Category Archives: Cryptocurrency

The Indian government is reportedly considering taking the ordinance route to quickly pass the cryptocurrency bill. The government is of the firm view that they want to introduce the law within a month of clearance of the ordinance, a local news outlet detailed.

All eyes are on what the government of India will do with the cryptocurrency bill that is listed to be introduced in the current session of parliament. The bill seeks to ban cryptocurrencies while creating a framework for the official digital currency to be issued by the central bank, the Reserve Bank of India (RBI).

On Friday, CNBC-TV18 reported that The government may take the ordinance route to pass the Cryptocurrency and Regulation of Official Digital Currency Bill, citing unnamed sources. The news outlet elaborated:

The PMO, Finance Ministry, and Cabinet Secretariat have started preparing the draft details of the ordinance. The government is of the firm view that they want to introduce the law within a month of clearance of the ordinance.

They want this bill to be cleared as soon as possible, reporter Timsy Jaipuria noted. She added that the cabinet is understood to have given clearance to this particular proposal that this bill can be introduced via an ordinance route in its last meeting which was held on Feb. 3.

Ordinances are promulgated by the president of India on the recommendation of the Union Cabinet. They have the same effect as an Act of Parliament. Ordinances can only be issued when Parliament is not in session, enabling the government to take immediate legislative action. The current Budget session began on Jan. 29 and will end on April 8. It is held in two phases; the first phase will end on Feb. 13 and the second will start on March 8.

The cryptocurrency bill could resemble the one drafted by an interministerial committee (IMC) headed by former Finance Secretary Subhash Chandra Garg, who has now resigned from the government. Recently, the Minister of State for Finance Anurag Thakur answered some crypto questions in Rajya Sabha, the upper house of Indias parliament, clarifying the governments stance on cryptocurrency and the digital rupee.

There are still many unanswered questions about the bill the government is planning to introduce and many are just waiting for the bill to become public. Meanwhile, the Indian crypto industry has launched a campaign to convince the government not to impose a ban on cryptocurrencies.

Do you think India will soon introduce crypto law? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, CNBC TV18

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Indian Government Prepares to Fast Track Crypto Bill Plans to Introduce Cryptocurrency Law in a Month: Report Regulation Bitcoin News - Bitcoin News

A dubious concern in the banking finance sector in India today is the debate over according legal status to crypto/virtual currencies ("CCs"). The Reserve Bank of India ("RBI"), vide a notification[1] ("Notification"), directed all entities regulated by RBI not to deal in CCs or provide any services for facilitating any person in dealing or settling with CCs. As the blockchain enthusiasts, the crypto-exchanges and individuals holding CCs, across the globe watched in approbation, in March 2020, the Supreme Court of India[2] ("SC Case"), quashed the Notification, holding that the restrictions imposed by the Notification were disproportionate to the concerns raised by the RBI and therefore unsustainable. However, it was also held that RBI has inherent powers to regulate the dealing and trading of CCs in the interest of the banking system, monetary stability and sound economic growth[3]. While this development was emblematic of optimism amongst industry players in India, the quashing of Notification had only brought CCs into a grey area and one could not have elided that RBI and legislators will be oblivion to any activity relating to CCs in future.

The Parliament proposes to introduce Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 ("Crypto Bill") in its ongoing session. The Crypto Bill seeks to ban all private cryptocurrencies and create a legitimate framework for official digital currency in India, backed by government/RBI, while providing certain exceptions to promote the underlying technology driving the digital currency.

The Crypto Bill: What we see ahead?

The absence of any legislative/regulatory framework or policy confirming the status of CCs till date and the validity of trading in and dealing with them, questioned their future in India which hinged over a murky structure. The Crypto Bill has brought a ray of hope, suggesting a possible advent of a digital currency in India and its regulation by RBI/government. However, the Crypto Bill also suggests banning of all the private cryptocurrencies. The very news of introduction of Crypto Bill in the Parliament session has sent out shivers in the cryptocurrency market. The industry practitioners have hit the panic button due to the speculative foresightedness attached to the Crypto Bill, including more particularly the banning of 'private cryptocurrencies'.

