Crypto Land

2021-01-22 20:00:48 ​​US Treasury Nominee Yellen Tells Senators that Crypto Has ‘Benefits’.

American President Joe Biden’s Treasury Secretary nominee Janet Yellen has been blamed by many for the recent slide in token prices after expressing “concerns” about crypto – now many will hope that more positive comments on the matter could help halt the worsening decline.

Yellen has been communicating with the Senate’s Finance Committee ahead of a vote, expected today, on her nomination.

And in a set of responses to Committee member Senator Todd Young’s question on the matter, Yellen wrote,

“I think it important we consider the benefits of cryptocurrencies and other digital assets, and the potential they have to improve the efficiency of the financial system.”

She immediately followed this up with a familiar-sounding caveat, however, writing,

“At the same time, we know they can be used to finance terrorism, facilitate money laundering, and support malign activities that threaten United States national security interests and the integrity of the United States and international financial systems.”

Meanwhile, according to Young, bitcoin (BTC) “and other digital and cryptocurrencies” are “providing financial transactions around the globe,” adding that “this offers potential benefits” for the United States and its allies.

Earlier this week, Yellen told the committee that “cryptocurrencies are a particular concern,” in the fight against terrorist financing, adding that Washington needed “to make sure that our methods for dealing with these matters change along with changing technology,” adding that “curtailing” the use of crypto by certain groups could be one of her goals. Open / Comment

2021-01-22 17:00:32 ​​First Grey Hat Hackers Ideas Competition

The high-profile event in 2021! Mr Leo Andreo leads the Hacken community in organizing the First Grey Hat Hackers Ideas Competition

The prize pool will be 35,000 USD.

The leading cybersecurity company Hacken will support the community’s initiative First Grey Hat Hackers Ideas Competition by providing 50% of the prize pool and applying its expertise at the ideas’ valuation stage.

Submit your product or service idea and get the attention you deserve by winning the competition! Who knows, maybe your project will become the next great sensation! Open / Comment

2021-01-19 20:00:48 ​​Grayscale Makes a Huge Bitcoin Purchase, But BTC Goes 'Meh'.

Even though it was presumed to potentially act as rally fuel, major US-based digital asset manager Grayscale Investments added thousands of bitcoin (BTC) to its Grayscale Bitcoin Trust (GBTC) - but the number one's crypto price kept moving in his now usual range.

Yesterday, Grayscale investments BTC holdings increased by BTC 16,240, going from BTC 616,560 to BTC 632,800 (USD 23,5bn). Per the current price of bitcoin, this would mean they have added nearly USD 602.5m.

Yet, despite this, bitcoin barely budged. At 14:53 UTC on Tuesday, bitcoin is trading at USD 37,073 and is up by almost 2% in a day and 11% in a week. Actually, for the majority of the past seven days, it's been trading within the USD 34,500 - USD 37,500 range - a movement still undisturbed by the Grayscale purchase.

"While BTC is consolidating, Grayscale doesn't stop grabbing all the BTC they can get," commented founder Crypto Ed. "Past 24hrs they added another 16k BTC to their holdings. The largest 24hrs increase in past 7 months and there are still people bearish," he added.

As was reported just yesterday, the strategists at major investment bank JPMorgan stated that BTC's price could drop further or break above the relevant USD 40,000 level again, and the outlook could be determined by the pattern of demand for BTC futures and the Grayscale Bitcoin Trust. For the breakout to happen, the flow into the Trust would likely need to sustain the 100m a day pace over the coming days and weeks, they said.

The lack of price reaction to the smart money coming in seems to have baffled quite a few Cryptoverse residents, with many offering theories as to why this may have been the case. Crypto trader Loma tweeted that "either they bought the top or most of y’all wrong and this bull cycle isn’t anywhere close to being done," adding, "I’m gonna side with GrayScale on this one."

Redditors have also shared a few theories: 'Shushani', for example, suggested that the purchase was done over the counter (OTC) instead of through exchanges, and that the company bought it directly from whales or miners, with 'simplelifestyle' adding "weak hands, newbies, bears, shorters, day-traders, gamblers and speculators" to the potential sellers. While 'Jayfree138' partially agreed, they added that people have also been selling to lock in gains and pay their monthly expenses. Meanwhile, 'Illewsor' suggested that when buying OTC "the supply shock lags quite a bit before being reflected in the price." Open / Comment

2021-01-16 20:00:51 ​​Lack of Crypto Regulations a Turnoff for Japanese Investors.

