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Are Russian Banks Ready to offer Banking Solutions to Crypto Market?

There are at least two big banks from Russia, .e. Alfa Bank and Sberbank, are showing interest towards offering trading solutions in respect of cryptocurrencies. However, the two banks are cautious and want to restrict their focus to the ‘most reliable’ virtual currencies. The bank’s project is in accordance with the regulations of the country’s central bank that seeks every participant to register with it in the digital currency market.

Not To Ignore

Both the Russian banks are not ready to ignore the cryptocurrency market altogether. Therefore, Sberbank private banking’s deputy director, Anna Ivanchuk, indicated that his bank was keen to provide its clients a complete transparent type of entry into digital coins. At the same time, such offers should meet the requirements of the regulator so that it could invest in an interesting product in the country. Similarly, Alfa-Bank MD of product development, Anton Rakhmonov, thinks that it is only a question of time before the digital assets become an international phenomenon. He also indicated that his bank did not want to ignore it.

He said that the objective is to pick up the pace of a decision in respect of the CFA investment assets recognition. He also wanted to do the same thing in respect of legal field concerning the virtual currency market. According to a report in cryptovest.com, the two banks are not likely to put any digital currency into the clients’ hands directly.

Currently, there is no clarity as to which of the six digital currencies would be added into the platform of the two banks. However, Kommersant, a local media, indicated that Bitcoin, Ethereum, Bitcoin Cash, and Litecoin are part of it. Incidentally, these four virtual currencies represent 75 percent of the overall market. The two banks are reportedly keen on using Bitsmap or Kraken, which are audited virtual currencies, for enabling its clients to buy and sell cryptocurrencies.

AddCapital managing partner, Alexei Prokofiev, reacted to comment, “The client actually receives a fund unit. The assets backing these funds are stored using custody solutions and audited by Group IB cybersecurity. The unit is liquid, so it is possible to request a withdrawal from the client’s currency at any time.” The company provides infrastructure to these two banks. Incidentally, the commercial banks in the country seem to be among the first to think about offering solutions to digital coin sector.

Pending Bills

Though there are different tones from different people in Russia on the question of the digital currency market, the country is making its efforts in regularizing the market. For instance, the Legislature is planning to pass at least three bills in connection with the virtual currency market in the current month itself or latest by July 1.

Most recently, Vladimir Putin, the Russian President, indicated that cryptocurrency could not be termed as a secured one.…

Why are Russian Legislators Changing Their Cryptocurrency-Specific Language?

Russian legislators favor a change in the cryptocurrency-specific language in the proposed bills governing the sector. The country’s Duma Financial Market Committee’s head, Anatoly Aksakov, indicated that the laws are going through the second round of review process by the State Duma. The objective of the bills is to regulate the digital currency market in the country and considerable changes were seen to be added to the draft laws. Still, some of them see it as not clear for regulating the market.

Second Review

The local outlet, Kommersant, pointed out that currently there are three draft laws that are getting ready for consideration in the State Duma. The bills are ‘On Digital Financial Assets (CFA), and ‘Crowd Funding.’ This included the terms of an issue any digital tokens, as well as, its circulation. Aside from these, the third bill focused on the package of amendments to the Russian Federation’s Civil Code. According to ethnews.com, it would be the second review of the planned laws of the State Duma. In March, the first review was submitted for consideration.

The planned changes will focus on the terms like “digital currency” or “digital money” and the objective is to replace them with “digital rights.” The proposed changes will not only reflect in these bills but also in other legal documents in future if it relates to any regulation in respect of the digital currencies. Incidentally, the term of digital rights will not be considered like the previous one by the Russian Ministry of Justice. If the report is correct, then it is quite possible that a single term would be used to reflect “token exchange operator” or “investment platform.”

The revised bills could be adopted by the Legislature in Russia before the end of the current month or July 1. Once the bills become the law of the land, Aksakov indicated that the country would have to modify something in respect of the tax code. This is required to illustrate the rights of the digital coins and the way it would be treated for the purposes of tax.

However, there is no clarity in respect of the intentions to change the terms in the proposed bills. This included the impact of the changes that would have on the digital currency industry in the country and the way the tax code would be treated with virtual currencies.

Relationship Is Unsteady

Currently, Russia is undergoing a tremendous amount of confusion as far as the cryptocurrency market is concerned. This was also quite evident when different people started speaking at different tones thus bringing it to open the differences among them. For instance, the country’s president, Vladimir Putin, emphasized the position of the central bank in stating that digital currency is not a secured one and that it could not be treated as a payment method. He was also against the hoarding of virtual currency.…

Crypto Games Enjoy Growing Popularity

The immense fame enjoyed by bitcoin and other altcoins have paved the way for related economies to boost their sales too. One of the examples comes from the gaming industry which has created popular applications based on the leading technology. Currently, there are a number of games that allow its players to mimic virtual trading, develop their own crypto mining farms and also reward winners in micropayments.