As to what is a 'private cryptocurrency' remains unclear for now as the draft of the Crypto Bill has not been made available to public. The crypto evangelist bat for currencies like Bitcoin and Ethereum to be public currencies, however there is uncertainty, whether the Crypto Bill will render the use of currencies like Bitcoin and Ethereum illegal in India.

Further, it remains to be seen whether CCs will be treated as a 'currency' or a 'stock' or there will be an outright ban on dealing with them. The proliferators of CCs contend that they cannot be differentiated, without any reasonable basis, from other persons engaged in the business, including that of pre-paid wallets and other electronic dealings in money, purely because they are engaged in the use, trade or dealing of CCs and that vetoing use of CCs infringes upon the right to carry out trade and business and impairs the Right to 'Equality'[4], Right to carry out 'Trade or Business'[5] and Right to 'Life and Personal Liberty'. Whereas, the primordial concerns of RBI/government that could make CCs nefarious and question their acceptability, are the volatility and fluctuation of their value and anonymity of transactions, which may give rise to cybercrimes, money laundering, misinformed investments by consumers, frauds and terrorism financing.

The forward strategy

The Indian citizenry have long delved themselves into the use, trade and sale of CCs and have established highly successful businesses in the form of crypto exchanges and blockchain driven start-ups and therefore one cannot sign off CCs completely. Crypto firms in India have also experienced a successful phase during the pandemic lockdown and the trading on crypto exchanges increased manifolds. Were at one hand the government's current move threatens to put the future of this industry in disarray once again, the introduction of Crypto Bill will also be a welcome step. However its success will depend on various factors, like defining 'private cryptocurrencies', contours of regulation and power given to the regulators to regulate the use and trade of CCs, that will decide the fate of CCs in India. At this stage, the government may consult stakeholders before coming to a decision on status of CCs in India.

In the milieu of the nascent technology-driven businesses, subsequent to the SC Case, the world now awaits in high anticipation of the Indian policymakers'/legislator's next move to see whether there will be an outright ban or there will be a regulatory framework on CCs or whether and the lawmakers/government come up with a hybrid digital currency that is backed and regulated by the RBI. A pragmatic sense suggests that the lawmakers and RBI regulate the trading of CCs, either by coming up with a substantive legislation or regulation/policy by RBI for regulating and facilitating the dealings in CCs either as a currency or a virtual asset, ensuring the following inclusions, amongst others;

Views are personal.

[2] Internet and Mobile Association of India vs Reserve Bank of India, 2020 SCC Online SC 275

[4] Constitution of India, 1950, Art. 14.

[5] Constitution of India, 1950, Art. 19, Cl. (g).

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Cryptocurrency And Regulation Of Official Digital Currency Bill, 2021 And Legal Framework Ahead - Live Law - Indian Legal News

CHICAGO For a minute there, it looked like Ronny Maali had struck it rich relatively speaking.

The accounting student from Orland Park, Ill., last year bought more than 1,000 Dogecoins, a digital currency that was created as a joke. Maali thought it was pretty funny too: With each Dogecoin trading for well under a penny, his investment cost him only $2.50, less than the price of a Big Mac.

But in late January, as social media-inspired speculation lifted the stock prices of widely belittled companies like GameStop and BlackBerry to dazzling heights, Dogecoin went along for the ride: In 24 hours, its value rose from less than a cent to nearly 8 cents an increase of more than 900% that took its market cap to $9 billion.

Maali, tracking the wild ride on his phone, bought another $20 worth on the way up and watched in amazement as the value of his pocket money investment hit $140.

When it started rocketing and these guys on (the social media platform) Reddit were pushing it, I was like, This is awesome, he said.

As with other hot investments, though, the rise was swiftly followed by a plunge. Within another 24 hours, Dogecoin fell to 3 cents, where it hovered until a Thursday morning rally, sparked by a series of cryptic tweets from Dogecoin provocateur Elon Musk, spiked the price once more.

The value of Maalis holdings is down from its peak, but despite the continuing volatility hes still way ahead.

(Dogecoin) wasnt meant to be taken seriously, he said. But I was like, Who knows? Maybe someday Ill wake up and itll be the next Bitcoin and I can tell my parents Im a millionaire.

