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September 2020

Bitcoin Rises 5% Amidst Technical Rebound Signal

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Bitcoin

Bitcoin

Bitcoin (BTC) may have been on a superb run for much of 2019, but in July, the cryptocurrency has run into trouble as a range of factors contributes towards wild price fluctuations. The launch of Facebook’s Libra and the skepticism expressed about it by such powerful figures like the head of the Federal Reserve, Jerome Powell, as well as the United States President Donald Trump, proved to be a huge drag on Bitcoin.

Mixed Sentiments

Trump expressed his misgivings about Bitcoin specifically in his tweets. These developments had a significant effect on dragging the price of Bitcoin to around $10,000. Yesterday, BTC fell below that psychologically important level as well after a regulatory body in Switzerland stated that it had not received a reply from Facebook (NASDAQ:FB) about the concerns expressed regarding users’ privacy.

>> Bitcoin Survey Shows Major Distrust Abounds for Facebook’s Libra

However, it needs to be remembered that many experts had stated that the cryptocurrency still displayed plenty of bullish tendencies and their words came true today, as the token crossed the important $10,000 mark in earlier trading. It rose by as much as 5% to hit $10,163 today at one point. That being said, it is perhaps more important to mention that the cryptocurrency managed to climb despite unflattering comments from the United States Treasury Secretary Steve Mnuchin.

During the course of an interview, Mnuchin implied that Bitcoin might not exist in 10 years. He said, “I won’t be talking about Bitcoin in 10 years, I can assure you that. I would bet even in 5 or 6 years I’m no longer talking about Bitcoin as Treasury Secretary. I’ll have other priorities. I can assure you I will personally not be loaded up on Bitcoin.” Such a development is proof that Bitcoin is perhaps showing much more resilience than it is often given credit for and many buyers piled on to the cryptocurrency today. It is going to be interesting to watch the proceedings over the course of the weekend.

Featured image: DepositPhotos © KostyaKlimenko

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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.

Featured Image: Pixabay

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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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