IRS Intends To Ask Every American Tax Filer About Crypto Transactions In 2020

By RTTNews Staff Writer | Published: Published: 8/24/2020 10:19 AM ET

The U.S. Internal Revenue Service (IRS) intends to ask every American tax filer about their cryptocurrency transactions and investments in 2020 filing. This was revealed in a draft Form 1040 released by the IRS for U.S. individuals to file their income tax return for 2020.

After asking for personal details, the draft form asks, "At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"

This is the latest move by the tax regulator to show its seriousness on taxing cryptocurrency transactions and investments. The form and instructions are only a draft, which are generally subject to approval by The Office of Management and Budget (OMB) before they can be officially released.

The IRS continues to warn taxpayers, who do not properly report virtual currency transactions, that they will be liable for tax, penalties and interest and in some cases they could be subject to criminal prosecution.

The IRS treats virtual currency as a commodity or property, and not as real currency, for federal tax purposes. Therefore, virtual currencies are also subject to capital gains laws.

The current guidance for taxpayers is to file each and every transaction executed using a cryptocurrency. The IRS has also increased enforcement activities against taxpayers who "misreport" their cryptocurrency transactions.

Last year, the IRS had sent out multiple compliance letters to investors of virtual currencies such as Bitcoin, whose tax return information did not match data reported to the IRS by third parties such as employers and banks.

Earlier in July 2019, the IRS had sent letters to crypto investors advising them to report and pay income taxes or file amended returns for transaction not reported properly. These were "educational letters" to more than 10,000 taxpayers to encourage them to make the filing or amend their filing.

For comments and feedback contact: editorial@rttnews.com

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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

California Court Ruling Solidifies The Crypto Adage “Not Your Keys; Not Your Coins”

By Erie Maxwell – August 23, 2020

The self-proclaimed “Bitcoin obsessive lawyer” Justin Winston Ono Wales takes the saying “Not your keys; not your coins” seriously. He used the recent ruling in the Archer v. Coinbase case to explain just how important the old crypto adage really is.

The Archer v. Coinbase case illustrates that if you do not control your own private keys, a number of things can go wrong that would lead to the loss of your funds. And what’s worse is that there is nothing that the law can do to help you recover the losses.

Coinbase user and plaintiff Darrell Archer sued Coinbase for refusing to provide him with Bitcoin Gold he believes he’s entitled to after a Bitcoin fork.

Justin Wales lays out his analysis and explains the pitfalls of not holding your own coins in a Twitter thread.

“‘Not Your Keys, Not Your Coins’ is officially case law thanks to a new California appellate court decision.”

Wales explains that the plaintiff expected to receive a large number of Bitcoin Gold but his own actions ultimately prevented him from ever controlling the new forked coins.

“As we know, BTC can be forked into new currencies for lots of reasons by damn near anyone. BCH, BSV, Bitcoin Gold are examples. As someone that holds Bitcoin you’re entitled to an equivalent number of forked coins. In other words, your Bitcoin includes the value of all its forks. But accessing your forked coins is only guaranteed if you hold your own private keys! If you let someone else custody your crypto it is up to their discretion whether to give you your forked assets.”

The plaintiff expected Coinbase to accept Bitcoin Gold on its platform and handle all of the logistics involved with the fork. But Bitcoin Gold was never included by Coinbase.

“Coinbase honored BCash, but not Gold. That’s what this case is about. Facts:

A person kept 350 BTC on Coinbase and wanted the equivalent Bitcoin Gold (valued at $159k at its height) but Coinbase said no. Dude sued claiming breach of contract, conversion, and negligence but the Court rejected all these arguments because it found that Coinbase had no obligation, contractual or otherwise, to support every fork of bitcoin.”

The Court ruled that Coinbase was not responsible for any of the ‘Bitcoin Gold’ the plaintiff was demanding because he had other reasonable options to hold his original coins.

“There is no requirement that investors keep their coins in exchanges; they can always withdraw the coins to their own private wallets.”

The case is a milestone in the blockchain industry because it provides precedent and solidifies the constantly repeated idea that a crypto custodian could cause you to lose it all and there is nothing that can be done about it. 

