Unlike heavyweights in the financial industry like Jamie Dimon and Warren Buffett, Goldman Sachs CEO Lloyd Blankfein has been open-minded about Bitcoin. He foresees a Bitcoin strategy for Goldman Sachs if it gets more established.
A U.S. Immigration and Customs Enforcement agent mentions mixing services at exchanges and anonymity-enhancing currencies in Senate testimony.
As Bitcoin breaches fresh all-time highs, compliance with the tax authorities becomes a confusing, yet key, priority for anyone booking profits.
The Tax Man Cometh
With Bitcoin having broken the $10,000-mark yesterday and currently sitting just shy of that level as of the start of play on Thursday, many holders will be considering cashing out some of their portfolios and converting it to fiat so as to book profits on their longer-term coins.
Sure, the longer term hodlers will denounce the necessity to cash out but in reality, bills can’t be paid in crypto just yet (well, for the most part) and there is no shame in taking a few percentage points (or more) off the top of any holdings to mitigate risk a little bit.
Indeed, as we learned last week, even Charlie Shrem holds just one-third of his net worth in cryptocurrency.
One of the major concerns when converting crypto to fiat, of course, is tax liability. For most people in most parts of the world, there exists considerable confusion surrounding what’s owed and to who and at what levels.
And interestingly, this confusion is not just limited to individual Bitcoin holders.
Balancing the Scales of Tax Compliance
Crypto businesses, and, in particular, exchanges and market makers, need to remain compliant arguably more so than individuals and maintaining said compliance can be a complicated task.
Well, as per the latest news, cryptocurrency accounting firm Libra just came up with a solution for these latter entity types.
The solution is a platform designed to automate and optimize reporting and compliance as well as control the central processes that underpin said compliance for the exchanges and market makers mentioned above.
It’s called Libra Crypto Office and, as per the company’s website:
(it’s) the industry’s first, institutional-grade solution purpose-built for the technical nature of blockchains and cryptocurrencies.
Here’s what Philippe Bekhazi, CEO of XBTO (a crypto trading, mining and investment group) had to say about the product:
Libra Crypto Office eliminates manual and inefficient back and middle office processes. The crypto markets operate 24/7/365, which means we must be able to produce accurate financial reports automatically, and in real time. Libra’s software will meet the needs of XBTO and our investors as we grow our business.
This is likely just one of many of these types of products and services that are going to pop up over the coming few years but it highlights a growing trend towards the necessity for framework support in this space.
What do you think? Will you be booking any profits and converting to fiat on the back of the latest run? Let us know in the comments section below!
Images courtesy of Flickr/401(K) 2012, Shutterstock
The post Libra Just Made It Easier For Exchanges To Remain Tax Compliant appeared first on Bitcoinist.com.
The government does plan to regulate exchanges and wallet providers, but won’t intervene to help such startups get bank accounts, the minister said.
A U.S. court has ordered bitcoin exchange Coinbase to disclose details of more than 14,000 customers to the Internal Revenue Service.
European Central Bank board member Yves Mersch has said banks need to launch instant payments systems to counter the rise of cryptocurrencies.
But central banks will likely continue discussing government-backed digital currency, said John Williams of the Federal Reserve Bank of San Francisco.
The report by venture capital firm Atomico also found that more than a third of all ICOs were based in the EU.
Zug, Switzerland – trade.io has announced the launch of its partnership with HitBTC Exchange, one of the largest cryptocurrency exchanges in the world, exceeding upwards of half a billion in daily volume, and operating since 2014.
Having just finished an extremely successful PRE-ICO period which resulted in well over $10M in funding, trade.io is proud to provide its loyal contributors with this added value partnership, demonstrating the company’s continued intent to cooperate with the highest caliber participants in the blockchain field.
Trade.io will announce shortly when the Trade Token (or TIO, which is how it will be listed on the HitBTC exchange), will start trading. TIO will trade against the counters, Bitcoin (BTC) & Ethereum (ETH).
On the listing, CEO, Jim Preissler commented:
trade.io pledged at a very early stage to Trade Token holders to be listed on a major exchange within 30 days following the ICO. To have the ability to announce a listing on such a respected exchange like HitBTC even before the start of ICO, is very gratifying. We owe all of our success thus far to our amazing trade.io community and am happy to be able to provide this news to them.
HitBTC CPO Paul Clarkson also commented:
It’s no secret that HitBTC is extremely selective in the tokens & coins we list, we have strict criteria and require an extensive amount of due diligence prior to extending an offer. trade.io has proven to be a trusted partner and we are pleased to list TIO, and start a long-term relationship.
Having just completed its wildly successful pre-ICO, trade.io has raised in excess of $11.3M from over 4,000 participants. According to icoscanner.io, trade.io is currently the 5th most successful ICO in terms of Ethereum contributions. The main ICO is due to begin on December 5th.
Find out more by visiting trade.io/hitbtc.
Images courtesy of trade.io
The post Trade.io Trade Token to be Listed on HitBTC Exchange appeared first on Bitcoinist.com.
While the world (or at least most of it) was watching Bitcoin’s roller coaster ride into 10k territory, FANG stocks collectively lost nearly 20 times as much as their Bitcoin counterparts through their biggest market cap drop yet.
The hours leading up to Bitcoin’s historic five-figure milestone were filled with hope, excitement, and probably a few sour grapes for those ever-present cynics.
Even though the currency reached this milestone, it continued its trademark volatility, flirting wildly between $9,700 and $11,500. It eventually ended up losing just over $3 billion in market cap on its record-breaking day.
A $3 billion loss is painful, but not nearly as much as that of FANG stocks, which suffered their biggest collective loss ever, losing close to $60 billion – nearly 20 times more than Bitcoin. Kind of takes a little bit of a sting out of the popular digital currency’s loss, doesn’t it? And here we thought that trading crypto was risky!
The FANG loss comes in the wake of US President Trump’s administration offering a potential reduction in the corporate tax rate.
$60 Billion Loss – a Bitter Pill to Swallow
FANG (Facebook, Amazon, Netflix, and Google) trades on NASDAQ and have long been regarded as the best-performing stocks, offering lucrative returns to their many, many investors. Until yesterday that is. The loss appears to stem – at least in part – from investors starting to move away from big-cap internet stocks into banks and value stocks.
NASDAQ is also reportedly planning to introduce Bitcoin futures next year, further legitimizing the virtual currency.
This dramatic drop must have garnered the interest of Nobel Prize-winning economist, Joseph E. Stiglitz, who you may remember for his recent suggestion of having Bitcoin outlawed. Stiglitz has previously suggested that trading in FANG stocks should also be banned.
After taking a bit of time to settle down, Bitcoin is trading at just under $9,800 according to Coinmarketcap. However, they’re not the only cryptocurrency setting records. Ethereum recently stepped over the $500 threshold, while Litecoin surpassed the $100 mark.
What do you think of FANG’s drastic drop compared to Bitcoin’s? Let us know in the comments below!
Images courtesy of ZeroHedge, Shutterstock
The post FANG Stocks Lose Nearly $60 Billion as Bitcoin Claws its Way to the $10k Mark appeared first on Bitcoinist.com.