Each participant and investor wishes to obtain unrestricted funds. There are also tools that enable customers to reclaim money spent on online purchases. They gain sign-up incentives and some banks allow them to earn money on their accounts when they utilise them. Similarly, for gamblers, crypto foreign currency is an added bonus. They enjoy earning crypto gaming cash, and there are numerous ways to do it. It is incredibly basic and straightforward to obtain.

Concerning cryptocurrency gaming funds

Cryptocurrency is a form of future money that has the potential to fundamentally alter the global monetary system. It is critical to understand that cryptocurrency purchasing and selling will not be a quick scam, as the general public believes. Rookies in bitcoin trading have to conduct extensive research on their own and be confident when selecting the cryptocurrency in which to invest. For newcomers, cryptocurrency is undoubtedly the most hospitable market, but they must be aware of price volatility, which not only generates large profits but also has the potential to have terrible consequences. You must learn about some methods that can assist novices in cryptocurrency trading.

Locate a dealer

Finding the best cryptocurrency dealer is not an easy task, since there are numerous businesses offering a variety of services. The key aspect to consider is the legislation, fees, and type of cryptocurrency you desire to trade.

Select a cryptocurrency

It is now time to choose the cryptocurrency with which you desire to transact. It is critical to choose a currency with the greatest potential, such as a crypto gaming coin. There are numerous factors to consider while selecting cryptocurrency, including infrastructures, experience, development teams, and the cryptocurrency's growing reputation.

Determine the development that is worthwhile

Value determination is a critical stage, as you will almost certainly want to purchase low and sell high. It is a fundamental way of buying and selling that is applicable to a sample of bitcoin values that fluctuate according to certain value criteria. While it is true that as cryptocurrency develops a strong infrastructure, expertise will rise for an extended period of time, such investments are risky for novices.

Your objective value that you wish to promote

When you purchase cash or a certain cryptocurrency, you do it with the expectation that its value will be low. When you begin buying and selling and the value increases, it's critical to consider the appropriate time to exit the business. The ideal time to exit is when the value becomes excessive.

Purchasing incentives

Numerous browsers, including Firefox, Google Chrome, and others, now support bitcoin. Additionally, you will earn crypto gaming cash when you shop at its retail partners. It works similarly to browsing extensions such as Honey or Rakuten that provide money back and discounts if you use the extension or portal to make an online purchase. For practically all players, it is really simple and effortless to earn these funds without exerting any effort. They purchase goods from these retailers and earn cryptocurrency gaming cash to spend on their video games.

This opportunity is available if you use certain bank cards.

Support us!

Elon Musk, the CEO of Tesla, questioned the wisdom of Dogecoin's creators' policy. He believes that the commission on transactions involving this cryptocurrency should be decreased. Only then can the asset be more commonly utilised in retail transactions. According to psm7.com, he tweeted this.

What Musk has to say

"It is critical that Doge's commissions decrease in order to make activities like purchasing films viable," he wrote.

He made his remark in the wake of the news that AMC Entertainment, the country's largest cinema chain, will begin taking cryptocurrency payments. Billy Markus, a co-developer of Dogecoin who has since left the project, concurred with Musk's post.

He continued by stating that engineers must upgrade Doge's blockchain infrastructure, which will result in decreased default costs.

What became to the Dogecoin training course?

Musk shared a charming photo of a dog sleeping on a mat on September 13 – "Floki has arrived," the billionaire stated, prompting a 1309 percent increase in the Shiba Floki coin and a 140 percent increase in another Floki Inu token. Simultaneously, the original Dogecoin cryptocurrency increased by only 5%.

Dogecoin achieved an all-time high of $ 0.73 in early May. Altcoin soared in popularity in anticipation of Elon Musk's appearance on Saturday Night Live.

Tesla CEO Elon Musk already announced his presence on the show on April 28. Then he made a Twitter post in which he introduced himself as Dogefather.

In April, the cryptocurrency price increased significantly in response to Musk's backing. On April 16, he tweeted a photograph of Joan Miró's painting "Dog Barking at the Moon" and captioned it, "Doge barking at the moon."

