How to calculate tax on crypto profits - October 2020 ...
How to calculate tax on crypto profits - October 2020 ...
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The Complete 2020 Bitcoin Tax Guide CryptoTrader.Tax
March beermoney earnings report (£319.16) - Who paid me in March
I figured I'd post my first beermoney earnings report and no this is not an april fools, I hope u/flybywire2a doesn't mind me borring his formatting as i'm bad at starting from scratch. Anyway here's what I made :
Passive - Browser Extension
Passive - SMS
Passive - Facebook
Passive - SMS
Passive - Location
Google Opinion Rewards
Passive - Cloud Mining
Passive - Cloud Mining
Passive - Browser
Seems pretty good for a third month considering i'm doing everything haphazardly, sadly I didn't record the prior months but started doing it now in case I need to ever pay tax on my earnings.
Please be aware all sign-ups require you to use a ref link or code in order to get the bonus.
Chip [non|refcode - ARWLEPXY (£10 sign-up bonus)] - You'll need to allow for two auto-saves that happen every four days and within 30 days of those conditions being met you will recive £10 which you can immediately withdraw with your auto-saves. You can easily pause your auto-saves after the first two.
Tickr [non|refcode - callumt1608 (£10 sign-up bonus)] - You'll need to make a one off (recommend £5-10) or monthly deposit at which point you'll recive your £10 but you must wait 90 days before being able to withdraw it
Xapo [non|ref($10 sign-up bonus)] - You'll have to deposit $100 worth (check £-$ value) into the account at which point you'll recive your bonus in BTC which you can convert to GBP and withdraw, should you not recive your bonus within a day or so contact support and pm me (support will want my email address and full name to verify the bonus).
Trading212 [non|ref(£1-100 sign-up bonus)] - You will have to deposit £1 to recive the share, 3 days to sell it and then 30 to wait for the money to settle at which point you can withdraw it.
Bitwala [non|ref(€15 sign-up bonus)] - You only need to verify your account which will require Proof of ID and Address (Make sure it shows the date and your name) and you will have to create a bitcoin wallet so you can have €15 worth of bitcoin deposited into it within 15 banking days at which point convert it to GBP and withdraw.
Zuex [non|ref/ refcode - ZWYIVB (£40 sign-up bonus)] - You will recive £40 in your account upon signing up however you cannot withdraw this amount but you can withdraw any interest generated off it so I'm personally just letting it build and build until I am satisfied.
Streetbees [non|refcode - 75496X ] - payout upon survey review, no minimum. The surveys are carried out like a conversation and pay £1 minimum, these tend to be less mind numbing than most surveys due to the conversational nature of the surveys and as a plus they're very frequent.
BigToken [non|refcode - ML15ACAC6 ] - payout within 7 business days, $5 minimum. This one is actually very convenient cause everything is a micro survey of one question so it's easy to do on the go, no complex questions. You can only cash out 1/4th of your points total. They seem to have fixed their payment issues now so everyone getting paid again after a long hiatus.
Google Opinion Rewards [non] - payout immediately but only in the form of google play credit. All the surveys are based on location data from you walking about and visiting places so you're probably not going to get many while in quarantine but when you can this is the easiest way to never pay for an android app ever again.
Viewsbank [non] - payout at the end of each month, £12 minimum. Pretty much what you'd expect from a survey site, nice ui, getting disqualified from a survey is very uncommon it feels, surveys can be viewed on the website and you'll also be alerted to them via email when they become available.
CitizenMe [non] - payout instantly, no minimum. Micro survey app very trustworthy and reliable company you'll consistently get one or two paying surveys each day perhaps more based on your demographic. Highly recommended.
OnePulse [non] - payout instantly, $5 minimum. Micro survey app similar to CitizenMe. Highly Recommended.
IntelliZoom [non] - payout in ~3 weeks, no minimum. Can check the website for available tests and they send out regular email alerts to those tests in addition to notify you. I get probably 10+ invites a week but not always a fit for the demographic.
TopCashback [non|ref(£7.50 sign-up bonus)] - payout varies based on the website/product/service you get cashback on, no minimum. I recommend if you're ever buying anything whatsoever online quickly pop on here and check if you can get cashback for it but do make sure you have anything that blocks cookies turned off. I also recommend you sign up for QuidCo[non|ref(£10 sign-up bonus)] & OhMyDosh![non|ref(£1 sign-up bonus)] and check all three when checking for cashback sometimes one is better than the other.
ReceiptHog [non] - payout within 7 business days, £3 minimum. You scan your receipts from shopping and get points for them which you exchange for payment, can take a while but money is money.
Huyu [non|refcode - 5URTPVVJ (£0.50 sign-up bonus)] - payout within 7 business days, £5 minimum. Same as ReceiptHog but will only accept receipts from grocery/supermarkets.
Brave [non|ref] - payout monthly, no minimum. Opt-in to the brave rewards in the brave browser and you will recive non-intrusive ads occasionally and be paid for viewing these at the end of the month in BAT. It'll help if you understand crypto already as you'll need to sell your crypto to get tangible cash. I recommend checking the coinbase mega-thread as there is a step for extra money related to it that you can complete.
Electroneum [non|refcode - BEEF3D ] - You basically just confirm you want to cloud mine each day until you feel you've accumulated enough to sell on an exchange. It'll help if you understand crypto already as you'll need to sell your crypto to get tangible cash. I recommend checking the coinbase mega-thread.
Phoneum [non|ref (200PHT sign-up bonus)] - You basically just confirm you want to cloud mine each week until you feel you've accumulated enough to sell on an exchange. It'll help if you understand crypto already as you'll need to sell your crypto to get tangible cash. I recommend checking the coinbase mega-thread.
UpVoice [non] - payout instantly, $5 minimum. Completely passive, tracks your usage data of Facebook, YouTube, Amazon and other partnered sites and pays you in return.
Lazybucks [non|ref] - payout 7 business days, no minimum. Completely passive, requires you to have a facebook account with an untouched ad account or business account. The way they work is they interact with ads on behalf of advertisers to review that they are working.
MoneySMS [non|refcode - 683408DCD9 (€0.50 sign-up bonus)] - payout within 7 business days, €2 minimum. Completely passive, The way this works is companies will send texts to your phone to verify that their mobile infrastructure (like Two Factor Auth via text) is working and the app will check they've recivied the expected text and credit you €0.02-0.05 for each text so you can expect payout after 2 or 3 months.
McMoney [non|refcode - 9YQ73EX5 ($0.51 sign-up bonus)] - payout within 7 business days, $5 minimum. Same as MoneySMS.
Panel App [non|ref] - payout within 7 business days, £1 minimum. Completely passive, Utilizes your location data for research purposes, you make get surveys in response to where you've been which add a little extra to reaching your payout faster.
Adult Entertainment - Definitely not for everyone
OnlyFans [non|ref] - payout at the end of each month, $20 minimum, 20% fee on your earnings. This honestly will not be for everyone but i'm quite comfortable taking nudes and curating it as its basically like an Instagram profile. You'll need to market yourself a little (use reddit/twitteinstagram), keep a consistent posting schedule and appeal to peoples desires. Can be quite the confidence boost. Look at your body logically and figure out who you appeal to and what niche you fit into in relation to peoples desires.
Why we won't have a long term bear market, and how to systematically pick your future investments in crypto
With so much uncertainty right now it would be a good time to take some time to go over what happened recently and how to invest moving foward. We've seen a peak bubble at around 850 billion total market cap in the first week of January, consolidated down to $750 billion and have now just experienced a 40% correction.
What's happening now and how bad will it get?
