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South Korean crypto tax delay thwarted

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Lawmakers in South Korea settled a long political battle on Sept. 30th and headed off moves by the ruling party to delay the implementation of the controversial crypto tax legislation. 

In a meeting on the 26th but only reported yesterday, Finance Minister Hong Nam-ki and key Democratic lawmakers from the National Assembly, South Korea’s legislature, are said to have come to a final agreement that the crypto tax will be carried out as planned

The Korean crypto tax will tax crypto profits in a similar way to traditional stocks. It will levy a 20% tax on income generated by crypto transactions in excess of 2.5 million Korean won, or about $2,100.

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The majority Democratic party in the National Assembly was attempting to pass an amendment to the tax bill which would have postponed the tax until 2023. Democratic lawmaker Kim Byung-ook proposed in open session on September 15th that the capital gains tax on cryptocurrency should be rolled out alongside a similar tax on stocks in 2023, rather than 2022.

While the majority ruling party should theoretically have had the numbers to pass the amendment they faced stiff opposition from Finance Minister Hong, who wields significant power and has served in many high-ranking positions in the country, including as Prime Minister.

Minister Hong has repeatedly stated throughout 2021 that the tax would come into effect as originally planned, going as far as to say that the crypto tax was inevitable for 2022.

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At least twice since May, Minister Hong has repeated his firm stance against the ruling Democratic party that the crypto tax would come into effect without delay.

While a victory for Hong, some crypto industry insiders are concerned the new tax will see trading volumes and overall interest in the industry decline.

But Jun Hyuk Ahn, a Korean crypto market analyst, feels that there is no reason to worry about a decline in interest. He told Cointelegraph:

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“I don’t believe taxation will cause deterrence on the crypto market in Korea. We’ve seen what happened in the States, and it won’t be much different here.”

The new legislation comes on top of new regulations regarding cyber security that saw the recent market exit of many Korean exchanges. Just 29 crypto exchanges met the September 24th deadline to come into compliance.

Of those 29, only four have obtained real-name bank account partnerships with domestic banks which grants them the legal right to continue offering KRW trading pairs. Those four are Upbit, Bithumb, Coinone and Korbit. The remaining 25 exchanges have Internet Security Management System (ISMS) certification and will offer crypto-to-crypto trading pairs.

From today, Upbit will require any user trading in excess of 1 million KRW ($842) to undergo KYC, with all users trading any amount also required to do so by October 8th. The new KYC process is meant to bring exchanges in line with anti-money laundering procedures.

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Korean exchanges, such as Upbit, previously used the real-name bank account and their Kakaotalk messaging app as de facto KYC mechanisms. Bithumb, Coinone, and Korbit are expected to follow Upbit in requiring further KYC from its users.

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Bitpanda New Partner Lydia’s 5.5M Users Will be Able to Invest in Crypto

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Major French mobile financial services app Lydia is slated to offer its 5.5m users exposure to a wide range of crypto assets after a partnership with the Austrian crypto exchange Bitpanda.

As part of the deal, Lydia will integrate Bitpanda’s digital asset investment product, dubbed ‘White Label Solution,’ to allow its customers to invest 24/7 in more than 100 digital assets, including cryptocurrencies, fractional stocks, exchange-traded funds (ETF), and precious metals.

Founded in 2013, Lydia is a daily financial “super-app” said to be used by a third of the French 18 to 35 year olds. The app has raised a total of USD 131m in two funding rounds in 2020, though it did not disclose valuation.

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“With Lydia trading, our ambition is to widen access to investment assets, to make it accessible to everyone whether they are simply curious, beginner investors or experts,” said Cyril Chiche, the app’s CEO and co-founder.

“Our goal is to reimagine what it means to invest, by making simple, easy-to-use financial products for everyone,” Eric Demuth, Bitpanda co-founder and CEO, was quoted saying.

Bitpanda raised USD 170m earlier this year in a Series B funding round and earned a valuation of USD 1.2bn, becoming Austria’s first tech unicorn. In its Series C funding round, however, the exchange raised USD 263m, earning a valuation of USD 4.1bn.

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Meanwhile, the exchange has been aggressively expanding its presence across Europe. Just recently, Bitpanda unveiled a partnership with Fabrick, an Italian open finance provider, that will offer digital asset trading services to Italian banks and fintechs. 

The exchange has also hired former JPMorgan executive Joshua Barraclough as CEO of its advanced trading platform Bitpanda Pro.

“We are confident that this is just the beginning: we are committed to offering everyone investment options for any budget and risk appetite,” Demuth added.

