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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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The rise of the crypto casinos

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In the hyper-competitive world of online casinos, operators are always looking for ways to stand out from the crowd. The most usual methods include using distinctive branding, offering generous bonuses and making sure that they are on all of the major so-called affiliate sites where players can compare and contrast casinos’ different offerings.

But now a whole new generation of casinos are starting to emerge – ones whose key difference isn’t what and how you play, but more in how you pay.

The rise and rise of the cryptocurrency casino is seen by many as the next logical step in a world that is slowly but surely starting to accept that Bitcoin, Ethereum, Ripple, et al. are certainly here to stay.

Of course, it’s the first of these cryptocurrencies that has really grabbed the headlines and led the way with its meteoric performance in 2017 when it seemed like its $20,000 value was just the start of the story. Admittedly, this was short-lived and the value quickly fell back to a more sustainable level but, if it achieved one thing, it was to cement this exciting new kind of currency in the consciousness of the general public.

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Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

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The Bitcoin Revolution: Everything You Need To Know To Take Profits

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Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

Since entering the market almost 11 years ago, Bitcoin is still at the top of the global cryptocurrencies list. The current circulating supply of Bitcoin is at unbelievable 17,708,875 BTC. The market trend of the Bitcoin price has remained positive even when the currency did not maintain an uptrend. Cryptocurrency researchers believe that Bitcoin has the potential to grow up to a high of USD 50,000 within the next two years.

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