Altcoin Crypto News

This is what you pay in taxes for using cryptos: USA, UK, Germany, Canada, Switzerland, etc.

Taxation in Crypto

In the last few years, we have been witnessing an untamable proliferation of the cryptocurrencies into the global commercial domain. It has propelled the governments of various countries to promulgate tax regulations with the aim of getting a lion’s share of this surging financial dealing.

If you are fascinated with crypto currencies and want to know more about how the crypto taxes are imposed, then you are at the right place. We discuss in this article the crypto tax implications and compliance requirements in the USA, UK, Germany, Canada, Switzerland.

The United Kingdom

The agency responsible for collection of taxes in UK, the Her Majesty’s Revenue and Customs, have recently published bitcoin tax software. According to the guideline, all the income received and the charges associated with the activities related to crypto are subjected to several taxes. These taxes include Income as well as capital gain tax, and corporation tax, as put under specific performances.

Crypto currencies come within the scope of capital gains tax category for casual users in the country as these are considered as investments. Countable traders might also be made to pay I.T., depending over their regularity of trading and its volume. Persons earning up to £11850 are exempted from paying of taxes in the country.

The United States

The Government Agency for collection of taxes in the country, the IRS, has expressed a different view over the relation between crypto transaction and taxes. Whenever Bitcoin or Altcoin is sold for a profit, the trader is held liable to pay taxes under the scripture of capital gains.

According to the Notice 2014-21 published by the IRS, any received or mined crypto-currency will be taken into consideration while computing gross earning. The computation would be based upon the fair value of these virtual currencies as on the date of receipt. Taxes are calculated upon value thereby bringing gifts, crypto-to-crypto swaps and related events within the clutch of taxation.

This is one of the prime reasons why IRS has shown high level of interests over crypto-currencies as a source of revenue. But, the fact that the brokers in crypto-currency trading don’t require to issue 1099 disclosure forms has made the computation tougher for them.

Canada

Government of Canada has clearly come out with its view about crypto-currencies by stating that digital currency users would be under the Canadian tax obligations. The statement infers in a straight way that all form of crypto-currencies are subjected to the Income Tax Act of the country.

The purview of the government has the vital underlying statement that while crypto-currencies would be sold for profit or making crypto-to-crypto transactions, those will be strictly adhered under notification of the Income tax department of the country. Even miners would have to pay crypto mining taxes for their transactions. While Bitcoin is used to pay for purchasing Ehereum, then the coin would be considered to be sold for the value in the currency of Canada while the transaction is made.

The rules regarding taxes for investments are applied to crypto-currencies. It infers an imposition of 50% of the gain. Bulk traders are required to submit their tax file with the Canadian Revenue Agency as self-employers.

Germany

The dealings over crypto-currencies are not considered as fair tender in this country. Rather, dealings of these types and the profit thus earned are considered as private money. This is the essence of the report published by the Finance Ministry of Germany.

Therefore, if any profit is made by trading with Bitcoins or Altcoins would be put under subject of Capital Gains Tax as per the German Legislature. The mining or exchanging of crypto-currencies would also be put under the subject matter of taxation under Capital Gains. The rate of tax imposed for these transactions would be between 25-28%. An amount of solidarity charges is also included in it. But, as per the provisions in the Income Tax Act in Germany, the cases where the crypto-currencies have been held for more than one year, these will be exempted from taxation. Citizens can resort to an online crypto tax calculator name zenledger for efficient receipt compilation and tax filing.

Switzerland

The status of crypto-currencies has never defined in the books of Income tax department in Switzerland. The wealth tax is determined on the basis of earning. The Expert Take for Cointelegraph, an international magazine on finance, has recently expressed its view over crypto-currencies. It states that crypto-currencies are neither form of native nor a foreign currency. These do not form financial supply for GST purposes.

The above clause is, however, applies to those citizens of the country qualifying as professional traders. This qualification would again be based on the amount as well as frequency of operations annually made with crypto-currencies. Whatever the case is, the users of Bitcoin would be made to pay wealth tax as determined by the tax authorities on 31st of December of the financial year.

Currently, the investors are trying to build luck with newer currencies like Ripple and Ethereum beside Bitcoins. While dealing with crypto-currencies are on a hike, the investors are still searching for a guideline to treat these for federal income tax purposes. In order to remove these confusions, IRS has come up with crypto-tax software. In this software, these currencies have clearly explained as capital asset if converted into cash. Any gain or loss would thus be treated under the rules of capital gains.…

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Bitcoin Crypto News

Margin Trading – How to borrow USD to Buy More BTC then

One of the best way to earn money in the crypto world is undoubtedly by trading cryptocurrencies.