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Gemini looks to secure $400M in funding, set to battle Facebook on Metaverse

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  • The recent funding round will nearly double the wealth of Gemini founders aka the Winklevoss twins.
  • The two brothers also have big plans for Metaverse development putting up a head-on competition with Facebook.

In its latest funding round, cryptocurrency exchange Gemini has announced a $400 million fundraise at a valuation of $7 billion. Founders of Gemini, the Winklevoss twins will retain 75 percent ownership of the company post this investment.

As per reports, their combined net wealth will nearly double from $6 billion in April to $10.5 billion as of date. The latest funding round will be led by capital management giant Morgan Creek Digital. It also includes participation from ParaFi Capital, a decentralized finance (DeFi) venture firm.

Gemini joins the list of several other crypto companies raising funds amid the booming market condition. Some of its biggest rivals like Coinbase Global and ConsenSys Inc have also been taking advantage of these favorable market conditions.

In terms of the capital raise New York-based Morgan Creek has contributed $75 million. As a result, its general partner Sachin Jaitly became the third member of Gemini’s board of directors. As reported by Bloomberg, no plans are final at this stage and the terms of the deal can still change.

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Metaverse becomes the new battleground for Gemini

It seems that Winklevoss twins are all set to battle their old rival aka Facebook’s Mark Zuckerberg over the newly brewing Metaverse revolution. Speaking to Forbes regarding this, Gemini co-founder Cameron Winklevoss said:

There’s these two parallel paths, in terms of technology right now. There’s a centralized path, like Facebook or Fortnight, that is one step away from being a metaverse, and that’s totally fine.

But there is another path, which is the decentralized metaverse and that’s the metaverse where we believe there’s greater choice, independence and opportunity, and there is technology that protects the rights and dignity of individuals.

It looks like the twins are all set to take the battle with Facebook head-on over the development of Metaverse. The Gemini co-founders had already put the building blocks for metaverse back in 2019. The two brothers bought NFT exchange Nifty Gateway that helps in picking up unique digital assets.

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The Nifty Gateway platform adopts a similar path to that of Gemini. The platform is completely decentralized allowing NFT creators to host their work. “Decentralization is a spectrum,” says Cameron. “We want to continue to move down the spectrum towards empowerment. But you have to start somewhere.”

Interestingly, the Gemini co-founders have also made personal investments in the Metaverse through the Winklevoss Capital. The twins have taken a stake in the early version of the metaverse dubbed The Sandbox (SAND), built by Animoca Brands.

As part of The Sandbox deal, the two brothers have also bought a plot of virtual land. They will soon build the first of many virtual locations. Gemini co-founder Tyler Winklevoss said:

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Instead of building brick and mortar bank branches in meatspace. We’re gonna build a Gemini experience in different metaverses, where you can go into Gemini, and trade but it would be immersive instead of on your phone.

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Best Crypto Exchange 2021: Coinbase vs Bitstamp

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When you’re new to the cryptocurrency space, there’s a lot to learn. Everything is new and exciting and yet, the space is fraught with many dark corners and pitfalls. Picking the right digital currency exchange can have a significant impact on your cryptocurrency investments. Allow us to help you explore how to go about selecting the proper exchange for your investing needs.

What’s Bitstamp?

Bitstamp was founded at a time when customers lacked confidence in bitcoin exchanges. Mt. Gox, the world’s largest exchange, lost a significant amount of money to hackers in 2011. Two Slovenians, Nejc Kodric and Damijan Merla established Bitstamp, a platform that customers could trust.

With Bitstamp’s simple fee system’s ability that allows Bitstamp users to acquire crypto directly from a bank account, credit card, or debit card, Bitstamp may be a decent alternative for people new to crypto and seeking to stick to main currencies or more popular altcoins.

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Source: BeInCrypto

However, experienced traders may be dissatisfied by the limited number of accessible cryptos, the absence of margin trading, and the relatively high trading costs. Those hoping to earn rewards on the cryptocurrency via staking would also have to go elsewhere for the moment: Bitstamp’s newly launched Ethereum staking service, which allows users to lend their ether holdings to someone else to verify transactions on the Ethereum blockchain, is not currently accessible in the United States.

Bitstamp was hacked in 2015 when a phishing campaign resulted in the loss of roughly 19,000 Bitcoin, which was valued at around $5.2 million at the time. Bitstamp compensated customers for any losses and appeared to have utilized the event to strengthen its security.