In a world gone mad with a pandemic and social upheaval, cryptocurrencies are having a moment. Created out of thin air or, to be more precise, mined by computers as a reward for recording the currencies transactions they are not backed by central banks or tangible assets, but get their value from the wisdom of the crowd.

Bitcoin is the original digital currency. It started trading in 2009 at a fraction of a penny and over years of dramatic boom-and-bust cycles climbed to its current value of more than $30,000. Despite plenty of questions about Bitcoins true worth, an ever-widening array of companies accept it as payment, including AT&T, Overstock and Dish Network.

Thats the kind of scenario Dogecoin investors dream about, despite the currencys bizarre origin story.

Two computer jocks invented it in 2013 to parody the thousands of currencies that sprang up in Bitcoins wake, naming it after the doge (pronounced DOZH) meme that paired photos of a wide-eyed shiba inu with the dogs supposed inner monologue.

It was supposed to be a lighthearted effort fans of the Jamaican bobsled team raised enough in Dogecoin to send the squad to the Sochi Olympics in 2014 but took a dark turn when scammers and hackers got involved, prompting creator Jackson Palmer to walk away.

I saw the space being overrun by opportunists looking to make a buck, rather than people investing in evolving the technology, he wrote in an essay for Vice.

But the currency, despite the pejorative label of meme coin, endured.

It bubbled along for years at well under a penny, but in 2018 leaped to a high of nearly 2 cents as part of a larger cryptocurrency bubble. It didnt last within a day it was worth less than 1 cent again but that set a pattern in which everyone from TikTokkers to Musk could make the price jump with some online attention, all the while egged on by investors cheering, To the moon!

Still, it took last months stock run-up to catapult the currency to an unprecedented pinnacle, as commenters begged each other not to sell to keep the price high. Abe Aziz, an automotive service consultant from Morton Grove, Ill., who has a decent amount invested in Dogecoin, said he subscribes to that approach.

Why not go for the ride? he said. At the end of the day, you could become wealthy.

JaMal Green, a Black Lives Matter activist and former Chicago mayoral candidate who said he has many thousands of Dogecoins, sees the currency as a way for people without much money or financial expertise to get in the game with hedge funds and billionaires.

I like how these groups are coming together to really talk about what it means to play in cryptocurrency or stocks, to play in the market, he said. Its great to see the bottom 99% come together to figure out how they can achieve wealth together and bridge that economic gap a bit.

But Eric Budish, a professor at the University of Chicago Booth School of Business who studies cryptocurrencies, warned they are particularly vulnerable to bubbles because they are not tied to economic fundamentals in the way a stock price (ideally) reflects a companys earnings.

As long as everyone holds, he said, the price will indeed go up. The problem is you can never be sure youve picked the right time to cash out.

When people try to sell, the price will come down, he said. That means everybody wants to sell first. Nobody wants to be the last guy selling, and thats sort of the essence of a pump and dump.

Though Budish is skeptical of Dogecoins utility, a small but growing number of merchants accept the currency. One is LiftMode, a Chicago-based online seller of nutritional supplements.

Co-owner Armand Tuzel said only a few people have used it so far, but like the army of Redditors rooting for Dogecoin to hit $1, hes holding onto the ones he has accumulated.

For working capital its not good but for passive savings its very good, he said.

Nelson Morales, a Beach Park data center engineer who runs a Facebook group called Cryptocurrency of Greater Chicago, has his doubts about the currency. He worries about inexperienced investors getting drawn into a dangerous, roulette-style pump that could end with a disastrous crash.

Still, that hasnt stopped him from putting $50 of his own into Dogecoin.

I just want to have a canary in the tunnel, he said. The canarys still alive. Im impressed.

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Joke cryptocurrency goes on wild ride | From the Wire Business | leadertelegram.com - Leader-Telegram

Fintech experts discuss the future of cryptocurrency in the Biden Administration. Panelists include ... [+] Rep. Patrick McHenry, SEC Commissioner Hester Peirce, Prof. J.W. Verret, author David DesRosiers, and Roslyn Layton, PhD.

With a new President, Congress, and SEC Chair, the US can reset its approach and win the cryptocurrency race against China. Here are five resolutions to achieve those goals.

