Coinbase Teases 19 Cryptocurrencies They May List; Prices Jump Across the Board

One of the largest US based crypto exchange Coinbase has revealed that it is reviewing additional 19 cryptocurrencies for potential listing.

The San Francisco-based crypto exchange has announced that the 19 cryptocurrencies are being reviewed as per its Digital Asset Framework which will determine if they will be listed on its popular trading exchange platform.

The firm revealed that it is reviewing the graph, wbtc, uma, tbtc, theta, reserve rights, flexacoin, paxos gold, helium, ocean protocol, Hedera hashgraph, melon, keva, ampleforth, band protocol, fetch.ai, balancer, and curve.

The firm explained that the review process will check various technical and compliance analysis of the above mentioned cryptos where some of them may need to have regulatory license in various jurisdictions.

The exchange however cautioned that being under review doesn’t mean the cryptocurrency will be guaranteed of an automatic listing. The firm also clarified that those not under review doesn’t disqualify them from potential future listing. The firm stated,

“As per our listing process, we will add new assets on a jurisdiction-by-jurisdiction basis, subject to applicable review and authorizations. The omission of assets from this publication does not disqualify any such asset from active review and potential listing.”

The firm did not give any timeline on when the review process will be finalized or when the cryptocurrencies can expect to be listed.

As data from CoinMarketCap shows, most of the crypto assets under Coinbase’s review are trading within the green zone which is defined as 2-8%. There are some which have outperformed others like UMA (+10.05), Ocean Protocol (+12.93) and Melon (+17.23%).

Previous support of cryptocurrencies by Coinbase have led to a surge in the value of these coins and tokens. For instance, in June, the exchange’s support for COMP solidified its ranking as a major DeFi token. Similarly, the listing of MakerDAO (MKR) token back in May led to a surge in its prices in major exchanges. However, the ‘Coinbase Effect’ may not always yield a positive effect on the market.

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Author: Joseph Kibe

Korean Government Brings the Hammer Down on Bithumb, Taxing The Crypto Exchange $68 Million

  • Bithumb has been hit with an additional tax of 80 billion won ($63 million) by the IRS
  • The tax was imposed on income tax withholding for foreign users using the platform
  • However, there is no taxation policy related to cryptocurrency in the country

The Internal Revenue Service has imposed an obligation on cryptocurrency exchange Bithumb to “withhold withholding” on income from cryptocurrency transactions by foreign users, reported local sources.

As per this, Bithumb has to pay about 80 billion won, about $68 million in income tax on behalf of its foreign users.

The exchange has to pay its taxes first and can then ask its foreign users to pay taxes for their previous trades to the exchange. However, given that these foreign users might be based out of South Korea, it’s really isn’t possible.

Bithumb in response is planning to take legal action against the National Tax Service request. However, the concern here is that there is no exact taxation system related to cryptocurrency in the country yet.

No Income Tax Policy on Crypto Transactions

The government has decided to set a tax policy on income tax on cryptocurrency transactions next year. The government plans to include the tax measures in the tax law revision to be announced in August 2020.

For now though there are no laws or specific guidelines laid down. Nonetheless, the IRS currently classifies cryptocurrency income as other income and not capital gains.

And before the government issued “emergency measures for overheating virtual currency speculation” and “prohibited the opening and trading of cryptocurrency accounts for minors and foreigners altogether,” foreigners were free to use the domestic Korean exchanges.

As such, the IRS assumes all foreigners’ withdrawals are taxable and Withholding tax on other income is 22%.

A Bad Time for Korean Exchanges

It is certainly a bad time for exchanges, especially for Bithumb who suffered a loss of $180 million in 2019.

It is one of the top four exchanges other than Upbit, Coinone, and Korbit that offer Korean Won (KRW) on and off-ramps.

Bithumb used to be the number one crypto exchange in Korea but after hacking by North Korea, wash trading, and failed acquisition attempt by a consortium struck a bad blow to its reputation. The exchange has already cut down its staff by 40%.

This move by the government, @DooWanNam of MakerDAO says could be,

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Author: AnTy

Bitfinex Requests Users To Provide More Private Information To Be KYC Compliant

The popular cryptocurrency exchange Bitfinex implemented additional controls to be compliant with (Know-Your-Customer) KYC procedures. During a conversation with a recognized news site, Paolo Ardoino, the CTO of Bitfinex, explained that they are always trying to enhance their compliance program. This is very important considering regulators are changing the legal frameworks in which exchanges operate.