Now with the burgeoning cryptocurrency, it is, therefore, a challenge for average investors to survive with limited cryptocurrencies.

Margin Trading

Well, if you are among those who are looking to get most out of it than Margin Trading is quite a useful option. The Margin Trading allows you to borrow money to buy more BTC to get the maximum profit.

So, before moving further let’s start by understanding what margin trading is and how it is beneficial?

What is Margin trading?

The term Margin trading means trading cryptocurrencies using borrowed funds.

In simple words, margin trading is an act of “Trader borrowing money from a broker or a crypto exchange to acquire more assets than they are actually able too.

Traders can fundamentally borrow up to 50% of the value of an asset.

The Margin Trading involves borrowing capital at relatively higher interest rates from the cryptocurrency exchange so you can access increased leverage.

Now, there are two types of Margin Trading:

1. ShortTrading

In Short Margin Trading investors bets on the assets which they think will depreciate in the future.

2. Long Trading

In Long Margin Trading the investors are seeking to purchase assets that they think might will increase in value.

Note: Both the trading are done on credit from the exchange, but with different goals keeping in mind.

Benefits of Margin Trading

1. Flexibility to Payback borrowed money on the trader’s preferred schedule.
2. Potential Tax Advantages.
3. It allows traders to gain more profit from Price Declines with the help of “Short Selling.”
4. The Margin Trading can pursue advanced trading strategies.

How Does Margin Trading Works?

Margin Traders must be careful to pay attention to their maintenance margin which means the minimum account balance that must be maintained.

If the margin traders go below the level, then the lender or broker has the right to require the deposit of additional funds, or the sale of stock to satisfy the terms of the account.

This overall process comes under the Margin Call.

Moreover, the essential benefit of trading on margin is the potential for higher profits.

Now, by borrowing money, a trader can take a more significant position and thus realizes the greater gains.

The traders can even leverage their existing holdings to increase the size of their investments.

Fundamentally, Margin Trading comes with the same risks as any form of debt, including interest charges as well as fees.

Apart from this, if the market turns in an unfavorable direction, then the margin trading can increase the losses, and the trader, therefore, would otherwise suffer.

Furthermore, if the value of the assets being used as ‘Collateral’ for a ‘Margin Loan’ decline below maintenance requirements, a trader risks facing a margin call.

Now, it’s important to know or understand the distinction between leverage as well as margin.

Leverage regarding Margin Trading is the additional buying power available to only those who have Margin Accounts. Leverage allows traders to enter higher positions than they usually have and it is primarily expressed as a Ratio.

Now, if you are looking to borrow USD to buy more Bitcoin and gain more substantial profits than here, we have featured some of the best Margin Trading Crypto Exchanges platforms.

There are a number of crypto exchanges currently available in the market. However, we have only mentioned the top 3 of them. So, here we go.

1. BitMEX

Undoubtedly, BitMEX is one of the best Margin Trading Crypto Exchanges in the market. BitMEX expedited margin trading for cryptocurrencies and gained a lot of respect in the crypto world in a shorter period.

Bitmex tradng derivative

The BitMEX consists of a team of experienced developers, economists as well as high-frequency algorithm traders, which inevitably makes BitFEX a relatable product. Currently, BitMEX offers a margin trading for 6 cryptocurrencies including Bitcoin Margin Trades one of the most famous.

2. Poloniex

Poloniex is radically one of the pioneer exchanges in the crypto world.

 

Poloniex is founded by Tristan D’Agosta and is based on the US and has been operational since 2014. Moreover, this exchange is currently owned by “Circle,” an Internet Financial Limited.

Apart from all these things Poloniex offers normal trading accounts for day traders and also offers margin trading features for advanced users. In the crypto world, only Poloniex can leverage up to 2.5X in the BTC.

3. Kraken

Kraken is based out of San Francisco and is one of the largest Bitcoin and Altcoin exchanges in the USA.

Moreover, Kraken is the most significant exchange regarding EUR Volume where anyone can register using the “Email ID” and can start trading BTC after proper “KYC Verification.”

Kraken

Typically, it takes up to 7 days to get verified from Kraken after which you can deal with fiat currencies such as USD, EUR, GBP, as well as CAD.

The Kraken provides the benefit of different leverage options which it offers for different pairs.

