IRS to Require 150 Million Tax Filers to Disclose Crypto Dealings

IRS to Require 150 Million Tax Filers to Disclose Crypto Dealings

The U.S. Internal Revenue Service (IRS) has unveiled a new draft tax form used by some 150 million people in the country to file tax returns. It has a section that requires them to answer whether they have received, sold, sent, exchanged, or acquired any financial interest in any cryptocurrencies during the year. Also read: IRS Issues New Crypto Tax Guidance – Experts Weigh In New Tax Form The IRS published a draft of the new 1040 tax form containing a question about the tax filer’s crypto-related activities on Friday. The move follows the release of the agency’s long-awaited tax guidance which was published on Wednesday. The 1040 form is the main tax form used by all filers in the U.S. According to the IRS, over 154 million tax returns were submitted using this form in 2018, and over 152 million in 2017. The new 1040 form, when implemented, will be used to file taxes starting in 2019. The IRS emphasized that “This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information,” adding: We generally do not release draft forms until we believe we have incorporated all changes, but sometimes unexpected issues arise, or legislation is passed. The tax agency added that any comments regarding the draft, instructions or publications can be submitted, but “we may not be able to consider many suggestions until the subsequent revision of the product,” the IRS wrote. All US Taxpayers Will Be Asked According to the draft of the new 1040 tax form, Schedule 1 will now include a question about the tax filer’s crypto activities. Schedule 1, entitled Additional Income and Adjustments to Income, is filed alongside the 1040 form. It is used to report income or adjustments to income that cannot be entered directly on Form 1040. The first question on the new Schedule 1, according to the draft, will be a yes or no question which reads: At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? The 1040 instructions, also published Friday, has a section on “virtual currency.” The IRS explained that taxpayers must check the “yes” box if they have “engaged…

Crypto Markets Trade Sideways After SEC Rejects TON

Crypto Markets Trade Sideways After SEC Rejects TON

Saturday, Oct. 12 — following a minor price rally earlier this week, crypto markets are trading sideways as the top-20 coins by market cap report mixed signals. At press time, 8 out of the top 20 cryptocurrencies are seeing gains, with Binance Coin (BNB) surging nearly 2.8%. Chainlink (LINK) is seeing the biggest losses among the top 20, down more than 6.1%. Market visualization. Source: Coin360 Bitcoin hovers around $8,300 level After hitting $8,800 on Oct. 11, Bitcoin (BTC) has been hovering around $8,300 threshold for the most part of the day. At press time, the biggest cryptocurrency by market cap is trading at $8,329, down around 0.3% over the past 24 hours at press time. Over a seven-day period, Bitcoin is up by around 2.8%. Bitcoin’s market share rate has been stable over the day, accounting for 66.9%. While some Bitcoin bulls are predicting that the upcoming Bitcoin’s block reward halving in May 2020 will lead the major cryptocurrency to break the all-time highs, the CEO at Chinese mining giant Bitmain recently claimed that the halving may not lead to a bull market. On Oct. 8, American asset manager VanEck published research providing a number of reasons why Bitcoin improves an investment portfolio upside, emphasizing the coin’s monetary value, scarcity and independence from traditional markets. Bitcoin 24-hour price chart. Source: Coin360 Ether (ETH), the second cryptocurrency by market cap, is down 0.6% over the day to trade at $182 at press time. The top altcoin is seeing significant growth this week, up more than 4% over the past seven days at press time. Earlier this week, Ethereum co-founder Vitalik Buterin declared that after the Ethereum blockchain adopts its proof-of-stake consensus algorithm, it will be more secure and expensive to attack than Bitcoin. Ether seven-day price chart. Source: Coin360 Ripple (XRP), the third top cryptocurrency by market cap, is up around 0.2% and trading at $0.272. Over a seven-day period, the coin is up by more than 7%. Ripple seven-day price chart. Source: Coin360 Total market capitalization amounts to $224 billion at press time, seeing no change over the past 24 hours at press time. Over the past 7 days, total market cap grew by $8 billion, according to CoinMarketCap. U.S. regulators reject Grams and…

