Blockchain
2020-2021 Budgets: Raymond Chabot Grant Thornton Calls upon Governments to Go Further for Business Growth
Supporting competitiveness within the business world is one of the best ways to increase wealth. For this reason, in connection with the tabling of the next budget, Raymond Chabot Grant Thornton is continuing to submit measures that it deems relevant to the Ministers of Finance of Quebec and Canada.
Emilio B. Imbriglio, the firm’s President and CEO, said: “We have been advising key decision makers in Quebec and Canada for more than 70 years. With over 2,800 professionals in more than 100 offices, our unique perspective from both an industry and regional standpoint allows us to understand the realities of businesses, determine their needs and provide expert advice to meet their expectations. We know them well and we know that a fair, sustainable, incentive-based tax system that is better suited to their reality is necessary, as are measures to motivate entrepreneurial succession, further encourage innovation and digital transformation, and maintain the workforce.”
Here are a few of our recommendations:
1. A fair, sustainable, incentive-based tax system suited to today’s situation
Among others, on the tax front, the firm is reiterating the importance for:
- Governments to abolish corporate income tax on the first $500,000 of an SME’s taxable income, provided that the savings be invested in productivity, employment and innovation in a manner that avoids any possible abuse.
- Governments to announce their intention to reflect upon and revise family taxation and, more broadly, for the federal government, in collaboration with the provinces, to establish a review process for the tax system, that would be led by independent experts and would lead to a major taxation overhaul for the country;
- Governments to reduce the Canadian business payroll tax;
- The federal government to undertake to amend the Income Tax Act to make business transfers to a family member and also for all businesses equitable, regardless of their size and industry and for the Quebec government to undertake to reduce or even remove the restrictions that apply to shareholders when transferring a business to a family member.
2. Entrepreneurial succession
In terms of entrepreneurial succession, Raymond Chabot Grant Thornton is suggesting that, for example:
- Governments set up a fund to support businesses so that they can call upon professionals to help them implement a formal and complete succession plan;
- The federal government allow RRSPs to be used for funding entrepreneurs’ certified succession plans and for business investments;
- The Quebec government implement various measures to promote the listing of Quebec companies on the stock exchange specifically by introducing a new simplified share savings type of plan for public SMEs and encouraging tax-advantaged funds to support them.
3. Innovation
It is proposed, for innovation and the 4.0 transformation, that:
- Governments create an innovation tax credit to help SMEs increase their technology investments and continue to grow;
- The Quebec government establish a program to support employee training for Quebec companies that are undergoing a digital transformation process; adapt vocational training programs to prepare the workers of tomorrow for a digitally transformed economy; and centralize the management of programs supporting the digital transformation of Quebec companies within a single department or Crown corporation;
- Governments recognize, in the upcoming budget, blockchain technology and distributed registries as a strategic and undeniable economic issue.
4. Labour and immigration
The following measures are suggested in this respect, among others:
- That governments make certain adjustments to address labour shortages by exempting from tax overtime for students and workers over the age of 65, as well as in certain industries;
- That the Quebec Government streamline the administrative aspect by simplifying the conditions and procedures faced by SMEs in recruiting labour through the Temporary Foreign Worker Program;
- That the Quebec Government ensure that the July 1, 2020 deadline for announcing the new Quebec Immigrant Investor Program (QIIP) be respected and that it be implemented no later than the end of 2020. The reform of the QIIP must make it possible to protect jobs in Québec’s financial sector and free up significant amounts of money to support Quebec’s strategic economic guidelines (productivity, innovation, labour shortages, business acquisitions, etc.);
- That the federal government make adjustments to speed up processes in the Temporary Foreign Worker Program (TFWP) to allow newcomers (high and low wage earners) to work for Canadian businesses and to respond to the urgent needs of Canadian businesses within approximately three months rather than six to ten months; and
- That the federal government consider reintroducing an innovative business immigration program providing for a more focussed use of funds than the previous program.
SOURCE Raymond Chabot Grant Thornton
Blockchain
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Global Supply Chain Finance Market
Blockchain
Web3 Startups Raise Nearly $1.9B in Q1 2024 Despite Overall Downtrend in Crypto VC Interest
Venture capital funding for cryptocurrency and blockchain projects has seen a notable resurgence in the first quarter of 2024, marking its first quarterly rise since 2021. Crunchbase data released today indicates that Web3 startups secured nearly $1.9 billion in funding across 346 deals during this period. This represents a substantial 58% increase from the previous quarter, offering a glimmer of hope amidst the ongoing downward trend in overall crypto VC interest.