The Conclusion

Trading of Bitcoin on Margin can be highly profitable; however, you need to keep in mind that it is a highly risky venture.

Moreover, if a trader successfully determines the price trends on the cryptocurrency market, then he/she will find the margin trading a game changer.

Now, those who do merely day trade or margin trade, never keep your money or cryptocurrencies on these exchanges as it is not a safe practice.

Now if we talk about the exchanges which we have mentioned above, then it provides an extra bit of security features including 2-FA Authentication.

Do you trade in Cryptocurrencies? Tell us about your experience with Margin Trading.

Let’s discuss trade or margin trade cryptocurrencies in the comment section.…

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Bitcoin

Clarification from Regulators can help Crypto community

Clarification from Regulators Can Help Crypto Community

Though tightening of regulations of cryptocurrency market drags sentiment at least in the near-term, regulatory clarity could lead to attraction. This is the gist of the conference on Distributed Markets that took place in Chicago a few days back. The meet attracted experts from financial and blockchain technology to shed light on the available opportunities. They have also highlighted the potential changes that the digital currency sector is currently facing. Another significant aspect is that regulations are not regarded as an unfavorable catalyst to lift sentiments.

Educating Participants

The objective of the conference is to educate the participants of the conference on integration of blockchain technology with their businesses. This would increase not only overall efficiency but also provides cost-effectiveness to the businesses, bitcoin magazine reported. A hackathon and a Blockchain Academy workshop were available to offer a chance to study blockchain macro cases to developers.

The organizer believes that it could demonstrate the developers’ skills. Significantly, the biggest issues that are haunting the regulator is how to classify virtual assets and tokens to streamline the sector. There is still ambiguity on the roles played by the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

While CFTC’s jurisdiction covers bitcoin and listed bitcoin futures on regulated interest exchanges, SEC is regulating all securities and derivatives. The latter is now keen on bringing initial coin offerings (ICOs) into its fold. That meant it is subject to vigorous tactics with significant potentials of dragging their values. The securities regulator also sought to know how enterprise has issued tokens and involved in marketing them.

CMT Digital’s Colleen Sullivan, who was a speaker, reacted quickly to address the issue. She told the audience that every security should be traded on registered exchanges in the Americas. She pointed out that the securities regulator weighed in on digital currencies in July last year. At that point in time, it released an investigative report claiming that some digital coins fell under the securities category. Though there are more than 1,500 cryptocurrencies, none of them are traded in the way SEC standards prescribed.

On the other hand, Blockchain counsel Gray Sasser believes that the cryptocurrency industry is surrounded by ambiguity. He said that though he has been participating in a number of panels, his first answer to most of the questions is that he does not know. He said it in a lighter vein. However, he thinks that the SEC is clear in indicating where digital tokens should fall. But they failed to offer distributors the right path.

The influx of Institutional Capital

In her conclusion, Sullivan was clear about two things. One is that the cryptocurrency market needs solid regulation. The second is that she sees the entry of institutional capital into the digital coin market. This should finally lead to a renowned broker’s presence in the sector. As a result, it would provide stability and efficiency.

She explained further that “I think as the regulatory environment becomes more clear in the next 12 months, we’re going to see a lot more capital. Right now, most changes in the industry have applied to retail.” That is an indication that the regulated market would attract more capital.…

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Bunny Ranch brothel now accepts payments in Bitcoin

Lana West, a sex worker in the Moonlite Bunny Ranch, was paid a few thousand dollars in bitcoin. The news was reported by the infamous licensed brothel in Nevada as it has allowed customers to pay in digital currencies for sexual services.

Recent reports suggest that many sex workers and escort businesses have been accepting virtual currencies against their services and now, Dennis Hof owned Bunny Ranch has joined the list. Being located in the state of Nevada, the brothel operates legally as it is outside the jurisdiction of Las Vegas. Bunny Ranch became popular in Carson City as well as in the world after HBO filmed Dennis Hof and his employees in a documentary named ‘Cathouse.’

During the first week of April, Bunny Ranch’s staff member, Lana West exchanged an “intimate girlfriend experience.” West stated that brothel users could pay with their credit cards, but its statements will show up Bunny Ranch. That week West was asked by a client to accept payment in bitcoin.

She stated, “A wonderful and rather tech-savvy client came in offering to purchase my services with Bitcoin. Dennis approved it, and we executed a transfer from the customer’s bitcoin wallet to my own.”

She added, “It was a mid-four-figure payment for an intimate girlfriend experience with me that lasted just over an hour — My client walked out with a smile on his face — but little did he know we actually made history together.”

