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EU Finance Ministers Place Defacto Ban on Libra

Libra’s ongoing organizational snags and run-ins with regulators continue into December, as EU finance ministers agreed Thursday that Libra cannot be launched in the EU until concerns are adequately addressed. The finance ministers issued a joint statement citing regulatory “challenges and risks.” Also Read: Libra Testnet Fails to Impress as New Legislation Looms Lawmakers Still Reluctant Just last month news.Bitcoin.com reported on the “Managed Stablecoins are Securities Act of 2019,” proposed legislation in the U.S. which seeks to regulate libra as a security, going against Libra representatives’ stated vision for the project. Project head David Marcus has loosely compared Libra to something more like a Paypal-type payments platform. Though devs are reporting notable successes with the testnet, and a 2020 release is still in view, regulatory worries continue to crop up. Most recently, from EU finance ministers via the EU Council and Commission. The ministers agreed in a joint statement Thursday that: No global stablecoin arrangement should begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed. Like most official statements surrounding the Libra project thus far, the EU finance ministers are careful to give lip service to potential benefits. “Technological innovation can produce great economic benefits for the financial sector, promoting competition and financial inclusion, broadening consumer choice, increasing efficiency and delivering cost savings for financial institutions and the economy at large,” the statement reads. However, promotion of concepts like financial inclusion is soon tempered with commonly repeated regulatory lines when it comes to cryptocurrencies: At the same time, these arrangements pose multifaceted challenges and risks related for example to consumer protection, privacy, taxation, cyber security and operational resilience, money laundering, terrorism financing, market integrity, governance and legal certainty. The statement ends by turning the focus away from private solutions to state-sponsored initiatives like Central Bank Digital Currencies (CBDC) and praising the European Central Bank (ECB). “We note that the ECB and other central banks and national competent authorities will explore further the ongoing digital transformation of the payment system and, in particular, the consequences of initiatives such as “stablecoins”. We welcome that central banks in cooperation with other relevant authorities continue to assess the costs and benefits of central bank digital currencies…” Libra Struggles On The joint statement comes as the Commission is reportedly working on stablecoin regulation already, with VP Valdis Dombrovskis saying in a speech: “Today the Ecofin endorsed a joint statement with the Commission on stablecoins. These are part of a much broader universe of crypto assets … A number of Member States like France, Germany or Malta introduced national crypto asset laws, but most people agree with the advice of the European Supervisory Authorities that these markets go beyond borders and so we need a common European framework.” When the EU and governments worldwide will finally be ready for Libra, if ever, remains to be seen. As a large chunk of major league members have left the Libra Association already — such as Paypal, Visa and Mastercard in recent months — the project has no shortage of challenges as it continues pushing forward. What do you think of the EU Finance Ministers’ joint statement? Let us know in the comments section below. Images credits: Shutterstock. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post EU Finance Ministers Place Defacto Ban on Libra appeared first on Bitcoin News.
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Brazil IRS Creates Penalty Code For Dishonest Crypto Taxpayers