1.The Senate should confirm an SEC Chair who is open or at least neutral to cryptocurrency and financial innovation.

After Securities and Exchange Commission (SEC) Chair Jay Clayton (who made no secret of his animus for cryptocurrency with barrage of lawsuits, enforcements, and declarations to crush upstarts), the Senate can improve policy for cryptocurrency just by confirming a new Chair who is friendlier to financial innovation. Reports suggest that the incoming Biden Administration has in mind Gary Gensler who, in addition to his prior regulatory experience, runs MITs financial technology laboratory and its Digital Currency Initiative. Gensler has calledcryptocurrency "a catalyst for change in the world of finance and the broader economy." If confirmed, the SEC would gain another crypto ally along with GOP commissioner Hester Peirce, called the crypto mom for advocating policies to ensure US leadership in cryptocurrency. In the process, the Senate Banking Committee should ask Gensler probing questions about whether hell continue Claytons hostile approach, or whether he supports disruptive fintechs that seek to democratize financial services for Americans.

2.Stop the turf wars between financial regulatory agencies.

Regulation is not an unambiguous good. The US has accumulated over a century of financial regulation and spawned almost a dozen federal financial regulators (in addition to state level actors)many in the last decade alonebut no one can claim that the policy for the US financial industry is optimal. Indeed, the layers of regulation and labyrinth of federal offices and departments may have worsened the financial environment for consumers and innovators. As SEC Commissioner Hester Peirce argued in Reframing Financial Regulation: Enhancing Stability and Protecting Consumers, the more important regulation becomes, the more banks serve regulators, not customers. The notion that regulation increases the power of established financial institutions at the expense of small banks and financial innovators is well-documented. Regulators generally prefer to oversee a market a handful of giants than a dynamic market of emergent, innovative players. It stands to reason that the SEC as a securities regulator has no business overseeing all cryptocurrencies in all use cases. Already digital and cryptocurrencies are regulated by the Treasury Departments Office of the Comptroller of the Currency, the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service, and the Department of Justice on anti-money laundering requirements.

3.Congress should work in a bipartisan fashion to adopt a rational, common sense approach to cryptocurrency.

It takes courage and fortitude to resist the urge to solve a problem through regulation, without first examining the larger issues at play. The first step is to determine whether government intervention would create greater harm. At RealClearPolicys event U.S. Crypto Policy in a Biden Administration, Congressman Patrick McHenry explained how for the last 15 years his job has been to stop the adoption of knee-jerk laws which would have killed cryptocurrency in the cradle.

However, having no regulation is not a substitute for thoughtful policy to help cryptocurrency flourish while respecting the measures that protect consumers and deter fraud. Moreover, if Congress doesnt clarify the boundaries, regulators will find new things to regulate to keep themselves relevant. McHenrys approach, which he laid out in a 2020 podcast with Rep. Dan Crenshaw (R-TX), is that blockchain is a new technology that needs a framework of its own.With Senator Sherrod Brown (D-OH) poised to chair the Senate Banking Committee, it is time to take a fresh look.

4.The SEC should withdraw its lawsuit against Ripple.

Just hours before he left the building, former SEC Chair Clayton lobbed a lawsuit against Ripple Labs, operator of the global settlement system using XRP, the worlds 3rd largest cryptocurrency. The suit alleges that Ripple, after 7 years, has been transacting with a security, not a currency, and thus seeks to punish the company for failing to register and to bar its founder and executive from participating in the crypto market. Such a question could have been answered with notice and comment rather than a lawsuit.

In any event, the SECs case has a fatal flaw in relying on the Howey Test from SEC v. H.J. Howey Co in 1946. According to law professor J.W. Verret of George Mason University in the RealClearPolicy discussion, a security is an investment contract where the holder participates in a common enterprise with the seller.But former CFTC Chairman Chris Giancarlo argues XRP is not an investment, and there is no commonality between its holders and Ripple. XRP is a medium of exchange and settlement.However, even if Ripple wins in court, and the company has asserted it will fight vociferously, the SEC will have already done its damage to the open source XRP ledger and every developer using it. The lawsuit has chilled other crypto enterprises, not to mention Ripple itself. Most defendants in regulatory enforcements never go to court because of the cost; instead they settle. Apparently Ripple tried to settle the question for years, but it appears that getting a headline was more important to Clayton. This abuse demonstrates what many legal scholars observe as the fundamental unconstitutionality of an administrative agency like the SEC, combining in one body an administrator, rulemaker, and judge and thus violating the separation of powers clause.