The head of the Japanese crypto exchange Coincheck said there are relatively “few” crypto-keen institutional investors in Japan – and has complained of the lack of a framework to help foster professional crypto investors.

In an interview with IT Media, Satoshi Hasuo, the Representative Director and President of Coincheck, warned that “there is a possibility that the entire Japanese community will lose out on investment opportunities,” while their counterparts in the West begin to step up their crypto investments.

Coincheck is currently the only major domestic exchange that offers over-the-counter (OTC) transactions for large-scale customers and Hasuo stated that factors such as American regulators allowing banks to take charge of crypto custody had helped sway investors toward crypto. In Japan, meanwhile, banks are yet to receive the green light to offer such services.

nd the Coincheck boss stated that a rush of investors to the market may have helped drive up prices, although bigger Japanese investors have seen little or none of the action.

He said,

“Overseas, a considerable number of institutional investors are coming in, which is spurring the market on. There is no equivalent movement from corporations and institutional investors in Japan. We do have OTC customers, but these are few in number. And almost none of them are listed companies.”

Meanwhile, another Coincheck expert stated, per the same media outlet, that some Japanese companies would likely eventually pursue bitcoin (BTC) and altcoin-buying strategies like those executed by the likes of America’s MicroStrategy – but hinted that regulatory clarity could also help expedite this trend. Open / Comment

2021-01-10 20:00:43 ​​This Multibillion Bitcoin Dump By US Gov Could Be a Drop in the Bucket.

The bitcoin (BTC) price has been a runaway train of late and there is seemingly nothing that can get in its way. Some believe that even if one of the largest BTC whales, the US Government, decides to sell its stash now worth billions of USD it wouldn't have a material effect on the market as BTC trading volumes more than doubled in a month.

As reported, in November, the US Department of Justice (DoJ) has forfeited BTC 69,370, worth over USD 1bn at the time. At the time of writing (07:59 UTC), it's worth more than USD 2.7bn, as BTC is trading at USD 39,629 after it briefly touched USD 42,000 yesterday.

The US government now controls the 6th richest BTC address (and the 4th richest if we exclude addresses controlled by crypto exchanges).

Meanwhile, the US Attorney’s Office for the Northern District of California recently filed a civil complaint for the forfeiture of those coins. If history is any indication, the bitcoins could be due to be sold in an auction by the US Marshals Service. That is what happened in 2014 and 2015 when the US government gained control of more than BTC 144,000 — worth USD 122m at the time and USD 5.7bn today — and sold them.

Indeed, auctioning off the bitcoins could be tempting for an incoming administration for whom the money spigot is poised to open wider as the pandemic tightens its grip on the economy. Open / Comment

2021-01-07 21:30:00 ​​Bitstamp, Korbit Owner Set to Take Control of Bithumb.

The owner of Nexon, the South Korean gaming giant and the owner of the Bitstamp and Korbit crypto exchanges, has reportedly agreed on a deal worth USD 458m to buy a controlling stake in Bithumb, the nation’s market-leading trading platform.

Bithumb has been looking for a sale for several months after a failed takeover and accusations of fraud against two key executives. The exchange was placed on the market last year, with Samjong KPMG placed in charge of finding a buyer.

A number of parties expressed an interest in the exchange, but many have been put off by a new set of stringent compliance and regulatory measures set to promulgate in March, as well as an unresolved legal issue that could cost the platform USD 67 million in unpaid taxes.

But, per Maeil Kyungjae, Nexon supremo Kim Jung-ju has decided to take the plunge, in a deal that will see him take up a controlling 65% stake in the trading platform.

The exchange was valued at just under USD 600m, but it appears that the owners’ desire to exit the market post haste drew them to consider a much lower price.