Additionally, Musk stated on April 1 that SpaceX is intending to deliver Dogecoin to the moon. Within a half-hour of its publishing, coin prices increased by 20%.

Support us!

A cryptocurrency business in Silicon Valley is making waves with an unusual offer: they'll give you free cryptocurrency in exchange for allowing them to scan your eyeballs.

Sam Altman, a tech billionaire, founded the startup Worldcoin. Altman intends to scan a billion people's eyes till next year, according to NotebookCheck.net.

After your eyes are scanned, you'll be paid in Worldcoin, the company's proprietary cryptocurrency.

According to the company's official website, Worldcoin is intended to be a "collectively owned global money that will be distributed equally to the greatest number of people feasible."

This essentially indicates they want to see a greater spread of cryptocurrency use. Recently, Worldcoin asserted that less than 3% of the global population is involved in crypto or anything remotely close.

Since its inception, the cryptocurrency business has scanned the eyes of over 100,000 people worldwide. According to CNBC, company CEO Alex Blania believes that their cryptocurrency can be used to fund a future "universal basic income."

Indeed, cryptocurrency has dominated headlines for the better part of the last two years. Many people are investing their life savings in this novel type of investment in the hope of striking it rich in the digital world.

Why Is This Cryptocurrency Startup Using Eye Scanners?

To others, this may sound like a scene from a dystopian future: large corporations acquiring people's personal and biometric data. However, Worldcoin claims that they are doing so for a very legitimate reason.

According to the CNBC article, the eye scans are intended to assist individuals in verifying their personal bank accounts. The metallic spheres that do the scan do so by scanning irises, which function similarly to fingerprints as a form of identification.

When a user scans their eyes, their eyes are photographed. After then, the photo will be used to generate a code that will be sent to the company's servers. These orbs are strewn throughout 12 different countries.

However, if you anticipate receiving actual cryptocurrency, you will be disappointed. You are purchasing a portion of the company's Worldcoin.

As of late, Worldcoin claims to have secured $25 million in backing from a number of high-profile investors. Reid Hoffman, co-founder of Coinbase and LinkedIn, and a well-known Silicon Valley investor, is one of them.

Support us!

Rally, a leading crypto platform for creators, announced that it will commit approximately $12 million in $RLY tokens from its community-approved budget to third-party developer grants to expand the functionality of social tokens and non-fungible tokens purchased on the platform by fans from their favourite creators. Rally is enabling the election of a council led by community developers to oversee funding distribution.

Bonfire, Dave Young (designer of the Rally's $PLAY coin), and MintGate were the first beneficiaries of Rally third-party development funding. These three developers each received over 2 million $RLY tokens. Previously, the community approved grants of around $500,000 USD to $PLAY, $250,000 to Bonfire, and $11,800 to MintGate in the form of $RLY tokens.

"Our ecosystem of external developers is what differentiates Rally when it comes to launching social tokens and non-fungible tokens," stated Stephanie Pereira, Rally's VP of Creator Success. "Projects such as Ethereum have demonstrated that actual value is created in the crypto ecosystem through dispersed networks of developers creating tools and functionality on top of network architecture. The Rally community has acknowledged and honoured these three teams' accomplishments and intends to award further funds in the future months."

Rally assists creators in launching personal cryptocurrencies — often referred to as social tokens — and network-based tokens (NFTs) with their communities. These producers can extend the utility of their coins and NFTs across the web by utilising technologies developed by Rally and third-party developers. The Rally API exposes a number of public endpoints, some of which are available to the general public. Anyone can use the API to get access to the whole list of creator coins on Rally, their value, and a complete history of NFTs published and who owns them. With a developer account, you can listen for transactions using a webhook.

The integrations established by Bonfire and $PLAY are already being used by creators. Bonfire has developed a suite of tools for producers that enables them to easily distribute currencies during live streams, provide unique discount codes, and offer bounties to incentivise certain behaviours in their holder community. On top of Rally, $PLAY has established a full-time business.

