Posts by FarerScary

    5 Cryptocurrency Tax Questions to Ask on April 15th

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    Depending on what country you live in, your cryptocurrency will be subject to different tax rules. The questions below address implications within the United States, but similar issues arise around the world. As always, check with a local tax professional to assess your own particular tax situation.

    1. Do I need to report my cryptocurrency trades to the IRS?

    You need to report your cryptocurrency activity if you incurred a taxable event during the year. A taxable event is a specific scenario that triggers a tax liability. The below are a list of the taxable events as specified by the IRS 2014 guidance:

    • Trading cryptocurrency to fiat currency like the U.S. dollar is a taxable event.
    • Trading cryptocurrency to cryptocurrency is a taxable event (you have to calculate the fair market value in USD at the time of the trade).
    • Using cryptocurrency for goods and services is a taxable event (again, you have to calculate the fair market value in USD at the time of the trade; you may also end up owing sales tax).

    The most common tax event from the above is trading one cryptocurrency for another — for example, trading your Bitcoin (BTC) for Ethereum (ETH).

    On the other hand, there are other actions that cryptocurrency enthusiasts also commonly take that are not taxable events and do not trigger a tax reporting requirement. Listed below are scenarios in which traders do not trigger a tax event:

    • Giving cryptocurrency as a gift is not a taxable event (the recipient inherits the cost basis; the gift tax still applies, if you exceed the gift tax exemption amount).
    • A wallet-to-wallet transfer is not a taxable event (you can transfer between exchanges or wallets without realizing capital gains and losses, so make sure to check your records against the records of your exchanges, because they may count transfers as taxable events, like they are a safe harbor).
    • Buying cryptocurrency with USD is not a taxable event. You don’t realize gains until you trade, use or sell your crypto. If you hold longer than a year, you can realize long-term capital gains (which are about half the rate of short-term). If you hold less than a year, you realize short-term capital gains and losses.

    An example

    Let’s say you buy 2 BTC from Coinbase. You just hold this crypto for the year. In this case, you have no reporting requirement, as you have not triggered a taxable event. Even if you send this to an offline wallet, you still do not need to report this, as merely sending crypto from one place to another is not a taxable event.

    Now let’s say you send this 2 BTC to Binance and start trading it for other altcoins. Now you have incurred a taxable event (trading one cryptocurrency for another) and you will need to report this transaction on your taxes and file it with your 2018 tax return, even if you lost money on the trade.

    Keep in mind that mining cryptocurrency is also taxable and is treated as income.

    2. How do I file my crypto taxes?

    If you are simply buying, selling and trading cryptocurrencies you will report these trades on the IRS Form 8949, as pictured below.

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    As seen in the above example, you have sold 0.5 Bitcoin. You acquired the Bitcoin on July 16, 2017, and you sold it on December 17, 2017. You sold the Bitcoin for a total proceed of $9,848.00, and your cost basis was $970.00. This led to your gain of $8,873.00 (reported in column h).

    You will report each crypto-to-crypto trade and each taxable event from the calendar year on this form.

    You can use crypto tax software to automatically build this report for you, if you don’t have your own records of the historical prices, dates and fair market values of your trades.

    Once you have your net gain or loss calculated from Form 8949, the total will simply flow into your 1040 Schedule D. You should include these forms with your entire tax return upon filing.

    Foreign account holdings

    If you traded on foreign exchanges like Binance, you may additionally need to report these holdings. You do not pay any tax on these holdings, but it is important that you file the following reports if either situation applies to you.

    FBAR: A taxpayer with a financial interest in or signatory authority over a foreign financial account must file a Foreign Bank Account Report (FBAR) FinCEN Form 114 if the aggregate value of the foreign financial account exceeds $10,000 at any time during the calendar year. Noncompliance with FBAR would subject a taxpayer to steep civil and criminal penalties. Each nonwillful failure-to-file violation can carry a civil penalty of $10,000. Penalties for each willful violation could be the greater of $100,000 or 50% of the amount in the account.

    FATCA: A taxpayer with foreign financial assets of $50,000 or more must report it under Foreign Account Tax Compliance Act (FATCA) requirements on Form 8938. It is recommended that cryptocurrency-invested hedge fund accounts and cryptocurrency-denominated exchange accounts be reported in the summary information in Part I of Form 8938. Specific information should be given in Part V. Noncompliance with FATCA could subject a taxpayer to taxes, severe penalties in excess of the unreported foreign assets, and exclusion from access to U.S. markets, which could include a regulated cryptocurrency derivatives clearing market.