First of all you should realize that there is a January Dip that happens every year, when we see a roughly 20-30% decline around mid January. This year its been much more severe though for several additional factors that have compounded on top. Different theories exist on why this happens (its actually the mirror opposite of the "January Effect" that happens in the US stock market), but the two major theories are: 1) Asian markets pull into fiat because of Asian New Year spending needs 2) People in the US sell in January to defer their capital gains tax liability an extra year While this cyclic event has lead to a healthy correction in the last few years, this year we got these new factors making more fear as well:
We had a new breed of speculators come in during the NovembeDecember timeframe after media made cryptocurrency mainstream following the Bitcoin 10K landmark. While cryptocurrency markets have always had too much hype, the latest rise wasn't just over-enthusiasm in fundamentally sound cryptocurrencies like Monero and Ethereum, but mass inflows of fiat into vaporware and complete nonsense without any use case. Many people came in to essentially gamble on symbols on an exchange, and are thus short term oriented and quick to sell on any slight downturn, which such further adds to selling pressure.
So in essence we got a storm of scary news along with the usual cyclic downturn. Currently I don't see this as being a systematic crash like Mt.Gox was that would lead to a long term bear market because the fundamental ecosystem is still intact, and I suspect that after about a month we should consolidate around a new low. All the exchanges are still operational and liquid, and there is no breakdown in trust nor uncertainty whether you'll be able to cash out. What range the market trades in will all depend how Bitcoin does, right now we've already broken below 10K but I'm seeing a lot of support at around $8000, which is roughly where the long term MA curve settles. We don't know how bad it will get or what the future will bring, but as of right now we shouldn't be in a bear market yet. What should you do if you recently entered the market? If you did buy in the last few months at or near ATH, the very worst thing you can do now is sell in panic and lose your principal. You shouldn't have more money in crypto than you can afford to lose, so it shouldn't be a problem to wait. You have to realize that 30% corrections in crypto are relatively common, just last fall we had a 40% flash correction over more China fears. Unless there is a systematic breakdown like we had during Mt.Gox, the market always recovers. The other worst thing you can do is unload into Tether as your safety net. If there is one thing that could actually cause a long term destruction of trust within the cryptocurrency investment ecosystem, its Tether having a run up on their liabilities and not having enough reserve to cover the leverage. It would not only bring down exchanges but lead to years of litigation and endless media headlines that will scare off everybody from putting fiat in. I don't know when the next Mt.Gox meltdown will occur but I can almost guarantee it will involve Tether. So stay away from it. What should long term investors do? For long term holders a good strategy to follow each year is to capture profit each December and swallow the capital gains taxation liability, park a reserve of fiat at Gemini (whose US dollar deposits are FDIC-insured) and simply wait till around late January to early February to re-enter the market at a discount and hold all year until next December. You can keep a small amount in core coins in order to trade around various Q1 opportunities you anticipate. Others may choose to simply do nothing and just keep holding throughout January which is also a perfectly fine strategy. The cyclical correction usually stabilizes toward late January and early February, then we see a rise in March and generally are recovered by end of April. Obviously this decision whether to sell in December to profit on the dip and pay tax liability or to just hold will depend on your individual tax situation. Do your own math sometime in November and follow suit. Essentially revaluate your positions and trim your position sizes if you don't feel comfortable with the losses.
How to construct your portfolio going forward
Rather than seeing the correction as a disaster see it as a time to start fresh. If you have been FOMO-ing into bad cryptos and losing money now is a time to start a systematic long term approach to investing rather than gambling. Follow a methodology for evaluating each cryptocurrency Memes and lambo dreams are fun and all, but I know many of you are investing thousands of dollars into crypto, so its worth it to put some organized thought into it as well. I can't stress enough how important it is to try and logically contruct your investment decisions. If you follow a set methodology, a checklist and template you will be able to do relative comparisons between cryptocurrencies, to force yourself to consider the negatives and alternative scenarios and also sleep comfortably knowing you have a sound basis for your investment decisions (even if they turn out to be wrong). There is no ideal or "correct" methodology but I can outline mine: 1) Initial information gathering and filtering Once I identify something that looks like a good potential investment, I first go to the CoinMarketCap page for that symbol and look at the website and blockchain explorer.
Critically evaluate the website. This is the first pass of the bullshit detector and you can tell from a lot from just the website whether its a scam. If it uses terms like "Web 4.0" or other nonsensical buzzwords, if its unprofessional and has anonymous teams, stay away. Always look for a roadmap, compare to what was actually delivered so far. Always check the team, try to find them on LinkedIn and what they did in the past.
Read the whitepaper or business development plan. You should fully understand how this crypto functions and how its trying to create value. If there is no use case or if the use case does not require or benefit from a blockchain, move on. Look for red flags like massive portions of the float being assigned to the founders of the coin, vague definition of who would use the coin, anonymous teams, promises of large payouts...etc
Check the blockchain explorer. How is the token distribution across accounts? Are the big accounts holding or selling? Which account is likely the foundation account, which is the founders account?
Read the subreddit and blogs for the cryptocurrency and also evaluate the community. Try to figure out exactly what the potential use cases are and look for sceptical takes. Look at the Github repos, does it look empty or is there plenty of activity?
2) Fill out an Investment Checklist I have a checklist of questions that I find important and as I'm researching a crypto I save little snippets in Evernote of things that are relevant to answering those questions:
What is the problem or transactional inefficiency the coin is trying to solve?
What is the Dev Team like? What is their track record? How are they funded, organized?
Who is their competition and how big is the market they're targeting? What is the roadmap they created?
What current product exists?
How does the token/coin actually derive value for the holder? Is there a staking mechanism or is it transactional?
What are the weaknesses or problems with this crypto?
3) Create some sort of consistent valuation model/framework, even if its simple I have a background in finance so I like to do Excel modeling. For those who are interested in that, this article is a great start and also Chris Burniske has a great blog about using Quantity Theory of Money to build an equivalent of a DCF analysis for crypto. Here is an Excel file example of OMG done using his model. You can download this and play around with it yourself, see how the formulas link and understand the logic. Once you have a model set up the way you like in Excel you can simply alter it to account for various float oustanding schedule and market items that are unique to your crypto, and then just start plugging in different assumptions. Think about what is the true derivation of value for the coin, is it a "dividend" coin that you stake within a digital economy and collect fees or is it a currency? Use a realistic monetary velocity (around 5-10 for currency and around 1-2 for staking) and for the discount rate use at least 3x the long term return of a diversified equity fund. The benefit is that this forces you to think about what actually makes this coin valuable to an actual user within the digital economy its participating in and force you to think about the assumptions you are making about the future. Do your assumptions make sense? What would the assumptions have to be to justify its current price? You can create different scenarios in a matrix (optimistic vs. pessimistic) based on different assumptions for risk (discount rate) and implementation (adoption rates). If you don't understand the above thats perfectly fine, you don't need to get into full modeling or have a financial background. Even a simple model that just tries to derive a valuation through relative terms will put you above most crypto investors. Some simple valuation methods that anyone can do
Metcalfe's Law which states that the value of a network is proportional to the square of the number of connected users of the system (n2). So you can compare various currencies based on their market cap and square of active users or traffic.
Another easy one is simply looking at the total market for the industry that the coin is supposedly targeting and comparing it to the market cap of the coin. Think of the market cap not only with circulating supply like its shown on CMC but including total supply. For example the total supply for Dentacoin is 1,841,395,638,392, and when multiplied by its price in early January we get a market cap that is actually higher than the entire industry it aims to disrupt: Dentistry.
If its meant to be just used as just a currency: Take a look at the circulating supply and look at the amount that is in cold storage or set to be released/burned. Most cryptos are deflationary so think about how the float schedule will change over time and how this will affect price.