$PLAY intends to use the award to develop a web-based social gaming platform

Thousands of game developers will now be able to use Rally social tokens into their new or existing Unity-based games. This contains a Unity plugin, a server-based payment system and developer portal, a public arcade site for hosting the games, audience interaction tools for streamers, simple game customisation tools for producers, and a coin-specific and global leaderboard system. Dave Young, the creator of $PLAY, is a 30-year-old full-stack developer. He has worked on products for Amazon, Lycos, and Warner Bros.' Turbine Games Division.

"After years on the SAAS treadmill, the Rally ecosystem represents an incredible opportunity for product development," Young stated. "With the platform's diversity of deep creative verticals and cross-creator use cases, there are a plethora of intriguing high-impact initiatives just waiting to be produced." Rally has been a breath of new air in terms of delivering desired API additions and infrastructure changes, which is something you rarely see in third-party developer programmes. I resigned from an incredible high-end job as a senior architect in order to devote my full time to Rally initiatives. It is without a doubt one of the best job choices I've made. Simply said, there is no finer opportunity available now."

Bonfire will use the award to advance its product roadmap, which includes support for gating prizes and perks with Rally NFTs, unique merch and ticket drops, and a "bounty board" where members can earn customisable coin bounties for various sorts of community interaction and contribution. Matt Alston and Melissa Zhang created Bonfire in 2012. Alston previously worked at Uber as a product manager, and Zhang at Coinbase as an engineer. Numerous venture capital firms, including Kleiner Perkins and Li Jin's Atelier Ventures, have invested in the company.

"Building in and being a part of Rally has been an incredible community and ecology," Alston added. "Their rate of releasing new features for artists and developer tools is outstanding, and we particularly admire their commitment to making web3 accessible to a broader audience of creative communities. Rally and similar products will be critical in bringing the next 100 million people online."

MintGate intends to utilise their grant to create and build a widget and token gating API that would enable creators to use Creator Coins to gate content on third-party platforms such as Youtube, Vimeo, SoundCloud, and Google Docs. Jennifer Tran, the MintGate founder responsible for the Rally integration, graduated from college in 2017 and worked for several years as a developer before starting MintGate in November 2020. Additionally, four additional founders join her. The project has since graduated from Consensys and Protocol Labs' Tachyon Accelerator.

"MintGate has spent the last year integrating our token gating platform with over 65+ blockchains," Tran explained. "We chose to include Rally support since they were pioneers in giving tools, APIs, and marketing support to developers interested in developing apps for social token makers. Since we decided to develop on Rally, we've felt a sense of belonging. We strongly encourage you to combine Rally with any current projects that utilise several blockchains. You'll gain experience working directly with artists and ambassadors, as well as numerous additional possibilities to contribute immediately without extensive web3 experience."

Concerning the Gathering

Rally is a decentralised platform that enables creators and artists to develop their own digital currency and to collaborate with their fan networks to build sustainable, self-sustaining economies. Rally, which is powered by digital assets on the Ethereum blockchain's RLY sidechain, enables creators to monetise their work by allowing followers to purchase and use their social tokens, as well as through crypto reward schemes. Fans have access to special material, exclusive communities, backstage passes, early access to tickets, one-of-a-kind NFTs, and exclusive gear – all while demonstrating their fan loyalty by carrying their favourite creator's currency. The Developer ecosystem enables creators' unique benefit use cases and pushes the envelope of social token innovation.

Support us!

According to the business's website, Art Blocks is a first-of-its-kind platform focused on truly programmable on-demand generative material that is immutably stored on the Ethereum ETH Blockchain.

Art Blocks was founded as a result of an opportunity to claim CryptoPunks discovered while surfing Reddit by Art Blocks founder Erick Calderon, alias Snowfro.

"I credit Matt and John from Larva Labs for 95 percent of what's occurring now," Calderon stated Thursday on Benzinga's new NFT podcast, "The Roadmap."

Matt and John founded Larva Labs, which developed CryptoPunks, possibly the most well-known NFT project.

