to the side for now) is to [r]ecognize significant developments and trends in our evolving capital markets and adjust our efforts to ensure we are effectively allocating our resources. The SEC must follow developments in technology to understand how regulation of markets has to change.

On the other side, there are two ways the enthusiasts tend to look at cryptocurrencies. One is as an alternative decentralized financial system. They assume that if things go wrong in a big way with governments and the worlds economya reasonable worry given the Great Recession in 2008cryptocurrencies will allow people to continue buying and selling.

This view isnt realistic because it doesnt consider how interconnected and mutual all finance is. If the worlds ability to support business transactions on all levels catered, the vast interconnected majority that uses more traditional forms of finance would cause so much strife and disruption that decentralized finance wouldnt stand a chance of working, given its reliance on communications systems that are part of the bigger global infrastructure.

Additionally, its not like decentralized finance was never tried before with results that should also cause concern. That was the way of much of the world for hundreds of years. Individuals, banks, and businesses would create their own currencies, causing so many problems that the current regulated reality was the solution. No, they didnt have then the communications and technical advantages available now, but the same human issues of trust, of which currency would stay afloat or not, remain. Relying on cryptocurrency as a form of ordinary transaction means wild volatility that could cause periods where no one could know what the value of their holdings would be from one day, or moment, to the next. Again, in different forms, thats already historical reality.

The other view crypto supporters often take is that this is a true form of value holding and a terrific investment. The first part has to confront the volatility. The latter is where the SEC steps in, and given some things that have happened in cryptocurrencies, the agency cant assume there are companies that could never go awry.

People in one company or another are upset. Understandable, as theyre making bets on the future, putting in significant work, and then finding themselves tripped up by something that, frankly, should have been obvious in risk management planning. It wouldnt be all that surprising if lawyers and financial experts have been trying to tell them.

Getting angry isnt the answer, nor are the expectations of impatience. No big systems change quickly, due in part to vested interests of the people running them, sure, but more importantly, huge mechanisms cant change overnight. It takes years and patience because the new version has to learn to cover all the bases the old one did.

This is the very stuff of Edmund Burkes version of conservatism. Avid rush to change had best recognize the potential that an unsuccessful transition to new form of order might lose the old, never realize the new, and leave chaos in its wake.

Really changing the world in fundamental ways is a process. If you cant recognize that a big shift requires intent and pushing, yes, but also the reality of a process, maybe you shouldnt be leading the charge because you havent yet achieved the perspective of an adult.

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What Is the Next Cryptocurrency to Explode in 2022? – The Motley Fool

Posted: at 1:08 pm

The most exciting thing about cryptocurrency investments is that when they explode, they skyrocket in value. In 2021, we saw Solana (CRYPTO:SOL) increase by more than 10,000%. Terra (CRYPTO:LUNA) gained more than 12,000%. Meme token Shiba Inu (CRYPTO:SHIB) shot up more than 40,000,000%.

What will be the next cryptocurrency to explode? It's obviously impossible to know for sure, especially since there's no guarantee of whether crypto is here to stay. However, we can pick out some possible candidates that are capitalizing on current trends that include the metaverse, decentralized finance, and artificial intelligence.

Image source: Getty Images.

Here are the cryptocurrencies that could be due for a significant bull run:

1inch Network (CRYPTO:1INCH) is a decentralized exchange (DEX) aggregator. Decentralized exchanges allow users to swap different cryptocurrencies just by connecting a crypto wallet. There's no central authority managing the exchange, and, with many DEXs, there's no need to register for an account either.

Decentralized finance (DeFi) was huge in 2021 as many crypto enthusiasts used DEXs to trade cryptocurrencies. 1inch is a simple way to get the most for your crypto when using DEXs. It instantly compares prices on hundreds of different platforms to find the best rate for you.

While the aggregation protocol is extremely useful, it's not all that 1inch offers. Other 1inch products include a limit order protocol that lets you set specific trade conditions and 1inch Earn, which offers annual yields of 5% to 10% on stablecoins.

Metaverse tokens have been popular lately due to growing interest in virtual reality and digital worlds. Many of these tokens are digital currencies used within the metaverse, but Render Token (CRYPTO:RNDR) is much different.