Once you have a model you like set up, you can compare cryptos against each other and most importantly it will require that you build a mental framework within your own mind on why somebody would want to own this coin other than to sell it to another greater fool for a higher price. Modeling out a valuation will lead you to think long term and think about the inherent value, rather than price action. Once you go through this 3-step methodology, you'll have a pretty good confidence level for making your decision and can comfortably sit back and not panic if some temporary short term condition leads to a price decrease. This is how "smart money" does it. Think about your portfolio allocation You should think first in broad terms how you allocate between "safe" and "speculative" cryptos. For new investors its best to keep a substantial portion in what would be considered largecap safe cryptos, primarily BTC, ETH, LTC. I personally consider XMR to be safe as well. A good starting point is to have between 50-70% of your portfolio in these safe cryptocurrencies. As you become more confident and informed you can move your allocation into speculative small caps. You should also think in terms of segments and how much of your total portfolio is in each segment:
You should also think about where we are in the cycle, as now given so much uncertaintly its probably best to stay heavily in core holdings and pick up a few coins within a segment you understand well. If you don't understand how enterprise solutions work or how the value chain is built through corporations, don't invest in the enteprise blockchain solutions segment. If you are a technie who loves the technology behind Cardano or IOTA, invest in that segment. Think of your "circle of competence" This is actually a term Buffet came up with, it refers to your body of knowledge that allows you to evaluate an investment. Think about what you know best and consider investing in those type of coins. If you don't know anything about how supply chains functions, how can you competently judge whether VeChain or WaltonChain will achieve adoption? This where your portfolio allocation also comes into play. You should diversify but really shouldn't be in much more than around 12 cryptos, because you simply don't have enough competency to accurately access the risk across every segment and for every type of crypto you come across. If you had over 20 different cryptos in your portfolio you should probably think about consolidating to a few sectors you understand well. Continually educate yourself about the technology and markets If you aren't already doing it: Read a bit each day about cryptocurrencies. There are decent Youtubers that talk about the market side of crypto, just avoid those that hype specific coins and look for more sceptical ones like CryptoInvestor. If you don't understand how the technology works and what the benefits of a blockchain are or how POS/POW works or what a DAG is or how mining actually works, learn first. If you don't care about the technology or find reading about it tedious, you shouldn't invest in this space at all.
Summing it up
I predicted a few days ago that we would have a major correction in 2018 specifically in the altcoins that saw massive gains in Decemebeearly January, and it seems we've already had a pretty big one. I don't think we'll have a complete meltdown like some are predicting, but some more pain may be incoming. Basically take this time to think about how you can improve your investment style and strategy. Make a commitment to value things rather than chasing FOMO, and take your time to make a decision. Long term investment will grant you much more returns as will a systematic approach. Take care and have fun investing :) Edit March 2018: Lol looking back I'm regretting starting the title with "Why we won't have a long term bear market" now, I was more karma whoring with that catchy title than anything. We recovered up to 11K from this post, but then crashed again hard later in February-March because of a slew of reasons from Tether subpeona to unforseen regulatory issues.
https://preview.redd.it/s6uu8g27ul331.jpg?width=800&format=pjpg&auto=webp&s=115d0f1152d66546ee5aa61e1acd23c4c8dfb7b8 It was two years ago, June 11, 2017 at 2:40:26 AM EST, when delegate arkmoon officially registered on the ARK mainnet. It had been roughly 4 years since I'd even looked at anything crypto-related, considering the fall of Mt. Gox had shaken investors to the core. Back then, crypto was still mostly the Wild West. You could only get Bitcoin through sites like Virwox after losing 20-40% in fees as you transferred from PayPay to Second Life Linden to Bitcoin... or shady sites where you had to use Dwolla or mail someone a money order and pray they didn't rip you off... or try your luck mining some of the new Bitcoin forks (e.g. Vertcoin, etc.) but odds are you weren't going to break even for at least 6 months, and I was too poor to buy and hodl long term. When I heard "bitcoin" mentioned on a mainstream radio station in May, 2017, I scrambled to dig out old hard drives, CD-R's, laptops. Anything I might have had an old wallet on, but alas, I had sold it all in 2013 at a loss (anything that hadn't been stolen already). Ethereum. "Hmm, that's new," I thought. And so, down the rabbit hole I fell, trying to decide now what to invest in. Bitcoin, yes, and some Ethereum. Ok, but the blockchains for these took days and weeks to download before I could even use them. There were new exchanges, such as Kraken and Bittrex. The fees were lower, and so I got started. Then, one night in June, I found ARK. I'm not sure exactly how. Going through the list of coins available, ARK stood out in the fact that you didn't need to download an entire blockchain to start using it. You just downloaded the desktop wallet, and you had coins transferred in 8 seconds. So easy, it was something your grandma could do. And then I continued to read about it. What it was built on, and how it worked. "Delegated Proof of Stake", definitely more affordable and environmentally friendly than running GPUs and ASICs with thousands of watts for mining POW coins. "ARK, then." I registered arkmoon delegate in an effort to solve a problem. Back in June, 2017, Ark delegates had a problem with pool hoppers. Delegates would schedule manual payouts either once per day or once per week. And right before a payout would happen, these pool hoppers would jump in and vote, essentially stealing potential rewards from loyal voters. My initial delegate proposal was simple. Vote for me; I want to create a system that credits voters at the block-level, so they earn only if are voting for you, and you'll never have to worry about blacklisting pool hoppers again. I got virtually no support, which was frustrating. It got to the point where I simply removed myself from Ark from about June till September since no one had been voting for me. I'd like to take a second here to give a shoutout to delegate jarunik, who offered words of encouragement during this stressful time. Eventually, in October, 2017, a mysterious benefactor with over a million Ark decided to give me a chance by voting for me. Eventually, they slowly backed away while I gained my own voters organically through my dedication and higher share rate. For this chance, I am eternally grateful. Around this time, the first biz delegate was created from 4chan, fat-fingered his payout and was begging for my solution. biz or the person behind it lasted a week, then was voted out in favor of the much more responsible GoldenPepe and his team biz_classic, who were able to release the first block-level payout script that was eventually adopted by (most) delegates. I say most, because there were several who never adopted it, and suffered as a consequence. As time went on, we had our fair share of scammers; people who would write decent proposals, and would run off with their forging rewards. Delegates who had zero technical skill who doubled forged on the network. We've had a delegate publish their private passphrase on the blockchain. But all-in-all, things continued forward, and dedicated delegates appeared to mostly where we are today. Then, we hit the big bull run in December, 2017 and everything was peachy. I had only been a delegate for less than 2 months, and really didn't have anything accumulated, but 2018 looked promising, so I kept working hard on building e-commerce and tax assistance sites to support the Ecosystem. As we all know now, we've been full bear mode for the past two years, but I have stuck with Ark in spite of it all simply due to the dedication I've consistently seen from the core Ark team and its delegates. The Ark team has been consistently improving the stability and security of the blockchain, even as the price has fallen as low as it's been. Delegates such as alessio are dedicated solely on making sure the blockchain is secure, and delegates such as goose and I have been trying to develop useful tools to help both delegates and potential ARK users alike. We have cams_yellow_jacket producing professional videos, and thegoldenhorde continually impressing the community with their merch and awesome designs. Delegate arkland has amazing raffles. I can honestly say that I am proud to be part of this community. Now, with the Ark Deployer, we are starting to see new people pop up in the Slack channels, asking how they can start up their own blockchains. The first person to start up their own chain is an accountant by profession, with little server-side experience and was able to get an Ark sidechain running in less than 24 hours. The true Ark Ecosystem is starting to form, and I am hopeful for the future. I'd like to just take a moment to thank all my voters, and to all of you in the Ark Ecosystem for your continued support. I don't know what the future holds for us, but I am thankful for how far we've come.
