What is Venus, the virtual currency of Binance? The project has not yet been technically backed up in the investigation phase and Binance is currently …
Binance, the world’s largest cryptocurrency exchange, has announced plans to issue a table coin called Venus. The project will be a stable coin that is linked to international legal currencies such as the US dollar and the Pound, although each country issues Venus based on its own currency. In that sense, it’s very similar to Libra, which Facebook has announced and discussed.
What is Venus, the virtual currency of Binance? The project has not yet been technically backed up in the investigation phase and Binance is currently looking for a development partner. If Libra is to aim for “global reach,” Venus intends to be localized and localized.
There are many similarities even though the expression is different. On August 19, 2019, the company said, “Binance is seeking to build new alliances and alliances with governments, general companies, technology companies, and other virtual currency companies.
The project will be involved in a larger blockchain ecosystem and will empower developed and developing countries to promote the spread of new currencies.”
Competition with Libra is not intended? Changpeng Zhao, Chief Executive Officer of Changpeng Zhao, Bainance, said in a statement that the project was not intended to compete with Facebook’s virtual currency Libra. The project is scheduled to be ported on to binance chain, which has just started in April 2019.
The Binance Chain has already ported the Binans Coin (BNB).
In addition, there are two types of stable coins on the Binance chain: BTCB linked to Bitcoin (BTC) and BGBP linked to the British pound.
At the start of this project, Binance will provide partners with full technical support, a compliance risk management system, a multi-dimensional cooperative network for building Venus, and regulatory requirements.
Stretable coins like Venus bring new digital economy Venus, like Libra, is intended to revolutionize the traditional financial system, which refuses to accept poor people who do not have bank accounts that use legal currency. Yi He, the co-founder of Bainance, said, “We are in the near future and in the long term as a momentum for stable coins to replace traditional legal currencies around the world.
We believe that it will bring new stable digital economic standards.” Earlier this month, Walmart, the world’s largest supermarket chain, also plans to enter the same market as Facebook and Vinance. It has been reported that a patent for a stable coin linked to us dollars has been filed.
… and our special agents are experts in conducting complex financial investigations, including those committed on the ‘dark web’ with virtual currency.
A Boulder resident was sentenced to federal prison for laundering narcotics money through Bitcoin, a type of cryptocurrency.
Emilio Testa, who is an Australian national, was sentenced on Aug. 22 by U.S. District Court Judge Raymond Moore to a year and a day in prison for money laundering. Moore also sentenced Testa to a year of supervised release.
“Trying to hide criminal proceeds in Bitcoin? We’re going to find you,” U.S. Attorney Jason Dunn said in a statement. “Working in tandem with our federal partners, our prosecutors are leading the fight against cryptocurrency crimes.”
According to a news release, starting in 2016 Testa got in contact with undercover agents about converting U.S. cash obtained through narcotics sales into cryptocurrency. Testa met with the undercover agents again in 2017 and 2018.
The Internal Revenue Service also investigated the case, along with Immigration and Customs Enforcement’s Homeland Security Investigations.
“Criminals may be sophisticated enough to use cryptocurrency but they’re not smart enough to stay out of jail, as this conviction shows,” Homeland Security Investigations Special Agent in Charge Steven Cagen said in a statement. “Our agents will continue to shine a light on criminals who use the dark web and Bitcoin to try and conceal their illegal activity.”
Added Kevin Caramucci, acting IRS special agent in charge, “Investigating cyber-enabled schemes is a top priority for IRS-CI and our special agents are experts in conducting complex financial investigations, including those committed on the ‘dark web’ with virtual currency. This sentence shows those choosing to conduct illegal activities, including laundering narcotics proceeds, on the dark web are not hidden from law enforcement’s radar.”
The regulations may serve to make digital currency trading platforms more transparent, as well as helping to protect against money laundering and …
The chairperson of the South Korean Financial Services Commission (FSC) has stated that he is in favour of a proposed reporting system for crypto exchanges operating in the nation. The regulations may serve to make digital currency trading platforms more transparent, as well as helping to protect against money laundering and other financial crimes.
The proposal is up for discussion tomorrow in South Korea’s National Assembly. The newly-appointed chairperson says that such regulatory moves are necessary given that he sees it as an inevitability that cryptocurrency will be widely used in the future.
