Bitcoin price is trading in positive territory, up some 2.60% in the second half of the session.
BTC/USD price action is heading for a big retest of a breached flag structure.
There is a chunky barrier of resistance seen at $7500, in proximity to the lower of the noted flag.
Ethereum technical analysis: ETH/USD vulnerable to bear attack
Ethereum price is trading in the green, up 1.60% the session on Wednesday.
ETH/USD price action is moving within a bearish pennant structure via the daily.
ETH/USD is at risk of falling back down to the psychological $100 price mark.
Litecoin technical analysis: LTC/USD bearish flag structure subject to a breakout
Litecoin price is trading in the green, with gains of 2.25% the session on Wednesday.
LTC/USD is consolidating following the harsh selling through the month of November.
Price action is moving within a bearish flag structure, subject to a potential breakout south.
EOS, Ethereum and Tron Outrank Bitcoin, XRP and Stellar Lumens in New Crypto Ratings Index
A new crypto ratings index from China’s Center for Information and Industry Development (CCID) is out.
The government-sponsored index ranks the top crypto assets based on three key factors – tech, applicability and creativity.
The index places a premium on smart contract platforms, with EOS, Ethereum and Tron taking the first, second and third spots, respectively.
Other leading cryptocurrencies by market cap are much further down the list, with Bitcoin at #9, Stellar Lumens at #10, and XRP at #18.
Litecoin and Bitcoin Cash are even further down the list, at #27 and #32, respectively. The list does not include Binance Coin or Bitcoin SV, which are the 8th and 9th largest coins by market cap.
Here’s a look at the complete rankings for December.
Despite strong support of blockchain technology from President Xi Jinping, China continues to draw a hard line against cryptocurrency.
The country appears to be stepping up its enterprise support for blockchain while also rebooting a strict ban on domestic cryptocurrency exchanges, which initially began in September of 2017.
Late last month, China’s central bank released a statement outlining the government’s strong stance against crypto.
Primitive Ventures partner Dovey Wan highlighted a few key points from the release.
“1. ICO, IFO, IEO, STO are all unauthorized illegal public offering and securities issuance, and potentially illegal fund-raising, financial fraud, pyramid schemes and other illegal crimes.
2. Shanghai law enforcement agency will conduct ‘Special rectification of cryptocurrency-related trading platform, which can be registered overseas, shall be immediately rectified and retired’.
3. They will further regulate trading platform whose servers are outside mainland but providing virtual currency trading services to domestic residents, and will continue to strengthen the clean-up [of] the fiat payment and settlement channels and gateways.
4. Investors should be careful not to mix blockchain technology with cryptocurrency, and there are multiple risks in cryptocurrency financing, issuance and trading (again, Blockchain not crypto).”
China is now releasing its crypto rankings every two months and plans to drop its next one in February.
Digibyte Founder Brands Crypto Exchanges as Greedy and Corrupt
Jared Tate, the founder, and developer of crypto-asset Digibyte, is taking his fight with several popular cryptocurrency exchanges, as he has gone on a new tirade against the primary asset custodians. On December 6, the crypto developer took to Twitter to vent his frustrations at crypto exchanges, calling them greedy market disruptors who have caused the entire crypto industry to stray from the original vision of Bitcoin proponent Satoshi Nakamoto.
“Nowhere did he state: “Lets centralize all control and profits on a handful of exchanges ran by crypto tycoons to extort all the work done by open source devs and bully the ones who speak up about it into submission.” The industry has been hijacked by greed & corruption,” he said in one of his tweets.
Tate Isn’t a Fan of Centralized Exchanges
It’s easy to see where Tate is coming from. The crypto boss has had several soars with some of the notable figures in the industry, claiming in September that Binance was trying to shake him down to list his asset. Just a day before he went on this latest tirade, Tate got into it with Poloniex, after the exchange announced on Twitter that it was considering delisting his asset, choosing to favor TRON instead. Could it just be that he was venting his frustrations at the system that seems to be rejecting him and his business? It’s possible.
He Also Wasn’t Lying
In all fairness, there is some truth to what he is saying. Some certain cryptocurrency exchanges command a notable chunk of the cryptocurrency market, and they use this power to bend the market to their will. Some of these exchanges have slaps been accused of engaging in practices that are fraudulent on the whole. Bitfinex, one of the most popular exchanges, has been embroiled in multiple cases of market manipulation and blatant fraud.
Early this year, the New York Attorney General raised allegations against the company and stablecoin operator Tether Limited, alleging that both companies connived to mislead investors and cover-up about $859 million in lost funds from a reserve line. Apart from that, there is the One Whale Theory, a theory that postulates that the same two companies were complicit in a pump and dump campaign that led Bitcoin to the lofty heights it achieved in 2017.
In a way, the action of these companies has been indicative of the crypto exchange market. Earlier this year, institutions investment firm Bitwise Asset Management alleged in a filing with the Securities and Exchange Commission (SEC) that up to 95 percent of the trading volumes reported by crypto exchanges were either non-economical or just blatantly fake.
There are several cases to support him, but the essential nature of crypto exchanges, as well as the perceived notion of his tirade, have hamstrung his credibility.
At the same time, others who commented on his post urged him to develop decentralized exchanges instead. Although less popular, decentralized exchanges have been favored by many in the crypto space, as they take out the third party and provide customers with the possibility of exchanging assets on their terms.
South Korean Government to Roll Out Crypto Capital Gains Tax Plan in 2020
The government of South Korea is stepping up its tax regulations as far as cryptocurrencies are concerned, as it seeks to go into the new year with a renewed crypto-related tax code.
According to a December 9 report from local news medium The Korea Times, the country’s Ministry of Economy and Finance is currently in the process of drafting a new bill that will introduce a regulatory framework for taxing capital gains on cryptocurrency transactions.
Per the report, the Korean National Assembly is also working on advancing a related bill that will enhance transparency in trading activities across the industry. If the bill does pass, its resolutions will be introduced exactly a year after the next plenary session of the National Assembly.
Anonymous Trading Will Effectively be No More
If the legislation passes, then South Korean cryptocurrency traders will need to provide detailed histories of their trading activities. In addition, exchanges and trading platforms will also need to keep proper records for each user, as well as get quality identification on each of their customers.
This could mean an end to the possibility of trading crypto assets anonymously, something which, for all intents and purposes, contradicts the very basis of crypto-assets and their operation. However, if the assets are to be recognized by the powers that be, several concessions are to be made, and forgoing anonymity is just one of those.
It is expected that the capital gains bill will go through regardless of any related legislation, but the news medium also notes that the legislation will need to properly define cryptocurrencies to provide a clear basis for future government interventions. For instance, the bill will need to note whether crypto gains are to be treated similarly to those gotten from other asset classes, such as real estate or traditional stocks and bonds.
Tax Authorities Haven’t Fully Grasped the Asset Class
A lack of clarity is beginning to become the order of the day for government ills that aim to provide regulation to cryptocurrencies viz a viz taxation.
In October, the Internal Revenue Service (IRS) of the United States made an attempt to provide crypto taxation clarity, after it drafted a bill to bring the asset class, as well as gains made on trading, under its control. However, apart from setting the tax rates and providing guidelines on filing, the bill also sought to clarify what the tax authority considers as being a taxable activity.
Hidden in the fine print was a misnomer, as the IRS seemed to have wrongfully defined the terms “airdrop” and “hardfork.” Now, with its new bill, The Korea Times is noting that the Ministry of Economy & Finance still needs to do some more homework to make its proposed guidelines encompassing. Hopefully, this gap is bridged before the Ministry rolls out the plan next year.