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Last week, His Majesty’s Revenue and Customs (HMRC) presented an unpleasant Christmas surprise to hodlers in the United Kingdom, demanding they declare any crypto holdings they failed to report in the last four, six or even 20 years. The tax authority also reminded taxpayers of the interest, charged daily from the date tax is due until it is paid. As an additional tax on previous-year crypto holdings would now be classified as late, it automatically suggests the interest owed. Failing to include the correct interest will result in a rejection of disclosure. After disclosing unpaid taxes, users will get payment reference numbers and have 30 days to remit the entire sum owed. The disclosure must include “exchange tokens,” such as Bitcoin (BTC), as well as any nonfungible tokens (NFTs) and “utility tokens.”

Less harsh in its demands, the Spanish Tax Administration Agency has also reminded its citizens about their obligations to declare crypto, even if they store it abroad. The Agency published Form 721, the submission period for which will commence on Jan.1 and end on the last day of March. However, only individuals with balance sheets exceeding the equivalent of 50,000 euros (around $55,000) in crypto assets are obliged to declare their foreign holdings. Those who store their assets in self-custodied wallets must report their holdings through the standard wealth tax Form 714.

Brazil will also proceed to tax its citizens’ foreign crypto holdings via a bill already passed in the Chamber of Deputies and expected to be approved by President Luiz Inácio Lula da Silva. Under the bill, any Brazilian who earns more than 6,000 Brazilian reals ($1,200) on exchanges based outside the country would be subject to the tax, effective Jan. 1, 2024. The change makes those funds taxable at the same rate as domestic funds. Funds earned before that date would be taxed when accessed by the owner, and earnings on funds accessed before Dec. 31 will be taxed at 8%.

The SEC is still digging into Binance.US

The United States Securities and Exchange Commission is still looking for evidence that Binance.US had a backdoor to potentially control customer assets similarly to FTX. While Binance and former CEO Changpeng Zhao agreed to plead guilty to breaking U.S. Anti-Money Laundering laws as part of a $4.3 billion settlement with the U.S. Justice Department, Treasury Department and the Commodity Futures Trading Commission, the case didn’t include any of the SEC’s fraud-related claims stemming from its lawsuit with the cryptocurrency exchange in June. However, Judge Zia Faruqui, presiding over the Binance and SEC case, reportedly said the guilty pleas make it less likely that Binance.US and Zhao misappropriated customer assets.

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Voyager Digital will settle on $1.65 billion with the FTC

A federal judge has approved an order requiring crypto lending firm Voyager Digital and its affiliates to pay $1.65 billion in monetary relief to the United States Federal Trade Commission (FTC). In the U.S. District Court for the Southern District of New York, Judge Gregory Woods ordered Voyager to pay $1.65 billion following a settlement between the lending firm and the FTC announced in October. Voyager will be “permanently restrained and enjoined” from marketing or providing products or services related to digital assets as part of the agreement.

According to Judge Woods, the order will largely not impact Voyager’s bankruptcy proceedings. The company filed for Chapter 11 protection in July 2022 and disclosed liabilities ranging from $1 billion to $10 billion. In May, the bankruptcy court approved a plan allowing Voyager users to initially receive 35.72% of their claims from the lending firm.

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36 companies might get a license to operate in South Africa till the end of 2023

South Africa’s principal financial regulator, the Financial Sector Conduct Authority (FSCA), reviewed 128 applications from crypto asset service providers but intends to discuss only 36 during its next Licensing Executive Committee meeting on Dec. 12. A further 22 applications will be presented on Feb.13, while a final 14 applications will have to wait until March 12. The fate of the remaining applications wasn’t specified by the FSCA, which explained its evaluation method as an assessment that combines Know Your Customer onboarding, data protection, cyber risk management, conflict of interest management, complaints handling, and credit counterparty risk management.

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Super PAC backing ‘pro-crypto candidates‘ raises $100M

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Super PAC backing ‘pro-crypto candidates‘ raises 0M

Super PAC backing ‘pro-crypto candidates‘ raises 0M

The Fellowship PAC, launched in August, said it had “over $100 million” from unnamed sources to support the White House’s digital asset strategy.

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Starmer was aware of the risks of appointing the ‘Prince of Darkness’ as his man in Washington – to an extent

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Starmer was aware of the risks of appointing the 'Prince of Darkness' as his man in Washington - to an extent

It was a prescient and – as it turned out – incredibly optimistic sign off from Peter Mandelson after eight years as Chancellor of Manchester Metropolitan University.

“I hope I survive in my next job for at least half that period”, the Financial Times reported him as saying – with a smile.