Hey guys, long time reader here first time poster. Was looking for some decent information online regarding Tax law for Aussies and crypto mining in general and came up pretty empty really. So I’ve made some calls to the ATO and tried to clear up some confusions for myself and thought it might be helpful to some of you here with tax time coming up soon. For the specifics here I have an ABN registered as a Sole Trader and the implications may vary if you don’t have an ABN but it’s pretty easy to register if you think it’s suitable to you/your operation. I run a single rig currently from home so I’m not a big operator so please keep that in mind. The rig components: All parts of your build (GPU, PSU, CPU— all of it) are claimable as instant depreciating assets with the full cost of the items being able to be written off. Make sure you have all your receipts kept orderly, you claim the costs of the components as deductions in the business income portion of your tax return. I believe depending on operation size ($20,000 AUD in hardware costs this financial year) you will have to claim it over a few amount of years but I didn’t look too much into this. Software Costs: If you are running subscription based programs for your rig(s) these are claimable deductions if they were incurred as use of generating income. If the programs or software you are running costs you anything, it is generally acceptable. Electricity Costs: As I’m running my rig inside my house to work out your eligible deduction amount on your electricity costs you need to try estimate the percentage of the yearly bill can be attributed to your rig running. Plenty of tools available online to help calculate the usage on your rig or devices you can get to meter your setup, another nice little deduction. Mining Earnings: When it comes to your earnings, you will need to keep track of an AUD amount of each payout, as well as the date and time of the transaction. Me personally I’m primarily using Nicehash with a bit of XMR mining with a few CPUs with a low payout schedule (couple of times a year) so keeping an active record of my payouts shouldn’t be too insane. Keep records of all payouts as these will help a lot! Coin to Coin Transactions: The ATO has yet to reach an official ruling on Crypto-Crypto trades so this is very much on the fence at the moment. From what I’ve read an official decision should be made around the 20th of April to hopefully smooth things out. Here’s hoping we don’t get the US treatment. Capital gains tax will apply to all crypto-fiat transactions but my interpretation is that when it comes tax time you pay taxes on your income at the time on earning—so the AUD fiat value of your payout at the time of receiving it. Say you earn 0.01 BTC today @ $10,520 AUD If on the 30th June that 0.01 BTC is now worth $17,000 AUD you will only be paying tax on the earnings as of the payout. This will of course change if you sell the Bitcoin on the 30th of June for $17k you will pay CGT on the difference between the earned amounts price and the sale price. Sorry for the poor formatting and I am posting this from my phone but thought I’d do my part to try help someone out. I am not 100% on the crypto sale details but as I find out more I’ll try to get an update. Thanks for your time! (I am no Tax professional, I do know a bit about taxes but nothing insane, please double check depending on your circumstances and stay posted on the Crypto-Crypto Ruling)
Daily analysis of cryptocurrencies 20191126(Market index 21— Extreme Fear state)
The ECB Is Now Studying The Option Of Introducing A Digital Currency Benoit Coeure, member of the Executive Board of the European Central Bank (ECB), has said Europe must overcome its reliance on international payment providers. However, it is not the central bank’s job to come to the rescue and crowd out private sector initiatives. The ECB is now studying the option of introducing a digital currency, and this would have broader consequences for the banks. Coeure warned against the central bank crowding out private-sector players. The ECB recently introduced an instant payment system called TIPS for transactions between banks, but lenders have been slow to join and the scheme has not had a significant impact so far. Former PBoC Head: China’s Digital Currency To Emphasize On Payment And Retail Usage According to a report, when it comes to whether global central banks will issue digital currency, ZHOU Xiaochuan, president of China Society for Finance and Banking and former head of the People’s Bank of China, believes that China will continue to adhere to the past path, emphasizing digital currency’s usage in the payment and retail. Big countries are very cautious when choosing technical directions at the currency level. If they go in the wrong direction, a crisis of trust may arise. China will emphasize digital currency’s payment function and maintain favorable technical support for the retail system. Based on this, it will gradually consider expanding the use of digital currency. Thai Excise Department Will Devise A Blockchain Tax Refund System According to Bangkok Post, the Thailand Excise Department will devise a method to refund overpaid taxes to oil exporters in a manner that stems leakages, its chief says. The change in the tax refund practice will use blockchain, which the department plans to adopt by the middle of next year, said director-general Patchara Anuntasilpa. The blockchain-based tax payback system requires oil exporters to pay excise tax to the department and claim overpaid taxes after they ship the fuel, he said. The new technology will let the department inspect the tax payments thoroughly. https://preview.redd.it/04531bnpj0141.png?width=504&format=png&auto=webp&s=eb342ad7ff8e0d75069e49a08f98a47f6bce5beb Earlier this month, we discussed the chances of bitcoin hitting $7,400 and $6,500 against the US Dollar. BTC did decline heavily and recently tested the main $6,500 support area. A new multi-month low was formed near $6,535 before the price started an upside correction. There was a strong recovery after the price surpassed the $6,750 resistance area. Besides, the price rallied more than 10% to climb above the $7,000 resistance. More importantly, yesterday’s key bearish trend line was breached with resistance near $7,060 on the hourly chart of the BTC/USD pair. The pair even spiked above the 100 hourly simple moving average and tested the $7,350 resistance area. A high was formed near $7,372 and bitcoin price is currently trimming gains. It traded below the $7,200 level. Additionally, there was a break below the 23.6% Fib retracement level of the recent wave from the $6,535 low to $7,372 high. Review previous articles:https://firstname.lastname@example.org
Encrypted project calendar（November 26, 2019）
BTU Protocol (BTU): and 1 other 26 November 2019 Blockchain & Friends “Blockchain & Friends brings together projects primarily from friends working on key account issues or ambitious start-ups.”Ontology (ONT);26 November 2019 Russian AMA “Join us this Tuesday, Nov. 26 for #Ontology’s AMA with@binanceRussia and Ukraine.”Ardor (ARDR);26 November 2019 Barcelona Meetup “Blockchain and IoT: current adoption, challenges and opportunities — meetup in Barcelona.”
Encrypted project calendar（November 27, 2019）
OKB (OKB):27 November 2019 OKEx Cryptour Vinnytsia “Join us in Vinnytsia as we journey through Ukraine for our OKEx Cryptour!”Fetch.ai (FET):27 November 2019 London Meetup “Join us on 27 November@primalbasehqto hear an exciting progress report as we prepare for the launch of our #mainnet”Nebulas (NAS):27 November 2019 AMA with Founder “Ask your questions on the Nebulas subreddit today & join the live AMA via Telegram on November 27th.”EDC Blockchain (EDC):27 November 2019 Educational Workshop Educational workshop in Puerto Ordaz.
Encrypted project calendar（November 28, 2019）
Horizen (ZEN):28 November 2019 Weekly Insider Team updates at 3:30 PM UTC/ 11:30 AM EDT: Engineering, Node network, Product/UX, Helpdesk, Legal, BD, Marketing, CEO Closing thoughts, AMA.IOTA (MIOTA):28 November 2019 London Meetup “Healthcare Professional Interest Network: Is AI the end of Healthcare?” meetup in London from 18:30–21:30 (GMT).Aeternity (AE):28 November 2019 Vienna Workshop “Come learn more about AE’s functional language Sophia and layer-1 oracles and state channels.”Honest (HNST)and 1 other; 28 November 2019 Telegram AMA “Book your date for Honest Mining AMA with@vexanium, November 28th, 2019 on Honest Mining Telegram Group and Vexanium Telegram Group.”Waves (WAVES);28 November 2019 AMA with Sasha Ivanov “This Thursday Nov 28 we’re hosting a live-streamed AMA with Sasha Ivanov to discuss where Waves stands and where we’re heading in 2020.”
Encrypted project calendar（November 29, 2019）
Zenon (ZNN):29 November 2019 Awareness Fund Payout “Distribution of the fund takes place every Friday until Pillars Lock-in Phase is completed.”Tael (WABI);29 November 2019 Founders AMA “Three days to go until our Founders #AMA, this Friday, hosted by@binance.”