Crypto Exchange Bitfinex Imposes New KYC Regulations

Clients of Bitfinex will be required to provide further information if they want to continue operating in the platform. For example, users will have to provide additional data, including their residential address.

Verified users have to furnish information about the source and use of the funds that include proof of address, among other things. The exchange has always allowed unverified users to trade on the exchange and participate in limited trading activities.

Not only will users will have to provide a picture of of themselves holding a government-issued identification card, but they will also have to share with the exchange information about their objectives when trading on the platform. According to Mr. Ardoino, all the information that they collect from users is properly stored, securely and confidentially.

In the future, other exchanges could gather more data in order to have more information about their clients and about how they use their digital assets.

It is worth mentioning that the exchange Bitfinex has been involved in different legal issues and controversies due to the Tether (USDT) stablecoin. The New York Attorney General (NYAG) has placed accusations on Bitfinex for using the reserves meant back the USDT stablecoin.

Regulatory agencies have been trying to regulate the cryptocurrency market and exchanges in the space. The main goal is to have control over the users of these platforms and understand whether they are involved in illegal activities.

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Author: Carl T

This Could Lead to a Bitcoin (BTC) Price War

China started the decline in BTC price and miners releasing additional supply into the market further put pressure

S9-Antminer rigs no longer profitable, so the old machines need to get a shakeout. Miners are easy to regulate and provides tax revenue benefit unlike crypto exchanges that helped fuel speculation and capital flight in China

What is behind the 15% drop in Bitcoin price?

According to several commentators, it is China. CNBC’s Brian Kelley claimed China cracking down on crypto trading is what got this bloodbath started and then some miners getting capitulated did the job further.

Economists and trader Alex Kruger also tweeted.

However, analyst Mati Greenspan believes we are just looking for a “scapegoat.” This is because even though it has been promoting blockchain technology, China hasn’t reversed its stance on crypto trading.

PBoC’s latest move against crypto trading has people “downright scared”. This can be seen in the Crypto Fear and Greed Index that is signaling “extreme greed” for the past few days as BTC price today fell to $6,515 level.

Miners Releasing Additional Supply into the Market

Greenspan in his newsletter on Monday said China news is only half the story. He pointed out that much of the crypto community on social media are long term BTC hodlers who “won’t necessarily be knocked off their positions by FUD.”

The other half of the story is the miners releasing additional supply of their BTC stash, stored during the bull run in the market. Just this morning, Dovey Wan, founding partner of Primitive Crypto in an interview with BlockTV shared that 50% of the current hash rate is contributed by S9-Antminer rigs and they are no longer profitable.

This year, the hash rate of the Bitcoin network has also increased significantly, making an all-time high in late October. This “unprecedented growth” Greenspan says is for the most part because of advances in ASIC technology. As new rigs come online, the hash rate has grown, Greenspan continued,

“what we’ve yet to see, or may be seeing at this moment, is a shakeout of the old machines. Let’s just hope it doesn’t lead to a price war,”

Bitcoin mining profitability calculator, Source: CryptoCompare

Bitcoin Mining Works in Regulators’ Favor

When it comes to mining, China dominates with 70% of global bitcoin mining operations. And in late October, in a surprising move, China’s economic planning agency removed crypto mining from its list of activities set for being banned or eliminated.

This decision reportedly left many miners confused about the central government’s stance on cryptocurrency. However, it doesn’t mean there would be “a wild growth of mining farms,” said Wang Hongyi, who manages mining machines in the provinces of Sichuan, Shaanxi, Xinjiang, and Inner Mongolia. Miners he said think:

“very far ahead in the future and [believe] this type of business will come under regulation.”

They are actually expecting the electricity fees to rise because

“once the government regulates it, they will want the fee to cover construction and fire services, etc.”

But while it will increase the cost of operation, it will make it easier for miners to work with governments, Wang said.

Taking a look from the regulators’ side, cryptocurrency exchanges have been bad for them because they helped fuel speculation and capital flight whereas mining can provide tax revenue benefits, Martin Chorzempa, a research fellow from Peterson Institute for International Economics shared his views with the South China Morning Post. He said,

“My sense was always that they [miners] are easier to regulate because they run on physical hardware in China and you know who won each block and how much that is worth because that is all public information.”

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Author: Carl T