The recent surge in funding can be attributed to investors adopting a more long-term perspective on Web3, as opposed to the hype-driven “tourist investors” predominant in recent years. Chris Metinko, the author of the report, notes that investors are shifting their focus to the AI sector, indicating a change in investment strategy. There is a growing interest in supporting the foundational infrastructure of the decentralized internet, rather than solely concentrating on crypto wallets and lending platforms, which attracted significant investments during the peak period of 2021 to 2022.
While large funding rounds were relatively uncommon in Q1, several notable investments stood out. Exohood Labs, a company integrating AI, quantum computing, and blockchain, secured a remarkable $112 million seed round at a valuation of $1.4 billion. EigenLabs, an Ether token “restaking” platform, raised $100 million in a Series B round led by a16z crypto. Additionally, Freechat, a decentralized social network leveraging blockchain technology, secured $80 million in a Series A round. These investments, among others, contributed to the increase in valuations and the emergence of four new Web3 unicorns in Q1.
Despite the recent progress, the future trajectory of Web3 remains uncertain. Metinko suggests that the next few quarters will be pivotal in determining the industry’s direction. While investors anticipate a rebound in investment as the decentralized internet evolves, it may take another year for venture capital activity to stabilize after the exuberance of 2021. Factors such as the approval of U.S. spot Bitcoin exchange-traded funds and the upcoming Bitcoin halving could also influence the market, given the rising prices of Bitcoin and Ether.
A noteworthy example of significant funding in the Web3 space is Monad Labs’ recent successful funding round, which secured $225 million led by Paradigm. Monad Labs is a layer-1 blockchain compatible with Ethereum, offering faster transaction processing. This funding round harkens back to the golden era of crypto funding in 2021-2022, when L1 solutions attracted substantial investments.
Earlier this year, Balance, a digital asset custodian based in Canada, announced that it had once again reached $2 billion in assets under custody (AUC) amidst the recent market recovery. Similarly, Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, has experienced remarkable growth in crypto assets under its custody, expanding by nearly 248% in the second half of 2023.
Analysts at Bernstein Research project that crypto funds could reach an impressive $500 billion to $650 billion within the next five years, representing a significant leap from the current valuation of approximately $50 billion. This forecast underscores the growing optimism and potential for substantial growth within the crypto industry in the coming years.
Source: cryptonews.com
The post Web3 Startups Raise Nearly $1.9B in Q1 2024 Despite Overall Downtrend in Crypto VC Interest appeared first on HIPTHER Alerts.
Blockchain
ASIC cracks down on blockchain mining firms
Three blockchain mining companies – NGS Crypto, NGS Digital, and NGS Group – along with their directors, Brett Mendham, Ryan Brown, and Mark Ten Caten, are facing legal action from the Australian Securities and Investments Commission (ASIC) for allegedly operating without a license, in violation of Australia’s Corporations Act. ASIC initiated legal proceedings against these entities on April 9, citing concerns about their non-compliance with financial regulations and their solicitation of Australian investors.
According to ASIC, the NGS companies promoted blockchain mining packages with fixed-rate returns to Australian investors, encouraging the transfer of funds from regulated superannuation funds to self-managed superannuation funds (SMSFs) for conversion into cryptocurrency. Approximately 450 Australians invested a total of around USD 41 million in these packages, raising concerns about potential financial losses.
The legal action filed by ASIC alleges that the companies violated section 911A of the Corporations Act, which prohibits companies from providing financial services without a valid Australian Financial Services Licence (AFSL). ASIC is seeking interim and final court orders to prohibit the NGS companies from offering financial services in Australia without an AFSL.
ASIC Chair Joe Longo emphasized the importance of investors carefully considering the risks before investing in crypto-related products through their SMSFs. Longo stated that ASIC’s actions send a message to the crypto industry about the regulator’s commitment to ensuring compliance with regulations and protecting consumers.
In a separate development, the Federal Court appointed receivers for the digital currency assets associated with the NGS companies and their directors to safeguard these assets amid concerns about the risk of dissipation. Mendham was also issued a travel restriction order, preventing him from leaving Australia.
While a court date for the proceedings has not been set, ASIC’s investigation is ongoing, with the regulator continuing to gather evidence and build its case. It is worth noting that the investigated companies share a similar name with NGS Super, a legitimate Australian pensions provider, leading to potential confusion among investors. NGS Super clarified that it is not involved in selling cryptocurrency or related products and has taken legal action to protect its trademark and members’ interests.
Source: iclg.com
The post ASIC cracks down on blockchain mining firms appeared first on HIPTHER Alerts.
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