Render is a decentralized GPU rendering network. It's designed to connect digital creators such as artists and studios who need GPU computing with partners who are willing to rent out their unused GPU computing power. Digital creators pay GPU providers using Render tokens.

Its metaverse applications could make Render a good cryptocurrency investment this year. It's also worth noting that Coinbase Global (NASDAQ:COIN), one of the top cryptocurrency exchanges, began listing Render in February. Any time a cryptocurrency becomes available on Coinbase, it's exposed to a much wider audience of potential buyers.

Aave (CRYPTO:AAVE) is one of the most popular and user-friendly lending protocols. Users can borrow and lend many different types of cryptocurrency. If you deposit your cryptocurrency to Aave, you'll receive interest payments for lending your funds.

One of the reasons Aave has been outdoing other lending protocols is its unique features. Borrowers can switch from fixed to variable interest rates and vice versa. Aave is also known for its FlashLoans, which are loans that don't require collateral. They do, however, need to be repaid in the same transaction.

Aave is a governance token, which means holders can vote on the future of the protocol. They also get fee discounts when using Aave's services.

Automated market makers (AMMs), which are decentralized exchanges that run on smart contracts, grew quite a bit in 2021. While there are many AMMs out there, SushiSwap (CRYPTO:SUSHI) could be the one that's most poised for a big run.

SushiSwap supports more than a dozen different blockchains, which allows it to offer some of the most competitive rates. It's also one of the top options for staking crypto. It offers a huge variety of liquidity pools and makes it easy to see the annual percentage yield you can earn with each one.

What makes SushiSwap a better choice over other AMMs such as Uniswap (CRYPTO:UNI) and PancakeSwap (CRYPTO:CAKE)? The SushiSwap app arguably offers the most user-friendly experience, but its market cap is still just a fraction of the other two.

Fetch.ai (CRYPTO:FET) is a cryptocurrency project that promises artificial intelligence for everyone. The developers have built a blockchain platform that uses artificial intelligence and machine learning to provide users with digital twins.

These digital twins are designed to make the user's life easier. For example, your digital twin could:

Entrepreneurs could also use digital twins to save time and run their businesses more efficiently. A digital twin could handle contracts, payments, scheduling events, and much more.

Illuvium (CRYPTO:ILV) is an open-world RPG adventure game. Players can explore the world of Illuvium, progress through a story mode, and capture creatures called Illuvials. Each Illuvial is a non-fungible token (NFT) that is stored in your wallet when you capture it.

There's a lot of hype around blockchain games right now, especially after the success of Axie Infinity (CRYPTO:AXS). The challenge when investing in gaming coins is finding quality projects. Illuvium is still in development, and while there's no guarantee it will be a hit, it looks like it could catch on with gamers.

An Illuvium trailer released in 2021 looks much better than the typical blockchain game. The large roster of unique creatures is also something that could attract players and keep them coming back.

Most of us wouldn't mind getting paid to browse the internet. With Basic Attention Token (CRYPTO:BAT), you can.

All you need to do is install the company's Brave browser. This browser replaces the usual internet ads with ads that pay you in rewards, specifically in BAT. By using Brave, you're the one getting paid for your internet ad views instead of other companies.

Brave has a long way to go before it's competitive with the biggest web browsers, but it does have more than 50 million monthly active users, making it one of the most successful crypto projects to date.

XRP (CRYPTO:XRP) is the native cryptocurrency for Ripple, a payment protocol that uses blockchain technology for fast, inexpensive transactions. Ripple was designed to facilitate international transfers, and it has partnered with hundreds of financial institutions that use its technology.

Ripple has been around since 2012, but it became embroiled in a Securities and Exchange Commission lawsuit at the end of 2020. That prompted most of the major U.S. crypto exchanges to delist XRP.

The biggest problem for Ripple has been the lawsuit, but XRP is still one of the largest cryptocurrencies. As Ripple's legal troubles come to an end, there's a good chance that exchanges will start to carry it again and it will pick up more investors.