“In other words: “Not Your Keys, Not Your Coins” is now precedent in California and I imagine will be highly instructive for other jurisdictions hearing similar claims.”

As Justin Wales puts it, “TL:DR: HODL your own damn coins!”

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Erie Maxwell and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

$11,600 & $11,200, Two Bitcoin (BTC) Support Levels to Watch in Aug.

John P. Njui   •   BITCOIN (BTC) NEWS   •   AUGUST 22, 2020

In summary:

• There is only one week left in the month of August.
• $11,600 and $11,200 are two support levels to watch for the remainder of the month.
• A monthly close above any of these two levels could mean a continuation of Bitcoin’s bullish narrative.

It is Saturday once again and the daily Bitcoin trade volume has gone contrary to the popular observation of decreasing during the weekend. According to Coinmarketcap.com, Friday’s 24-hour trade volume was approximately $20 Billion. The same Bitcoin trade volume currently stands at $24 Billion thus indicating a positive anomaly in the sense that BTC could benefit from the increased trading activity.

$11,600 & $11,200, Two Bitcoin (BTC) Support Levels to Watch in Aug.

With respect to the price of Bitcoin, there is approximately one week left in the month of August and a monthly close above either $11,600 and $11,200 would be bullish for BTC. To note is that December 2017 was the last time Bitcoin opened and closed a month above both price levels. However, back then, the weekly indicators pointed towards a correction that would start in January 2018.

Checking the weekly BTC/USDT chart once again, it can be revealed that Bitcoin still has some bullish momentum and a monthly close above either $11,200 or $11,600 would help maintain Bitcoin’s bullish momentum.

(Click image for larger view)

Also from the weekly BTC/USDT chart above, the following can be observed.

• Trade volume is still in the green for a 7th straight week beginning in July.
• The weekly MACD is yet to show signs of exhaustion.
• However, the weekly MFI is hinting towards an overbought scenario with a possibility for sideways or a minor retracement for Bitcoin in the month of September.

It’s Q4 2016 all Over Again for Bitcoin

In an early August tweet, Bitcoin analyst Willy Woo had pointed out that the Bitcoin bull market began in April 2019 and that we are currently in a situation similar to the fourth quarter of 2016. Below is his tweet analyzing Bitcoin.

Bitcoin Still Has More Room to Grow

Going by Mr. Woo’s analysis and the weekly chart shared above, it can be loosely concluded that Bitcoin still has room to grow in the markets. Given that the last bull cycle peaked in December 2017, it can be concluded that there are at least another 12 months of positive BTC market action in store for crypto traders and investors.

As with all Bitcoin analyses, BTC traders and investors are requested to have an eye out for any major world events that could skew the price of Bitcoin. Given that we are in the midst of a Global Pandemic, a major increment in COVID19 cases would slow down Bitcoin’s bullish climb or even cause a crash like in mid-March.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Attorney, Four Others Charged With Running Global Cryptocurrency Ponzi Scheme

By RTTNews Staff Writer | Published: 8/20/2020 10:27 AM ET

An attorney in California and four others were charged with fraud and money laundering for running a global Global Cryptocurrency Ponzi Scheme, according to a statement by the U.S. Department of Justice (DoJ).

Scott Hughes and Pablo Renato Rodriguez of California, Gutemberg Dos Santos of Panama, Cecilia Millan of North Carolina, and Jackie Aguilar of Texas, were charged in the Southern District of New York for defrauding victims of tens of millions of dollars. These included victims in the Southern District of New York.

The defendants were allegedly running a global multimillion-dollar cryptocurrency investment fraud and money laundering ring that defrauded individuals through investments in AirBit Club, a purported cryptocurrency mining and trading company.

The defendants promised extraordinary rates of guaranteed return on phantom investments in cryptocurrencies. They also allegedly spend their victim's money on luxury cars, jewelry, and homes. They laundered at least $20 million in proceeds of the Scheme through various methods.

The alleged fraudsters conducted enticing recruitment events, and then used proceeds of their scheme to recruit additional victim investors through even more aggressive and lavish marketing pitches. These events were hosted across the U.S., and around the world in Latin America, Asia, and Eastern Europe.

