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December 2005

Litecoin is Under Pressure Ahead of the Halving, So What Next?

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Litecoin

Litecoin

Over the course of the past few years, Litecoin (LTC) has firmly emerged as one of the more popular altcoins in the crypto sphere, but the token is slowly but surely approaching a day of reckoning as the much talked about halving is going to take place soon. The halving is going to reduce the reward for completing a blockchain to 12.5 LTC for miners, and many believe this is a step that could prove to be a problem for the cryptocurrency in the initial period.

Analysis

The halving is going to take place next week, and considering the fact that the wide crypto market is currently going through a churn, there is a belief that it could have an immediate negative effect on the price.

On Monday, the price of one Litecoin stood at $91, and it just about managed to hold on to its exalted status as the cryptocurrency with the fourth-highest market cap. However, the coming days could prove to be significantly tough for the coin if experts are to be believed. The price action so far, ever since the halving was announced, has seen the price of Litecoin rise, followed by staged drops in price and it is going to be highly interesting to see how it all works out when it takes place officially next week.

>> Technical Price Analysis: Ethereum (ETH) and Ripple (XRP)

On the other hand, there are other analysts who are convinced that the halving is going to result in an explosion in the price of Litecoin. Since the lowered reward for miners has the potential of making Litecoin scarce, its price could rise significantly once the halving takes place next week. That being said, nothing can be predicted with any kind of certainty in the crypto sphere, and considering the sort of fluctuations that have taken place over the course of July, anything can happen. However, it cannot be denied it is a significant event for Litecoin and one that could decide the immediate future of the token.

Featured image: DepositPhotos © winst2014

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India’s Proposed Crypto Bill Puts Crypto Owners in Jail for 10 years

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Crypto bill

Crypto bill

Lawmakers in India have proposed a crypto bill that is considered by many to be ludicrous. The country is clamping down on cryptocurrency with an extreme proposal that would make Bitcoin and crypto ownership completely illegal. Those caught holding, mining, owning, or trading any digital asset could face a prison sentence of 10 years.

The bill coincides with the country’s plan to launch its own state-backed cryptocurrency—the Digital Rupee. The message is clear; people will have to engage with crypto the government’s way or not at all.

India’s Proposed Crypto Bill

The bill proposes that anyone involved in the crypto ecosystem should face criminal punishment. Any persons who “mine, generate, hold, sell, transfer, dispose of, issue or deal in cryptocurrencies, directly or indirectly” would face a 10-year prison sentence.

So severe is the punishment that those caught committing the crimes would face “non-bailable” sentences.

The draft crypto bill was first sourced by BloombergQuint. The source goes on to say that the courts will use four criteria when sentencing someone. They are as follows:

  • Culpability of the accused
  • Actual and intended gain made, and loss caused
  • Repetitive nature of the offense
  • Harm caused to the system

The lawmakers are even going as far as using the accused’s crypto profits against them. Any incurred fines from the criminal act will be three times as much as the profit made in the first place.

According to BloombergQuint:

“The penalty imposed on the accused, according to the bill, shall be either thrice the loss caused to the system, or three-fold the gains made by him/her, whichever is higher. If the loss or gain can’t be reasonably determined, the maximum fine that can be imposed may be notified by the government.”

Should the bill be passed, anyone with Bitcoin or cryptocurrency will have to declare it and then get rid of it in 90 days. Further, the bill seeks to amend the Prevention of Money Laundering Act of 2002, to include all cryptocurrency and blockchain related activities.

>> Ripple to Enhance Transparency in XRP Volume Reporting

Where Does the Crypto Bill Leave the Digital Rupee?

In a rather hypocritical move, the government’s own cryptocurrency, the Digital Rupee, is exempt from such stringent laws.

The reason is the close ties to the country’s leading bank, the Reserve Bank of India (RBI), that this cryptocurrency would have. Both the central government and RBI will consult over the launch of the Digital Rupee.

Until now, RBI has been anti-cryptocurrency and blockchain. In 2018 it prohibited any RBI-regulated institutions from processing cryptocurrency purchases.

The proposed crypto bill puts to bed any hopes that India may adopt and regularize cryptocurrency.