It's tempting to try and find that next big cryptocurrency. Even though you could potentially make incredible returns this way, it's also difficult, time-consuming, and extremely risky.

For starters, you'll need to look for cryptocurrencies outside the market leaders. Smaller cryptocurrencies have greater growth potential, but they're also more likely to fold, so there's a bigger chance of losing your entire investment. To balance that out, you might want to put some of your money in cryptocurrency stocks or large-cap coins.

Researching those smaller cryptocurrencies takes time. And even if a project looks like a sure-fire winner, anything can happen in the crypto market. Your carefully researched investment could go nowhere, while a practically useless cryptocurrency goes to the moon just because it has "Shib" or "Doge" in the name.

Following the cryptocurrency trends, or trying to predict them, isn't a good investment strategy. There's nothing wrong with giving it a shot, but keep your expectations and the amount you invest very low.

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Cryptocurrency donations accepted to fund mission critical work – American Heart Association

Posted: at 1:08 pm

The American Heart Association takes next step in cloud-based exchange by accepting donations of cryptocurrency.

DALLAS, March 29, 2022The American Heart Association sees the accelerated deployment of blockchain technology as a means to drive healthcare research and fund the mission. The Association is expanding its participation in the artificial intelligence ecosphere beyond information exchange to include crypto donations.

As the American Heart Association grows and evolves, embracing innovation in all areas is important as we seek new treatments to prevent cardiovascular disease and optimize brain health, said Raymond P. Vara, Jr., chairman of the board of the American Heart Association. Accepting cryptocurrency donations by utilizing blockchain technologies gives supporters options on how they can contribute to our lifesaving mission.

The American Heart Association, devoted to a world of healthier lives for all, is continuing the immersion of blockchain into other areas of the organizations work, beyond evidence-based data, by allowing supporters to give donations of cryptocurrency through the Giving Block. The accelerated blockchain transaction technology will continue to assist the American Heart Associations work to be a relentless force for a world of longer, healthier lives.

Currently cryptocurrency donors are able to double their donations made to the American Heart Association through a match of up to $10 million processed by the Giving Block.

According to a recent article in the American Heart Associations premier scientific journal, Circulation, blockchain technologys cloud-based application has the potential to positively disrupt current healthcare research systems and processes through applications which are currently in the early stages of design and development. The solutions can increase healthcare data authenticity, transparency and operations efficiency for everyday exchanges from the security of electronic health records to insurance claim validation.

The American Heart Association was an early adopter of blockchain technology offering it to the scientific community through a data challenge hosted on the Precision Medicine Platform starting in 2020. Blockchain technology enabled data sharing of an extensive library of global COVID-19 datasets, provided by BurstIQ, that led to novel insights in the relationships between COVID-19, social determinants of health, and health disparities on the burden of illness and mortality.

In the past two years, the pandemic created a heightened sense of urgency and demand for real-time information exchange for research collaboration. Blockchain was a valuable resource we could leverage to assist, said Jennifer L. Hall, Ph.D.

chief of data science, American Heart Association. Now, were leveraging more blockchain solutions to further benefit the work of the Association. Accepting cryptocurrency donations is the next step.

For more information on how to make a cryptocurrency gift to the American Heart Association visit heart.org/crypto.

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About the American Heart Association

The American Heart Association is a relentless force for a world of longer, healthier lives. We are dedicated to ensuring equitable health in all communities. Through collaboration with numerous organizations, and powered by millions of volunteers, we fund innovative research, advocate for the publics health and share lifesaving resources. The Dallas-based organization has been a leading source of health information for nearly a century. Connect with us onheart.org,Facebook,Twitteror by calling 1-800-AHA-USA1.

For Media Inquiries: 214-706-1173

Linzy Cotaya: 504-827-3446; linzy.cotaya@heart.org

For Public Inquiries: 1-800-AHA-USA1 (242-8721)

heart.org and stroke.org

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Letter to the editor: Cryptocurrency is a tax avoidance – Canton Repository

Posted: at 1:08 pm

The United States has missed the boat on cryptocurrency. Taken from the Greek for crypto or kryfo, it means hidden or secret. In plain English, cryptocurrency is black-market economy, barter system or, simply put, a way to avoid taxes. Cryptocurrency is used for drug deals, organized crime and a variety of situations where money cannot be traced.

