South Korea Approves Amendment to Push Crypto Tax Rule to January 2022

South Korea is set to enforce its upcoming crypto tax law in January 2022 instead of the earlier proposition of October 2021. This will give crypto stakeholders operating within its jurisdiction one more year to sort out in-house tax reporting infrastructure.

A South Korea local news agency dubbed ‘Yonhap’ reported yesterday that the National Assembly’s Strategy and Finance committee met on Nov 30 and agreed to include the amendment into the recently proposed tax code. Last week, the committee had raised this suggestion, and now it seems that there is consensus on the date of implementation.

This piece of legislation is expected to capture South Korea’s active crypto market in matters tax, an issue that remains complex for most jurisdictions. As we reported earlier, South Korea’s government’s tax code was finalized in July and was awaiting parliament approval.

Some of the pertinent highlights in this tax code are that crypto assets will be considered commodities, attracting a 20% income tax. However, this will only apply to above 2.5 million Korean Won ($2,000).

Other than crypto trading activity, the tax code also captures gains from mining and income attributed to ICO’s. While it is a financial reprieve for the government, some stakeholders believe that smaller players will be forced out given the activity in South Korea’s crypto markets.

Notably, South Korea had already begun intense crypto oversight, especially when it comes to KYC and AML practices by exchanges. The country legalized crypto trading in March this year, requiring that exchanges comply with the real-name trading account stipulations.

Meanwhile, they have taken a ‘watch first’ approach in the Central Bank Digital Currency (CBDC) space, with the digital Won test scheduled for next year. This initiative is currently in its second phase, where stakeholders are being consulted before token distribution rolls out next year.

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Author: Edwin Munyui

Taproot and Schorr Merged into Bitcoin Core to Enhance Privacy

Earlier today, Schnorr and Taproot proposals were implemented to Bitcoin Core.

The Bitcoin network rarely undergoes such big changes, but after a decade still, as the network continues to grow and mature, it innovates along the way.

The much-awaited updates to Bitcoin, when finally activated, will increase the leading cryptocurrency’s privacy features and enhance its transactional capabilities.

Last month, Bitcoin developer Pieter Wuille made a pull request, meaning other developers were invited to review the code before its release. Taproot proposal alone had more than 150 developers review the code.

After a month of testing, the proposals finally made it to bitcoin, as per commit history on Github.

The activation mechanism for these proposals haven’t been decided yet; once chosen, it may still take time, even a year, before it is activated.

Formally, these two updates are Bitcoin improvement proposals (BIP) 340 and 341, which represent perhaps the biggest changes to the network since Segregated Witness (SegWit) was implemented to increase Bitcoin’s block size limit in 2017.

Schnorr targets the size by combining multiple keys to a single one when facilitating transactions from a wallet while providing the added benefit of privacy.

Taproot allows Schnorr signatures to be used to allow new ways for users to define conditions to spend Bitcoin. This upgrade is designed to add smart contract flexibility to Bitcoin.

The Taproot implementation was also part of the Bitcoin 0.21.0 release, which also included support for Tor’s anonymous communication software.

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Author: AnTy

C.R.E.A.M Finance Goes Live on Binance Smart Chain; Deposits Jump Past $300 Million

Earlier this month, Binance announced the launch of Binance Smart Chain to enable the creation of smart contracts and the staking mechanism for BNB.

At that time, it announced Ethereum-based Cream as its DeFi collaborator, and today the DeFi project has gone live on Binance Smart Chain.

Unlike the sky-high costs on the Ethereum network, BSC boasts of only $0.05 – $0.10 per transaction.

“BSC never aimed to replace ETH, BSC is just ETH-compatible. Smart projects are giving their users more options. Option for cheaper fees,” said Binance CEO Changpeng “CZ” Zhao.

Binance is speeding up its efforts to keep up with the DeFi world. Recently, it announced a $100 million fund to connect the DeFi and CeFi world with “support for Yield Farming with major crypto assets coming soon to Binance Smart Chain.”

As Binance chases DeFi, its native token BNB enjoys the greens of 18% to trade at $27.5.

Meanwhile, right from the launch of Cream on BSC, the tokens supported are BNB, BUSD, BTC, ETH, XRP, BCH, and LTC.

“The Binance ecosystem and its reach of 400,000+ accounts and fiat gateways covering over 170 countries and regions will help get DeFi into mass adoption,” states Cream’s official announcement.