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Distinctive features of Bitstamp

Advanced trading options

Quick orders

In the United States, you could immediately transfer money from a bank into Bitstamp and begin trading; in most states, you might want to use a credit or debit card, but this may incur additional costs from Bitstamp and your card issuer.

Bitstamp Common order types

Source: BitstampTwitter

Limit orders

Establish a price range at which you’d want to purchase or sell a particular coin.

Market orders

Purchase or sell cryptocurrencies at the most acceptable market price, which may be higher than the immediate order price.

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Stop orders

Establish an entrance or exit price for your transactions to minimize possible losses due to market swings.

Trailing stop orders

Establish an entrance or exit price level for your trades based on a predefined baseline that may be modified higher if the price exceeds its present value. This guarantees that the gap between your stop price and the current price has always been the same, allowing you to catch possible profits that you would not have with a basic stop order.

What’s Coinbase?

Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. The company’s headquarters are located in San Francisco, California. Coinbase was created during a period when other exchanges were struggling and failing from trading crypto. Mt. Gox filed for bankruptcy in 2014, three years after it was initially hacked. Coinbase, like Bitstamp, sought to establish a unique breed of bitcoin exchange.

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Coinbase cryptocurrency exchange

Source: CoinCuNews

To begin, Coinbase insured each bitcoin stored on its exchange. Then, Coinbase received a BitLicense in New York, while Bitstamp obtained one in Luxembourg.

Coinbase is a cryptocurrency trading platform that allows Coinbase users to buy, sell, and store more than 50 different virtual currencies. Coinbase is geared toward beginners, but Coinbase Pro, the premium upgrade, is geared at experienced and professional traders who execute high-volume transactions and need extra trading options.

Investing in programs like Robinhood has risen in popularity recently. Cryptocurrency is no exception, and Coinbase is reaping the benefits. The company’s revenues are predicted to reach $1.31 billion in the third quarter of 2021. Coinbase is presently available in over a hundred countries.

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The concept is relatively straightforward. As with many other trading tools, users may see their balances and create a watchlist to keep track of the prices of other cryptocurrencies. Additionally, traders can monitor which cryptocurrencies are seeing the most significant movement. Coinbase is also introducing the Coinbase Card, a Visa debit card that consumers can use to earn rewards for using the assets in their portfolio.

In September, Coinbase introduced a new direct deposit service that enables clients to send their salary straight to Coinbase and their funds promptly credited as Bitcoin or another cryptocurrency.

Now get your paycheck deposited into Coinbase

Source: TheCoinbaseBlog

Coinbase charges a fee to trade on its platform. Coinbase and Coinbase Pro trading prices differ, with Coinbase fees being higher and more involved. Coinbase charges a spread of around 0.50 percent when customers purchase or sell cryptocurrencies, as well as a Coinbase Fee, which is either a fixed cost or is determined by factors such as your location and the method of payment you use. This flat charge is calculated based on the transaction amount and is specified on Coinbase’s pricing page.

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Distinctive features of Coinbase

Account funding

Accounts are quickly funded via a credit or debit card and an automated clearing house (ACH).

Advanced trading

Advanced users have access to advanced trading options such as limit, market, stop, trailing stop, and fill-or-kill orders.

Coinbase card

The Visa debit card and Coinbase card application allow customers to make cryptocurrency purchases.

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Interest accounts

Deposit USDC into Coinbase accounts to receive a yearly percentage return of up to 4%. (APY).

Businesses

Coinbase provides several commercial crypto solutions, along with a prime brokerage network and direct exchange access.

Advanced platform

Once novices are comfortable, they may upgrade to the Coinbase Pro platform for free, which offers lower costs and additional trading possibilities.

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Bitstamp vs Coinbase

Comparisons based on review

While both crypto exchanges enable users to buy and sell altcoins, their user bases are somewhat different. Coinbase is suitable for beginners because of its user-friendly design and limited transaction kinds. On the other hand, Bitstamp caters to bitcoin enthusiasts.

Coinbase vs. Bitstamp

Source: CoinCentral

User Interface

Novice traders are often advised to use Coinbase, but why? What else does Bitstamp have to provide cryptocurrency newcomers? Let’s keep the Bitstamp vs. Coinbase comparison going.

Bitstamp is a well-designed system with a restricted number of trading options. This implies it has only a limited number of coins and a limited amount of things you could do with them. However, a few of Bitstamp’s trade information is not shown straightforwardly. 

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Bitstamp Interface

Source: CoinCentral

The extensive help page makes it easy to use some of Bitstamp’s more perplexing features. When using Bitstamp for the first time, I suggest that newbies consult the website.

Coinbase is most likely the most refined platform for newbies. It is intended to be very easy to use. Coinbase, as previously said, is a broker exchange. This implies that it functions more like a store than an exchange.

Coinbase Interface

Source: Coincentral

Buying and selling are simplified. The look and functionalities of Coinbase are similar to those of online banking and retail applications.

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There is no less stressful method to purchase your first bitcoin than with Coinbase. Coinbase is more straightforward to use than Bitstamp and nearly every other exchange!

Tradable currencies

Both sites allow users to exchange fractions of coins and deposit fiat monies. Bitstamp accepts EUR, GBP, and USD and Coinbase accepts over 20 fiat currencies, including USD, EUR, GBP, CAD, and SGD.

Source: Nasdaq

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Bitstamp accepts 28 currencies, whereas Coinbase accepts over 50. Across both exchanges, investors may discover popular coins and stable coins like as:

• Teth (USDT)

• Bitcoin (BTC)

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• Compound(COMP)

• litecoin (LTC)

• Stellar Lumens (XLM)

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• Aave’s (AAVE)

• Algorand’s (ALGO)

• The graph (GRT)

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• Uniswap (UNI)

Bitstamp also supports six currencies that Coinbase does not: Chainlink (LINK), Maker (MKR), Paxos Standard (PAX), Gemini Dollar (GUSB), Audius (AUDIO), and Ethereum 2.0. (ETH2).

Coinbase, on the other hand, provides 45 currencies that Bitstamp does not, including:

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• 1 inch (1INCH)

• Ankr (ANKR)

• The Band Protocol (BAND)

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• Cardano (ADA)

• cosmos (ATOM)

• Dash(DASH)

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• Dogecoin (DOGE)

• Ethereum Classic (ETC) 

• The Loom Network (LOOM)

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• Polka-dots (DOT)

• Storj (STORJ)

• Sushi Swap (SUSHI)

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Which is safer?

Both platforms follow tight U.S. rules, such as know your customer (KYC). On their hot wallets, the exchanges provide two-factor authentication (2FA) and multi-signature safety. Furthermore, each service keeps 98 percent of account funds offline in cold storage and has a crime insurance policy in place to protect monies on the exchange from fraudulent transactions. USD funds on the Coinbase platform are insured by the Federal Deposit Insurance Corporation (FDIC).

Security

Source: Medium

Industry criteria are met or exceeded by the cryptocurrency exchanges. The Coinbase website, on the other hand, gives a complete overview of most security procedures, while Bitstamp barely mentions security in its frequently asked questions. Although Bitstamp was compromised in 2015, leading to the loss of around $5 million in Bitcoin, there have been no subsequent breaches.   While Coinbase’s exchange has not been hacked, numerous users have indeed been victims of different phishing attempts, resulting in stolen cash.

Trading fees

Coinbase, a rival exchange, charges more significant fees than Bitstamp. Coinbase Pro customers, on the other hand, pay around the same as Bitstamp traders. Bitstamp has a tiered fee structure depending on total trading volume over the previous 30 days, with all exchanges’10,000 or fewer transactions charging a 0.50 percent transaction charge. Higher trade volumes result in lower expenditures.

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Coinbase Fees

Source: CoinCentral

Until then, the Coinbase fee system is more complicated. Users pay either a set charge or a variable price, depending on their financing method, plus a 0.50 percent spread. In most circumstances, Coinbase traders will pay more than Bitstamp traders. The Coinbase Pro platform, on the other hand, has a maker-taker mechanism with a 0.50 percent processing fee for investors exchanging $10,000 or less in the previous 30-day period.

Furthermore, consumers of credit or debit cards will pay 3.99 percent on Coinbase against 5% on Bitstamp. Both provide free ACH transactions, rendering this payment option the most cost-effective.

Bitstamp Fees

 

Bitstamp International fees

Source: Coincentral

Mobile Apps

Users of Bitstamp’s mobile apps have expressed dissatisfaction with the software’s lack of functionality and delayed updates. It has a rating of 1.7 out of 5 stars on the Apple Store.

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Bitstamp App

Source: Coincodecap

The Coinbase smartphone app has gotten better ratings. Coinbase users like the app’s simplicity and dependability, and it has a rating of 4.7 out of 5 stars in the Apple App Store.

Coinbase App

Source: Coincodecap

You now have a thorough understanding of the Bitstamp vs. Coinbase platform currencies and fees. You’re also aware of how simple they are to use, but how secure are they?

Public opinion on its safety

Coinbase is widely regarded as one of the most secure and dependable cryptocurrency exchanges. A simple Google search for “most reputable crypto exchanges” reveals that Coinbase constantly appears in the top one or two of all exchanges.

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Bitstamp is likewise well-regarded in the crypto field, and it garnered a lot of positive coverage until it became the world’s largest first nationally-licensed virtual currency exchange. Because the EU maintains a “passport” scheme for financial services businesses, Bitstamp was licensed across the EU by getting a license in Luxembourg. Bitstamp, like the Coinbase United States, has garnered a lot of confidence as a safe choice for European investors since then.

Customer service

In comparison to most cryptocurrency exchanges, Coinbase has a stellar reputation for customer care. They just implemented phone customer care, a first for large crypto exchanges and an essential step toward getting the crypto sector to regular business norms.

For a cryptocurrency exchange, Bitstamp also provides excellent customer service. While Bitstamp, like every other crypto exchange, has client issues that can be found online, it’s worth mentioning that many of these issues are resolved immediately by Bitstamp support. The majority of problems are about accounts being terminated following exceptionally substantial deposits for certain people, and it appears that the consumers obtained full refunds in all instances.

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Legal factors and the company’s history

Coinbase was formed in San Francisco in 2012 and has received significant funding from venture capital companies such as Union Square Ventures and Andreessen Horowitz. Coinbase has been in operation for 5 years and conforms with all US financial institution rules; thus, it is widely regarded as a secure alternative for bitcoin investment.

Bitstamp was established in 2011 and is supported by Pantera Capital, a notable cryptocurrency venture capital firm. Bitstamp is audited annually by one of the “Big Four” external auditors and is typically honest about their legality and operations – always a desirable feature to look for when choosing a cryptocurrency exchange to trade on.

Conclusion

Buying and trading bitcoins isn’t always straightforward. It may be confusing, frustrating, and even frightening. It’s also a lot of fun! Bitstamp and Coinbase are both excellent locations to begin your crypto journey.

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Bitstamp is one of the world’s oldest and most popular exchanges. It is secure, inexpensive, and has a fantastic workforce that cares about its clients. It may be challenging to use for some newbies, but it’s an excellent location to understand how a professional crypto exchange operates.

Coinbase is ideal for newcomers. It’s straightforward, safe, and simple to use. It provides all of the essential services required to purchase your first coin. I cannot suggest Coinbase strongly enough as a first step into the world of cryptocurrency.

So, who won the Bitstamp vs. Coinbase battle? Can’t make a decision? Why not take advantage of both platforms? You might begin with Coinbase and then go to Bitstamp for more sophisticated trading. You may effortlessly transfer money between the two by simply transferring from Coinbase to Bitstamp!

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FAQs

Is Bitstamp superior to Coinbase ?

Both crypto exchanges provide almost similar levels of protection to their members. If money is a constraint, Bitstamp is a better option. Assume, however, that you are new to investing. In such a situation, Coinbase is a preferable alternative; however, the trading fees might add up quickly. Coinbase, on the other hand, provides detailed and educational trading guidance.

Is Bitstamp the same thing as Coinbase?

However, Bitstamp and Coinbase have many similarities; Bitstamp is a cryptocurrency that permits fiat trading pair and coin trades. Simultaneously, Coinbase enables its investors to do fiat currency trading using the platform.

Is Bitstamp one of the secure crypto exchanges?

On its official website, Bitstamp provides a detailed FAQ on its security procedures. Furthermore, they adhere to all of the norms and regulations established by US authorities, including KYC, two-factor authentication, and self-authorized signatures. Consequently, 98 percent of the investment is stored securely offline, while the remaining 2 percent, which is online, is insured against theft and fraud.

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What is the transaction fee for Bitstamp?

Bitstamp imposes a minimum fee of 0 . 1 percent for every transaction. The fees may vary depending on the manner of transaction and your bank.

Is Bitstamp a kind of wallet or crypto exchange?

Bitstamp is a cryptocurrency exchange that also functions as a hot and cold wallet.

How much time does it take to withdraw money from Coinbase?

It will take 1 – 2 business days to withdraw money from Coinbase through SEPA. When you start with a wire transfer, the transaction is completed within a day.

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What is the best way to trade on Bitstamp?

Register for an account, construct it and get it validated. Then, make a transaction using a credit or debit card, and you’re ready to start trading on Bitstamp.

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