The federal government instituted the Patriot Act to track exchanges of large sums of money, $10,000 or more. China has banned cryptocurrency. To date, there are over 18,000 different cryptocurrencies. Many were started as a joke.

If the federal government and the current administration wish to collect more taxes, the elimination of cryptocurrency would result in billions of tax dollars and the elimination of yet another tax avoidance. Quite frankly, there is no valid economic reason for a cryptocurrency. By definition, cryptocurrency is a tax avoidance. For those law-abiding, tax-payingU.S. citizens, the failure of the U.S. government to take action is an affront.

Gust Callas,Canton

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Crypto Tax rules in India: How will cryptocurrency assets be taxed from April 1? – India Today

Posted: at 1:08 pm

Cryptocurrency investors in India will have to pay tax under the new scheme for Taxation of Virtual Digital Assets from April 1. The Union Budget 2022-23 brought in clarity pertaining the levy of income tax on crypto assets.

Financial Minister Nirmala Sitharaman in the Union Budget 2022 announced that "any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent."

- From April 1, a 30 per cent I-T plus cess and surcharges will be levied in the same manner as it treats winnings from horse races or other speculative transactions.

- One per cent TDS on payments towards virtual currencies beyond Rs 10,000 in a year and taxation of such gifts in the hands of the recipient.

- The threshold limit for TDS would be Rs 50,000 a year for specified persons, which include individuals/HUFs who are required to get their accounts audited under the I-T Act.

- The provisions related to 1 per cent TDS will come into effect from July 1, 2022, while the gains will be taxed effective April 1.

Infrastructure cost incurred in the mining of cryptocurrencies or any virtual digital assets will not be allowed as deduction under the Income Tax Act, Minister of State for Finance Pankaj Chaudhary has said

In a written reply to the Lok Sabha, Chaudhary said the government will come out with a definition of Virtual Digital Assets (VDA) with a view to levy 30 per cent tax on income from the transfer of such assets.

Also, loss from the transfer of VDA will not be allowed to be set off against the income arising from the transfer of another VDA, Chaudhary said.

The minister said that while computing the income from transfer of VDA, no deduction in respect of any expenditure (other than the cost of acquisition) or allowance is allowed.

"The (Finance) Bill also proposes to define VDA. If any asset falls within the proposed definition, such virtual asset will be considered as VDA for the purposes of the Act and other provisions of the Act will apply accordingly," he said.

Further, he said, "infrastructure costs incurred in the mining of VDA (eg. crypto assets) will not be treated as cost of acquisition as the same will be in the nature of capital expenditure", which is not allowable as a deduction under the I-T Act.

ALSO READ | Crypto Tax in India: Date, income tax, ITR form, TDS, deduction | Key points

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In a pitch to cryptocurrency investors, Poilievre says he wants Canada to be ‘blockchain capital of the world’ – CBC News

Posted: at 1:08 pm

Conservative leadership candidate Pierre Poilievre said Monday a government led by him would do more to normalize cryptocurrencies like bitcoin and ethereum in Canada to "decentralize" the economy and reduce the influence of central bankers.

Since bitcoin'sadvent in 2009, a number of right-leaning and libertarian-minded investors have championed cryptocurrency a financial instrumentthat is largely unregulated in the Western world as a way to reduce government control over money because the supply of cryptocurrency tokens is not set by an authority like the Bank of Canada or the U.S. Federal Reserve.

With its supply limited to just 21 million tokens, bitcoin boosters insist cryptocurrency is a hedge against inflation.

Speaking at a shawarma shop in London, Ont. that accepts bitcoin as payment, Poilievre said that over the course ofthe COVID-19 crisisthe Bank of Canada created "$400 billion in cash out of thin air" through its policy of quantitative easinga development he blames for inflationhitting a 30-year high and housing prices reachingall-time record levels.

As a number of other central banksdid during the Great Recession, the Bank of Canadahas embraced quantitative easing over the past two yearsto boost lending and spending during a time of financial panic. That policy ended in October 2021.