Since its launch two months back, C.R.E.A.M Finance has amassed $309 million in deposits or total value locked (TVL), $224 million of which were added just this week — making it the 10th largest DeFi project as per DeFi pulse.

This week, the DeFi aggregator also launched an automated market maker (AMM) called ‘Swap,’ a market that is increasingly getting crowded with new projects popping up every other day.

A fork of Balancer, Swap comes with a slightly lower fee structure than the popular Uniswap with support for Yearn, Aave, Compound, Balancer, Uniswap, and TokenSet besides its own tokens.

The governance token of the project is currently trading at $252 in green. In the past seven days, Cream has jumped 170% in value and made its ATH at $289 on Wednesday.

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Author: AnTy

YAM Ready to Jump Back in the DeFi Game, YAMv1 to YAMv2 Migration Underway

In just over a week, the one-day unaudited debacle from earlier last week is ready to return.

The YAM v1 to YAM v2 migration contract is already live since yesterday, and before the weekend is over, it will be completed.

“All YAMv1 tokens are eligible for migration, but YAM must be harvested from staking contracts to migrate,” states the team.

This governance token of Yam.Finance, which imitated another popular DeFi token YFI was launched with no-premine, no founder shares, no VC interests, and as a zero value token, is all about farming YAM by staking popular DeFi tokens — started with eight staking pools including LINK, COMP, LEND, YFI, MKR, SNX, WETH, and ETH/AMPL.

As the YAM team notified in the aftermath of the unaudited experiment’s crash, they are proceeding with the YAMv1 to YAMv2 migration process, now following a successful audit of the migration contract from Peckshield.

For YAM’s audit, the community raised 115,150 DAI. The audit process only found issues of “Low” or “Informational” severity and have been addressed.

The migration is currently undergoing, and after 4:20 PM UTC August 22, YAMv1 tokens will no longer be eligible for migration.

In YAM v2 token address, 4,904 transfers have been made from 3,566 addresses.

In YAM v1, only about $15 million funds are left in the balance, which reached $750 million on August 13 as traders looked to capitalize on outsized yields from lending and borrowing on the platform, as per Yamalytics.

Another Attempt

YAM Finance didn’t last for long the last time, but it took the DeFi world by storm with its token experiment that included fluctuating supply assets launched via liquidity mining. It was YAM craziness that also pushed ETH fees to skywards. But a bug found in the rebase function resulted in its collapse.

But now, with migration, people who believe in YAM’s value get to capitalize on that by continuing to farm on failed v1 and make their way to the potential upside of v2.

This migration is just the first step in the process with YAMv2, just a placeholder for off-chain voting while YAMv3 is audited, whose launch timing is not determined yet.

Subject to community voting and audit timing, the migration to YAMv3 token will be done via an additional contract.

In its recent update, the team also reminded about granting lost rewards and a bonus to those who acted to save the system.

“We still believe that doing this is the right course of action.” Still, the team doesn’t have the power to enforce such actions on their own, as such, “once the migration to the audited YAM contracts is complete, the team will strongly advocate for one or more proposals consistent with this sentiment.”

Currently, YAM is trading at $1.39, up 393% from its all-time low but still down 99.2% from its all-time high of $167 set on August 12, as per CoinGecko.

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Author: AnTy

YouTube Files to Dismiss Ripple and CEO Brad Garlinghouse’s XRP Giveaway Scam Lawsuit

YouTube is seeking to dismiss a lawsuit filed against them by Ripple earlier in April. The video-sharing Google subsidiary has been accused of promoting XRP giveaway scams, causing reputational damage to Ripple and the firm’s CEO, Brad Garlinghouse.

In a response filing on July 20, YouTube argued that as an interactive computer service provider, it should is not liable for content published by third parties as per Section 230 of the Communications Decency Act.

Ripple had sued YouTube because it failed to control giveaway scams to an extent where a particular individual was scammed $15,000. According to Ripple’s argument, the video-sharing giant had not only facilitated financial losses due to scams but also increased their reputational risk as a firm. In the motion, Ripple suggested a couple of actions to taken be by YouTube:

“This lawsuit calls on the video platform to do a number of things … First, to be more aggressive and proactive in identifying these scams, before they’re posted. Second, faster removal of these scams once they are identified and lastly, to not profit from these scams.”

In its defense, YouTube has come out to ask for the dismissal of the charges filed by Ripple, noting that it cannot be tied to the giveaway scams. As per YouTube’s argument, they are not at fault since they did not willingly engage any of the third parties or contribute to the content posted.