Encrypted project calendar（November 30, 2019）
Ethos (ETHOS):30 November 2019 (or earlier) Rebranding “In November, we unveil the broker token, a dynamic utility token to power our commission-free crypto trading and broker platform, Voyager.”Digitex Futures (DGTX):30 November 2019 Public Testnet Launch “…We can expect to see the world’s first zero-commission futures trading platform live on the Ethereum public testnet from 30th November.”Monero (XMR):30 November 2019 Protocol Upgrade “Preliminary information thread regarding the scheduled protocol upgrade of November 30.”Chiliz (CHZ):30 November 2019 (or earlier) Fiat to CHZ Exchanges “We will add another two fiat to $CHZ exchanges in November…”Skrumble Network (SKM):30 November 2019 (or earlier) P2P & Group Calling “P2P & Group Video Calling,” during November 2019.Aergo (AERGO):30 November 2019 (or earlier) Mainnet 2.0 Upgrade Mainnet 2.0 Protocol update by end of November.Akropolis (AKRO):30 November 2019 (or earlier) Beta Release “All functionality has been deployed to mainnet.”Nash Exchange (NEX):30 November 2019 (or earlier) Mobile Strategy Phase 2 “Phase 2 of our mobile strategy will be live soon with our wallet and portfolio app hitting stores in November!”Akropolis (AKRO):30 November 2019 (or earlier) Beta Release “All functionality has been deployed to mainnet.”Pakcoin (PAK):30 November 2019 Staking Mobile App Android app for staklet is going to be launched on November 30th.
Encrypted project calendar（December 1, 2019）
Auxilium (AUX):01 December 2019 AUX Interest Distribution Monthly interest distribution by Auxilium Interest Distribution Platform for coinholders. Also supports charity.I/O Coin (IOC):01 December 2019 Pos Reward Halving IOC block reward halving is happening on December 1st 2019.ABBC Coin (ABBC)01 December 2019 Migration Requests Start “Migration requests from the #AladdinPro Wallet will be accepted starting on December 1, 2019.”
Encrypted project calendar（December 2, 2019）
Bitcoin (BTC):02 December 2019 CME Futures BTCX19 Bitcoin Futures Contract (BTCX19) settles on December 02, 2019.Waves (WAVES):02 December 2019 Waves Exchange Launch “As of November 18, users will be able to import their accounts and seed phrases, and, on December 2, the new exchange will be launched.”BZLCOIN (BZL):02 December 2019 New Website New website and pre-launch “Patron”.Decentraland (MANA):02 December 2019 Creator Contest “Announcing the Creator Contest, from Dec 2–15. Submit your most creative interactive scenes for a share of $50k USD worth of prizes up.”Bitcoin (BTC);02 December 2019 CME Futures BTCX19 Bitcoin Futures Contract (BTCX19) settles on December 02, 2019.
Encrypted project calendar（December 3, 2019）
Aeternity (AE):03 December 2019 Sofia, Bulgaria Meetup “Come hear@noyyyand@emintroducing the project, followed by talks by Karol Skočik, Juraj Hlista, and Stephan Verbücheln.”Quant (QNT)03 December 2019 QuantX London Conference “QuantX is a half-day event being curated by Quant Network with an audience of 100 industry professionals from across the fintech…”
Encrypted project calendar（December 4, 2019）
Aeternity (AE)04 December 2019 Sofia Hackathon “The next aeternity blockchain hackathon will be held in Sofia, Bulgaria, on December 4th, 2019!”
Encrypted project calendar（December 5, 2019）
OKB (OKB)：05 December 2019 OKEx Cryptour Kyiv Ukr “Join us in Kyiv as we journey through Ukraine for our OKEx Cryptour!”Horizen (ZEN)05 December 2019 Weekly Insider Team updates at 4:30 PM UTC/ 11:30 AM EDT: Engineering, Node network, Product/UX, Helpdesk, Legal, BD, Marketing, CEO Closing thoughts, AMA.
Encrypted project calendar（December 6, 2019）
TenX (PAY):06 December 2019 COMIT Hackathon “The #hackathon will be held over the weekend of 6–8 Dec at the TenX HQ in Singapore.”Noah Coin (NOAH)06 December 2019 Japan Roadshow — Sendai “As you know, we are organizing the trip to the cities of Japan in December.”
Encrypted project calendar（December 7, 2019）
Storm (STORM):07 December 2019 Loyalty Program Registration for our fourth and last loyalty program will end on December 7th!MediBloc [ERC20] (MEDX):07 December 2019 Token Swap Deadline “Please submit your swap before 7th of December 23:59(UTC+9).”OKB (OKB);07 December 2019 OKEx Talks 2019 Calabar “Join us on 7 Dec for our first OKExTalks in Calabar, where we will be discussing ‘Digital Assets and Tokenization’.”Dash (DASH);07 December 2019 Open House “.. Dash Core Group will be hosting the Dash Evolution Open House on Dec 7th… in Scottsdale, AZ, from 1pm to 5pm MST.”Noah Coin (NOAH);07 December 2019 Japan Roadshow — Tokyo “As you know, we are organizing the trip to the cities of Japan in December.”
Encrypted project calendar（December 8, 2019）
Noah Coin (NOAH)08 December 2019 Japan Roadshow — Nagoya “As you know, we are organizing the trip to the cities of Japan in December.”
Encrypted project calendar（December 10, 2019）
OKB (OKB)10 December 2019 OKEx Talks — Rotterdam “Join us on 10 Dec to explore “Decentralized Finance” & the benefits & opportunities it presents.”.Newscrypto.io (NWC)10 December 2019 (or earlier) Platform Redesign Updates: Brand new Landing page, New Trading Tools and Updated School Program.IOTA (MIOTA)10 December 2019 Karlsruhe Meetup “Come learn about the IOTA technology! Dec 10 at 6PM CEST.”OKB (OKB)10 December 2019 OKEx Talks — Rotterdam “Join us on 10 Dec to explore “Decentralized Finance” & the benefits & opportunities it presents.”.Newscrypto.io (NWC)10 December 2019 (or earlier) Platform Redesign Updates: Brand new Landing page, New Trading Tools and Updated School Program.
Encrypted project calendar（December 11, 2019）
Waves (WAVES)11 December 2019 Annual Meetup ‘See you in Berlin on December 11, 2019!”Cindicator (CND)11 December 2019 Event for CND Ecosystem “New horizons of the CND ecosystem,” with “More details to be released” at 14:00 UTC.IOTA (MIOTA)11 December 2019 Berlin Meetup “Join us for the “2019 recap & 2020 outlook” MeetUp, organized by IOTA &@iotashop.”Cosmos (ATOM)11 December 2019 Cosmos Hub 3 Chain “Cosmonauts, buckle up & get ready for the hub upgrade to the Cosmos Hub 3 chain. A new proposed date is set for Dec 11 at…”
CheapAir.com appears to have chosen self-hosted payment processor BTCPay for its Bitcoin payments, removing BitPay. The firm stats that
Coinbase is sun-setting their merchant platform next week which has led to a need for an alternative processor. Coinbase mentioned that it would be retiring its merchant processing function in April which the cryptocurrency industry condemned.
Caspian Partners, a cryptocurrency portfolio and risk management platform announced a partnership with Bitmex. Caspian customers will now have a unified trading module with more liquidity. The firm provides order and execution management system (OEMS), risk management system (RMS), and a portfolio management system (PMS).
US transportation company Norfolk Southern Corp (NSC) revealed it is joining the Blockchain in Transport Alliance (BITA) in a company announcement yesterday. The BITA association formed in 2017 and aims to develop blockchain applications to the transport and logistics industries. BITA also includes organizations like FedEx (FDX), Uber, UPS (UPS) and GE Transportation.