    3. What will happen if I don’t report my crypto activity?

    The reality is that no one knows for sure. However, it is not advised.

    The IRS publicly stated on July 2, 2018 that one of their core campaigns and focuses for the year is the taxation of virtual currencies. Unfortunately, lack of reporting will be treated as tax fraud.

    4. Can I reduce my tax bill by filing my crypto capital losses?

    Yes.

    When you realize a capital gain — if you sold your crypto for more than you purchased it for — you owe a tax on the dollar amount of the gain. However, when you sell (or trade) your crypto for less than you purchased it for, you incur a capital loss, and you can use this loss to offset gains from other trades or even a gain from the sale of other property — like stocks in your portfolio.

    Whenever your total capital gains and losses for the year add up to a negative number, you incur a net capital loss. If the net capital loss is less than or equal to $3,000 ($1,500 if you are married and filing a separate tax return), then that entire capital loss can be used to offset other types of income — like the income from your job.

    If your losses exceed $3,000, then the amount over $3,000 will be rolled forward to the next tax year.

    The bright spot in the 2018 bear market is that your losses can reduce your tax bill.

    5. Why can’t I get my tax documents from the exchanges that I use?

    Cryptocurrency exchanges are unable to provide their users with accurate tax documentation. This is a big problem in the industry.

    By the nature of the blockchain technology that exchanges operate on, users are able to send Bitcoin and other cryptocurrencies to wallet addresses outside of their own network. An example of this would look like you buying Bitcoin through Coinbase and then sending it to a Binance wallet address in order to acquire new coins and assets on Binance that Coinbase does not offer.

    Because you can send cryptocurrencies from other platforms onto exchanges like Coinbase at any time, Coinbase has no possible way of knowing how, when, where or at what cost you acquired that cryptocurrency that you sent in. Coinbase only sees that it showed up in your Coinbase wallet.

    This means that anytime you move crypto assets off of Coinbase or into Coinbase from another location, Coinbase completely loses the ability to provide you with accurate tax information. This is because it has no way of identifying what your cost basis is in that certain cryptocurrency, which is an essential piece to figure out your capital gain or loss. This is also true of all other major cryptocurrency exchanges.

    The solution to this problem is to leverage crypto tax aggregating tools to collect your data from all platforms to build your holistic tax reports.

    David Kemmerer is the co-founder of CryptoTrader.Tax, cryptocurrency-focused tax software for automating your tax reporting.

    Source: https://cointelegraph.com/news…ions-to-ask-on-april-15th

    Hodler's Digest, April 8–14: Top Stories, Price Movements, Quotes and FUD of the Week

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    NYT Reporter: Facebook Seeking $1 Billion in Venture Capital for Crypto Project

    According to a tweet by New York Times (NYT) tech reporter Nathaniel Popper, Facebook is reportedly looking to various venture capital firms to develop its digital token that has been previously reported on. Popper, citing unnamed sources familiar with the matter, said that Facebook is seeking $1 billion to develop its cryptocurrency project, which itself has not been publicly confirmed by the company. The Times reporter also noted that the project involves a stablecoin that would be pegged to a basket of foreign currencies held in bank accounts.

    Chinese Traders Pay Extra for Bitcoin Through OTC Desks Amid Crypto Market Surge

    Local Chinese social media sources said that Bitcoin’s (BTC) price surge last week has led Chinese traders to pay a premium in order to trade the cryptocurrency. According to an analysis of price spreads from cryptocurrency exchanges Huobi and OKEx, cnLedger highlighted how Chinese traders are paying more in order to acquire Bitcoin. Since China formally banned crypto trading in the country in 2017, investors have had to resort to creative methods in order to deal in Bitcoin. In the analysis, cnLedger notes that a principal way to avoid the ban is to buy stablecoins such as Tether (USDT) via over-the-counter (OTC) services and convert them into other cryptocurrencies

    Top Stories This Week

    Top-Subscribed YouTuber PewDiePie Partners With Blockchain

    PewDiePie, the personality behind the most subscribed channel on YouTube, announced this week that he will start streaming on blockchain video platform DLive as of April 14. Dlive is a blockchain-powered broadcasting app with a rewards system for content creators and will become the exclusive platform for livestreaming the famous Swedish YouTuber, Felix Kjellberg — aka PewDiePie. The platform currently has 3 million monthly users and 35,000 active streamers, while PewDiePie on YouTube has over 93 million subscribers and 21 billion video views, as of April 2019. PewDiePie’s move to Dlive comes as the Swede faced backlash over his alleged ties to white supremacism, as his channel was mentioned by the Christchurch gunman prior to his attack on two New Zealand mosques.

