Connect with us


IRS Releases Tax Guidelines for Cryptocurrency

Earlier today, the United States Internal Revenue Service issued its first guidance since 2014.

The U.S. Internal Revenue Service (IRS) issues new guidance in the form of a Revenue Ruling, which calculates taxes owed on cryptocurrency holdings.

The publication is the IRS’s first guidance in half a decade. The previous one has many unanswered questions as a result of the growth and complexities prevalent in the crypto market. Accordingly, the publication revealed the U.S. government’s position on taxing virtual currency like crypto. Notably, it addresses the tax implications of a cryptocurrency “hard fork” to the owner of the cryptocurrency.

More details

The guidance particularly touched common questions taxpayers and tax practitioners ask about the taxation of a cryptocurrency hard fork. Additionally, there are sets of FAQs clarifying virtual currency transactions like the acceptable methods for valuing cryptocurrency received as income. Also, how to calculate taxable gains when selling cryptocurrencies.

Taking a look at the content of the guidance, the Revenue Ruling 2019-24 asks two questions. Afterward, it provides the answer in a six-page analysis.

Firstly, it asked: “Does a taxpayer have gross income under § 61 of the Internal Revenue Code (Code) as a result of a hard fork of a cryptocurrency the taxpayer owns if the taxpayer does not receive units of a new cryptocurrency?”

The second question was: “Does a taxpayer have gross income under § 61 as a result of an airdrop of a new cryptocurrency following a hard fork if the taxpayer receives units of new cryptocurrency?”

Based on the guidance, the answer to the first question is “No”. This is because the taxpayer didn’t “receive” the cryptocurrency. Thus, he/she doesn’t have accession to wealth and attributable gross income.

Also, the answer to the second question is “Yes”. This is because the taxpayer received the cryptocurrency.

There will be a need to clarify what it means to receive cryptocurrency. Thus, avoiding tax liability on phantom income, which are crypto that are neither received or liquidated.

Responses on the development

IRS Commissioner, Chuck Rettig commented on the guidance. He said: “The IRS is committed to helping taxpayers understand their tax obligations in this emerging area.”

“We want to help taxpayers understand the reporting requirements as well as take steps to ensure fair enforcement of the tax laws for those who don’t follow the rules,” Rettig added.

On twitter, it attracted mixed responses.

@bagpipeman2009 believes it’ll be a difficult path for the IRS. He tweeted: “Lol the IRS just created their own tax nightmare.”

Similarly, @Bohrzor said: “The amount of people that are actually taking IRS crypto guidelines seriously on here is astonishing to me.”

In contrast, @CryptoPodcast1 seems to predict a bullish effect. He said: “I’ll buy a lime green suite after.”

News Source



The Rundown


U.S. presidential candidate Michael Bloomberg is proposing rules that will clarify the status of crypto assets within the financial system. Bloomberg intends for these to offer greater government oversight as well as consumer protection. 


Bloomberg has made these statements in his just-published Financial Reform Policy. Although not the first candidate to support crypto regulation, Bloomberg is by-far the most credible given his background in the financial sector. The other candidate, Andrew Yang, recently dropped out of the race.

Bloomberg’s plan states:

Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped. For all the promise of the blockchain, Bitcoin and initial coin offerings, there’s also plenty of hype, fraud and criminal activity. Mike will work with regulators to provide clearer rules of the game 

The document calls for establishing consumer protections, clarifying taxation issues, and creating a framework for initial coin offerings by determining which tokens are legal securities. It also calls for the defining oversight rules as well as regulations for banks and financial institutions.14 BTC & 30,000 Free Spins for every player, only in mBitcasino’s Crypto Love Affair! Play Now!

Bloomberg’s proposal, although brief, is notable as the other leading candidates have remained silent on this issue. Frontrunner Bernie Sanders has made no statements about cryptocurrency, nor have Joe Biden or Elizabeth Warren. Pete Buttigeg has only stated that Bitcoin should be “treated as a commodity.”

Donald Trump, the presumed Republican candidate, is openly hostile to cryptocurrency and has made no calls for regulation.


Discussion of blockchain development may be sparse among presidential hopefuls, but the topic will not go away. Other branches of the government have been rapidly addressing the impending wave of crypto adoption. Just last week, Federal Reserve Chairman Jerome Powell discussed Bitcoin before the House Financial Services Committee.

The fact that Bloomberg is willing to address blockchain assets is not surprising. He founded one of the most successful financial companies in modern history which specializes in software and technology. There is no doubt that he is familiar with cryptocurrency’s disruptive potential, and its every growing global reach. 