Thailand’s largest bank has joined a trade finance program utilizing R3’s Corda distributed ledger technology (DLT). R3 is a consortium of over 200 companies that uses technology on blockchain to allow businesses to develop applications on top of its Corda platform.
The Bank of China will use blockchain technology to alleviate poverty in the Tibet Autonomous Region, a province with a poverty rate of 12.4%. The Bank of China has developed a cloud-based system to manage a local poverty reduction fund in the past. The bank has decided to upgrade the existing system with blockchain technology and set up a multi-node blockchain network to connect with their partners like the Agricultural Bank of China
A Czech Republic utility company will begin accepting payments in cryptocurrencies. Pražská Plynárenská is one of the major suppliers of natural gas in the Czech Republic. In June it will establish a payment payment gateway which will transfer bitcoin payments into fiat currency.
A recent study by the Warwick Business School claims that investor sentiment is driving cryptocurrency prices. The study analyzed the top 14 cryptocurrencies based on market capitalization. The primary conclusion was that hype and emotions played the most significant role in determining whether the price of a cryptocurrency rises or falls.
Bitcoin Gold (BTG) has suffered from a 51% attack resulting in a loss USD$17.5mm. The 51% attack permitted double spending to occur. According to the Bitcoin Gold (BTG) team, exchanges have been targeted rather than individual users.
South Africa’s Reserve Bank has chose to call cryptocurrencies “cyber-tokens” because they don’t meet the requirements of money.
In Colombia, two Bitcoin Cash (BCH) proponents have developed a payment processor called Bitek.co. The company offers merchants processing with payable invoices and accounting services as the Bitek platform provides merchants with the ability to accept BCH and covert all or a percentage of the funds into Colombian pesos.
Employees in Ukraine were recently caught using the police department’s resources for four months to mine Bitcoin. In April, mining equipment was found in the office of the Communications Deparment which include eight graphics cards, six power units, two hard drives, a motherboard and a complete system.
VeChain (VEN), a Shanghai-based blockchain startup is testing a blockchain application which verifies a wine supply chain and fights counterfeits. The Chinese wine industry is worth USD$2.8bn and reportedly the Chinese consume wine that is not authentic which as weakened public trust in the quality of the product.
Ireland has clarified taxation on the cryptocurrency space. In terms of direct taxes: corporation tax, income tax and capital gains tax are all applicable, but each case should be reviewed separately.
Barcelona will create a blockchain center in the city’s tech hub. The location will be next to Barcelona Tech City which opened in the Summer of 2016 and will most likely be occupied by Spanish blockchain network Alastria.
Bitfury-backed Hut 8 Mining Group mined more than 800 bitcoins in the first quarter of 2018. The company raised CAD$70mm to continue investing in hardware and generated nearly CAD$11mm in revenue.
Commerzbank and multinational conglomerate Thyssenkrupp have successfully conducted an FX transaction on a blockchain platform. Thyssenkrupp transferred 500,000 euros in an exchange rate between the euro and the Polish zloty at some point in future.
Surkus has raised USD$10mm in Series B funding led by EOS global, a USD$200mm venture fund formed earlier this year. The venture fund is making its first investment and it aims to leverage the EOSIO blockchain to catalyze the transformation of the digital assets space.
CoTrader is introducing a decentralized fund management platform that includes cryptocurrency. CoTrader is a blockchain trading platform and it plans to disrupt investment funds to become the world’s largest outlet for all assets.
The Deutsche Boerse, owner of the Frankfurt Stock Exchange is considering offering cryptocurrency products according to a report. A move into the crypto space may not be immediate as Jeffrey Tessler, the firm’s head of clients, said the firm must “make sure we understand the underlying transaction which isn’t the easiest thing to do”.
Two Russian financial institutions are set to test a regulatory platform that aims to make domestic initial coin offerings (ICOs) more transparent and secure for traditional investors. The Russian National Settlement Depository (NSD) announced on Thursday that it is working with Sberbank CIB, to test an ICO issuance platform launched by the Bank of Russia.
The US Department of Justice has reportedly launched a criminal investigation into cryptocurrency traders who may have manipulated the market with old-school illicit tactics, such as spoofing. The investigation is also being conducted with the Commodity and Futures Trading Commission (CFTC).
American Express is exploring using blockchain technology to increase security for both users and merchants. The firm is exploring an identity wallet and whether blockchain can be used.
Russian State Duma has approved its first reading of a legislation package that regulates crypto-related matters and activities. The legal texts will open the way for legalization of cryptocurrencies in the Russian Federation, including their exchange and circulation under certain conditions.
Revolut, a British based company that created the first app to allow customers to invest in Bitcoin, has announced it will be adding Ripple (XRP) and Bitcoin Cash (BCH) to its platform. Revolut began as an app allowing users to transfer fiat currencies, but now has four cryptocurrencies on its platform.
Banks are losing international payments business. Banks have lost 40% of market share for consumer-to-consumer (C2C) cross border payments to non-banks over the last year. Banks have also lost 30% of the consumer-to-business (C2B) and 5% of the business-to-business (B2B) payments market over the last year.
Japanese IT giant, GMO Internet is set to roll out the world’s first bitcoin mining device based on 7nm chips within the year. The firm is launching a new B2 miner on June 6 with mass production to follow and shipment starting by the end of October.
Coinbase has acquired a service called Paradex, a cryptocurrency trading service that lets users trade many digital tokens on a decentralized exchange. The exchange relies on smart contracts to allow users to trade tokens without a centralized authority to record the transactions on a blockchain.
Money Forward, Japan’s most popular personal budgeting app, is launching a crypto asset exchange this year. The firm plans to launch a crypto media platform by Summer followed by an exchange and the construction of a digital asset remittance and settlement system.
The Marshal Islands have replaced the USD$ with its own cryptocurrency. The bill was signed March first but the news is catching attention this week. US Dollars will still be accepted, yet the nation’s cryptocurrency, the “sovereign” will need to be integrated into the country’s financial system. An initial coin offering will take place and the supply will be capped at 24mm tokens
Bank of America has been awarded a patent to let users access a certain blockchain network known as a distributed validating network. Certain users will be granted permission and data will be stored in blocks in which a system can automate this process.
Singaporean-based virtual social trading platform, TrakInvest is looking to become one of the first Asian-based projects to use Hedera Hashgraph’s distributed ledger technology.
Norway’s central bank is preparing for a future in which it might issue a digital currency due to a drop in usage of cash in the country. The Norges Bank released a report titled “Central Bank Digital Currencies” which highlighted that the bank must consider several new attributes that are important for ensuring an efficient robust payment system
Overstock.com’s Tzero is planning to launch a regulated exchange for security tokens in collaboration with Box Digital Markets. The companies will seek approval from the SEC.
A Spanish Central Bank Governor believes that cryptocurrencies will bring more risk than benefits. Luis Maria Linde said that blockchain offers interesting possibilities but that is not quite mature.
Rural banks in the Philippines are looking to adopt blockchain technology in a bid to improve inclusion for residents. The initiative is led by the Union bank of the Philippines, one of the country’s largest banking institutions.
India is considering taxing cryptocurrency at 18% as ‘intangible property’ according to a report issued today. The report detailed that purchases or sales of cryptocurrencies are considered supply of goods and those facilitating transactions should be treated as services.
Every Capital is launching Australia’s first retail crypto hedge fund with the goal of making crypto assets accessible to every Australian investor. Investors will be able to sign up in a fund that covers a range of cryptocurrencies and initial coin offerings (ICOs).
The Pentagon and Defense department are weighing on whether owning cryptocurrency is problematic for those who already have security clearances and for those individuals requesting government security clearances.