5.Congress should mitigate Chinas growing threat on digital assets.

China has laid the groundwork to capture the fruits of U.S. innovation and use its own digital currency to unseat the dollar on top of their de facto control of mining Bitcoin and Ether. As a key part of Chinas concerted efforts, its central bank has already begun distributing digital yuan to be used at thousands of retailers with nearly a fifth of residents in Shenzhen city testing the technology today. China aims to control global value of traded coins and are scaling their enormous domestic marketplace for mass adoption of their fintech applications. Yet again, on a technological breakthrough they had nothing to do with inventing, China is determined to make it their own. It is only a matter of time before Chinas digital currency is offered to billions across the globe, coupled with Chinese payment solutions copied from U.S. innovators.The U.S. wont be able to block the proliferation of digital yuan; it can only win by making a better solution and getting to market first. Moving quickly on a regulatory framework for cryptocurrency is essential to ensure US leadership and counter Chinas aggressive approach.

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Five New Year's Resolutions For Cryptocurrency - Forbes

GUANGZHOU, China Bitcoin and other digital coins tanked on Monday, wiping some $150 billion off the cryptocurrency market.

The market capitalization or value of the cryptocurrency market was $931 billion around 6:00 p.m. ET, down from $1.08 trillion a day earlier, according to Coinmarketcap.

Bitcoin, the largest cryptocurrency, fell over 10% from a day earlier to $34,200, according to Coin Metrics data. It earlier sank to an intraday low of $30,863. Ether, the second-largest cryptocurrency, was down 15% to $1,060. It briefly tumbled below $1,000, hitting an intraday low of $945.

The sell-off in cryptocurrencies comes after a huge rally and perhaps signals some profit-taking from investors. Bitcoin is still up over 300% in the last 12 months and last week hit an all-time high just below $42,000.

"The correction we saw was expected as we believe the BTC price surge recently from under $20,000 to $40,000 in the past four weeks will induce sell pressure," said Simons Chen, executive director of investment and trading at cryptocurrencyfinancialservices firmBabel Finance.

The $40,000 mark could have been a trigger for profit-taking, Chen said.

Bitcoin's resurgence has been attributed to a number of factors includingmore buying from large institutional investors.

And it has also been likened to "digital gold," a potential safe-haven asset and a hedge against inflation. In a recent research note,JPMorgan said bitcoin could hit $146,000in the long term as it competes with gold as an "alternative" currency.The investment bank's strategists noted, however, that bitcoin would have to become substantially less volatile to reach this price. Bitcoin is known for wild price swings.

But some bitcoin critics such as David Rosenberg, economist and strategist at Rosenberg Research have called bitcoin a bubble.

Long-term bullishness around bitcoin remains however.

Jehan Chu, founder of cryptocurrency-focused venture capital and trading firm Kenetic Capital, said the pullback in bitcoin could be a buying opportunity for new investors.

"This short term correction is both natural and needed, and is a great entry point for long-term investors as we quickly reach $50k this quarter and $100k by year's end," Chu told CNBC.

Last week, Social Capital's Chamath Palihapitiya said bitcoin could go above six digits.

"It's probably going to $100,000, then $150,000, then $200,000," Palihapitiya told CNBC's "Halftime Report." "In what period? I don't know. [Maybe] five or 10 years, but it's going there."

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$150 Billion Wiped Off Cryptocurrency Market in 24 Hours as Bitcoin Pulls Back - NBC10 Boston

In many respects, the crypto markets are no different than standard stock markets. Yes, the underlying asset is unique, but the analysis that goes into tracking the value of the asset is very much the same. And if you use these same principles, you can expect to get positive results.

Crypto Markets vs. Stock Markets

Trading is something that has underpinned economies for centuries likely since the beginning of time. Stock exchanges are relatively new. Cryptocurrency exchanges are even newer. (Theyre still very much in the infancy stage.) And while they share many commonalities, there are also some differences. Understanding where theyre similar and where theyre unique will help you make smart findings in your analysis.