Snowfro stated that he claimed a total of 34 CryptoPunks, which he immediately began selling in order to raise funds for the creation of Art Blocks.

"Without them, we would not be here today, and that is how things began," Calderon told us.

Additionally, here are some additional details about art blocks: "You select a style that appeals to you, pay for the task, and an algorithm generates a randomly generated version of the material and sends it to your Ethereum wallet. The final item may take the form of a static photograph, a three-dimensional model, or an interactive experience. Each output is unique, and the platform offers an infinite number of content kinds "Art Blocks, according to.

Prior to the advent of Art Blocks, artists could generate thousands of outputs and then choose which ones to utilise depending on the findings. In other words, Calderon noted, there was an element of "built-in curation."

"I believe that what distinguishes Art Blocks is the absence of curation. This curation must occur entirely on the front end, and the artist must fine-tune and massage their... algorithm to the point where each and every piece that emerges from the minter accurately represents them as an artist "Added Calderon.

"They're electronically signing something before they've even seen it."

Snofro's Chromie Squiggle is one of the most popular Art Blocks projects.

"Initially, the squiggle served as a demonstration of concept. Never was it intended to be an artistic endeavour "Added Calderon. "It was intended to demonstrate the amount of variance that can be obtained from a token's hash string."

To those unfamiliar with the squiggle collection, the art pieces appear to be somewhat identical, but upon closer examination, it's simple to notice how unique each are, Snowfro explained.

"I discovered this beauty in the squiggle's recognisable nature and the fact that it may genuinely express something to which people can identify."

Snowfro then discussed Ethereum's gas battles, the Art Blocks artists, and the minting process, among other topics.

Support us!

This week, Wall Street opened its doors to the crypto industry, as the first US exchange-traded bitcoin fund raised more than $1 billion in capital and pushed the prices of the world's largest digital currencies to new highs.

Similar instruments currently trade in other markets, but the debut of a crypto ETF on the world's largest stock exchange marks a huge milestone for crypto proponents after eight years of lobbying regulators.

For the first time, institutional investors can now include a bitcoin-linked instrument listed on the New York Stock Exchange alongside traditional financial assets such as stocks and bonds.

"This is the quickest ETF to reach $1 billion in assets... This is unparalleled in terms of asset growth and trading volume and reflects pent-up demand," said Todd Rosenbluth, head of ETF and mutual fund research at CFRA.

The successful debut of the bitcoin ETF demonstrates how traditional financial institutions are vying for a piece of the digital asset business. It also demonstrates the rising recognition among many financial watchdogs that the sector has grown too huge and is growing too quickly to ignore.

Retail investors accounted for approximately 12-15 percent of nett buying in the ProShares ETF during the first two days of trading, indicating strong institutional interest, according to JPMorgan data. Three days after the ProShares product started, another comparable vehicle sponsored by Valkyrie Funds emerged on Friday, in a move analysts believe to be copied numerous times.

Additional headlines this week, including a record-breaking funding round by crypto exchange FTX backed by a slew of high-profile investors, have fueled the frenzy surrounding digital assets.

These evidence of growing interest, combined with an increase in professional traders utilising cryptocurrency as a platform for sophisticated market wagers, helped boost bitcoin beyond $66,000 for the first time on Wednesday, before reversing course to around $61,000 by Friday. Coinbase's stock, the largest publicly traded exchange, rose more than 10% in the days preceding the launch.

Many observers, however, believe that the debut of the ProShares ETF is only the beginning of a much longer battle to convince the Securities and Exchange Commission that a product providing direct access to mostly unregulated crypto markets should trade on Wall Street exchanges.

The SEC's decision to approve the ProShares ETF was based on the fact that it will invest in futures contracts traded on the Chicago Mercantile Exchange, a fully regulated market, rather than in digital coins outright. Cryptocurrencies are often purchased and traded through a diverse array of outlets, in what commission chair Gary Gensler has dubbed the "Wild West" market.

"What you have here is a product that has been supervised by the Commodity Futures Trading Commission for four years and is being wrapped in something under our authority... we have some potential to bring it within the realm of investor protection," Gensler told CNBC.