Steemit, the platform of cryptocurrency of Steem (STEEM) has announced they have over 1,000,000 users. The blockchain processes over one million transactions daily. The Steemit.com website receives over 250,000 unique visitors every day
CheapAir.com adds Litecoin (LTC) Dash (DASH) and Bitcoin Cash (BCH) to its payment options for travelers. The firm first begin accepting cryptocurrency by agreeing to receive payments in Bitcoin (BTC) back in 2013.
The Monetary Authority of Singapore (MAS), is proposing changes to existing regulations that would ease market entry for blockchain-based and decentralized exchanges. According to a paper published yesterday, the MAS states that the single tier “recognized market operators” regulatory framework cannot meet the demand for new business models based on such emerging technologies.
Chilean President, Mario Marcel has recently made comments in favor of developing a regulatory apparatus for virtual currencies. This openness contrasts the country’s recent banking embargo targeting cryptocurrencies in Chile.
MIT is demoing a use case for bitcoin’s lightning network – how the cryptocurrency can be combined with smart contracts to not only handle millions of transactions, but also with more complexity. Verge (XVG) has experienced its second hack in less than two months.
Executives are citing a DDoS attack which is giving its blockchain a serious delay. The attack has lasted more than a few hours and has resulted in over 35mm XVG tokens being stolen. CoinGate, a payment gateway for cryptocurrencies, is planning to launch
Bitcoin Lightning Network payments on its platform. The company serves over 4,000 merchants globally and will allow companies to accept bitcoin and altcoin payments which can be transferred in BTC, EUR€ or USD$ as payouts.
The Ontario Securities Commission (OSC) is cracking down on unlicensed companies involved in the cryptocurrency space. Companies that the Commission is targeting include investment and trading companies.
A bank in Argentina could soon become the first in the world to begin using Bitcoin for customers’ international remittances. Banco Mansventas (BMV) partnered with local blockchain financial services firm Bitex and are looking to move away from the SWIFT clearing network which has seen multiple failures and security problems in recent years.
Payments startup, Circle has launched the full version of its crypto investment app. After a soft launch, the company has rolled out an investment focused app and one of the features is a “Buy the Market” tool for new cryptocurrency investors.
China Central Television (CCTV) has said that domestic initial coin offerings (ICOs) are still rampant despite a 2017 ban. The network went on to discuss that “air coins”, or token projects that are not backed by legally registered business entities have increased by 30x since the ICO crackdown.
A new crypto teller machine is now operational in Johannesburg, South Africa. The ATM supports several digital coins and joins a growing number of terminals offering automated crypto-fiat exchange services in the country and across the continent.
Japan’s largest bank, Mitsubishi UFJ Financial Group (MUFG) is partnering with Akamai to handle up to 1mm transactions per second using blockchain technology. The platform will confirm transactions within 2 seconds or less and batches of transactions will adhere to the same schedule.
Lawmakers in Taiwan are forming a new parliamentary group aimed to foster the growth of the nation’s emerging blockchain sector. The group will be called the Taiwan Parliamentary Coalition for Blockchain (TPCB).
The Bitcoin community is celebrating the 8th anniversary of the “Bitcoin Pizza Day” which is a celebratory day of a Pizza purchased with Bitcoin. On today’s date 8 years ago, Bitcoin was trading at $.0004 and Laszio Hanyecz purchased two pizzas from Papa John’s for USD$41 using 10,000 BTC
Ohio may become the latest US state to legally recognize smart contracts and records stored on a blockchain. The Senate Bill 300, amends sections of the Uniform Electronic Transactions act and will include blockchain records and smart contracts as electronic records.
Virtuse, a Singaporean cryptocurrency exchange, is connecting crypto markets with global financial assets, commodities, government emission allowances and stock indices to eliminate the middlemen and provide transparency to the financial sector.
The US Commodity Futures Trading Commission (CFTC) has issued an advisory statement for listing virtual currency derivative products. The director of the Division of Market Oversight (DMO) has said that the CFTC staff will seek to provide additional guidance to help market participants keep pace with innovation while complying with CFTC regulations.
American aviation company TapJets is considering adding Ripple (XRP) and Litecoin (LTC) to its fleet of payment options. The company inquired about which cryptocurrencies to add via a Twitter poll, and 57,000 users voted.
Spain’s financial regulator has clarified its position on regulated investment funds investing directly in cryptocurrencies. The regulatory body stated that an investment fund registered with the countries National Securities Market Commission can make investments in cryptocurrencies.
Blockchain startup ShareRing is developing a mobile application to consolidate sharing services worldwide. The sharing economy is currently valued at over USD$100bn according to Brookings.
Polish Finance Ministry is rolling back a cryptocurrency tax and is making promises to provide smarter regulation. The ministry will be conducting an “in-depth analysis” of the crypto space to create better regulation and taxation policies going forward.
Walmart has submitted a patent application to track items the store sells to customers. The proposed system would allow a customer to register the item after it is purchased.
TradingView, a software website that many cryptocurrency traders use just raised USD$37mm in funding which was led by Insight Venture Partners. Currently the company receives 75% of its revenues from monthly subscription plans that offer more charts, data and real-time server-side alerts
A “cryptosweep” was launched today in the US and Canada by a group of securities regulators. Nearly 70 inquiries and investigations, and 45 pending or completed enforcement actions will be taken, although it is unclear when the related enforcement actions will be publicly announced
The team behind Parity Technologies have announced they are shutting down PICOPS, a service used by ICO campaigns to comply with regulations by validating that the owner of an Ethereum wallet has already passed an ID background check.
The Australian Competition and Consumer Commission (ACCC) has shown in a report that crypto related fraud made up a tiny percent of scam activity in 2017. Of the 200,000 scams reporting, only 0.61% of the financial claims made were crypto related – USD$2.1mm
LMAX Exchange Group is setting up the first cryptocurrency exchange for institutional clients. The group will focus on liquid established cryptocurrencies which include: Bitcoin (BTC), Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH).
Former OKEx cryptocurrency exchange CEO, Chris Lee, is now joining rival cryptocurrency exchange Huobi. In a public note, Lee suggested that OKCoin has experienced notable turnover in senior executives over the past few years which may have affected his decision.
Nearly 40% of all Chinese blockchain startups emerged in 2017, according to China’s Ministry of Industry and Information Technology. The report highlighted that China currently has 456 startups focused on blockchain technology development as part of their core business.
Japan Cryptocurrency exchange Coincheck will delist Monero and three other privacy coins from Coincheck, one of the country’s most popular exchanges. Japan’s Financial Services Agency (FSA) believes that users have too much anonymity with these cryptocurrencies.
Bankex Smart Justice is bringing arbitration to blockchain technology. If users are in disagreement, Bankex claims the firms technology can help users settle
Thomas Lee owns up to his failed prediction of Bitcoin (BTC) rising ahead of Blockchain week. In a note to clients before Consensus 2018, Lee predicted that Bitcoin (BTC) would surge anywhere from 10-70% yet during the week, the price of Bitcoin (BTC) fell
US Taxes, and Mining - How it affects and complicates your tax return.