The underlying asset is the primary point of differentiation between crypto exchanges and stock exchanges. Whereas a stock exchange trades in shares of a company, a cryptocurrency exchange trades in currency.

Perhaps the biggest point of contention (up until now) is the idea of volatility. While stock exchanges can go on long bull or bear markets, they typically occur in incremental ways. Cryptocurrency exchanges can experience major fluctuations in a matter of minutes or hours.

The market is new, meaning that its highs and lows are very pronounced, Cointree explains. A far smaller marketplace, cryptocurrency exchanges are also vulnerable to the trade movements of whale traders. This means that the whole market can be vulnerable to the trade decisions of those heavily invested.

The good news is that as time passes, theres an increasingly large data set to analyze. And with more information, it becomes possible to develop more sophisticated trading algorithms and predictive signals to offset some of the volatility.

3 Methods for Analyzing Crypto

Investing in cryptocurrencies is still seen as highly risky and speculative. But while any single crypto faces the risk of collapsing, almost all financial experts agree that crypto is the way of the future. Its not a matter of if cryptocurrencies will be a staple asset in five, 10, or 15 years its simply which coins will lead the way.

As you analyze crypto whether its Bitcoin, Ethereum, Litecoin, or some other smaller coins think of the crypto markets as stock exchanges and consider applying certain methods of analysis.

With technical analysis, youre studying statistical trends and looking at historical volume and activity including price movements and swings to make educated predictions on where the price is going over the short-term and long-term.

While youll have to determine which technical trading tools fit into your trading toolbelt, Fibonacci retracement trading is undoubtedly worth a look.

Fibonacci retracement trading is a popular technical tool used by traders to determine price action, RJO Futures mentions. Fibonacci retracement trading is taking two extreme points from a contracts price, usually a high and a low, then dividing it by a Fibonacci ratio to determine support and resistance levels.

This method of analyzing fluctuations in value can work well for crypto, but you have to act quickly. With so much volatility, support and resistance levels can experience major ups and downs.

With fundamental analysis, youre not looking where prices are going, per se. Instead, youre trying to understand whats supporting the valuation. In other words, what are the underlying financials? Using this analysis, you can determine whether the data says the crypto is underpriced or overpriced at the moment.

The third approach involves sentimental analysis. And while you have to be very careful with sentimental analysis in stock investing, it can actually play a pretty useful role in cryptocurrency exchanges.

With sentimental analysis, youre looking beyond the numbers to see what key players think and feel. This may include journalists, influencers, investors, hedge fund managers, and economists. The idea is that the data isnt always indicative of whats happening. If you can detect major confidence (or a lack of trust), it could tell you that steep growth or decline is on the horizon and that the market simply hasnt yet responded.

Adding it All Up

You cant assume that a cryptocurrency exchange is going to operate the same as a stock market exchange. Volatility is much higher and, while upside is arguably greater, the downside is very steep. Having said that, by applying technical analysis, fundamental analysis, and sentimental analysis to your activity, you can increase your odds of being successful.

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3 Ways to Analyze Cryptocurrency for Trading - NuWireInvestor - NuWire Investor

Cybercriminals robbed victims of almost US$4 billion across 122 attacks against cryptocurrency platforms and holdings last year, according to a recent report.

Attacks against blockchain wallets earnt hackers an average of $112 million per breach (Credit: pixabay, Creative Commons Licence)Atlas VPN, a virtual private network provider, said on Tuesday that the overwhelming majority of these losses stemmed from attacks against blockchain wallets digital resources that allow users to store and manage cryptocurrency with hackers netting a total of $3.03 billion at an average of $112.12 million per breach.

Cryptocurrency exchanges also proved key targets, with 28 breaches over the past twelve months resulting in $300 million worth of losses.

The global coronavirus pandemic has seen an explosion in illegal activity online, with the United Nations warning of an increase in internet-enabled criminality of more than 600% by the middle of last year, at an average rate of one attack taking place every 40 seconds.