Crypto Adoption Inevitable, Says South Korean Regulator
According to a report in TheNews.Asia, Sungsoo Eun, the newly-appointed Financial Services Commission chairperson, is in support of a proposed reporting system for Korea’s crypto exchanges. The regulator believes that such an obligation will bring greater transparency to the industry. This may in turn attract greater numbers of institutional investors to cryptocurrency.
Sungsoo Eun is a recent appointee to the position of FSC chair. He took over following the former chair’s stepping down in July.
Despite Bitcoin being the most transparent system of accounting invented to date, the industry still has something of a bad reputation, particularly amongst regulators. Many fear that crypto assets are only good to disguise financial crimes. Greater transparency in the cryptocurrency exchange industry, according to the FSC chair, will reduce the likelihood of money laundering enabled by cryptocurrency to take place.
Eun made his remarks in a report sent to the National Assembly. The legislative body of South Korea is due to hold a hearing about proposed amendments to the Special Financial Information Act tomorrow.
The amendment, if approved, would require crypto exchanges and other businesses handling digital assets to make reports about their business operations, along with any suspicious activity that the companies might observe.
The report in TheNews.Asia states that Eun has previously mentioned concerns about cryptocurrency being used to enable money laundering and other financial crimes. He has also been critical of the levels of speculation surrounding the industry.
That said, Eun does seem to believe that crypto is the future and, therefore, it is important to prepare for its growing usage. He wrote in the report:
“It is true that there are active discussions about the possibility of virtual currency and blockchain utilization as a means of payment.”
South Korea is one of the fastest growing cryptocurrency markets in the world. Such enthusiasm for the financial technology is highlighted by the large price premiums often observed at the nation’s digital asset trading platforms.
Boulder Man Sentenced For Money Laundering Bitcoin … for money laundering Bitcoin, a type of cryptocurrency otherwise known as digital cash.
BOULDER, CO — A Boulder man was sentenced to one year and one day in federal prison for money laundering Bitcoin, a type of cryptocurrency otherwise known as digital cash.
Emilio Testa, 32, an Australian national and Boulder resident, was communicating with undercover agents beginning in 2016 about his need to convert U.S. dollars into Bitcoin because he preferred not to use banks or deal with taxes, according to court documents.
Testa and the undercover agents conducted money exchanges twice in 2016 and remained in contact over the next year, prosecutors said. Testa then contacted an undercover agent again in 2018 about selling Bitcoin for U.S. dollars from narcotics proceeds, which he did twice that year, according to court documents.
“Criminals may be sophisticated enough to use cryptocurrency but they’re not smart enough to stay out of jail, as this conviction shows,” HSI Denver Special Agent in Charge Steven Cagen said in a statement. “Our agents will continue to shine a light on criminals who use the dark web and Bitcoin to try and conceal their illegal activity.”
This sentence was announced by U.S. Attorney Jason Dunn.
“Trying to hide criminal proceeds in Bitcoin? We’re going to find you,” Dunn said in a statement. “Working in tandem with our federal partners, our prosecutors are leading the fight against cryptocurrency crimes.”
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation division investigated the case.
“Investigating cyber-enabled schemes is a top priority for IRS-CI and our Special Agents are experts in conducting complex financial investigations, including those committed on the ‘dark web’ with virtual currency,” said Kevin Caramucci, acting IRS-Criminal Investigation special agent in charge. “This sentence shows those choosing to conduct illegal activities, including laundering narcotics proceeds, on the dark web are not hidden from law enforcement’s radar.”
After his prison sentence, Testa will be on supervised release for a year.
At first, confusion about how to deal with the tax side of virtual currency was understandable. At the end of 2013, right when the cryptocurrency hype …
The Internal Revenue Service has fired its loudest warning shots yet across the bows of bitcoin investors. In late July, the agency started sending letters to more than 10,000 cryptocurrency holders, warning that they may have violated federal tax laws.
This should not have come as a surprise to anyone, but it’s surely creating headaches for taxpayers and tax professionals who haven’t been sweating the details on cryptocurrency for the last few years. The good news is, it’s not too late to get up to speed. The bad news is, the days of getting a pass by claiming ignorance on the finer points of cryptocurrency tax compliance have come to an end.
At first, confusion about how to deal with the tax side of virtual currency was understandable. At the end of 2013, right when the cryptocurrency hype cycle was starting and bitcoin was valued at roughly $650, major banks, tech companies and accounting firms were convening industry summits to figure out whether cryptocurrency would be taxed as a capital asset, like a stock or a commodity, and thus subject to capital gains rates, or as a fiat currency, such as dollars, euros and yen, for which gains are generally taxed as ordinary income.