Featured Image: DepositPhotos © hello.artmagination.com

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Congressman Ted Budd Brings Back the Crypto Tax Bill

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Ted Budd

Ted Budd

North Carolina Congressman Ted Budd has introduced a tax bill in the United States House of Representatives seeking to refine cryptocurrencies’ treatment by the Internal Revenue Services. The bill will amend the Code allowing the exclusion of losses or gains on similar crypto transactions.

Reviewing the Internal Revenue Code

The bill has been called the Virtual Value Tax Fix Act of 2019 and is being reintroduced by Congressman Ted Budd, having been first introduced in the previous Congressional session. The bill is being put before the House Committee on Ways and Means, and it seeks to amend the 1986 Internal Revenue Code, thus effectively ending the double transaction of virtual currencies.

According to the 1986 Code, losses and gains in transactions involving properties of a similar kind are still unrecognized. For instance, when there is an exchange of real property, be it for business or trade for a similar real property for business or trade, no loss or gain shall be recognized.

The bill seeks to have the exchange between cryptocurrencies of a similar kind to be treated the same way as transactions involving similar properties. Once the bill gets enacted, then cryptocurrencies will be excluded from double taxation under the current Internal Revenue Code.

>> Tezos (XTZ) Gains 200% YTD as Buyers Get Excited

Safe Harbor Bill

Besides the Budd bill, there is another crypto legislation being before the house. At the beginning of last month, Congressman Tom Emmer reintroduced the Safe Harbor for Taxpayers with Forked Assets Act of 2019. The bill aims to foster growth in the blockchain industry by reducing the burden on businesses in figuring the right tax laws.

The Congressman said that taxpayers will only conform to a law that is clear. The bill will not eliminate taxes on forked assets but, rather, it seeks to offer a safe harbor to those investors who fail to account properly for hard fork assets when calculating tax returns.

In June, Ted Budd told the House Way and Means Committee that virtual currencies should have a de minimis tax exemption similar to foreign currencies.

What do you think?

Featured image: DepositPhotos © VadimVasenin

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SIX Stock Exchange Adds XRP to Latest ETP Project

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SIX Stock Exchange

SIX Stock Exchange

The largest stock exchange in Switzerland, the SIX stock exchange, is planning on launching an XRP crypto exchange-traded product (ETP). Amun AG was the first crypto startup to launch ETPs on SIX. Hany Rashwan, CEO of Amun AG, told CoinDesk that this new product will have the ticker AXRP.

SIX Stock Exchange Adds XRP ETP

The SIX Stock Exchange has not released any formal news yet on this matter and the ETA of AXRP is unknown at this time. In addition to the XRP ETP, Rashwan told CoinDesk that SIX has approved ETPs for four more altcoins. According to the CEO, Bitcoin Cash (BCH), EOS, Stellar (XLM), and Litecoin (LTC) will be the next altcoins to get their own ETP products on the SIX Stock Exchange.

Amun AG has yet to provide thorough details regarding the new ETP listings. In November of 2018, SIX launched its first ETP that tracks a basket of top-weighted cryptocurrencies. This new product was issued by Amun AG under the HODL ticker. Since November, this total monthly trade volume for HODL has taken over an ETP that tracks crude oil. According to research by CoinDesk journalists, HODL became a top traded ETP on SIX in both December and January, prompting further digital currency ETP products.

>> Emaar Community Token: Owners of Burj Khalifa Plan ICO

Rashwan told CoinDesk that most of the buyers of these products are based in Switzerland. Over the past few weeks, Amun AG has issued Bitcoin (BTC) and Ethereum (ETH) ETPs on the SIX Stock Exchange.

What is an ETP?

ETPs are passive investment instruments with no active trading strategies involved. ETPs are priced so the value is derived from other investment instruments such as a currency. SIX has its own rules for these traded products and states they are not treated as “collective investment schemes;” therefore, ETPs are not supervised by Switzerland’s market regulator. Amun AG backs each ETP by an identical amount of crypto assets, which is checked on a continuous basis. Rashwan told CoinDesk it stores its collateral with Kingdom Trust.

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