As something of a serial sackee from government posts, we know Sir Keir Starmer was, to an extent, aware of the risks of appointing the ‘Prince of Darkness’ as his man in Washington.

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But in his first interview since he gave the ambassador his marching orders, the prime minister said if he had “known then what I know now” then he would not have given him the job.

For many Labour MPs, this will do little to answer questions about the slips in political judgement that led Downing Street down this disastrous alleyway.

Like the rest of the world, Sir Keir Starmer did know of Lord Mandelson’s friendship with the paedophile Jeffrey Epstein when he sent him to Washington.

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The business secretary spelt out the reasoning for that over the weekend saying that the government judged it “worth the risk”.

Keir Starmer welcomes Nato Secretary General Mark Rutte to Downing Street.
Pic: PA
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Keir Starmer welcomes Nato Secretary General Mark Rutte to Downing Street.
Pic: PA

This is somewhat problematic.

As you now have a government which – after being elected on the promise to restore high standards – appears to be admitting that previous indiscretions can be overlooked if the cause is important enough.

Package that up with other scandals that have resulted in departures – Louise Haigh, Tulip Siddiq, Angela Rayner – and you start to get a stink that becomes hard to shift.

But more than that, the events of the last week again demonstrate an apparent lack of ability in government to see round corners and deal with crises before they start knocking lumps out of the Prime Minister.

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‘Had I known then, what I know now, I’d have never appointed him’ Starmer said.

Remember, for many the cardinal sin here was not necessarily the original appointment of Mandelson (while eyebrows were raised at the time, there was nowhere near the scale of outrage we’ve had in the last week with many career diplomats even agreeing the with logic of the choice) but the fact that Sir Keir walked into PMQs and gave the ambassador his full throated backing when it was becoming clear to many around Westminster that he simply wouldn’t be able to stay in post.

The explanation from Downing Street is essentially that a process was playing out, and you shouldn’t sack an ambassador based on a media enquiry alone.

But good process doesn’t always align with good politics.

Something this barrister-turned-politician may now be finding out the hard way.

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PM will be ‘completely exonerated’ over Mandelson fiasco, Gordon Brown says

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PM will be 'completely exonerated' over Mandelson fiasco, Gordon Brown says

Sir Keir Starmer will be “completely exonerated” over the scandal around Peter Mandelson’s relationship with disgraced financier Jeffrey Epstein, Gordon Brown has told Sky News.

The prime minister was forced to sack Lord Mandelson as the UK’s ambassador to the US last Thursday after details of the peer’s relationship with Epstein emerged in the media.

Emails between Lord Mandelson, a minister under Tony Blair and Mr Brown, and the convicted sex offender revealed that the ex-minister sent messages of support to Epstein even as the US financier faced jail for soliciting prostitution from a minor in 2008.

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Sir Keir said on Monday that he would have “never appointed” Lord Mandelson as US ambassador if he knew then what he knows now.

But Mr Brown told Sky News’ Darren McCaffrey that he believes the prime minister will be “completely exonerated” once “the record is out” on the matter.

The former prime minister said: “I don’t want to criticise Sir Keir Starmer’s judgement, because he faces very difficult decisions and we’re talking about a very narrow area for timing between a Tuesday and Thursday.

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Sir Keir Starmer with Lord Peter Mandelson
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Sir Keir Starmer with Lord Peter Mandelson

“I think once the record is out, Sir Keir Starmer will be completely exonerated.”

However, Mr Brown did admit that the situation “calls somewhat into his judgement”.

He said: “I think every government goes through difficulties. Probably 15 years ago, when I was in government, you’d be asking me questions about what had happened on a particular day.

“But this is not really in the end about personalities. In the end, it’s about the policies.

“If you ask people in the street, they might say, well, interesting story, terrible thing that happened to these girls, but also they will say, look what’s happening to my life at the moment, what’s happening to my community, what’s happening to my industry, what’s happening to the whole region.

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The Prime Minister is facing serious questions over his appointment of Peter Mandelson as the US ambassador.

“I think we’ve got to think that politics is about changing people’s lives and making a difference in those areas where they want to do things.”

Sir Keir has insisted that Lord Mandelson went through a proper due diligence process before his appointment.

However, speaking publicly for the first time since he sacked Lord Mandelson on Thursday night, he said: “Had I known then what I know now, I’d have never appointed him.”

Sir Keir said he knew before Prime Minister’s Questions on Wednesday afternoon that Lord Mandelson had not yet answered questions from government officials, but was unaware of the contents of the messages that led to his sacking.

He said Lord Mandelson did not provide answers until “very late” on Wednesday, which was when he decided he had to be “removed”.

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