The IRS in Brazil has turned the spotlight on crypto deals and transfers, creating a special penalty code to fine for misreporting. Brazil Requires Monthly Filings for Crypto Activity Failing to file a monthly report of crypto asset movements triggers “Revenue code 5720 – Default for Default / Incorrect / Delay in Reporting on Transactions Performed with Crypto”, reported community portal OBN. Brazil introduced crypto regulation this August, and the IRS claims it has received reports for $14 billion in transactions in the past few months. It is uncertain how that figure was reached, and whether it is based on transfers alone, or involves trading. The IRS requirement, however, may only involve transactions related to trading. Moving actual coins is anonymous in most cases. When a coin is traded for fiat, however, a taxable event must be accounted. For instance, accounting for November trades must happen by the end of December. Based on LocalBitcoins volumes, interest in Brazil is relatively stable. Local exchanges remain highly active, though the Brazilian real makes up about 0.03% of total BTC trading globally. The taxation approach in Brazil resembles that for the US IRS. The taxman also observes certain accounts, and some of the exchanges and brokerages are obligatory reporters. Simply holding BTC, however, does not generate a taxable event, despite the price fluctuations. But revenue services around the world are also learning about the transparency of the Bitcoin network, and the potential to trace transactions directly. The technique, reserved for criminal investigations, is also known to the US IRS. US IRS Extends Blockchain Exploration to Crack Down on Crime One of the biggest crackdowns on BTC usage for 2019 happened in relation to the website Welcome to Video, a darknet network offering underage content. With the help of Chainalysis, the IRS and law enforcement managed to link BTC addresses to accounts and real-world identities. “By analyzing the blockchain and de-anonymizing bitcoin transactions, IRS-CI special agents were able to identify hundreds of predators around the world – even though those users thought that they could remain anonymous,” the IRS reported. BTC ownership and trading is regulated in vastly different ways. For most countries, recognizing a gain on selling the assets would be a reportable event. Rules differ on the time period of holding the asset, as US-based traders face differentiated taxes for short-term and long-term BTC investment. The latest IRS annual report, details that the service has achieved a 91% conviction rate for crypto tax crimes in 2019 alone. This figure demonstrates the growing efforts of the tax authorities to clamp down on crypto tax dodgers. Right now, Bitcoin has added more than 90% to its price since the start of 2019, but may also incur losses depending on the time of purchase and sale. What do you think about Brazil’s approach to BTC transaction taxation? Share your thoughts in the comments section below! Images via Shutterstock The post Brazil IRS Creates Penalty Code For Dishonest Crypto Taxpayers appeared first on Bitcoinist.com.
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South Korea Prepares to Draft Bitcoin Capital Gains Tax Guidelines

The South Korean government wants to tax capital gains on cryptocurrencies. This new decree has yet to be officially improved by the proper authorities.  South Korean news outlet Korea Times claims the government wants to impose capital gains taxes on virtual currencies, including bitcoin. Bitcoin Taxation in South Korea This is a new measure by the domestic Ministry of Economy and Finance, which is expected to become part of tax regulation in 2020. Discussions regarding this measure have been going on for some time now. South Korea is one of the primary regions of cryptocurrency trading activity today. A revised tax regulation bill will be drafted by Q2 2020, after which it will be reviewed and revised wherever necessary. A second bill is on the table to enhance the overall transparency of virtual currency trading in South Korea. If that bill were to pass as well, it will be introduced one year after the taxation guidelines have been adjusted.  Several problems persist regarding both of these proposals, however. In South Korea, the current definition of virtual assets is ambiguous and leaves much room for debate  It is now up to government officials to draft clear guidelines on how bitcoin and other virtual currencies will be treated. Depending on that classification, the taxation guidelines will need to be altered as well. The coming months will prove to be crucial for the future of virtual currencies in South Korea.  Image(s): Shutterstock.com The post South Korea Prepares to Draft Bitcoin Capital Gains Tax Guidelines appeared first on NullTX.
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South Korea Crypto Account Holders Must Use Their Legal Names

South Korea has passed new laws requiring that everyone opening a cryptocurrency account use their true, legal names to do so. South Korea: The Center of Crypto Regulation? As time goes by, many cryptocurrency exchanges and businesses are seeking out ways to remain fully compliant with federal regulators. The problem is that to do this, they’re often required to invade the privacy of their customers to one extent or another, and this scenario is no exception. One of the issues at hand is that many argue that cryptocurrency is often utilized for criminal behavior, such as money laundering. While it’s nearly impossible to say how many individuals are using crypto to perform malicious activity, the fact remains that most cryptocurrencies share properties that make them ideal to the present financial infrastructure. They can solve many of the world’s monetary issues and potentially ease the burden of global poverty. Nevertheless, most regulators do not see this, and choose instead to focus primarily on what crypto can do to make the world a darker place. While it’s understandable that this should be considered, is enough emphasis being put on all the good that crypto can do? As it stands, South Korea will now have to report all cryptocurrency transaction data to regulators, who will oversee the transactions and decide if they are permissible or if there is something suspicious going on. On the one hand, this has a positive side in the sense that crime – if cryptocurrency is ever going to be taken seriously – must come to a full halt, and this is one potential way to do it. At the same time, the idea that people must now use their real names and in some cases, upload government-issued photo IDs to their accounts as part of the ongoing know your customer (KYC) tactics now employed by most cryptocurrency exchanges and businesses, really goes against what most forms of crypto are all about. Most digital assets, especially bitcoin, were designed with the general public in mind. They were designed to give people their financial freedom back, and this included anonymity and the chance to use their money as they saw fit, so the idea that people’s names, photos and other sensitive information is being forwarded to financial legislators every time is a little unseemly. Keeping Up Appearances South Korea’s new identity verification system is being implemented by a cryptocurrency exchange known as Bit Thumb. To an extent, it makes sense that the region is being so adamant about knowing exactly who their customers are considering popular trading platform Up Bit – also stationed in South Korea – was recently robbed of nearly $50 million in ether funds. In addition, the country accounts for roughly 20 percent of the world’s cryptocurrency transactions. With so much business at stake, it’s understandable that they want to heighten safety measures. The post South Korea Crypto Account Holders Must Use Their Legal Names appeared first on Live Bitcoin News.
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Price Analysis 09/12: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, XTZ