    Bitcoin at Most Overbought Level Since Record Bull Run: Bloomberg Analyst

    Bloomberg Intelligence analyst Mike McGlone claimed this week that Bitcoin is at its most overbought level since its record highs in December 2017, citing BTC’s GTI Global Strength Indicator. Bloomberg writes that similar buy patterns in the past have resulted in multi-week downturns, citing McGlone as referring to Bitcoin as a bubble. McGlone states that the recent market growth came about due to a long-term price compression and low volatility, causing the price to be “released from the cage.” Bloomberg also cites David Tawil, president of crypto hedge fund ProChain Capital, who reportedly expects the market to continue its downward trend.

    Top Stories This Week

    Coinbase Crypto Exchange Debuts Visa Card for U.K. Customers

    Major United States cryptocurrency exchange Coinbase has launched Coinbase Card, which will enable its United Kingdom-based customers to pay both in-store and online with cryptocurrency. The card itself is a Visa debit card that is powered by users’ Coinbase account crypto balances, allowing purchases to be made globally by instantly converting customers’ crypto funds into fiat. The Coinbase Card has also been released for iOS and Android, linking Coinbase accounts with the app and allowing users to select which wallet will fund their card, as well as allowing access for receipts, transaction summaries and spending categories. The card is issued by authorized and regulated electronic money institution Paysafe Financial Services Limited.

    Winners and Losers

    The crypto markets are holding slightly down by the end of the week, with Bitcoin around $5,099, Ethereum at $165 and XRP about $0.33. Total market cap is around $172 billion.

    The top three altcoin gainers of the week are BunnyCoin, WomenCoin and Block-Chain.com. The top three altcoin losers of the week are dietbitcoin, Cryptrust and ContractNet.

    Winners and Losers

    For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

    Most Memorable Quotations

    “This is a stark contrast to the development you see with things like EOS or with Ethereum with Casper, where they kind of adopt this lone samurai viewpoint.”

    Charles Hoskinson, the co-founder of Ethereum (ETH) and IOHK, the company behind Cardano (ADA), speaking on the idea of development with open protocols

    “I have learned about how blockchain is having a huge impact on supply chain management, and how an app in Britain can help the public report modern slavery at car washes.”

    Princess Eugenie, the granddaughter of Queen Elizabeth, who founded the Anti-Slavery Collective in Britain in 2017

    Most Memorable Quotations

    “Blockchain is like a spreadsheet on steroids that can automate certain tasks, build greater transparency, speed and reliability, and provide a single source of transactional information.”

    David R. Jarczyk, innovation principal and tax leader for blockchain at KPMG

    “Now it’s a question of duration and I suspect when you have such a massive bubble, you’ll always have an overhang of people who need to sell.”

    Mike McGlone, Bloomberg Intelligence analyst

    FUD of the Week

    Singapore Police Secure First Convictions Against OneCoin MLM Scheme Agents

    Authorities in Singapore have charged two men for promoting crypto multi-level marketing (MLM) scheme OneCoin in what is touted as the first case of its kind for the city-state. The two unnamed men reportedly engaged in activities that incorporated a subsidiary in order to promote OneCoin, in addition to signing up new members and accepting investments in return for education courses and OneCoin tokens. Singapore’s central bank had previously added OneCoin to its Investor Alert List, and various governments around the world have also issued warnings against the MLM scam, advising consumers not to interact or invest in OneCoin. While one founder was recently arrested in the U.S., the other remains at large following the indictment.

    Canadian Crypto Exchange QuadrigaCX Officially Declared Bankrupt

    QuadrigaCX, the embattled Canadian crypto exchange, has officially been declared bankrupt. The exchange’s bankruptcy was reportedly approved by the Nova Scotia Supreme Court following the court monitor’s earlier recommendation to do so. At the time, Ernst & Young’s legal team had put forward the argument that the restructuring process should instead be shifted to bankruptcy proceedings, meaning that the monitor will now have enhanced investigative powers. QuadrigaCX had previously filed for creditor protection when it apparently lost access to its cold wallet funds following the unexpected death of its founder in December 2018.