The firm went on to state that the Ad’s approval or endorsements could not hold water, adding that it always shuts down such scams when given a heads up. Basing the argument on Section 230 of the Communications Decency Act, YouTube’s filings highlighted,

“Plaintiffs have sued YouTube for allegedly failing to do enough to prevent third-party fraudsters from hijacking various YouTube user accounts and perpetrating a crypto-currency scam through those stolen accounts.

YouTube did not orchestrate or participate in that scam, and after being notified about fraudulent content posted by the hijacked accounts, YouTube removed it. Plaintiffs’ state-law claims are barred by Section 230 of the CDA, 47 U.S.C. § 230 (“Section 230”), and all their claims fail of their own accord.”

While this is still in motion, YouTube has again been sued by the co-founder of Apple, Steve Wozniak, who claims that the platform allowed malicious players to initiate Bitcoin giveaway scams in his likeness. Apple’s co-founder, along with 18 other litigators, now want YouTube to pull the scams down, as well as compensate them for the punitive damages.

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Author: Edwin Munyui

Bitcoin May Have A Negative Quarter Ahead But That Won’t Be Atypical

Since falling earlier this week, the bitcoin price has been struggling to get back up. BTC/USD continues to trade under $9,200 in red on low volume.

But this shouldn’t be of much concern if history is any guide.

If we take a look at the quarterly returns, the quarter 3rd of 2016, the year bitcoin had its second halving, the returns were negative 9.21%. The last bitcoin reward halving took place in July 2016.

The month after the halving in 2016, bitcoin recorded negative returns which were because of the Bitfinex exchange hack and Ethereum DAO attack.

As such, analyst Rekt Capital says, “Negative Quarterly Returns for BTC this coming Q3 wouldn’t be out of the ordinary for a post-Halving period.”

In a separate tweet a few days back, the analyst has noted that, based on the world’s leading digital currency’s historical quarterly performance, “Chances are Bitcoin could see some downside in Quarter 3,” as well.

In the past six years, in four years the upcoming quarter recorded negative returns with the exception of the 2017 bull run and 2018 bear market.

Quarter 1 has been pretty much the same, heavily skewed towards losses historically and we end up falling in 2020 as well. Meanwhile, the green Q2 over the years resulted in gains for 2020 as well. Although past performance doesn’t guarantee future results, it is something to keep in mind.

Analyst PlanB also shared that monthly returns during the last halving have been “very asymmetrical.” But if Bitcoin has its typical month with substantial gains, we can easily climb to $12,000.

In contrast, if we look at the downside, the analyst points out there have been only two times that a negative 30% move happened in the last four years but a 30% spike happened 10 times which means the corrections might not be deep.

While many are hoping for bitcoin’s drop to $7,000, a drop of 25% isn’t that typical which we saw in March this year during the coronavirus pandemic wide market sell-off. Before that, we saw it thrice in 2018.

According to PlanB, $7,000 “seems highly unlikely” with all the money printing the governments are doing. “COVID just triggers more QE, which is net positive for both stock markets and BTC,” he said.

However, bitcoin remains correlated with the S&P 500 and a lot of bad news is converging on Wall Street. While the market sentiments have started to turn bullish, COVID-19 and political risks are rising. Moreover, the period of July to October is a seasonally weak time of year.

The International Monetary Fund has also warned that investors are “betting on continued and unprecedented support by central banks” and the disconnect between the market and economy is raising the risk of another slump in prices.

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Author: AnTy

Over 22,000 BTC Flows Out of Coinbase; Users Retaliating to Exchange’s Deal with the Govt.?

Earlier this week, a massive outflow of funds was registered on US-based cryptocurrency exchange Coinbase.

The exchange saw a negative flow of 22,137 BTC, worth more than $214 million on Monday.

Source: Glassnode

WhaleAlert reported the transfer of 1,975 BTC from Coinbase to an unknown wallet on June 9th. On June 6th three separate transactions were made to unknown wallets of 6,000 BTC, 2,000 BTC, and 1,859 BTC.

Such massive outflow of bitcoin funds came after it became public knowledge that Coinbase would allow the IRS and DEA to use their blockchain surveillance software Coinbase Analytics.

A Delete/Stop Using Coinbase poll conducted on Twitter by trader Josh Rager revealed that 66% of the 5000 respondents are willing to delete to stop using their Coinbase account while only 33% are interested in continuing to use the platform.

But these massive outflows could be just in-house movements as Rafael Schultze-Kraft of Glassnode, a crypto data firm points out, “it’s very well possible Coinbase is creating new cold wallets and aiming at reshuffling their funds.”