Price Analysis 09/12: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, XTZ China could start its pilot for the central bank digital currency (CBDC) before the end of this year, according to local news outlet Caijing. The article states that the anticipated pilot project “will go out of the central bank system and enter […] Cet article Price Analysis 09/12: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, XTZ est apparu en premier sur Bitcoin Central.
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EOS Price Hit after Getting a C- in Decentralization by Weiss

Blockchain project EOS started this week on a negative note after an independent agency downgraded its rating from B to C-. Weiss Crypto Ratings published a report on December 6 wherein it demoted EOS to lower ranks over its centralization. The agency noted that just 0.01 percent of the EOS token holders control over 68 percent of the voting power on its blockchain. That allows a handful of entities to practice censorship over hundreds of thousands of EOS investors. In comparison, provable decentralized projects like Bitcoin works across 9,300 nodes to confirm and validate transactions atop its blockchain. 1/6 We’ve had great respect for work and thinking that went into the #EOS project. But the Weiss Crypto Ratings model is not based on opinion. It’s driven by data. And that data has now caused a downgrade from B to C-. Here's why (full article to be published soon): — Weiss Crypto Ratings (@WeissCrypto) December 6, 2019 EOS spent a quiet weekend but its value eventually took a toll during the Monday session. The EOS-to-dollar exchange rate was down by $0.083, or 3.02 percent, as of 1658 UTC. Against bitcoin, the cryptocurrency did relatively better, falling about 1.64 percent to trade at 359 sats. The market capitalization likewise took a plunge roughly worth $500 million to settle a low at $2.534 billion. At its December peak, it was $2.613 billion. Ascending Channel The latest move downside brought EOS close to retesting the support of an Ascending Channel. While the lower trendline certainly capped the price from falling further downward, the negative sentiment arising from the Weiss report could weaken it in the near-term. The bearish case prompts EOS to retest to close below the Channel Support and target 304-342 sats area as an accumulation range. In the event of a breakdown, traders could extend their short position towards 284 sats while keeping a stop loss above the level at which they had entered the trade. EOS is trending inside an ascending channel | Source: TradingView.com, Coinbase On the other hand, the price has not failed to reach the upper levels so far. A pullback action from Channel support could push EOS back towards the Channel resistance. Traders with low-risk appetite could use the bounce-back as an opportunity to open a fresh long position 405 sats. Meanwhile, they could minimize risks by maintaining a stop-loss order just below the Channel support. A Consideration From a fundamental point of view, investors who were bullish on EOS might find it hard to digest its centralization issues. The sentiment could prompt some to switch their positions for tokens with more attractive opportunities. Such a scenario could suit the breakdown scenario as discussed above. Meanwhile, traders can look to accumulate EOS ahead of the launch of Voice. EOS creator Block.One on Thursday announced that it would launch the EOS-based social media platform on February 14. While the announcement did not help neutralize trading sentiments immediately, traders can still speculate on the Voice launch to make interim profits. One could watch out for a reversal from Channel resistance – a sign that traders are processing the Voice news – and place his/her upside positions. EOS Price Hit after Getting a C- in Decentralization by Weiss was last modified: December 9th, 2019 by Yashu GolaThe post EOS Price Hit after Getting a C- in Decentralization by Weiss appeared first on NewsBTC.
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