Kim’s involvement in the crypto industry has been very eventful. His Nexon firm (and the NXC holding company) made its first crypto buy, Korbit, in September 2017, later moving to buy the European exchange Bitstamp in October 2018. Last year, NXC announced it was launching a third exchange from scratch. Open / Comment

2021-01-04 21:00:26 ​​XRP Army Fils A Petition, Digital Yuan Giweaway.

Legal news
XRP investors have filed a petition against the US Securities and Exchange Commission (SEC) on December 29, claiming "irreparable harm and damages" that declaring XRP a security causes them. The petitioners argued that the SEC is not protecting the investors it's tasked with protecting, and that the SEC complaint against Ripple is damaging to the holders of XRP. At the time of writing, 26,719 people had signed the petition, while 100,000 signatories are needed to move forward.

CBDCs news
Citizens in Shenzhen, China, will receive another combined USD 3m in handouts as the central People’s Bank of China (PBoC) prepares to conduct another test for its forthcoming digital yuan token. Per an official announcement from the government of Shenzhen, 100,000 digital red envelopes will be distributed to residents as part of a lucky draw even that will see “winners” credited with around USD 30 worth of the new central bank digital currency. The winners will have until January 17 to spend their tokens at 10,000 retailers in Shenzhen. The event follows on from a similar giveaway that conducted in the city in October 2020.

Regulation news
The US Financial Crimes Enforcement Network (FinCEN) announced its intention to amend the Bank Secrecy Act’s Foreign Bank and Financial Accounts (FBAR) regulations, which may see Americans having to report owning more than USD 10,000 in cryptoassets with foreign financial or virtual asset service providers. Currently, FBARs must be filed by individuals who have over USD 10,000 in foreign financial accounts. According to a brief rulemaking notice, "FinCEN intends to propose to amend the regulations implementing the Bank Secrecy Act (BSA) regarding reports of foreign financial accounts (FBAR) to include virtual currency as a type of reportable account.”

The central bank of Kyrgyzstan, the National Bank of the Kyrgyz Republic, has unveiled plans to introduce two pieces of draft crypto-related legislation, and has indicated that it wants to police the nation’s exchanges. If enshrined into law, the bills would introduce a number of Anti-money Laundering and Combating the Financing of Terrorism (AML/CFT)-related regulations, per Sputnik Kyrgyzstan. They would also force exchanges to operate within a legal framework in a bid to fight crypto-related fraud, debut a crypto tax system, force exchanges to apply to the National Bank for operating permits and provide a legal definition for terms such as “cryptoasset.”

Investing news
Bitwise Asset Management, a US-based provider of crypto index funds, said that it recently surpassed USD 500m in assets under management (AUM), after reporting USD 100m in AUM on October 28, 2020. The increased demand came primarily from Bitwise's core audience, investment professionals, including financial advisors, hedge funds, corporate balance sheets, and other institutional investors, they said.

Financial advisory and fintech organization deVere Group's CEO, Nigel Green, sold half of his bitcoin (BTC) holdings as it was rallying in December, he revealed in an announcement, his reason being that "it should now be treated as any other investment – that’s to say, where possible, it’s better to sell high and re-buy in the dips." He added that, while the longer-term price trajectory for BTC is upwards, many traders will see record high prices as an opportunity to sell, "so we can expect some pullback on prices in the near-term." Open / Comment

2021-01-01 20:00:27 ​​Fact-checking Ripple’s Claim that ‘Many G20 Gov’ts’ Call XRP a ‘Currency’.

The struggle between the US Securities and Exchanges Commission (SEC) and one of the nation’s biggest crypto companies, Ripple, is coming to a head, leading exchanges all over the world, including American giant Coinbase to suspend the XRP token. The SEC has branded XRP a security, and has launched a potentially devastating lawsuit against Ripple.

But Ripple has indicated that it is up for the fight, and in an impassioned defense of the token just ahead of Christmas, Ripple CEO Brad Garlinghouse made the claim that is not a security and that “many other G20 governments call XRP a currency,” leading him to the conclusion that “it is truly confounding that the SEC would take this step.”

But just how true is this claim? Do “many” G20 nations really hold this belief? We decided to find out.

Argentina
We’ve found no evidence of any Argentinian regulator saying anything in particular about XRP. Crypto legislation is very much in its infancy in Argentina.