The retail broker Interactive Brokers launched crypto trading for financial advisers on Monday, but its chairman, Thomas Peterffy, was more reserved about the benefit of holding the ProShares fund or similar funds to investors.

Peterffy, who helped launch computing onto Wall Street in the 1970s by utilising machines to assist in calculating the value of securities and options, stated that crypto's main utility was as a fallback in the event that the monetary or banking system encountered difficulties.

"I believe that when such a crisis comes, these ETFs will trade at a significant discount to the coin's value. As a result, I believe it is of no benefit. As long as people do not consider it, the price will fluctuate in lockstep with the price of bitcoin."

Others have noted that an ETF that is based on futures contracts may become unattached to the asset it is designed to track. Over the last decade, USO, the $2.9 billion oil ETF, has frequently deviated dramatically from the price of US crude oil.

One issue is the "roll cost" – the fee incurred by the fund manager when the preceding futures contract ends. This could be more costly if the market anticipates a future increase in the price of bitcoin. If the futures price is greater than the spot price, the ETF may underperform the profits generated by owning bitcoin outright by approximately 7% per year, according to Andy Kapyrin, co-chief investment officer at RegentAtlantic, a $5 billion registered financial advice firm.

This increases the cost of the product for investors looking to keep a position for the long term, Kapyrin explained. "This will keep it confined to short-term trading portfolios and away from long-term holders," he explained. It is "a no-go for advisers" when it comes to advocating long-term holding positions, but admitted it was a "excellent product for trading."

That is why numerous asset managers are already pursuing approval from the SEC to launch funds directly tied to cryptocurrency prices. Additionally, some ETF sponsors have withdrawn from their own futures-based products.

Invesco stated that it would focus on obtaining clearance for a digital token ETF. Grayscale Investments announced plans to convert its $40 billion Bitcoin Trust, the world's largest crypto investment fund, into an exchange-traded fund that will own digital tokens outright just before Wall Street started for trading on Tuesday.

"There is some enthusiasm in the industry that we now have an ETF, but this is just the beginning," said Dave LaValle, Grayscale's global head of ETFs. "Ultimately, investors should have a choice between futures-based ETFs and real bitcoin-based ETFs."

It may be a distant fantasy many years in the future. Brett Harrison, president of FTX's US subsidiary, said the SEC's decision this week to allow the ProShares fund to proceed was unlikely to be the first of a sequence of regulatory dominoes to fall.

"I believe the SEC is waiting to see how spot crypto exchanges are regulated before agreeing to it," he said.

SEC Chairman Gensler has urged US lawmakers to grant the agency authority to regulate crypto trading platforms and to require them to register with the government.

Additionally, the SEC is embroiled in a contentious legal battle over whether digital coins should be registered as securities at all. Numerous prominent cryptocurrency players take a contrary position to such notion.

"It's quite improbable that a direct bitcoin or other form of crypto asset fund will be allowed in the foreseeable future," Amy Lynch, founder and president of Frontline Compliance, a regulatory consulting firm, said. "At the moment, the problem is precisely the format of these assets will be considered a security."

Support us!

Mark Taylor is the CEX.IO cryptocurrency exchange's Head of Financial Crime.

Influencers and celebrities have been progressively pushing crypto initiatives over the last few months. While many work with well-known organisations, it's not uncommon to see well-known persons advertise dubious digital asset services via paid posts.

Kim Kardashian, a US celebrity, made quite a stir in June when she pushed the Ethereum Max cryptocurrency project to her more than 250 million Instagram followers.

As a result, in a recent speech, UK Financial Conduct Authority (FCA) chair Charles Randell argued that Kardashian's post could be the "financial promotion with the single largest audience reach in history," while cautioning consumers about the growing risks associated with influencer advertising in the cryptocurrency industry.

Simultaneously, Randell urged for immediate action to govern crypto project advertising, with a particular emphasis on social media marketing and influencer promotions, in order to remove fraudulent conduct and protect investors.