As the party's finance critic, Poilievre has railed against the policy because he, like some conservative-minded economists, sees the government's ability to print money which can devalue existing dollars as a form of taxation.

"Government is ruining the Canadian dollar, so Canadians should have the freedom to use other money, such as bitcoin," Poilievre said Monday.

"Canada needs less financial control for politicians and bankers and more financial freedom for the people. That includes freedom to own and use crypto, tokens, smart contracts and decentralized finance."

Poilievre'sdescription of cryptocurrenciesis similar to what conservatives in another era said about the gold standard a policy of fixing the value of a country's currency directly to gold to limit the money supply. The gold standard was abandoned by all major economies in the twentieth century because it proved to be too volatile and it restricted a government's ability to respond to economic crises.

Poilievre said that, if he's elected prime minister,he'll "keep crypto legal and reject a China-style crackdown." The Chinese government has banned cryptocurrencies because it says bitcoin and products like it could destabilize existing financial systems and fuel fraud and money laundering.

Securities regulation falls under provincial jurisdiction.Poilievre said he'd work with the provinces and territories to eliminate a "cobweb of contradictory rules" that govern crypto andblockchain thesystem which records bitcoin and other cryptocurrency transactions.

Poilievresaid he also wants crypto to be treated like gold and other commodities for taxation purposes.

Poilievresaid he wants to foster "a new, decentralized, bottom-up economy"by creating a more permissive regulatory environment.

"Choice and competition can give Canadians better money and financial products. Not only that, but it can also let Canadians opt-out of inflation with the ability to opt-in to crypto currencies. It's time for Canadians to take back control of their money and their lives by making Canada the freest country on earth," Poilievre said.

The value of bitcoin has increased dramatically over the past two years of the pandemic as individual investors poured money into it and other cryptocurrencies.

But bitcoin has had a volatile run in recent months as central banks have increased interest rates to tackle pandemic-driven inflation, making speculative investments less attractive. The price of bitcoin has dropped some 30 per cent since its November 2021 high.

Bitcoin has also been criticized by some large investors like Warren Buffett, the billionaire chairman of Berkshire Hathaway, and his business partner, Charlie Munger. They maintain these sorts of financial tools have the potential to collapse, wiping out tens of billions of dollars in wealth for casual buyers.

Buffett and Munger arguebitcoin's value is purely the product of speculation.

"Bitcoin is ingenious but it has no unique value at all. It doesn't produce anything. You can stare at it all day and no little bitcoins come out. It's a delusion, basically," Buffett said in a 2019 interviewwith CNBC, adding it's like "rat poison" for investors.

"What you hope is someone else comes around and pays you more money later on, but then that person has the problem. In terms of value, it's zero."

The shadowy nature of the currency is also source of a concern for some.

"I don't welcome a currency that's so useful to kidnappers and extortionists," Munger said last year. "The whole damn development is disgusting and contrary to the interests of civilization."

Poilievre's fondnessfor bitcoin is well documented. Last fall, Poilievre said he disclosed his cryptocurrency holdings to the federal ethics commissioner.

While anti-vaccine mandate protesters associated with the so-called "Freedom Convoy" were in downtown Ottawaearlier this year, the Toronto Star reported Poilievre was having "frequent" conversations with Greg Foss, a major Canadian bitcoin investor who raised hundreds of thousands of dollars in cryptocurrency to fuel the anti-vaccine mandate movement.

In February, Poilievreappeared on a cryptocurrency podcast hosted by a bitcoin trader who has promoted COVID-19 conspiracies and has compared central banking policies to slavery and Nazi Germany.

Poilievre told the show's host, Robert Breedlove, that he and his wife occasionally watch his cryptocurrency YouTube channel "late into the night."

"I find it extremely informative and my wife and I have been known to watch YouTube and your channel late into the night once we've got the kids to bed," Poilievre said. "And, I've always enjoyed it and I've learned a lot about bitcoin and other monetary issues from listening to you."

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In a pitch to cryptocurrency investors, Poilievre says he wants Canada to be 'blockchain capital of the world' - CBC News

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