According to the charges, the defendants allegedly marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry from late 2015. They falsely promised Victims that AirBit Club earned returns on crypto-mining and trading, which will enable the Victims to earn passive, guaranteed daily returns on any membership purchased.

While Victims saw "profits" accumulate on their Online Portal, those representations were false and no Bitcoin mining or trading on behalf of Victims in fact took place. Victims who attempted to withdraw money from the AirBit Club Online Portal were met with excuses, delays, and hidden fees amounting to more than half of the Victim's requested withdrawal, if at all they were able to make any withdrawal.

They were also forced to "bring new blood" into the AirBit Club Scheme in order to receive her returns. Some victims also saw their accounts closed and principal investment lost by quoting some policy under the terms and conditions they signed.

According to the DoJ, wire fraud conspiracy and money laundering conspiracy charges each carry a maximum term of 20 years in prison, and the bank fraud conspiracy charge carries a maximum term of 30 years in prison.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty, the DoJ said.

For comments and feedback contact: editorial@rttnews.com

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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

Top 5 DeFi Projects for 2020

John P. Njui   •   ETHEREUM (ETH) NEWS   •   AUGUST 21, 2020

Quick summary:

• 2020 will go down in crypto history as being the year of DeFi.
• Several DeFi projects have made the headlines due to their popularity amongst Yield Farmers.
• They include Compound, Yearn, Yam, Curve and Just, just to name a few.
• With new DeFi projects being launched every day, the future of DeFi solely rests on the ability to keep these projects attractive to Yield Farmers.

After the Coronavirus crash of mid-March, the crypto-verse entered a state of limbo despite the Bitcoin halving being only a few weeks away. The latter event had been projected as being a catalyst for a crypto-wide bull run that would reignite retail and institutional interest in the digital asset industry.

What many investors had not realized, was that a bigger catalyst for a crypto-wide bull run was in the making. This catalyst was DeFi.

In the second and third quarters of 2020, several DeFi projects have risen to prominence as shall be elaborated.

Compound Finance (COMP)

Compound Finance (COMP) was one of the first projects to shift investor focus away from Bitcoin due to the handsome investor earnings through Yield Farming. By lending out digital assets through Compound’s liquidity pool, investors instantly start earning continuous compound interest.

Furthermore, in June, the COMP token was listed on Poloniex thus causing a spectacular increment in value from $55 to $385 (600% in returns). COMP was then listed on both Coinbase and Binance soon after.

It is with the latter fact of COMP being listed on prominent exchanges such as Coinbase, Binance and Poloniex, that solidifies Compound Finance’s presence in the DeFi arena for 2020.

Furthermore, according to DeFiPulse.com and at the time of writing, $801 Million in digital assets is currently locked in Compound finance thus providing more proof that investors are confident about its future.

Yearn Finance (YFI)

With a circulating supply of 29,961 YFI, Yearn finance has taken the crypto-verse by storm. Due to demand, the value of the token has managed to skyrocket past Bitcoin’s current value of around $12k. At the time of writing, YFI is trading at $14,500 and after hitting an all-time high value of $16,700.

The success of the YFI token is one reason that Yearn Finance is a top DeFi project for 2020. Over $750 Million in total value is locked in the DeFi project. YFI has been listed on major exchanges such as Binance and Bibox thus providing legitimacy for the project.

Additionally, Yearn’s decentralized ecosystem aggregates lending services such as Aave, Compound, DyDx and Fulcrum to optimize token lending. Depositing funds into Yearn means that they are rebalanced to choose the most profitable lending service.

Yam Finance (YAM)

The story of Yam Finance (YAM) has a few similarities with DogeCoin’s in the sense that the project was launched as an experiment. The creators of Yam Finance even warned investors that its code was yet to be audited but by the time YAM experienced its first hiccup, over $477 Million was already locked on the DeFi platform.

The fact that its creators have learned from their mistakes and started the process of migrating to YAMv2, proves that it is a top project for 2020. Its migration contract has been audited by PeckShield and YAM finance looks set to have another go at the DeFi arena.

Curve Finance (CRV)

Like Compound, Curve Finance (CRV) rose to prominence in the third quarter of 2020. At the time of writing, approximately $1 Billion in assets is locked in the platform. Launched in January of 2020, Curve allows its users to trade between stablecoins with minimal slippage and low fees.