Coin Metrics co-founder Jacob Franek agrees with this as the destination address looks like an exchange address or mixer and it’s “always possible that a large withdrawal is a cold wallet transfer to a new address (not always easy to verify) unless a single whale withdrew >$22m+. Unlikely that it represents lots of little withdrawals.”

Interestingly, Coinbase is the largest bitcoin holder with 984,300 BTC in its wallets. Coinbase leads with a big margin as it is followed by Huobi (413,000) which doesn’t hold even half of the funds held by Coinbase. The list further moves down to Binance (318k BTC), OKEx (268k BTC), and BitMEX (217k BTC).

But the latest disaster has #DeleteCoinbase trending on Twitter yet again while the exchange maintains that they are not selling personal data of its clients.

“Data in our Analytics tool is fully sourced from publicly available data, and does not include any personally identifiable information,” said John Mart, a Coinbase executive.

Competitor exchange Kraken’s co-founder and CEO Jesse Powell countered if it isn’t augmented by any other information provided by clients.

“It is fully-sourced from public data, so yes, any other company can arrive at the exact same product with publicly available data,” said Mart.

Coinbase’s deal with the IRS and DEA is just the latest piece of information causing a public uproar as people are already fed up with the exchange’s constant service outages during times of bitcoin volatility.

Previously, the exchange was criticized for its Neutrino acquisition, privacy violations, and suspending Wikileaks’ bitcoin account.

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Author: AnTy

5 Bullish Bitcoin Charts, Three Patterns Not Seen Since the Parabolic Run of 2017

Earlier this week, bitcoin broke the important psychological level, $10,000 and hovered around this level for two days only to make a retreat today.

Currently, we are trading around $9,500 while managing the daily trading volume of just $2 billion, yet again slowing down on the weekend.

The good thing is bitcoin is leaving the exchanges, moving in the opposite direction to the bitcoin price, which means instead of selling, investors have taken to HODL their BTC.

Also, the Guppy indicator which identifies changing trends and breakouts in the price of an asset has flipped green on the bitcoin daily. Historically, these green flips have led to higher prices every single time. Stackin’ Bits said, Though it is likely we will be going higher,

“One thing that probably needs to be taken into consideration on this move is the extreme volatility. Price leads MA’s, and in such extreme volatility it wouldn’t surprise me to see some aggressive deviation over the next couple of moves as the volatility cools down.”

The realcap-weighted HOLD wave is yet another chart dominating similar setup patterns that were last seen in the past bull markets.

A bitcoin enthusiast notes that for a third time it occurred this spring. Currently, we are in the blow-off period with halving next week which if leads to another accumulation it could indicate a new bull market.

Yet another bullish chart that reflects the previous bull market is the number of active bitcoin addresses. These addresses have reached 1 million, last time hit in November 2017. Glassnode noted,

“The number of active addresses (and entities) has increased to levels not seen since the 2017 bull market – as has the number of new addresses – suggesting an increase not just in activity, but also in adoption.”

The market is ripe with bullish charts and the market sentiment has also finally turned into “greed” after over two months of “extreme fear.” The rising price of bitcoin is also backed by the solid volume with open interest on CME hitting a new all-time high.

The interest in “bitcoin halving” has also skyrocketed with searches on Google now 4x the 2016 halving.

Meanwhile, long term bitcoin investors continue to accumulate bitcoin, despite the prices rising up to the early highs from February.

Amidst this trader Galaxy has shared a chart, yet another dose of hopium for people, stating the flagship cryptocurrency could very well make its way to a new all-time high of $20,000 from here in another pattern not seen since the parabolic run of 2017.

In response to this chart, trader Crypto King wrote,

“I’m waiting for that green dildo to the moon. Liquidation dip occurred, volume dropped. Consolidating, spring coiling….”

Not to mention, high net worth individuals (HNW) and family officers are also getting in bitcoin.

When bitcoin rallies to the high of $20k, retail will start paying attention once again just like in 2013, when “the early rally was driven by Silicon Valley angels (smart money), by the end of the year retail piled in,” said Tuur Demeester.

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Author: AnTy

Bearish Narratives Behind the Bitcoin Price Crash to $8,169

Earlier this week, the bitcoin price surged back above $9,000 after having a roller coaster ride last month. In February, Bitcoin climbed to $10,600 and then dropped as low as $8,420 at the end of the month.