As crypto sector participants at CEX.IO, we believe it is entirely reasonable for the FCA to monitor social media influencers. Apart from their emotive value, professional traders may not pay much attention to celebrity pronouncements. On the other side, consumers may feel forced to follow the advice contained in such ads. And the FCA's role is to safeguard the consumer.

Given the amount of time people spend on social media, it frequently serves as a source of truth when it comes to personal finance decisions.

And, when someone with a sizeable following advocates a digital asset or a strategy, even an ad disclosure (as in Kim's case) may be insufficient to get others to think critically about dangers.

As a result, it is reasonable for the FCA to take a strong stance in favour of (or demand) greater openness in the cryptocurrency market. That means that celebrities who accept advertising arrangements must consider factors other than monetary compensation when considering their involvement in promotional activities. On the other hand, cryptocurrency ventures that aim to utilise social media's benefits must understand the difference between advertising and deceit. Additionally, an educated consumer is an empowered consumer who has the ability to challenge what they see on screen, even if it comes from a favourite character.

And everyone who has spent at least a few weeks in the sector should be aware that digital assets have a somewhat high learning curve due to the complexity of the underlying technology and concepts (just think about explaining yield farming to someone unfamiliar with crypto). Additionally, there is a substantial amount of money involved in the industry, which consumers might quickly lose if they are not cautious.

As a result, it is critical to emphasise the risks associated with cryptocurrency investments, to crack down on fraudulent marketing messages and advertisements, and to be honest and straightforward with consumers.

This has been particularly true for loans and investments in the financial industry, where a single tiny mistake (or communication trick on the part of the service provider) can result in significant losses for a consumer. As a result, the FCA and other regulatory organisations around the world have placed a premium on promoting clarity and transparency regarding a loan's APR (annual percentage rate) or an investment's possible risk. And this is precisely what should be done with crypto.

Eventually, through effective communication and a consumer-friendly approach to advertising, we will be able to offer consumers with all relevant and factual information necessary to make sound financial decisions. And the FCA is delivering a message to these three parties - celebrities, crypto ventures, and consumers. This, I believe, is an area where true industry leaders can collaborate with authorities to raise consumer awareness and educate customers.

While being entirely transparent and honest may deter some consumers, it will have little effect on those eager to enter the crypto sector. On the contrary, individuals will have a better understanding of technology and how things work, enabling them to make more educated choices. To be completely candid, it is not a sustainable approach for a credible business to acquire customers by dishonesty or withholding information.

In the end, it is honesty and transparency that prevail. And we should all win our clients' trust by being honest with them.

Support us!

Pimco, the investment management giant, has declared its acceptance of digital assets and its intention to progressively expand into cryptocurrency trading.

Daniel Ivascyn, Pimco's chief investment officer (CIO), stated in a CNBC interview on Wednesday that the business is planning to grow its exposure to digital currencies. He stated that the firm has experimented with cryptocurrencies, with some of its portfolios already holding crypto-related securities.

Ivascyn outlined a strategy for gradually increasing exposure to digital assets as part of Pimco's quaint or trend-following strategies. This is the latest indication that major institutions are beginning to view cryptocurrencies as a legitimate investment choice.

Pimco is one of the world's largest asset managers, managing $2.2 trillion in assets. It serves a diverse clientele, including the following:

* Public and private pension funds.

* Sovereign wealth funds.

* Central banks.

* Foundations.

* Financial and non-financial corporations.

* Family offices.

* Financial advisors and Individual investors.

Pimco intends to take small steps into the burgeoning bitcoin market. The CIO stated that a significant amount of effort would be spent conducting internal due diligence in order to interact with investors. Cryptocurrencies such as bitcoin, according to Ivascyn, can act as an inflation hedge and a store of value.

Adapting to a volatile financial environment

With the growing adoption of digital assets by the mainstream, more institutions have committed to crypto investments for the majority of 2021. While the decentralised structure of digital assets has numerous opportunities, it also has the potential to disrupt the financial industry.

According to Ivascyn, decentralised finance will be disruptive, and it very well may undermine Pimco's business and the industry. The firm is evaluating the implications of such a scenario in order to ensure that they are competitively prepared to deal with the quick changes.