Apart from Bunny Ranch, Bubble Escorts have also started accepting bitcoin for a “dream escort.” The official website is currently displaying a bitcoin logo to hint its customers while providing an address between the booking processes.

The escort service stated, “We have taken this decision upon our desire to move with the times as we have always been dedicated to revolutionizing the way people book London escorts. “Cryptocurrency is growing in popularity, and we are delighted to be the first London escorts provider to have listened to the demand.”

It explained, “We believe that accepting bitcoin payments is a new feature which will allow our clients to pay for our adult companionship services in the most discreet and safe way possible.”

Accepting bitcoin for providing intimate services has become a trend in the US which has seen tremendous growth over the past year. Customers have been positive about the moves of the adult industry as one Reddit user stated in forum /r/sexworkers that “accepting bitcoin best thing ever decided.”

Male and female escorts have listed themselves in the web portal Adultwork to inform customers about their surety of accepting bitcoin as payments. On the other hand, US government banned Backpage.com for displaying numerous advertisements of individuals offering escort services for bitcoin.

It should be noted that use virtual currencies in the adult industry has the activity to a whole new level of discretion. As bitcoin’s value has started to regain a bit pace, it has seen a gradual increase in its users again. It’s a matter of time when smaller currencies will be used to ensure a lower profile in the adult industry.…

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Crypto News

Associates forbidden from investing in Cryptocurrencies: Capital Group

One of the oldest investment management organizations in the world, Capital Group, has prohibited its associates and family members from investing in cryptocurrencies. According to the upgraded Code of Ethics registered in the Securities and Exchange Commission (SEC) on April 19, they will also not be able to participate in any Initial Coin Offerings or ICOs.

The update in the Code of Ethics stresses attention over the new policies and guidelines towards ICOs and Initial Public Offerings IPOs. It states, “All associates and immediate family members residing in the same household may not participate in IPOs or ICOs.”

As per the document, Capital Group will have the power to acknowledge a rare exception for IPOs which will be reckoned as “on a case-by-case basis.” However, the document does not inform about any exceptional case for ICOs as its prohibition “applies to all Capital associates.” On the other hand, the updated code of ethics has not clarified whether investments made on behalf of clients are also banned.

Earlier this March, SEC announced that it would be examining around 100 hedge funds that are related to digital currencies. The main reason for the investigation is to advise the SEC over their policies and its impact on virtual currencies. Currently, the examiners are matching the assets purchased by fund managers with those advertised to investors in offering statements.

A partner at Schulte Roth & Zabel LLP, a firm involved in providing advice for the hedge fund, Marc Elovitz, said, “This is a way for the SEC overall to gather information and learn about important new technology and products.” These operations are conducted “to educate the commission overall about new businesses or new industries.”

The South Korean government has disallowed its employees to hold and trade in digital currencies since last month. It said that government officials indulged in the trading of digital currencies are “in violation of the prohibition of forbearance obligations under the civil servants’ law” and are liable to disciplinary actions.

The Ministry of Personnel Management issued a document named, “Virtual currency holdings and transaction-related information for civil servants.”

In similar news, Justin Schmidt was appointed as the head of digital asset markets by Goldman Sachs Group Inc. to help clients gain exposure to cryptocurrencies. Galvin-Cohen, spokesperson Goldman Sachs said, “In response to client interest in various digital products, we are exploring how best to serve them in the space. We have not reached a conclusion on the scope of our digital asset offering.”

As of now, the reason to ban associates from using cryptocurrencies is still unclear. Being one of the largest financial service providers in the world, Goldman Sachs decision will have a great impact on other institutions. According to experts Goldman Sachs is trying to comply with the regulations launched by SEC in the US. Crypto users have always been under government radar, and Goldman Sachs is trying to stay away from any situation that harms its goodwill. It would be interesting to see if other financial services follow its footprints or not.…

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General News

Dutch’s ING is making quiet moves on Blockchain Technology

The Dutch-based ING Group is making quiet moves on blockchain technology. This is a clear indication that it does not want to lag behind and allows innovation to reach and react. The Netherlands firm is only modifying its earlier plan splashed in November last year. Its modification is called as ‘zero-knowledge proofs.’ The company believes that this is a promising tool to be explored for financial institutions. That is because the industry is depending on shared ledgers that might sometime become a cause of worry.