Now, we are almost back to where we started the week. In the past 24 hours, the digital asset fell nearly 10% to $8,169.

Three potential reasons for this bearish momentum involves coronavirus, miners hoarding, and PlusToken scam dumping on the market again, said analyst Jacob Canfield.

Coronavirus Sell-Off

The deadly covid-19 continues to spread all over the world while the situation continues to get better in Wuhan, China, the epicenter of the coronavirus.

As we have been seeing since last week, the coronavirus led to a sell-off in the global stock markets. The US stock market has been experiencing the worst days since the 2008 recession. This led to the central banks around the world to announce stimulus but even that hasn’t been able to keep the market sentiment positive for long.

Meanwhile, the traditional safe-haven assets like gold and Treasuries have been seeing much demand and prices rising to yearly highs.

When it comes to bitcoin, last week we saw BTC reacting to the coronavirus just like the global market but this week, it took a turn. The price of a digital asset also has an inverse correlation with coronavirus.

According to crypto data provider, Santiments, the fear among the investors regarding the economic impact of the virus has been also playing into the crypto market but it has tapered off slightly since discussion in crypto boards peaked on Feb. 25th.

Cumulative Effect

Another potential bearish narrative adding to the selling pressure of bitcoin price is the Miner hoarding which Canfield says has “typically strong bearish indication.” Asset fund manager Charlie Morris said,

“Miners have recently started to sell less than they mine. Historically, that has coincided with negative returns and reflects a weaker market bid. Miners are hoarding because they want to protect the market which is too soft to sell into. Bottom row turned green.”

Bitcoin returns have been poor when the miners sold less than they mined and strong when they sold more than they mined.

This Mossis explained has nothing to do with the upcoming halving in May 2020, but counter-intuitive. “Historically, they have built up inventory during bear markets and sold it down during bull markets,’ said Morris.

This week, about 13,000 BTC has also been moved to new PlusTokens mix deposits. Though it does not necessarily mean a sell-off in the immediate future, there is certainly a rising probability of it now.

Also, the trading volume has been drying up since last week. We have been seeing less than the 2020 staple of over a billion-dollar exchanging hands-on top ten exchanges with real volume. Moreover, this sudden drop led to the liquidation of a whopping $19.25 million on BitMEX and $1.5 million on Bitfinex.

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Author: AnTy

Bitcoin Prepares for $7,500 as Next Stop while Exchanges’ BTC Balance Continue Surging

Earlier this week, bitcoin’s price took a hit, falling from above $10,000 to hit below $8,450.

Currently, BTC/USD is trading at $8,650, up 1.29% in the past 24 hours while managing the daily trading volume of $735 million.

Source: Coin360

Interestingly, despite ongoing losses, Bitcoin exchange balances have doubled since Jan.1, 2018. With OKEx, Binance, Bitfinex, Huobi, Bittrex, Bitstamp, Kraken and Deribit all recording growth in BTC balance, noted analyst Ceteris Paribus.

There are two events that altered its trajectory, such as the crash of November 2018; when bitcoin prices fell from about $6,000 to $3,200 in Dec. and hit the bottom.

The second event was the start of the bull run in 2019. During this period, the New York Attorney General launched an investigation into Bitfinex and Tether’s $850 million cover-up.

“Regardless of price action, more and more is getting sent to exchanges,” Paribus observed.

If Bitcoin Heads South, Prepare for Another >10% Drop

Bitcoin took an almost 16% drop but is still up 18% in 2020 so far. This fall came amidst the coronavirus scare that has the stock market seeing the biggest weekly drop since the recession in 2008.

Yesterday, however, bitcoin futures on the regulated platform – CME – expired, which fully closed the $8,500 gap. Investors expect a bounce, but if the markets take one more southbound step, losing it its current level: trader Crypto Michael estimates that Bitcoin will keep heading down until $7,500-$7,700.

Analyst DonAlt is also expecting some crazy action because the world’s leading digital asset won’t keep on ranging.

The “nasty” bearish candle Bitcoin has printed is now sitting on top of the 50 percent retrace of the 2019 bull market, along with the 50-week moving average.

Just like other commentators, analyst Magic sees “a continuation in selling pressure” if Bitcoin breaks below these levels. But, if Bitcoin finds support here, we could also see a nice rally.

While the analyst argues that there’s “absolutely zero” evidence to support the completion of an inverted head and shoulder pattern leading BTC to the upside. If it does, the digital asset can climb towards $20,000, its previous all-time high.

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Author: AnTy