This won't be a guide so much, as more as me just sharing the tax realities of the US government when it comes to cryptocurrency, and my feelings on the matter. I will be linking to a number of references and articles however. I encourage you to read further. Ultimately what you do is between you, your conscience, and your government. My personal perspective: My understanding of the matter is that mining creates an absolute nightmare from an accounting perspective relative to tax reporting. So much so that the administrative "cost" of tracking what is needed, completely removes the incentives for me. This is expressly and even more of an issue for new altcoins, as online services set up to try to help with this problem have a delay in supporting less popular, or new coins, wallets, and exchanges. I started getting into crypto in late December as it's a slow period at the office, and friends and family were starting to ask me about crypto. I was aware of crypto, but not the full intricate details. It took me a few hours to get mining, and a week to learn in depth knowledge of optimization. For me this was a hardware tweaking nerds dream, so I immediately understood the appeal. I got involved in this community, and wanted to share my knowledge. With only a few exceptions, the info that I was finding out there was quite fragmented, or poor quality. I created 2 Tutorials here in that time: Tutorial: Mining and Wallets - A comprehensive guide for new miners Tutorial: How to improve your Hash Rates with xmr-stak Happy New Year! It's tax season With the new year comes tax season. This is something that was on my mind, but I hadn't yet looked into as I was just becoming satisfied with the technical aspects of cryptocurrency and mining. Prompted by a post on /personalfinance and relevant to the surge in popularity with Bitcoin and others being in the news, I ran across this fantastic post: Crypto-Currency: A Guide to Common Tax Situations I'm going to barrow and expand on what this means specifically to mining here, but please read the above post, as well as it's reference links and discussions. The United States IRS, and Cryptocurrency: The US IRS considers cryptocurrency to be a property, and is taxed as such. This makes selling, exchanging, mining, and even using it in some cases to be taxable events. Buying and holding it forever may not even avoid you a taxable event, should the currency fork (BTC to BCH). In 2014 the IRS published IRS Notice 2014-21 on crypto currency to provide guidance on the usage of virtual currency. It is done in Q&A format. Specific to mining it states:
Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer resources to validate Bitcoin transactions and maintain the public Bitcoin transaction ledger) realize gross income upon receipt of the virtual currency resulting from those activities? A-8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income. See Publication 525, Taxable and Nontaxable Income, for more information on taxable income. Q-9: Is an individual who “mines” virtual currency as a trade or business subject to self-employment tax on the income derived from those activities? A-9: If a taxpayer’s “mining” of virtual currency constitutes a trade or business, and the “mining” activity is not undertaken by the taxpayer as an employee, the net earnings from self-employment (generally, gross income derived from carrying on a trade or business less allowable deductions) resulting from those activities constitute selfemployment income and are subject to the self-employment tax. See Chapter 10 of Publication 334, Tax Guide for Small Business, for more information on selfemployment tax and Publication 535, Business Expenses, for more information on determining whether expenses are from a business activity carried on to make a profit.
What this means is that depending on the amount of effort you put into mining, it is either considered a hobby or a self-employment (business) activity. The IRS provides the following list of questions to help decide the correct classification:
The manner in which the taxpayer carries on the activity.
The expertise of the taxpayer or his advisors.
The time and effort expended by the taxpayer in carrying on the activity.
Expectation that assets used in activity may appreciate in value.
The success of the taxpayer in carrying on other similar or dissimilar activities.
The taxpayer’s history of income or losses with respect to the activity.
The amount of occasional profits, if any, which are earned.
As a rule of thumb, randomly mining crypto on an old computer is probably a hobby; mining full time on a custom rig is probably a business. What does this mean for me and my mining?? Most of you are likely to fall under mining as a hobby, so you'll have to report your earnings Schedule A on line 21 of your tax return. If you have a multi GPU rig mining full or mostly full time, you're going to be classified as a business, you will report on Schedule C (and have more options for deducting costs), but I will strongly recommend those individuals consult a CPA. Mining in a pool isn't well defined, but I generally consider the pool payout and coin sent to your wallet to be the point where your income is realized. Since this is to be reported as income (often referred to as "other income"). You then need to find what the value your virtual currency was relative to USD at the time that it was mined. This will mean you will have hundred, potentially thousands of transactions. From Dec 20 to the end of the year, I had over 100 payments from my mining pools. And will have to track the conversion prices for each time you were paid by your pool. This works very similar to shares of a stock acquired through ESPP or dividend reinvestment, except you are now the one that has to do all the accounting, as there is no brokerage firm to do that work. Reporting the income is actually the easy part, once you've at least obtained the value for your currency at the point of being mined. Add up the total and add it to line 21 of your Schedule A and you're done, at least for now until you sell, trade, or spend. Selling the coin to an exchange for FIAT is a taxable event for the calendar year in which it is sold. For each of the above shares you tracked as stated above, you will take the difference in value to when it was sold, and that difference is your profit, or loss, and you are taxed on that value as capital gains tax. You will also be listing each "share" sold on your return, I again group these as each transaction paid out. For example if your pool paid you 10ETN on 12/24/2017, you would have a line on your return reporting the USD value for 10ETN on 12/24/2017, and then the USD value of 10ETN for the date it was sold. You can consider it like owning 10 shares of stock in ETN, and each transaction or grouping of shares would be reported. If you received a faction, such as 0.4ETN as the entirety of the transaction, that would still have it's own line when reporting capital gains. Swapping your ENT for BTC is also a taxable event, even if you don't cash out. This is subject to the same rules as cashing out. Buying goods and services is also considered a taxable event, and the same as cashing out. You can give ETN to someone, and it is not considered taxable, but may be subject to gift tax depending on the value of the amount gifted. Conclusions I am not a CPA, and thus not an expert, please do your own research. I wanted to bring this topic up as it is important, and for me it creates so much of a administrative barrier that I have stopped all mining completly. Reporting capital gains (especially for ESPP) can be a lot of work even with all the accounting done by your brokerage and employer. It may be possible in the future that software can automate a lot of this, high frequency trading has a lot of similar issues but since brokerages are still involved there's a lot of tracking already. I've looked at solutions like CoinTracking.info, however importing from ETN wallets is not currently supported, and so current options are just as manual as keeping a spreadsheet at the moment. Buying and selling through an exchange can be more easily automated for the generation of tax forms, should your exchange be supported (and Cryptopia is). And in general buying is done in larger blocks of ETN, so it is less lines to deal with, and values in USD at the time of inquiring to track. Mining on an pool with a high pay out may help a bit, but could also distort the IRS definitions since some of those coins would have been "mined" day's earlier and just held for payout. This is very much grey area. Cryptocurrency Facts has a great article on this topic that provides a wonderful and simple break down of things. If you're considering not reporting, or just not reporting your earnings and only doing capital gains, be warned. The IRS is increasingly looking at cryptocurrencies, and if you get audited, you will be in a world of hurt. Only reporting your capital gains can be problematic if you did not report your earnings. You will also have a hard time showing your profits if you do not track the value of the coin at the time you acquired it. Exchange information may be requested by the government, and you could get audited based on that. Random audits can and do happen and it may not even be for many years, but the can and will look at your past returns, and you will pay penalty fee's for under reporting.
As a noob to this whole crypto currency thing, I wanted to summarize my research so far and run this by a few of the veterans on this site. As someone who is quite naive about the details and hidden 'gotchas' that many people don't foresee, I'd very much appreciate anyone giving my plan below a once-over and point out any major things I'm missing, or major pitfalls to avoid with this plan. I'd be happy to take suggestions for specific wallets/exchanges/etc. to use, but the internet is full of examples, and I've read through quite a few pages of search results by now.
mine to a wallet with the best user-friendly access, fee schedule, etc. Exodus, coin-specific wallets, etc.
For ASIC mining: do what you do. For GPU mining, mine whatever whattomine.com says will make the most profit. stick to it until the first payout, then check whattomine.com again.
Once the mining wallet gets 3-4 payouts (totally arbitrary number here), move to a "wide exchange" -- meaning an exchange that has a LOT of different currencies. Specifically, Crypotopia or Bittrex.
As you deposit into the Exchange, play the exchange rates -- buy low/sell high, etc. Volume is key, though, as there's a minimum BTC requirements.
once you're ready to cash out, withdraw from the Exchange and deposit to Coinbase, then deposit USD to your bank - OR -
deposit BTC to BitPay to spend BTC directly to buy things like gift cards, etc.
(Since I'm in the US) Bitcoin.tax can integrate with both Coinbase and Bitpay to track income for tax purposes and send you a Form 8949 Statement, or a TurboTax TXF, TaxACT, or CSV report.
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