Revealing Data to Rivals

For instance, there is a threat of enlightening too much of data to rivals. The technique provided a way to transfer the assets of a bank’s on these networks. This would come without comprising confidentiality of clients. However, ING has come out with a modified type. This is known as ‘zero-knowledge range proofs.’ The advantage is that it could offer that a number is well within a specified range devoid of disclosing the real number. This was cited as an improvement partly since it uses a smaller amount of computational power. As a result, it runs quicker on a blockchain platform.

For instance, zero-knowledge proofs range could be made available to establish that a particular person has a salary within a range required to get a mortgage. ING blockchain program’s global head, Mariana Gomez de la Villa, said that this would come without disclosing the actual figure of salary, Coindesk reported. She believes that it could also be used to defend a transaction’s denomination without any issues in the validation of enough money in the specific account for settling the transaction.

Currently, ING is engaged in building on its past work. As a result, it would add another wrinkle to venture blockchain privacy and influence a kind of proof that is called as ‘zero-knowledge set membership.’ The Netherlands bank indicated that it would take the concept of zero-knowledge beyond numbers. That would mean adding other data types. Set membership enables to showcase that a secret fits in well with a generic set. This could be based on any information kind such as locations, addresses, and names.

The company’s official thinks that there are wide-ranging potential applications of set membership. Therefore, it is not limited to any number belonging to an interval. That would mean it could be made use for validation of any data sort that is formed correctly. She believes that set member is more powerful compared to other range of proofs.

Improving Solution

Gomez de la Villa said that with the availability of source code, ING is making a collaborative effort to improve its zero-knowledge range proof solution. She pointed out that a team is working on the theory or mutually beneficial relationship between enterprises and academic cryptographers. For its part, it would work in practice.

The Dutch firm will participate in a workshop that seeks to standardize zero-knowledge proofs. This would come along with the likes of Shafi Goldwasser of MIT. The company believes that it is now part of an extensive experts community that is looking at the zero-knowledge proofs extension.…

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Altcoin

UK’s financial conduct Authority Confirms that Crypto Derivatives is a step towards its Recognition

UK’s Financial Conduct Authority Confirms that Crypto Derivatives Is a Step towards Its Recognition

There is every possibility that the United Kingdom is moving towards recognizing the cryptocurrencies in the country. This is quite evident from various developments that are taking place in the recent past. The latest one is that the Financial Conduct Authority (FCA) has accorded approval for crypto derivatives. Significantly, the latest move comes after the regulator launched a task force in alliance with the Bank of England. That was not only to explore regulating ways but also foster the expanding digital coin sector.

Small Steps

Though it could be termed as small steps that the FCA has been taking, there is also no doubt that it would have its impact on further regulations. The regulator specified that cryptocurrency derivatives could be described as financial instruments. This came under the purview of ‘markets in Financial Instruments Directive II.’ It required any enterprises involved in regulated derivative-based activities to meet the terms of the Handbook rules of the FCA. Aside from that, it should also comply with European Union’s applicable provisions.

According to a report in coingeek, the regulator stated that any company “dealing in, arranging transactions in, advising on or providing other services that amount to regulated activities in relation to derivatives that reference either cryptocurrencies or tokens issued through an initial coin offering (ICO), will require authorization by the FCA.” Incidentally, there are doubts expressed in some quarters about FCA’s scope on digital currencies. None-the-less, the move indicated that it is moving towards pro-stance towards the sector.

The regulator would seek some of the types of transaction to conform to its guidelines or regulations. This included cryptocurrency contracts or digital currency futures for differences, as well as, options. The handbook of the FCA offered necessary information for enterprises to conclude if their products have met the policies of the regulator. The United Kingdom thinks that the year 2018 belongs to digital currencies as the interest for it is increasing. As a result, regulations to are getting tightened.

Last month, the FCA aligned with Bank of England to take stock of the cryptocurrency market and engaged in the process of how to control it. As part of it, the task force is entrusted with a task of releasing its analytical report later this year on the growing virtual currencies market. Economics Professor at MIT, John Van Reenen, believes that the country would likely take a favorable stance on digital currencies market. However, he sees a different kind of story from the recent measures.

Attractive Hub

For quite some time, a number of analysts believe that Britain could be an attractive location for not only blockchain startups but also fintech firms. That is primarily due to the positivity demonstrated by the FCA. The country is trying to be at least one step ahead of the rest of world, which is slowly embracing the new age currencies.

The nation is also pushed to the wall to create a favorable atmosphere for cryptocurrency market to stay ahead of the European Union. In the absence of it, the country would lose a competitive edge. Significantly, other countries in the region to are showing interest.…

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