Bitcoin Mining Simulator

The game lets its users to become a bitcoin mining tycoon. It allows you to buy virtual rigs for producing bitcoin and gain profit from selling them at market values. Initially, one gets few machines to start operation and slowly is able to own their mega mining farm. Aliaksandr Prakarym, the developer of the game, believes that a user gets the chance to build a farm to get a return on the investment (ROI).

Crypto rider

The game is funnier than others as it involves two-dimensional racing on the price charts of mainstream digital currencies. Developed by Superfly Games, it asks the racers to collect blocks to release 9 crypto’s themed vehicles. The developer states, “Compete for the top spot on global leaderboards! Shill your high score to your friends with the sharing feature.”

Bitcoin Evolution

The app proposes a player to become extremely rich by tapping bitcoin which makes it more addicting than others. Again, it starts your journey by making you manage a bitcoin business for mining coins and gaining profit from its sales.

The developer, Romit Dodhia, explains, “Invest your virtual mined income thoughtfully and grow your virtual bitcoin firm — Soon you will be the most popular virtual bitcoin capitalist and earn billions with your smart business. But be aware that you will face all the problems that a successful merchant needs to go through. And don’t forget to launder your money!”

Majority of the games are not original and are mere copies of simulated mining. But, some of them are educational, entertaining, and even pay out small fractions of virtual coins. Even though they claim tags of free BTC the reality is not that free. The games can be highly addictive and be misleading at times.

On the other hand, the crypto space was met with negative news when Apple terminated all crypto related apps from its App Store. The popular smartphone developer took the decision after researching the impact such apps has over battery life.

It was argued that crypto mining apps use a greater portion of phones power which leaves minimal energy to stimulate other operations. Moreover, a person can use a network of the interrelated devices to mine digital coins. The decision is true in case of major virtual coins like bitcoin and ethereum that require immense computing power to solve complex mathematical problems. But, the apps were majorly used for mining smaller cryptocurrencies which were enjoying considerable usage from iOS devices.…

Goldman Sachs Exploring Crypto Derivatives Said COO

In an interview, the Chief Operating Officer of Goldman Sachs said that Goldman Sachs is an investment banking group which is exploring cryptocurrency trading derivatives.

COO David Solomon said that the company is already assisting clients in publicly-traded derivatives. The company is considering some other activities also very carefully.

The company’s objective is “evolution and adaptation”.

The aim of the company is to evolve its business and adapt to the environment according to the cryptocurrencies.

Solomon claimed that “We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously.

We’re listening to our clients and trying to help our clients as they’re exploring those things too.”

As digital assets grew more and more popular, Goldman Sachs’ attitude changed towards cryptocurrencies.

In 2014, Goldman Sachs was not ready to accept Bitcoin as a cryptocurrency, but, three years later, the scenario got completely changed, for institutional investors it became more difficult to avoid Bitcoin and other cryptocurrencies.

In fact, in December of last year, there was a rumour that the company itself is opening its own crypto trading desk.

In early 2018, the investment group denied the rumours of a trading desk and the company’s position also got softened towards cryptocurrency.

In May, the company said that crypto is “not fraud” and disclosed their further plans of crypto trading.

According to Fundstrat head of research Thomas Lee, the recent decline in Bitcoin was caused due to futures expirations.

On June 9, the U.S. Commodity Futures Trading Commission (CFTC) requested trading data from crypto exchanges Bitstamp, Coinbase, itBit and Kraken as a part of an investigation into whether the platforms were engaged in activities that could constitute price manipulation when formulating the price of Bitcoin futures.

Company’s Customers and Bitcoin Trading:

Goldman Sachs has always acquired the first position in the world of cryptocurrencies.

But, there is no rush in the firm for trading new products in the market.

The firm announced its crypto trading desk in May. At the time, the bank said that the desk would offer Bitcoin non-deliverable forward contracts. To start, it is a type of derivative.

The crypto site, Abacus Journal reported Goldman Sachs as “actively exploring the creation of a non-deliverable forward for ether”.

When it comes to certainty, it is not even clear whether Goldman could even build a product at the current time since futures for ether do not trade in any regulated exchange in US CBOE global markets.

For Goldman Sachs, as per the source, the clients are not really looking for new products.

But, it doesn’t mean that they are not interested in marketing.

They just want a guide, so, they call senior bankers and traders to know about necessary details regarding ripple futures and to learn how to make a move to enter into the market.