The CIO recognises the huge value proposition that cryptocurrencies offer, particularly to younger generations and new generations of investment communities. The majority of Pimco's investors have already shifted to crypto, as US inflation has eroded faith in other assets.

Institutions are no longer underestimating the value of digital assets.

Cryptocurrencies' rise is unavoidable, and more institutions are adopting digital tokens. Major financial institutions such as Fidelity and PayPal have entered the crypto space. Square and MicroStrategy have even purchased bitcoin using their financial sheets.

Morgan Stanley was among the first banks to offer clients bitcoin funds, with others such as Goldman Sachs swiftly following suit. With bitcoin lately hitting new all-time highs, cryptocurrencies are establishing themselves as a significant potential that cannot be overlooked.

Support us!

A sure-fire technique for Sars to determine whether or not something is wrong is to examine someone's lifestyle.

During a recent panel discussion at the 2021 South African Institute of Taxation (SAIT) Tax Indaba, crypto assets and their taxation came up as a touchy subject for industry professionals once again. Mark Kingon (former acting Sars Commissioner), Keith Engel (CEO of SAIT), Creag Sudding (Associate Director at KPMG), Jacques van Wyk (CEO of JGL Forensic Services), and Jerry Botha were the five people present for the virtual debate (Managing Partner at Tax Consulting SA).

When discussing the complexities of investigating tax evaders through lifestyle audits, Jacques van Wyk was quick to point out that the introduction of crypto assets has complicated the investigative process on a forensic level, as it challenges tax jurisdictions, which is akin to policing a borderless world.

While Van Wyk is in favour of crypto taxes, he believes that the public is ignoring Sars' warnings. He asked Sars to leverage their data and set the appropriate precedents, nudge those who are purposefully non-compliant to reconsider their stance on the topic.

The advantages and disadvantages of data collection

The advent of the digital age demonstrated that we now live in a data-rich environment. While anything can be tracked, information may also easily vanish. Tax evaders and career criminals have worked tirelessly to devise methods of evading revenue agents.

With access to a wealth of third-party data, Sars can monitor the yacht and aircraft fleet, as well as credit card activities and overseas assets. They can acquire access to an individual's offshore transactions through mutual information sharing agreements with other governments.

However, crypto asset analysis goes beyond the investigation of third-party data. The digital data surrounding cryptography is thick and sophisticated, requiring a great deal of personnel to review and rework. Sars is cognisant of demand and the resulting manpower shortage in order to sift through all of the data.

Sars has embarked on a large recruitment drive, with a particular emphasis on hiring forensic auditors and veterans who can aid in ups-killing the younger specialists, according to Mark Kingon.

Technology is a tremendous enabler because it enables financial investigators to collect massive amounts of data, create profiles or patterns, and then focus in on the outliers, the things that are unexplained. Even social media is a goldmine of information, which means it's not a good idea to flaunt your new sports vehicle (or crypto riches) while still owing money to Sars.

If you are one of the enigmatic crypto millionaires who profited from the global crypto wave, you may want to reevaluate the security of your hiding place. A sure-fire technique for Sars to determine if something is wrong is to examine someone's lifestyle and determine whether their expenditure matches their income. Ultimately, the burden of proof rests with the taxpayer to justify any discrepancies.

Recognise Sars' motivation for pursuing crypto tax compliance

During the conversation, Kingon referred to Sars' Strategic Intent Presentation for 2020–2024, in which Commissioner Edward Kieswetter articulated nine strategic objectives from the standpoint of the taxpayer experience. Kingon emphasised aim 5, which specifies that Sars will:

"Expand and enhance data utilisation within a complete knowledge management framework to maintain data integrity, promote insight, and improve outcomes."

Sars pledges in their official presentation that they will initially pursue voluntary compliance. Where procedures may be simplified through data, analytics, and artificial intelligence, Sars will use its complete knowledge management system to identify and police non-compliance.

