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Bitfinex Is After Your Tax Data For Crypto (BTC, ETH, LTC, XRP) Income Tax Purposes

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News reaching Global Coin Report indicate that popular online cryptocurrency exchange, Bitfinex, is adding a new requirement in its KYC (Know Your Customer) procedure. Select Bitfinex users are now being requested to submit their tax data. The data will be kept in their records to be submitted to the corresponding jurisdiction when the time warrants it.

Bitfinex is coincidentally registered in the British Virgin Islands that is known for being a tax haven. This current development looks contrary to the Exchange’s own vision of operating within a jurisdiction that is very lax when it comes to taxation. However, according to the announcement below, the British Virgin Islands might have made adjustments to its requirements and procedures specifically for tax enforcement by the IRS in the US. Below is the announcement that greeted some Bitfinex users when they logged onto the site.

Bitfinex notice on Tax information

According to Wikipedia, the British Virgin Islands has:

  • no capital gains tax,
  • no gift tax,
  • no sales tax or value-added tax,
  • no profit tax,
  • no inheritance tax or estate duty, and
  • no corporation tax

However, this new requirement might be targeting users in the US as earlier mentioned, for the IRS has expressed its wishes to collect taxes on cryptocurrency trading. Earlier this year, the American tax agency reminded Crypto traders that digital assets are considered as property and should be declared when filing their annual returns. The IRS was also quick to announce that the regular penalties and interest will apply to anyone who will be found not declaring cryptocurrencies in their returns.

With respect to Bitfinex, the above announcement has created quite a storm on Twitter with a boycott being advised by many users of the platform.

@Whalepool, which is a crypto community of day traders, had this to say about the announcement by Bitfinex:

“Bitfinex is now requiring users to give their tax information so that it can send it to BVI which will exchange it with your country’s tax authorities. We strongly disavow. If you also disagree with this decision, peacefully protest it by withdrawing your money from Bitfinex”

The Bitfinex team was quick to reply with the following tweet:

“We have not sent this message to all users. We have deliberately targeted users that we believe have an obligation to self-disclose. If a user has _not_ received a message from us, she needs _not_ self-certify anything to us at this time.”

With the above development on KYC procedures on Bitfinex, crypto traders can decide to boycott the exchange by moving their funds elsewhere or opt to comply with the new requirement.

Another option would be for the Bitfinex exchange to register in another jurisdiction that does not require similar KYC requirements on Tax data.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

3 Cryptocurrencies Most Likely to Follow Bitcoin’s Performance

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For more than a year, the cryptocurrency market has been dominated by bearish influence, with most coins seeing constant drops, or stagnation, at best. This all changed in the past few months, starting with Bitcoin which once again started leading the market up, bringing one minor rally after another.

BTC itself experienced massive losses in 2018, with its price going down by around 84%. Most other coins among the top 10 mirrored its performance, and some of them experienced even greater losses. However, now that Bitcoin sees gains again, these cryptocurrencies are still following its example, and many of them have seen massive breakouts. Some of the more notable altcoins that followed Bitcoin’s recent example are Ethereum (ETH), Stellar (XLM), and Cardano (ADA).

Ethereum performance mirroring Bitcoin’s price

As mentioned, Bitcoin led every rally so far, but before it did, its price first went through what is known as an ascending triangle pattern. The pattern held for around five months, which is exceptionally long for the crypto world. However, once the pattern was finally broken — the coin’s price skyrocketed, more than doubling itself within only two months.

One thing to note is that Ethereum performed in pretty much the same fashion. After five months of struggle and confusion for investors, the second largest cryptocurrency also managed to break the pattern and skyrocket as well. It…

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Bitcoin

4 Reasons Why the New Bitcoin Rally Is Unlikely to Stop Now

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Bitcoin rally
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After more than a year of declining prices, the crypto market is finally seeing a period of serious recovery — one that has already brought digital currencies to heights not seen in over half a year now.

Only days ago, Bitcoin surged past several major resistance levels and managed to exceed its yearly high of over $8,000. Already, many skeptics are predicting the soon end of the bull run, and the possibility of yet another sharp decline. However, there are signs that suggest otherwise — that this bull run is only getting started, and that it will not end anytime soon.

There are four reasons why this is the case, and they are as follows:

1) Bakkt

There is the long-awaited Bitcoin futures exchange, Bakkt, which recently announced that the July test date for Bitcoin futures is soon to be set. Bakkt’s launch was delayed multiple times already, so the announcement came as quite a surprise. However, it appears that it will happen quite soon, after all.

As soon as its arrival becomes a certainty, Bitcoin will likely skyrocket even further, just like gold did when gold ETF appeared in 2013.

2) Bitcoin completely ignored the hacking of Binance

Binance has been the largest crypto exchange by trading volume for a while now, and as such, many expected that, if anything were to happen to it, Bitcoin…

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Bitcoin

The New Rally Has Arrived: Crypto Market Cap Goes up by $24 Billion Within a Day

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The crypto market’s recovery progresses further, and at a rapid pace, at that. Bitcoin has just surpassed the $8,000 mark, which is the first time its price has been that high since July of last year. In addition, the entire crypto market is making billions within hours.

Bitcoin (BTC) sees another serious surge

In the past 24 hours, the total crypto market cap has gone up by around $24 billion. Meanwhile, BTC price has grown by $1,000 within the same period, as the largest coin traded barely above $7,000 on early Monday. At the time of writing, the coin’s price sits at $8.014.31, with a 14% growth in the last 24 hours. Meanwhile, the BTC market cap has gone up to $141.85 billion, and even the coin’s trading volume surged to over $31 billion.

While many are wondering whether this is a return to the massive heights seen back in 2017 or only a temporary surge which will soon see a correction — no signs of an upcoming decline have been noticed as of yet. In fact, new heights were made and then exceeded multiple times in the past week, with a massive 33% gain during that time. And, with Bitcoin’s dominance at 60%, many are expecting that massive altcoin surges are to be expected as well.

The growth of altcoins can already be seen, as Bitcoin

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