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MakerDAO co-founder Nikolai Mushegian dies at 29 in Puerto Rico

November 1, 2022 Coin Telegraph

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Mushegian was an important figure in the crypto community, contributing to multiple projects, including MakerDAO, BitShares and Balancer.

Nikolai Mushegian, a co-founder of the cryptocurrency lending platform MakerDAO and the decentralized Dai (DAI) stablecoin, was found dead in Puerto Rico last week.

Mushegian died due to drowning after being dragged by sea currents on the Condado beach in San Juan, the local newspaper El Nuevo Día reported. Mushegian had no vital signs by the time his body was rescued.

The Condado beach is considered one of the world’s most dangerous places for swimmers, reportedly taking the lives of at least eight people in 2021.

The unfortunate event was reported to local authorities on the morning on Oct. 28. According to a police report, Mushegian was a resident of San Juan. The scene was reportedly investigated by the San Juan Homicide Division and a local prosecutor.

Mushegian was an important figure in the cryptocurrency community, contributing to multiple industry projects, with some referring to him as a “DAI architect.” The 29-year-old crypto developer is known for his work with MakerDAO forks Rico and Rai, as well as the proof-of-stake blockchain network BitShares. Mushegian is also a co-founder of the automated market maker Balancer.

MakerDAO founder and CEO Rune Christensen took to Twitter on Oct. 31 to say that Mushegian contributed important inputs to the Maker development and has done some crucial work since the early days of Ethereum.

Nikolai was one of the only people in the early days of Ethereum and smart contracts who was able to predict the possibility of smart contract hacks and invented the security-oriented approach to smart contract design we know today. Maker would have been toast without him
— Rune (@RuneKek) October 31, 2022

Cardano founder Charles Hoskinson wrote on Twitter that he knew Mushegian from back in the Bitshares days. “He was a very young and extremely bright man who had a very wide array of interests from game theory to Urbit,” Hoskinson said, adding that the coder had a deep understanding of technology.

Tether co-creator Craig Sellars noted that Mushegian's death came just a few days after MakerDAO community voted to approve custody of $1.6 billion in USD Coin (USDC) with Coinbase crypto exchange.

Mushegian was an active community member on social media. His Twitter account, Delete_shitcoin, has about 5,500 followers at the time of writing. His last tweet was published just a few hours before his death, referring to suggestions of alleged blackmail from the Central Intelligence Agency and Mossad. Mushegian previously made similar statements on Twitter, hinting at a potential “suicide” by the CIA as one of his possible futures.

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Peter Schiff’s bank closure strengthens Bitcoin case for financial freedom

July 4, 2022 Coin Telegraph

Banking

Puerto Rico regulators closed down Schiff’s bank for not maintaining the net minimum capital requirements. As a result, customers lost access to their accounts following a subsequent freeze.

Prominent economist Peter Schiff, who is well-known in the community for his anti-crypto sentiments, had his bank shut down by Puerto Rico regulators. The revelation, however, led to Crypto Twitter pointing out the “irony” as Schiff’s prediction for Bitcoin (BTC) came true for his own traditional bank.

Puerto Rico regulators closed down Schiff’s bank for not maintaining the net minimum capital requirements, which further impacted the customers as they lost access to their accounts following a subsequent freeze.

Despite no evidence of crimes, Puerto Rico regulators closed my bank anyway for net capital issues, rather than allow a sale to a highly qualified buyer promising to inject capital far in excess of regulatory minimums. As a result accounts are frozen and customers may lose money.
— Peter Schiff (@PeterSchiff) July 3, 2022

While acknowledging that “customers may lose money,” Schiff stated that he was unaware of the regulatory minimums and was not presented with any form of legal notice prior to the abrupt closure. He added:

“It costs a fortune to run a small bank. That's why I never really made any money. The compliance costs are outrageous.”

As a witness to what many consider an epic plot twist, the crypto community took the opportunity to explain the importance of Bitcoin in reinventing the core of traditional finance.

The irony of this is so hilarious!@PeterSchiff you do realize that if you had been using Bitcoin this would not have been possible!

You should be loving decentralization https://t.co/cDCOWdMowL
— Coach K (30% Crypto, 70% USDC) (@Coachkcrypto) July 4, 2022

Bitcoin podcaster Stephan Livera, too, chimed in on the development as he said, “He's (Schiff) been a #bitcoin skeptic since $17.50 (it's currently $19,100).” The sudden closure of Schiff’s bank in Puerto Rico reignited the discussions around Bitcoin’s resistance to judicial supremacy.

“The irony here is priceless,” added @HodlMagoo while others rhetorically helped Schiff find a promising alternative to traditional finance, asking “Do you understand why you need bitcoin now?"

On the other end of the spectrum, Puerto Rico has been receptive to crypto acceptance in the region. On April 20, Puerto Rico authorities became the fourth jurisdiction in America to award a money transmitter license to Binance.US, a United States-based subsidiary of crypto exchange Binance.

While the crypto community empathizes with Schiff and the bank’s customers for their losses, the episode further cements Bitcoin’s position as the ultimate replacement of traditional finance.