Most notable had been the meteoric rise in the number of pandemic-related phishing scams, leveraging pervasive fears among the public so as to extort money from victims, as well the increased incidence of malware attacks against public and private institutions alike.

Atlas VPN nevertheless noted in its report that the attacks against cryptocurrency platforms in 2020 had actually failed to top the record-breaking number observed in 2019.

The decline may owe to the sheer extent of attacks across the previous year, when 33 hacks were recorded in January alone, or perhaps the increased value of cryptocurrency, with growing investment online amid economic downturn, or even simply the growth in opportunities for internet-enabled criminality in other areas.

Read more here:
Cryptocurrency Hackers Steal $3.8 Billion in 2020 - OCCRP

GUANGZHOU, China Bitcoin and other digital coins tanked on Monday, wiping some $150 billion off the cryptocurrency market.

The market capitalization or value of the cryptocurrency market was $931 billion around 6:00 p.m. ET, down from $1.08 trillion a day earlier, according to Coinmarketcap.

Bitcoin, the largest cryptocurrency, fell over 10% from a day earlier to $34,200, according to Coin Metrics data. It earlier sank to an intraday low of $30,863. Ether, the second-largest cryptocurrency, was down 15% to $1,060. It briefly tumbled below $1,000, hitting an intraday low of $945.

The sell-off in cryptocurrencies comes after a huge rally and perhaps signals some profit-taking from investors. Bitcoin is still up over 300% in the last 12 months and last week hit an all-time high just below $42,000.

"The correction we saw was expected as we believe the BTC price surge recently from under $20,000 to $40,000 in the past four weeks will induce sell pressure," said Simons Chen, executive director of investment and trading at cryptocurrencyfinancialservices firmBabel Finance.

The $40,000 mark could have been a trigger for profit-taking, Chen said.

Bitcoin's resurgence has been attributed to a number of factors includingmore buying from large institutional investors.

And it has also been likened to "digital gold," a potential safe-haven asset and a hedge against inflation. In a recent research note,JPMorgan said bitcoin could hit $146,000in the long term as it competes with gold as an "alternative" currency.The investment bank's strategists noted, however, that bitcoin would have to become substantially less volatile to reach this price. Bitcoin is known for wild price swings.

But some bitcoin critics such as David Rosenberg, economist and strategist at Rosenberg Research have called bitcoin a bubble.

Long-term bullishness around bitcoin remains however.

Jehan Chu, founder of cryptocurrency-focused venture capital and trading firm Kenetic Capital, said the pullback in bitcoin could be a buying opportunity for new investors.

"This short term correction is both natural and needed, and is a great entry point for long-term investors as we quickly reach $50k this quarter and $100k by year's end," Chu told CNBC.

Last week, Social Capital's Chamath Palihapitiya said bitcoin could go above six digits.

"It's probably going to $100,000, then $150,000, then $200,000," Palihapitiya told CNBC's "Halftime Report." "In what period? I don't know. [Maybe] five or 10 years, but it's going there."

Go here to see the original:
$150 billion wiped off cryptocurrency market in 24 hours as bitcoin pulls back - CNBC

Theres never been a lack of skepticism surrounding cryptocurrency. And its fair to say the jury still wavers at times. But with 2021 just a week old, the worlds most polarizing and misunderstood currency is making a strong case for its staying power.

On Thursday, the price of a single Bitcoin, the oldest virtual currency, topped $40,000 for the first time, according to Business Insider. The 12 percent increase on the day pushed the total value of Bitcoin to over $700 billion and all cryptocurrency to over $1 trillion for the very first time.

The surge continued into Friday, with Bitcoin valued at over $41,000 as of press time. That means that value of Bitcoin has risen by over 400 percent over the last year. Interest in the virtual currency has been especially high over the last month, during which time its value has more than doubled. The interest has reportedly been driven by investors desire for an alternative asset not tied to a central bank, unlike the dollar or euro. Of course, that interest may or may not last. If nothing else, cryptocurrency has proven itself to be quite volatile in recent years. The value of Bitcoin, for example, crashed from $19,000 to $3,200 between 2017 and 2018.

For now, the news is good. With a market cap of over $1 trillion, cryptocurrencies are now worth almost half as much as Apple, the worlds most valuable company, reports Business Insider. It also makes cryptocurrency more valuable than the entire Swiss economy.