Its liquidity pools are provided by Compound and Yearn Finance thus providing the necessary volume to allow for efficient swapping of assets on Curve. With the Ethereum network being a beehive of activity leading to high gas fees, Curve provides the perfect solution for those looking for a safe and cheap option to convert between stablecoins.

Curve Finance can be considered as the UniSwap for stablecoins. Currently, the fee on all pools stands at 0.004% and there is no admin fee thus providing incentives for crypto traders to prefer Curve Finance.

Just (JST)

All the above popular DeFi platforms are built on the Ethereum network and the Just (JST) DeFi project breaks away from this pattern for it is built on the Tron (TRX) network.

The latter protocol is the reason Just (JST) is a DeFi project to consider this year. The Tron network is extremely fast when compared to Ethereum at its current state. Furthermore, transactions on the Tron network cost next to nothing thus catching the attention of DeFi investors who are looking for lower fees and faster speeds.

Key to the future of Just (JST) is the JustSwap decentralized platform that allows for the seamless exchange of TRC20 tokens in a manner similar to Ethereum’s UniSwap.

All the developments surrounding the Just (JST) ecosystem are through the efforts of Justin Sun and the Tron Foundation. Mr. Sun is known for his unrelenting work ethic and he has decided to go all-in on DeFi as explained in his most recent letter to the Tron community.

TRON and Just team are going All-In on the DeFi ecosystem. We will not back down until we see the decentralized financial revolution end in triumph. I have faith that as long as we race against time and keep upgrading our products, JustSwap will one day become the powerhouse of 100x cryptos and TRON will build a DeFi protocol that parallels Ethereum’s.

Conclusion

Summing it up, 2020 will go down in crypto history as being the year of DeFi. During the second and third quarter of 2020, several DeFi projects have risen to prominence due to their ability to attract Yield Farmers and the vision of their creators.

The five projects of Compound, Yearn, Yam, Curve and Just stand out from the rest but as time goes by, new DeFi projects will be launched that will enhance these protocols as was seen with the ICO boom of 2017. In the weeks and months to follow, Yield Farmers will be spoilt for choice as they migrate their capital to the newest and most attractive DeFi platform.

As with all analyses of DeFi projects, traders and investors are advised to do their own research. Furthermore, chasing the newest DeFi project poses a significant financial risk as seen with the initial collapse of Yam Finance due to a bug.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Bitcoin Price Set To Explode Once It Breaks $13,000: Prop Trader

By Brenda Ngari – August 20, 2020

Bitcoin recently breached the $12,000 checkpoint after weeks of consolidating gains. This was a psychological milestone that BTC has been battling for a long time as it has always rejected the crucial mark. 

So, what’s next for the bitcoin market? A prop trader believes the asset breaking through $13,000 would act as a launchpad for further highs.

Why BTC Will Explode Upon Breaching $13K

Bitcoin opened this week with strong momentum as it raced past $12K. The world’s largest cryptocurrency had been trading in a tight range between $11,200 and $12,000 for around two weeks.

Well, BTC cleared the $12K level, rocketing past $12,400 for the very first time in over a year. And for some observers, the cryptocurrency could moonshot if it can take out $13,000. In an August 17 tweet, trader Julien observed that the BTC futures spreads suggest the cryptocurrency will continue trending upwards.

To be specific, the trader noted that the bitcoin futures contracts set to expire in March next year are trading 6% above bitcoin’s spot price. “If #BTC breaches 13k+ this thing is going to explode,” the trader posited.

Bitcoin’s Upsurge Is A Picture Perfect Advance So Far

The famed inventor of the Bollinger Bands that are used to measure bitcoin’s volatility, John Bollinger, has asserted that bitcoin’s recent surge was a picture-perfect advance.

The technical analyst further stated that Bitcoin’s move above $12,000 was well within the Bollinger Bands:

“I imagine that someone is complaining about the $BTCUSD rally. Not me, a picture-perfect advance so far.

Squeeze, confirmed break out, walk up the upper band, consol, support at middle band, mini-Squeeze, break to new highs. How much more could one ask for?!”

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe