The Accounting Blockchain Coalition had their monthly call this week - you should be aware of, filing, and paying your taxes. Which might be harder than we all think.
Coinbase is in ongoing litigation with the IRS to hand over client identities and transactions - and the general consensus from the experts is that Coinbase has no chance of winning.
What transactions will be of interest? The IRS currently considers the exchange of cryptocurrency into fiat, or of any cryptocurrency into another cryptocurrency a chargeable, taxable event. This includes purchasing products or services with cryptocurrency. And it also looks as if airdrops and hard forks are taxable… we just aren’t sure how, yet.
That means there could be thousands of individuals declaring taxes, that aren’t - because they aren’t even aware they should be.
Cryptocurrency does not operate outside the rules and governance that we live within. As the adoption of blockchains spreads, governments will fight to remove the privacy inherent in some of these systems - as the IRS put, a cryptocurrency holder has no additional right to privacy over any other taxpayer. This is just the beginning of the IRS’ journey into blockchain.
You should act as if, and expect, all transactions to be monitored by tax authorities, and for the transactions to be traceable back to you as an individual. At least perhaps until there are more certain methods for maintaining privacy whilst being able to transact ‘normally’ - but the pursuit of such a system for the benefit of tax evasion is no vision The Reserve supports.
NB - this does not constitute advice and you should seek an expert if required. On with the week:
// MUST READS
An overview of the impending Bitcoin hard fork
Christine Lagarde affirms “It’s time to get serious with digital currency”
Will regulation affect cryptocurrencies in a positive or negative way?
// DISASTER OF THE WEEK
Red Pulse ran the first ICO on the NEO blockchain this week. The ICO was delayed 2 minutes at very short notice - meaning thousands of contributors sent funds too early. The NEO contributed didn’t bounce - they were still received by Red Pulse - but were left in limbo without Red Pulse tokens being issued in exchange.
Meanwhile, as you can see above, NEO has tanked 23% this week due to these problems, leaving thousands of contributors not just frustrated at missing out - but financially poorer due to a botched process.
How Zug in Switzerland became Crypto Valley
The first house was bought on blockchain
Nordic firms are accepting bitcoin as a means of payment for legal services
First Debt Payment has been settle with Bitcoin in Sweden
Lufthansa invests in bringing blockchain to the travel industry
// ROAD TO REGULATION
Lawmakers are struggling with cryptocurrency regulations
Vladimir Putin has confirmed that Russia will regulate cryptocurrencies
Ukraine Central Bank issued a proposal for a cryptocurrency regulation framework
Last week highlights:
Anryze raised $1.8m for a distributed speech recognition platform
Blackmoon Crypto raised $30m for a tokenized investment fund platform
Cindicator raised $18m for an intelligent asset management platform
Horizon State - October 16, 2017 - Redesigning democracy
Synapse - October 21, 2017 - Decentralised Data and Al marketplace
Earth Token - October 23, 2017 - Blockchain environmental Sustainability Solutions
Blockchain Summit Amsterdam - Amsterdam, NL - October 17, 2017
M-0 1st Swiss Blockchain Conference - Crypto Valley, CH - October 17, 2017
Gibraltar’s International Finch Tech conference 2017 - Gibraltar, UK - October 18-19, 2017
Toronto Blockchain Conference 2017 - Toronto, CA - October 19, 2017
Melbourne Blockchain technology Conference 2017- Melbourne, AU - October 20, 2017