While the recent surge in Bitcoin value is great news investors, this is especially true for Satoshi Nakamoto. The creator of the virtual currency is believed to own one million Bitcoin. If true, Ars Technica reports that the investment would put his net worth at more than $40 billion. That would make him one of the 35 richest people in the world, according to the Bloombergs Billionaire Index.

Bitcoin may be the currency that has most benefited from the recent surge in interest, but other virtual currencies have also seen their value rise as well. By the end of trading on Thursday, Ether, which is used by the Ethereum network, was valued at $140 billion Meanwhile, other notable currencies arent doing too shabby either. Tether is now worth $22 billion, Litecoin sits at $11 billion, and Bitcoin Cash checks in at $8 billion.

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Bitcoin Tops $40,000 for the First Time, Pushing the Value of the Worlds Cryptocurrency Over $1 Trillion - Robb Report

StefaNikolic | E+ | Getty Images

Holders of cryptocurrency have more than price volatility to worry about this year. The taxman wants to know about your trading activity.

Bitcoin hit fresh highs during the weekend, creeping toward $42,000 on Jan. 8. However, its value tanked on Monday amid a sell-off in cryptocurrencies, and bitcoin's value is now hovering around $33,000.

Regardless of whether you interpret the decline in price as a buying opportunity or an alarm to get out, you'll need to share the information with the IRS.

More from Smart Tax Planning:Why small businesses face a nightmare tax situationSome newlyweds face marriage tax penalty for 2020 vowsRemote workers could face surprise state taxes for 2020

Transactions you partake in this year will be reportable when you submit your 2021 tax returns next spring.

This tax season, the taxman asks a "yes or no" question on the front page of the 2020 federal income tax return: "At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"

"If you're particularly active using bitcoin, not only is every transaction potentially income or a deduction, but when you use it to pay for goods, you could have reportable gain on that bitcoin," said E. Martin Davidoff, partner-in-charge in the national tax controversy practice of Prager Metis.

Buying and selling cryptocurrency aren't the only actions that create a reporting obligation.

You'd also have to check the "yes" box on your tax return if you happened to pocket any crypto for free or if you received your holdings in exchange for goods or services.

Swapping your bitcoin for other property is also a reportable transaction.

That's where things can get messy, since users may be using multiple exchanges or platforms for their crypto trading activity.

Some exchanges will only provide you with a Form 1099-K for tax time. It contains the details of your activity if you've had gross payments exceeding $20,000 or you've made more than 200 transactions.

That means the onus for accurate recordkeeping, reporting and tax payment is really on the investor.

"You have to keep track of every transaction you did, every sale," Davidoff said.

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In general, the IRS regards virtual currency as property. That means if you sell your holding, you've either racked up a capital gain or a loss.

Meanwhile, wages that are paid to you in cryptocurrency will be reported to you on a Form W-2, which your employer must send you by the end of this month. Federal income tax and FICA taxes would apply to the payment as they do for wages paid in dollars.

Cryptocurrency that you mine must also be included in your taxable income. In this case, you would include the fair market value as of the day you received it.

Failure to report the income can lead to penalties and interest and in the most extreme cases, prison and fines up to $250,000.

Indeed, back in 2019, the IRS sent letters to thousands of taxpayers with virtual currency transactions, notifying them to pay back taxes and submit amended returns.

Aside from tracking your transactions, tax professionals recommend keeping detailed records of your basis or your original investment in the asset.

How long you've held the asset before you transact with it also matters.

If the holding period exceeds one year, you're subject to favorable long-term capital gains treatment when you sell your virtual currency. In that case, the tax on appreciation can be 0%, 15% or 20%.

However, if you sell your virtual currency less than a year after acquiring it, ordinary income tax rates kick in. Those rates can be as high as 37%.

You do have to track your basis even if you use your bitcoin to buy things at a merchant, so be mindful of how you transact.

"If you're having to choose between using your U.S. currency versus crypto, at least with cash you don't have to track the basis," Davidoff said. "It's a huge headache."

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Cryptocurrency's value plummets. Here's what it means for your taxes - CNBC