Local investors are frequently resistant to voluntary compliance, according to Thomas Lobban, Head of Crypto Asset Taxation at Crypto Tax Consulting. He warns traders who brag about their crypto winnings on social media platforms that they risk getting into trouble if Sars monitors their feeds.

"Non-compliance is still a problem in the crypto asset area for South Africans," Lobban notes. "This is partly due to a misunderstanding of the appropriate tax regulations, compounded by the widespread belief that Sars is not entitled to tax them on their gains. Sars's decision to conduct a compliance enforcement exercise is understandable. When a taxpayer is unable to demonstrate the source of revenue utilised to support their lifestyles, Sars is forced to delve deeper."

In a post-event interview, Engel highlighted additional concern about taxpayers who believe they are playing a game with Sars by determining how long they can avoid paying their taxes.

"Whatever earnings you earn, you are legally required to report them. If you do not declare them, you are committing tax evasion," Engel emphasised.

"Sars is dedicated on obtaining third-party data from the most popular cryptocurrency trading platforms. While Sars is accomplishing this, individuals believe they can continue to get away with it, but they will be apprehended two or three years from now. Sars can go back in time indefinitely if those persons did not declare the money.

"When they apprehend you, they will demand payment of the tax, interest, and penalties. Then you're in serious trouble."

The results of a lifestyle audit may have a negative influence on your relationship with Sars if anomalies are discovered. If you believe you may be in violation of the law, it is prudent to reveal your profits and, if required, seek redress through the Voluntary Disclosure Programme (VDP).  If Sars decides to audit your lifestyle, the VDP window becomes unavailable - even if you have been alerted of a potential audit.

Support us!

The Novi pilot's introduction has not been without criticism – which is to be anticipated from Zuckerberg's firm.

This week, Facebook announced the launch of a pilot programme for its digital wallet Novi, first targeting users in the United States and Guatemala. Coinbase, a publicly traded cryptocurrency exchange in the United States, was selected by Mark Zuckerberg's firm to test the new Facebook product via Coinbase Custody. The news garnered attention from both the cryptocurrency community and the mainstream media, who characterised the announcement as significant.

However, just because an announcement made the news and became a trending topic does not mean it was favourably accepted by crypto aficionados or even policymakers. As is the case in other arenas, voices in favour and against Novi coalesced and began debating unanimously on a single point: privacy.

On the one hand, it is well documented in the media that governments have focused their attention on Facebook due to privacy concerns regarding the social media platform and the way Zuckerberg's firm handles user data.

Having said that, critics of the Facebook crypto wallet are concerned about the wallet's ability to be a decentralised product or even ensure users' privacy. On the other side, supporters of Novi noted that widespread usage of cryptocurrency-related products and services is always beneficial to the sector.

US Congressmen Are Concerned About Novi

This week, a group of US politicians expressed worry over Facebook's handling of cryptocurrency.

Additionally, lawmakers urged the technology company to immediately halt its trial operation. Brian Schatz, Sherrod Brown, Richard Blumenthal, Elizabeth Warren, and Tina Smith were among the Democratic senators who signed the letter to Facebook CEO Mark Zuckerberg.

"Facebook cannot be trusted to operate a payment system or digital currency given its demonstrated inability to manage risks and keep users safe," the letter read.

However, it appears as though Zuckerberg is far from abandoning his current crypto initiatives. According to reports that made news last week following the introduction of the Novi pilot, Facebook intends to alter its name to reflect its most recent endeavour: the metaverse. On October 28, Zuckerberg will reveal the rebranding at the company's annual Connect Conference.

What About Diem's Case?

The most often asked question in the aftermath of Facebook's Novi announcement is: why cryptos? Of course, there are numerous possible responses, but the majority of them are confusing when asked directly on Facebook. Finally, there is an answer to the question of whether or not Facebook wishes to fund Diem Association (formerly referred to as Facebook's Libra):

"I want to emphasise that our commitment to Diem has not altered, and we aim to launch Novi alongside Diem once it receives regulatory permission and goes live. We are committed to interoperability and want to do it right," Novi project lead David Marcus stated on Twitter.

Support us!