“I don’t believe any client has sought out crypto exposure,” Fink said in July. “I’ve not heard from one client who says, ‘I need to be in this.’”

Final words:

So, it was all about how the company “Goldman Sachs” is exploring cryptocurrencies.

Here, we discussed all the necessary details regarding the company’s trade.

We tried our best to give you all the necessary details about the company’s trade and views about cryptocurrencies. If you still have any doubts or queries, just feel free to contact and ask us.

If you have any other details which you think can be a part of the content, must share with us. It will be great to have a two-way conversation.…

Crypto Taxes Guide: The Confusing World of Crypto Taxes

Crypto currency and its investment have become a global phenomenon. People from all over the world are intrigued in knowing more about the trading opportunities created by these digital currencies. You may know about the lucrative features but you cannot skip the undesirable tax implications. It is clear to the crypto community by now that income generated from digital dealings will be followed by taxpaying requirement very shortly.

The guidance provided in this article will not just focus on the US, but it also discusses the crypto sensation encountered in a few other developed countries. In this context, the country-specific governmental controls over crypto currency taxes will be discussed for your awareness. Countries to be discussed are the US, Australia, and Canada. Now, let us now begin with our exploration.

Ways in which crypto gets taxed

You can be indulgent in either crypto purchases or trading, in both the scenarios, you have to be a tax complaint. When you make a big purchase using crypto you are subject to both sales and capital gains taxes. As far as trading in crypto currency is concerned, the IRS considers it to be tantamount to stock trade. It requires you to conduct tax calculations on the capital gain.

Crypto taxed in the US

The tax authority in the US has come out with guidance on virtual currencies: Notice 2014-2021. It elucidates in a lucid manner regarding how an individual citizen or business groups are expected to pay crypto-tax. An individual taxpayer has to include crypto currency in form of payment in respective gross income. Moreover, fair market value has to be calculated at the receipt time. This requirement is an absolute essential when it comes to crypto mining. Despite there being a divergent line between the business and hobby, IRS still holds mining to be self-employment. This basically means that if you are a crypto miner, then you are subject to crypto mining taxes.

If you are an entrepreneur then you must know that paying your employees in crypto will save you from the taxes. You have to comply with all the necessary tax regulations. Furthermore, if you pay a staff a worth above $600 in form of virtual currency, then issuing 1099-MISC is mandatory.

Crypto taxation in Australia

Activities such as gifting, selling, exchanging, and trading of crypto currencies invite the capital gain tax. When a taxpayer is exchanging crypto with another crypto, he is advised to report market valuing of the crypto currencies that he has received. On the other hand, for exchanges between fiat and crypto, every capital loss or gain needs to be added in calculated tax. Take help of cryptocoin calculator online to get a clear picture of your current record status and get prepared for tax filing for this season.

However, being an Australian citizen you are fortunate as you may experience tax exemption based on private use. For an instance, crypto currency is used for online booking of hotels. It is a personal usage. Having said I would also like draw your attention to the fact that crypto currency cannot be called an asset for private use provided it has been:

• Procured, utilized or kept in form of investment
• Procured, utilized or kept as a component of profit generating scheme
• Procured, kept or utilized while carrying out business functions

Business operators that deal in crypto trading need to pay crypto currency tax. Offshore business houses are allowed to subtract the purchased crypto money in form stock trading. Furthermore, they will have to report income from any profit secured from selling that digital currency. However, if you are domestic businessmen, you are then required to report the collected crypto value as a regular income and as Australian dollars.

Since the crypto financial transaction has earned popularity due to its flexibility and safety, business houses prefer paying wages to their employees in crypto form. Assuming, that you are an entrepreneur, our advice to you would be to go through the Australian tax website in details. This is because crypto payment can be considered as either a peripheral benefit or an income upon determining the types of employment agreements.

Crypto taxations in Canada

Bitcoin in Canada

Canadians are not lagging behind when it comes to their surging interest in investing in crypto currencies. However, the harsh fact is, no matter how a plethora of gains they earn, they cannot evade payment of taxes.. It is suggested that you do not do guesswork since any mistake will invite an audit from the Canada Revenue Agency. If you are a bitcoin trader, then visit online consultancy sites that offer professional bitcoin tax help and professional guidance.

Things are slightly better for crypto transactions between wallets. If you are required to move crypto currency between two wallets, it does not entail any tax payment, provided none of your crypto currencies have been sold. Only the nominal cost of the transaction is incurred, that too you can get it deducted from capital gain in future.

With crypto investments turning into a worldwide sensation, the governments are making sure that they get a share of the profits generated from these lucrative dealings. Therefore, the only option left for crypto users like us to stay tax complaint. You can very conveniently get access to online tools that will sort your receipt compilation and filings.…