Crypto News From the German-Speaking World: Oct. 6 – 12 in Review

Crypto News From the German-Speaking World: Oct. 6 – 12 in Review

The German-speaking world has experienced another week full of exciting developments in the crypto industry, with Germany investigating the feasibility of a blockchain-based regional power trading platform, Iota Foundation joining forces with Zühlke to solve engineering problems and the German Central Bank saying that there is no need for a digital euro coin. Here is the past week of crypto and blockchain news in review, as originally reported by Cointelegraph auf Deutsch. Germany promotes research on a regional blockchain power exchange Cointelegraph auf Deutsch reported on Oct. 9, that the Free State of Bavaria in Germany plans to investigate the feasibility of a regional power trading platform based on blockchain technology.  The research project involves several partners like the Technical University of Munich, Energie Südbayern and the Syneco company. The Bavarian Ministry of Economic Affairs, Regional Development and Energy is funding the project. German Bundesbank sees no need for digital euro Cointelegraph reported last week that the German finance minister Scholz was advocating the idea of launching a digital Euro coin. However, on Oct. 12, the German Bundesbank said that it sees no current need for the introduction of a digital central bank currency in Europe. The German central bankers added: “Digital central bank money in this comprehensive variant for payment processing offers from today’s view only small recognizable advantages.” South African Net1 intends to acquire majority stake in Liechtensteiner Bank Frick South African Net1 intends to acquire the majority stake in Liechtenstein bank Frick. If the Liechtenstein Financial Market Authority gives the green light to the March 2020 acquisition, the shares of the payment service provider would increase to 70 percent. The Kuno Frick Family Foundation remains the owner of the remaining 30 percent of the Liechtensteiner Bank Frick. Net1 expects to expand its fintech and blockchain services in addition to the bank’s existing products and services. Iota Foundation and Zühlke join forces to solve engineering problems The IOTA Foundation, in cooperation with Switzerland-based service provider Zühlke, wants to solve some of the most important problems of mechanical and plant engineering, which often have a significant impact on the financial health of the respective companies. Jens von der Brelie, head of the Zühlke Solution Center Industrial & Consumer Solutions, commented on the new partnership:…

Bitcoin Price Diary: How REN/BTC Double Bottom Made Me 49% Profit

Bitcoin Price Diary: How REN/BTC Double Bottom Made Me 49% Profit

In this third installment of my Bitcoin Price Diary, I’ll revisit some open positions which are still in play and review a sizable trade on REN. I also have a position in Bitcoin (BTC) that is still largely open.  As I have said a number of times on Twitter, I believe that it has been an altcoin season for months and that altcoins found their local bottoms in August. I have been comfortably trading them since. In early October, Bitcoin dropped and was ranging sideways, giving altcoins even more room to appreciate.  At the time of writing, Bitcoin price is a few days removed from a sizable 6.6% move up, which caused a drop across the board on many altcoins. I am proceeding with caution on altcoins for the moment until Bitcoin has provided clearer direction for its next move.  I prefer to keep my active trades at a minimum because it helps me manage my risk. Opening multiple altcoin positions at the same time rarely works for me as they move in tandem based on Bitcoin price moves.  This is why I assign a 1% risk for multiple positions as failing to do this can lead to sizable loss across the board. I prefer to identify the 1 or 2 setups I like the best and allocate more funds to heavier positions. In this case, I deployed the bulk of my trading capital into a REN position, which worked out beautifully. Let’s take a look at some charts to see how the process worked out.  REN/BTC: Setting up the trade Entries: .00000512 (sats), .00000601 (sats) Targets: The target of the initial breakout, for me, is a trip to the all-time high. This is ambitious, but my first target for a small portion of the trade was set at .00001396 (sats). This would be a 170% gain. At the time of entry, I was watching for a potential double bottom (confirmed with a break of .00000601), with a target around .00000840. This would be a 64% gain from the first entry and a 40% gain from the second entry.  Stop loss: In case the trade goes belly up I’ve placed a stop loss at .00000476 (sats), which equates to a 7% loss on the trade. …

Pushing for Crypto Self-Regulation Amid Tightening Government Scrutiny

Pushing for Crypto Self-Regulation Amid Tightening Government Scrutiny

Self-regulation is once again a trending topic in the cryptocurrency landscape as major exchange platforms have announced the creation of self-regulated organizations (SROs) to achieve some standardization in digital currency governance. Government regulators across various jurisdictions continue to exert greater regulatory pressure on their local cryptocurrency industries. Even inter-governmental agencies like the Financial Action Task Force have in recent times put crypto governance at the forefront of their regulatory ambit. For digital currency stakeholders, many of these regulatory measures can negatively impact innovation in the industry. Some even warn that harsher laws will see both capital flight and a brain drain from nations that adopt these stringent measures. Related: Japan Security Token Offering Association: The Way of Self-Regulation However, there is an argument to be made against the effectiveness of the approach adopted by some of the existing SROs. Some critics posit that their recommendations do not come with the appropriate authoritative weight to trigger lasting changes in the crypto regulatory landscape. Furthermore, without the participation of government regulators, it might appear that self-policing measures only amount to an elaborate exercise of “guessing legality.” Crypto self-regulation in South Korea and Japan Before the “crypto frenzy” of the late 2017, China was the only major market to have issued any definitive ruling in the form of a ban on digital currency trading and initial coin offerings (ICOs). In the aftermath of the meteoric rise in crypto prices and the subsequent increase in global consciousness, the start of 2018 begun to see more serious government consideration of the market.  In early 2018, reports began to emerge of plans in South Korea and Japan to create self-regulating bodies for their crypto markets as a way of preempting stringent laws from the government. Thus, Japan and South Korea became some of the first jurisdictions to have some sort of crypto SRO such as the Japanese Virtual Currency Exchange Association (JVCEA), which  formed in April 2018. The JVCEA emerged mostly as a reaction to the January 2018 Coincheck hack that saw the theft of more than $530 million in NEM (XEM) tokens. The association focuses on the Japanese crypto trading arena, working together with the country’s Financial Services Agency to enforce strict compliance among its members. Thus far, the JVCEA has worked to enforce regulations for hot wallet…

Visa, Mastercard, Ebay, Stripe Join Paypal in Leaving Libra

Visa, Mastercard, Ebay, Stripe Join Paypal in Leaving Libra

Most payment companies have now pulled out of Facebook’s Libra project. Visa, Mastercard, Ebay, and Stripe have followed Paypal in dropping out of the project amid regulatory concerns. The Libra Association has responded to the exodus of these companies. David Marcus, who is in charge of the project, calls it “liberating.” Also read: European Countries Step Up Response to Facebook’s Libra Libra Losing Support of Major Companies Visa, Mastercard, Stripe, and Ebay announced Friday that they will no longer be part of Facebook’s Libra project at this time. The move follows Paypal’s announcement last week to drop out of the project. Another payment-related firm, Mercado Pago, has also pulled out, leaving only the Netherlands-based Payu as the only payment firm left in the Libra Association. Mercado Pago primarily serves Latin America. The remaining members of the Libra Association are mostly venture capital, telecom, blockchain, technology, and nonprofit groups. The original members of the Libra Association.The Libra Association is an independent nonprofit organization headquartered in Geneva, Switzerland, with offices in California’s Bay Area. Its members are each validator nodes that operate the Libra blockchain, the project’s website details. Visa, Mastercard, Ebay, Stripe Exiting Visa issued a statement Friday stating that it “has decided not to join the Libra Association at this time,” adding: We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the association’s ability to fully satisfy all requisite regulatory expectations. Ebay released a similar statement clarifying that it “has made the decision to not move forward as a founding member … At this time, we are focused on rolling out Ebay’s managed payments experience for our customers.” Likewise, a spokesperson for Stripe said that “Libra has this potential … We will follow its progress closely and remain open to working with the Libra Association at a later stage.” Libra Association’s Response The Libra Association immediately responded to the exodus of major payment firms: “Although the makeup of the association members may grow and change over time, the design principle of Libra’s governance and technology, along with the open nature of this project ensures the Libra payment network will remain resilient.” The inaugural Libra Association council meeting is due to take place in three days when…

WATCH: Tongtong Gong of Amberdata Talks About Gender in Crypto

WATCH: Tongtong Gong of Amberdata Talks About Gender in Crypto

Tongtong Gong, COO of crypto analytics firm Amberdata, shared what it feels like to be a woman in tech and why she chose to become a programmer. “I moved to the U.S. and when I moved I didn’t really speak English that well so when I was in college you needed to pick a degree,” she said. “I was so intimidated by English that I asked my advisor which major should I choose so I didn’t have to write papers and he said computer science.” Gong became a technologist and, during the growth of crypto, she turned down BCC’s Bobby Lee when he asked her to help him run the exchange. She said she didn’t join the crypto ecosystem until she found out about ethereum and now her company is expanding into multiple currencies. What’s the key thing she believes that a blockchain developer needs? “Intellectual curiosity,” she said. “First of all, I don’t believe you can be a good developer without the intellectual curiosity and in the blockchain space that’s especially important.” In this interview with Christine Kim, Gong shares her experience as a woman in crypto and what it takes to build an inclusive and supportive ecosystem. Image via CoinDesk video