Notably, should the crypto market recovery continue, more candidates are all but certain to take positions on how the federal government should address blockchain development. Also, there is no doubt that the next president will have no choice but to recognize cryptocurrency as a permanent element of the global economic landscape. In this environment, much more discussion and debate over crypto is certain to take place.

News Source

Continue Reading


Crypto Selloff, Bitcoin again below $10K

Cryptocurrency markets had a lousy weekend, especially altcoins. Bitcoin had a 5.18 percent drop to $9800, but it was the best performer. Bitcoin Cash, BitcoinSV, and EOS are falling over 20 percent, and the majority of the leading cryptos dropping over 10 percent.  Ethereum tokens also took a hit, with ZRX(-19.3%), REP(-18.8%)OMG(-18.6%), and BAT(-18.21) among the worst performers during the weekend. Worth Noting that FFT* gained 8-66 percent and also moving strong FUN(+26.19%), POWR(+18.1%), FSN(+24.65%) and MX(+50.4%).

72H Crypto Heat Map

The Market capitalization dropped $28.8 billion during the whole weekend, which represents a 9.31 percent drop. The drop happened with a heavy volume of about $70 billion in a 24H period. As bitcoin was performing better than the rest of the market, its dominance grew to 63-68 percent.

Crypto Market Cap and Traded Volume

Hot News

Craig Wright warns Bitcoin and Bitcoin Cash to stop using the Bitcoin database if they want to avoid a lawsuit, claiming that both may be violating the original terms of the original EULA and MIT license.

“As the creator of Bitcoin, I maintain the sui generis rights to any copy of the database created from Genesis in January 2009. I shall not be relinquishing the ownership. I will be licensing it, and have already engaged in a process.” (Source:

Technical Analysis – Bitcoin

Bitcoin 4H

Bitcoin dropped below $10K on Saturday, and continue doing so on Sunday and Monday’s early morning. In the 4H chart, we can see that the price is approaching the lower side of the ascending channel and that the $9,730 level seems to act as support. Currently, the price is moving below the -1SD Line, in what looks like a descending wedge. Right now, the price is in a support area; thus, we need to observe the resolution of the fight between buyers and sellers to control the movement of the price.  The critical levels to keep are $9,730 to the downside and 9950 to the upside.

SupportPivot PointResistance
9,7309,950 1,068


Ripple 4H

Ripple has been dropping very hard in the last few days, and its price lost 19 percent since its top made last Saturday. Currently, the price went back to the consolidation area, previous to its last run-up.  The $0.274 and $0.266 levels are essential to hold the price. If that does not happen, it would be the end of the bull run of this asset. The price is below its -1SD Bollinger line and the MACD in a bearish phase; thus, it is better to be in the sidelines.

SupportPivot PointResistance
0.26600.2900 0.3000


Ethereum 4H

Ethereum had an incredible run up last week, which drove its valuation from $217 to $288, a 32 percent move up. During the last weekend, it is retracing part of its gains, as it was highly overbought. The price needs to create a bottom to resume the trend from there. Currently, it is moving in the $250 level, under the -1SD Bollinger line, and touching its 50-period SMA.  We see also that the upward trendline still holds. Thus, we still think this is a healthy correction and that ETH still has room to move up. Another break of the $263 level would bring strength to the buyers.

SupportPivot PointResistance
249263 275


Litecoin 4H

Litecoin has dropped hard at the weekend and has erased almost all the gains made in February. The price is moving quite bearish, and now it is entering into what was the consolidation region made at the beginning of February. We have to wait for the price to make a bottom here.  We still maintain the upward bias, as its 200-period SMA is still pointing upward, but the current situation is not. We can see that the bearish candlesticks show a strong volume. Maybe this is a bottoming volume, but, as said, we need to see it create a bottom and the price move to the upper side of the Bollinger bands.

SupportPivot PointResistance
71.375.7 78.4

News :source.

Continue Reading


We Think 10-Minute Settlement Is Slow but That’s Crazy, Feat. CoinDesk Research’s Noelle Acheson

CoinDesk Head of Research Noelle Acheson joins the Amun State of Crypto crew to discuss the advantages, disadvantages and eccentricities of crypto markets, exchanges, settlement and more.

Listen or subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, IHeartRadio or RSS.

In this deep-dive conversation, the group discusses the differences in the market microstructure between the crypto asset industry and traditional capital markets. The guests drew from their experience within traditional capital markets to explain the intricacies of the crypto market micro-structures and price discovery.

Listen or subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, IHeartRadio or RSS.

News :source.

Continue Reading