Australia
A New South Wales judge ruled this year that crypto could be used as a legitimate form of investment, saying that bitcoin (BTC) could be “used as a security” and was a “recognized form of investment,” per the Australian Associated Press. But there is no clear link to XRP in this ruling - or any other that we could find.

Brazil
Ripple has a significant presence in Brazil, but it doesn’t look like anyone in a position of power has ruled on XRP’s legal status.

Canada
Cryptoassets are policed under securities laws in Canada, with no known exemption for XRP, and the country’s Currency Act of 1985, last amended in 2018, only specifies that Canadian dollars are legal tender.

China
Crypto’s name is mud in the Middle Kingdom - at least officially.

France
The situation is more nuanced in France, where the central Bank of France has spoken about XRP’s possible role in powering central bank digital currencies (CBDCs), per Fr24, but we were unable to unearth anything official about its “currency” status or otherwise.

Germany
The picture in Germany is confusing, to say the least. This super long document from the financial regulatory body the Federal Financial Supervisory Authority (BaFin) goes into great detail in its discussion of security tokens specifically, and other tokens, listing the laws that would apply in variety of scenarios. Crucially, however, the regulator refrains from making mention of any particular token. For the TL;DL crew, the answer is a resounding maybe, but nothing close to a firm “yes.”

India
No records or rulings found here.

Indonesia
Indonesia has a number of crypto-related regulations, but we couldn’t find any record of a ruling on XRP’s legal status.

Italy
Crypto still does not have any kind of legal tender status in Italy, and no references to XRP were found on our searches.

Japan
Japan is arguably way ahead of the rest of the world when it comes to crypto regulation, which is all carefully policed by the regulatory Financial Services Agency (FSA). The FSA approves tokens for listing on exchanges, so regularly goes into great detail on the legal status of individual altcoins. Ripple’s closest Asian ally is the Japanese financial giant SBI, which this week issued a statement pointing out that “XRP is a ‘cryptoasset’ under the Japanese Funds Settlement Law, and not a ‘security’ under the Financial Instruments and Exchange Act.”

South Korea
Seoul has remained silent on the matter, although sources familiar with the matter told that the government may seek to adopt a policy of token approval for exchanges at an unspecified future date. Open / Comment

2020-12-26 20:00:32 ​​Bitcoin & Crypto Taxes In US: When to Sell and When to Hodl.

That was then, this is now
Sharon Yip, certified public accountant (CPA), a crypto tax advisor working closely with crypto tax software company CoinTracking, spoke about the tax dynamics for crypto investors. Yip, whose practice is dedicated to helping cryptoasset investors and blockchain companies dealing with crypto taxes, explained how in 2018, many people weren’t prepared to pay crypto-related taxes.

Many investors lost money as their portfolios tumbled in value. And when tax time came around, she said, they didn’t have the money to cover the bill. So they either intentionally avoided reporting their crypto transactions or simply didn’t know how to.

Now many of those investors are in hot water after receiving notices from the US Internal Revenue Service (IRS) related to 2018. This effort came as a result of US crypto exchanges like Coinbase issuing 1099-K forms to certain customers, which allowed the tax agency to match the forms with individuals who didn’t report their taxes. Investors whose crypto payments exceed USD 20,000 or who have completed more than 200 transactions are the recipients of a 1099-K.

“This is very serious. Based on the people who received the tax notice and contacted us for help, we’ve seen a range of tax assessments go from USD 45,000 to USD 1.5m based on sales proceeds once you throw in penalties and interest,” said Yip, adding that every single time you trade, it adds up. “It’s like a snowball that keeps rolling bigger.”

Taxable event
The IRS classifies cryptoassets as property. Yip’s advice to investors who are looking to capture a profit in this bull market is to have a clear idea about gains and losses and not to make assumptions. CoinTracking advises clients to make tax projections to gauge how much they might owe. Even if you have a full-time job with a W2 and just trade on the side, it might not be enough to cover taxes for capital gains. As a result, you could end up with a large balance due, which could trigger penalties for underpayment.

First and foremost, Yip explained, investors should know that every crypto transaction is a taxable event. The only time it’s not taxable is if you purchase crypto with fiat money, which is akin to buying stock. But if you are buying one crypto with another crypto, it’s a taxable event.