Analysts from Deutsche Bank forecasted BTC prices to rebound back to $28,000 by the end of the year despite an ongoing bear market.

Analysts Marion Laboure and Galina Pozdnyakova envisioned the Standard and Poor (S&P) to rebound back to its January levels, which in turn, could result in a 30% increase in Bitcoin’s value from current levels midway through 2022 — bringing up its price to the $28,000 mark.

Binance.US awarded money transmitter license in Puerto Rico

April 20, 2022 Coin Telegraph

Coin Telegraph

The new license from Puorto Rico further strengthens Binance CEO Changpeng Zhao's vision to be licensed everywhere.

Puerto Rico becomes the fourth jurisdiction in America to grant a money transmitter license to Binance.US, the American arm of the crypto exchange Binance. Other states that issued operational licenses to Binance.US include Wyoming, Connecticut and West Virginia.

Binance.US was launched as a second attempt by Binance CEO Changpeng Zhao to cater to investors in the United States as the nation banned Binance’s primary operations, citing regulatory concerns. The new license from Puorto Rico further strengthens CZ's vision “to be licensed everywhere.”

According to the announcement, the money transmitter license was awarded to Binance.US by the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF). While highlighting the company’s intent to obtain operational licenses in all 50 U.S. states and territories, Binance.US CEO Brian Shroder said that “Puerto Rico, in particular, is an important market for the growth of crypto.”

As a money transmitter, Binance.US is allowed to receive and transfer funds between the users on the platform.

On April 6, Binance.US completed its first-ever external funding and reached a $4.5 billion valuation after raising over $200 million from various investors, including Circle Ventures.

The company intends to redirect the recent funding to improve existing systems and launch a new suite of products. The announcement also highlights that Binance.US operates in 45 states and seven territories.

Binance’s aspiration to conduct business as a regulated entity has seen positive development in the Middle East as well.

On April 10, Abu Dhabi became the third jurisdiction in the Middle East to award Binance an in-principle approval to operate as a regulated crypto exchange. Previously, the exchange received approvals from Bahrain and Dubai.

As Cointelegraph previously reported, Abu Dhabi Global Market’s (ADGM) approval allows Binance to operate as a broker-dealer in digital assets, including cryptocurrencies.

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Puerto Rico sees resurgence of interest among crypto rich

October 27, 2021 Coin Telegraph

Coin Telegraph

Crypto capital is moving to Puerto Rico as tax regulations are much more favorable than in the U.S. proper.

The United States territory of Puerto Rico is seeing a resurgence of interest among crypto investors attracted by the fact it doesn’t charge federal income tax and eligible investors can pay zero taxes on their crypto gains.

Under local law Act 22, those who live in Puerto Rico for at least half of the year are exempt from taxes on interest, dividends and capital gains — meaning they can keep most or all of the profits from crypto or other investments without having to renounce U.S. residency.

The popularity of the territory as crypto tax haven was highlighted when news stories emerged that Frances Haugen, the Facebooks whistleblower, had moved to Puerto Rico in March. But it's been a haven for crypto people for years, including Bitcoin billionaire Puerto Rico who owns a nine bedroom mansion there.

Logan Paul, the social media personality and Cryptozoo founder, moved to the island earlier this year where he rents out a $55,000 a month mansion. Paul told Time Magazine the island's tax free status was a big part of the appeal:

“In Puerto Rico you’re motivated to do more and make more money because of the implications that come with it.”

Crypto related businesses that have relocated to Puerto Rico in recent years include the hedge fund Pantera Capital from New York and NFT marketplace SuperRare from Silicon Valley. More traditional finance types like legendary hedge fund manager John Paulson have also become residents.

The Puerto Rico Blockchain Trade Association (PRBTA) recently announced the first edition of the Puerto Rico Blockchain Week for December of 2021, which aims to lure more crypto millionaires and investment into the island.

“We seek to connect entrepreneurs with communities in Puerto Rico and educate them on the multiple benefits available in the crypto era,” stated Keiko Yoshino, Executive Director of PRBTA.

The capital migration that crypto is bringing to Puerto Rico is boosting economic growth but comes with drawbacks for locals. Projects like Puertopia, which is a crypto utopian community in San Juan, are blamed for causing housing prices to soar.

Puerto Rico is not the only location competing for crypto dollars.

Aiming to attract crypto investors and businesses El Salvador also offers major tax breaks on Bitcoin trading with investors exempt from paying capital gains and income tax on Bitcoin.

Other classic tax havens have a cryptocurrency friendly environment including Switzerland, the Cayman Islands and Malta. St Kitts and Nevis, which is home to “Bitcoin Jesus” Roger Ver, allows savvy crypto investors to avoid taxes and offers a citizenship by investment program and asset protection advantages for crypto millionaires and businesses.

In Portugal crypto traders and miners are exempt from income tax and in Apri the country approved the Digital Transitional Action Plan which will promote the creation of economical areas dedicated to encourage blockchain-based business.

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