Next Bitcoin Halving May Not Lead to Bull Market, Says Bitmain CEO

Next Bitcoin Halving May Not Lead to Bull Market, Says Bitmain CEO

Jihan Wu, co-founder and CEO of Chinese mining giant Bitmain, believes the next Bitcoin (BTC) block reward halving may not lead to a bull market, but the coin’s price will grow in the long term. According to Chinese industry news outlet 8BTC’s report published on Oct. 11, Wu made his remarks during the World Digital Mining Summit held in Frankfurt.  Bulls may be late this time Per the report, Wu explained that the crypto market moves in cycles and this time the next bullish phase may not start after the halving. He is also confident that in a long-term perspective crypto enthusiasts should invest in mining hardware, adding: “There are many uncertainties, but now is a good time to invest in crypto mining. If I were a miner, I would not stop mining but continuing to invest in mining equipment. We are currently in a short-term correction of price. Having a long-term perspective is significant. If bitcoin’s price remains unchanged after halving, the efficiency of existing equipment must be improved to balance efficiency and computing power.” Long-term perspective Wu also promised that the company’s five nanometer mining application-specific integrated circuits will enter mass production in early 2020 while three nanometer chips are already in production. Furthermore, he stated that the firm has set up repair centers which are expected to reduce repair time to three days by the end of 2019. Wu also confirmed that Bitmain will launch the World Digital Mining Map, a service which will connect mining hardware owners with mining farm owners, and the Ant Training Academy — its mining training service. As Cointelegraph reported on Oct. 9, Bitmain announced two new series 17 Bitcoin mining machines.

Ukraine in a Rush to Legalize Cryptocurrencies Under Zelensky

Ukraine in a Rush to Legalize Cryptocurrencies Under Zelensky

The new administration in Kiev, headed by the young president Volodymyr Zelensky, has brought renewed interest in cryptocurrencies. Fresh energy is now being injected into efforts to legalize decentralized digital money and regulate related economic activities. New draft laws have been proposed or are under preparation to accommodate the nascent industry, from which the Ukrainian government expects increased budget revenues. Also read: Swedish Government Auctions Cryptocurrency Again Push to Regulate the Crypto Industry Intensifies Ukraine’s Ministry of Digital Transformation plans to legalize cryptocurrencies such as bitcoin cash (BCH) and bitcoin core (BTC). Тhe initiative to accomplish this comes directly from its current head, Mikhail Fedorov, local media reported recently, quoting his deputy and IT entrepreneur Alexander Bornyakov. The ministry is already working on a new bill that should be ready by the end of the year and preparing amendments to the country’s tax code. Volodymyr Zelensky, president of Ukraine.Bornyakov pointed out that although cryptocurrencies in Ukraine are not banned per se, they currently don’t have any official status. Their legalization is necessary in part to protect businesses dealing with coins from police searches, emphasized the 37-year-old entrepreneur from Odessa. President Zelensky, a former popular comedian and TV producer, is preparing to appoint a new governor of the province this week, 36-year-old crypto millionaire Maxim Kutsiy. The new generation of politicians that took over power in Kiev after the last presidential and parliamentary elections, inherited a country facing numerous challenges. These include a depreciating hryvnia, and an unresolved military conflict in the East. Allowing the promising crypto industry to flourish will undoubtedly translate into increased budget receipts. Bornyakov and his colleagues think it’s time for these companies to come out of the grey sector. Plans to Legalize Mining and Create Crypto Valley People from all corners of the Ukrainian society are now involved in the efforts to create regulatory certainty for the crypto industry. Representatives of the Ministry of Digital Transformation, Ukraine’s parliament (Verkhovna Rada), the non-government Better Regulation Delivery Office (BRDO), industry organizations, and businesses gathered recently to adopt a dedicated program to do that. The meeting was organized by a parliamentary group called “Blockchain4Ukraine” which unites lawmakers from different political factions. The document details certain steps that the government and private sector need to…

Fidelity Exec: We Are Very Careful About Where We Offer Cryptocurrencies

Fidelity Exec: We Are Very Careful About Where We Offer Cryptocurrencies

Kathleen Murphy, personal investing president of American financial services company Fidelity Investments, has said that the firm does not offer cryptocurrencies on retail trading platforms to protect its clients. Murphy voiced this sentiment during an interview with CNBC published on Oct. 11. After the interviewer asked when she expects users to trade cryptocurrency “in a meaningful way” on Fidelity’s platform, Murphy replied: “You know, we’re really careful about that. So while we embrace crypto in terms of trying to understand it and be innovative and thoughtful… We’re also very careful about where we offer those types of things, so they’re not offered broadly on the retail platform. We want to be very careful about making sure that investors who really aren’t institutional investors […] don’t make a mistake with cryptocurrency.” Fidelity has a total of $7.4 trillion in customer assets under its management and was expected to roll out Bitcoin (BTC) trading for institutional clients in May. More recently, Fidelity Center for Applied Technology was revealed to be an early customer of the Bitcoin mining services announced by blockchain technology company Blockstream in August. As Cointelegraph reported on Oct. 9, Rayhaneh Sharif-Askary, director of sales and business development of cryptocurrency asset management giant Grayscale, has stated that institutional investors are constantly piling into the space in 2019.