“It’s a two-step transaction. For example, if you’re using BTC to buy EOS, you are treated as if you are selling BTC for USD and then use the USD to buy the second coin, EOS. This situation will recognize a tax gain or loss,” explained Yip.

“People are not prepared and have no idea how to handle this. Whether they pocket the profits or invest in other coins that could go higher, people really need to be prepared for the tax consequences. I’m shocked how people thought as long as they didn’t cash out, they don’t have to pay taxes.”

She gives the scenario of an investor buying BTC at USD 5,000. Now that it’s trading at USD 23K, they might sell it and use the proceeds to buy another coin. Even though they put zero cash back in their pocket, it’s a taxable event.

“From the IRS’ perspective, it’s the same whether you sold at USD 23,000 and pocketed the money or turned around and bought another coin. It’s your choice,” Yip said.

It is a common belief that the majority of crypto investors didn’t report their crypto transactions on tax returns, and as Yip noted, the government needs the money now more than ever with all of the stimulus it is giving away.

“This is an area where they can go after people and get their money back,” she said. Open / Comment

2020-12-20 20:00:37 ​​Bitcoin Now Retail Inflation Hedge, Experts Agree – and Altcoins May Follow Suit

The most popular cryptocurrency, bitcoin (BTC) has become a mainstream hedge as a store of value – for a diversifying set of investors, experts have claimed, with altcoins also set for a retail boost further down the line.

A broadening tranche of analysts and industry insiders are adding their voices, as Jeff Currie, the Head of Commodities Research at Goldman Sachs, told Bloomberg TV,

“I would argue that bitcoin is the retail inflation hedge. You look at gold. People like to say it stole demand from gold. There's really no evidence that it has.”

He added that if “you overlay a chart of bitcoin on the price chart for copper they look very similar,” also opining that other metals have similar correlations with BTC at that gold and bitcoin can co-exist.

His comments echoed sentiments expressed by PwC’s crypto lead Henri Arslanian, who told the same media outlet that “institutional investors are coming in and that pretty much changes their game when it comes to the whole cryptoassets market.”

Arslanian added,

“[We] have seen on numerous companies buy bitcoin as part of a treasury because they see it as a hedge against inflation. So I think many people are now seeing it as that.”

This kind of “positioning” toward bitcoin is “particularly” coming “from a lot of the more traditional financial” firms “or corporates,” he concluded.

The experts were speaking as BTC and altcoins appear to be correcting their gains, with BTC now consolidating after failing to clear the USD 23,200 mark today.

At the time of writing (15:59 UTC), BTC trades at USD 22,550 and is down by 3% in a day, trimming its weekly gains to 24%. Meanwhile, other cryptoassets from the top 10 club are down up to 6% today.

Industry insiders have been having their say, too.

Philip Gradwell, the Chief Economist at blockchain analysis firm Chainalysis, wrote in his newsletter yesterday that he expected to see “significant swings in the price over the next few days as the market tries to find a balance between demand and supply.”

However, he expressed no shortage of optimism, adding,

“I don’t expect to have to wait as long for a new all-time high after today as I did after December 17, 2017. In 2020, bitcoin has matured as a financial asset that is well suited to our current macro environment and due to this large investors have purchased millions of bitcoin, significantly reducing the remaining supply available to buy.”

There was yet further reason for festive BTC cheer as Gradwell wrote that with the macro environment “unfortunately unlikely to change soon,” high prices would “attract even more demand, likely pushing prices higher.

He also stressed that there is much less liquidity in the current market than there was in 2017, which would explain the rapid price increase this week.

"Interestingly, investors who have held bitcoin for 6 or more months have added 68 thousand bitcoin to current liquidity relative to 2017. This suggests that some investors are taking a more calculated view of the market this time around and realizing their gains rather than remain long," he added.

“With its price sitting firmly above USD 20,000, its next goal seems to be the USD 25,000 mark. Meanwhile, USD 20,000 could become the coin's new strong support level. With only two weeks remaining before the end of the year, many assume that the rally will be short, but impactful.”

However, he warned that sharp correction is also possible, "considering the time of the year and the upcoming winter holidays." Open / Comment