By March of 2014, though, the IRS had issued clear guidance on virtual currencies, explaining that it will tax the digital assets as property, not currency. What followed was a five-year drumbeat of announcements and actions that made it clear the IRS was getting serious about crypto. In November of 2016, the agency filed a John Doe summons to the bitcoin trading platform Coinbase, asking for names and other information of everyone who is trading bitcoin. Then, in the summer of 2018, as the price of bitcoin had climbed above the $8,000 mark, the IRS’s Large Business & International Division launched a compliance campaign into how investors who own bitcoin are filing their taxes.
It should have been clear by then that what was once the Wild West was now being carefully monitored. Still, the IRS warning letters issued last month caught many recipients off guard. The reason, of course, is that many people — even tax professionals — still don’t really understand the details of how cryptocurrency is being taxed.
Sure, the IRS categorizes cryptocurrency as property, but keeping track of the tax basis for that piece of property is not as straightforward as many other assets. For one, the price is wildly volatile. This July, the price of bitcoin topped $12,000, which is more than three times its value in December of 2018. In order to accurately calculate gain or loss, anyone selling their bitcoin needs to keep track of its value the day they received it and the day they sold it, and also factor in different tax brackets and other variables that can impact the total amount owed to the IRS. For those who are transacting with bitcoin frequently, those calculations can become exponentially complicated.
Fortunately, the IRS’ steady ramp-up in enforcement acknowledges this complexity, and even those cryptocurrency holders who have received letters still have time to get their houses in order. To help them get started, the following is a general primer on how virtual currency taxes will affect the three primary types of cryptocurrency holders.
Many cryptocurrency miners are under the mistaken impression that they are only subject to tax on the amount it costs them to mine the bitcoin. However, according to the IRS, when a bitcoin is mined, the miner is supposed to keep track of what the asset was valued at on that day, and subsequently treat that value as income.
Miners that are engaged in a trade or business are subject to ordinary income, plus self-employment tax. The value of the coin becomes the tax basis, and if you trade or use that bitcoin later, then you have to include in income the value of what you get, minus that tax basis. That requires onerous record-keeping, which many bitcoin miners are not currently set up to do, but is vital to staying compliant with the IRS.
Vendors accepting bitcoin as payment
In May, AT&T announced it would begin accepting bitcoin, which could well be a harbinger of the future of e-commerce. But not all businesses are created equal. A huge corporation like AT&T has armies of accountants and accounting firms to keep track of these transactions. Most, if not all, small businesses don’t have that luxury.
Take, for instance, a small retailer or a consultant that may begin accepting bitcoin. When that small business receives the cryptocurrency, that value is included in the business’s income. But at that moment in time, they now need to track their tax basis in the bitcoin they receive.
For example, if a company sells something for $5,000 in bitcoin, but then uses the bitcoin to buy something else a year later when the price has climbed to $10,000, they now have a reportable gain of $5,000. It’s easy to see how confusing this can get for businesses that don’t have the resources to employ a full-time accounting team to track the daily value of their digital assets.
While there are many different types of cryptocurrency investors, the principle for them all is roughly the same: Investors have to track when they acquire and how they use the bitcoin.
If an investor is in the business of selling bitcoin, it will be taxed differently than if an investor is engaged in casual tinkering in the cryptocurrency market. The gain recognized by bitcoin sellers will be taxed at ordinary income rates (with a top rate of 37 percent). However, those not in the trade or business of selling bitcoins will benefit from lower capital gains rates (with a top rate of 20 percent).
Employers could also start using bitcoin to pay employees. If they do that, it will add another layer of complexity because the bitcoin would need to be reported on W-2 wages, income tax withholding, employment taxes, etc.
Whether you’ve already received one of these letters from the IRS or you do in the future, it’s undoubtedly unsettling. Frankly, it seems threatening. Rest assured, though, that it is just part of the forced education process the IRS is introducing to the cryptocurrency marketplace. The IRS is essentially putting cryptocurrency holders on notice: We know you have this, and you’re probably treating it improperly on your taxes. That’s why it’s so vital that practitioners help their clients get their ducks in a row. Tax professionals need to change their practice to make sure they are asking and tracking all relevant data. Otherwise, eventually those IRS warning letters will become audits.