    Electrum Faces Another Fake Wallet Attack, Users Reported to Lose Millions of Dollars

    Bitcoin wallet service Electrum faced another Denial-of-Service (DoS) attack on its servers this week. According to media outlets, this most recent attack has resulted in the loss of millions of dollars (the exact sum unconfirmed) with a single user allegedly losing about $140,000. The attack works by referring users to fake versions of Electrum software by employing a malicious botnet of more than 140,000 machines. The company has recommended that its users upgrade their software versions older than 3.3 and not download software from any source besides the official site. Last December, Electrum faced a similar attack that led to a loss of about $937,000 worth of Bitcoin.

    Best Cointelegraph Feature

    Will China Ban Crypto Mining?

    After this week’s relatively unexpected publication by a Chinese government agency about a possible ban on crypto mining, Cointelegraph takes a look into how serious the idea is, and who and what will be affected in what is unarguably the largest crypto mining sector in the world.

    Facebook, Twitter and Telegram: A New Crypto Paradigm or a Glorified Voucher Program?

    As more unconfirmed news surrounding Facebook’s secretive crypto project surfaced this week, Cointelegraph analyzes what it would mean for one of the biggest, and possibly most untrusted, institutions in the world to issue their own cryptocurrency.

    Source: https://cointelegraph.com/news…uotes-and-fud-of-the-week

    Ethereum Core Developers Consider More Frequent and Smaller Hard Forks

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    Ethereum (ETH) core developers are considering implementing more frequent and smaller hard forks, according to the most recent bi-weekly meeting held on April 12.

    The question of time between hard forks — or network updates — was brought up by the meeting’s moderator, Tim Beiko, who referenced it as an ongoing topic of discussion. Another dev then began the discussion by referencing core developer Alexey Akhunov’s previously expressed position in favor of shorter periods between forks.

    To “check the temperature” of the devs’ position on hard fork timing, the dev asked if anyone on the call was “open to hard forks as short as three months.” The first three responses to the question were negative or tentative, with dev Joseph Delong calling three months “too quick [...] for turnaround.”

    Another developer, Martin Holst Swende, then summarized the sentiment, stating:

    “as long as we’re not tied to large hard forkes every three months. So, more like opportunity windows, when things are finished.”

    Another dev then pointed out that the team had yet to complete a hard fork within six months, suggesting that “there a couple of things we probably need to automate to be able to do that really well.”

    The devs also referenced the topic as being previously discussed on the Ethereum developer forum Ethereum Magicians. In the discussion’s initial post, dated March 15, Beiko laid out the pros and cons of smaller and more frequent hard forks, noting that the team had discussed the topic on its dev call that same day.

    Some of the arguments in favor include that such a move would bring more frequent updates to the protocol and would also allow the team to separate concerns and isolate changes better and decrease the deployment time of updates that require multiple forks. Further, the testing process would be arguably easier since there would be fewer EIPs to test and fewer EIP interactions to check.

    Still, arguments for larger and less frequent hard forks were also presented, such as the fact that they leave ample time for security evaluation. Less frequent hard forks require less frequent client updates and user coordination. In the case of frequent hard forks, a bug in a fork also risk delaying the next fork.

    As Cointelegraph reported earlier this week, a report released by decentralized application (DApp) analytics website DApp.com revealed that Tron (TRX) has the fastest growing DApp user base while Ethereum’s DApp user base is shrinking.

    Also this week, Charles Hoskinson, the co-founder of Ethereum and IOHK, the company behind Cardano (ADA), criticized Ethereum and Eos’s (EOS) approach to development.

    Source: https://cointelegraph.com/news…nt-and-smaller-hard-forks

    Bitcoin Hovers Near $5,100 as Top Cryptos See Slight Losses

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    Saturday, April 13 — most of the top 20 cryptocurrencies are reporting slight losses on the day by press time, as Bitcoin (BTC) hovers just over the $5,100 mark.

    Market visualization courtesy of Coin360

    Market visualization courtesy of Coin360

    Bitcoin’s price is up about half a percent on the day, trading at around $5,107 by press time, according to CoinMarketCap. Looking at its weekly chart, the current price is also just half a percent higher than the price at which Bitcoin started the week.

    Bitcoin 7-day price chart. Source: CoinMarketCap

    Bitcoin 7-day price chart. Source: CoinMarketCap

    Ethereum (ETH) is holding onto its position as the largest altcoin by market cap, which is at about $17.4 billion. The second-largest altcoin, Ripple (XRP), has a market cap of about $13.7 billion by press time.

    ETH has seen almost no change over the last 24 hours, down a fraction of a percent. At press time, ETH is trading around $165. On the week, the coin has also seen almost no gross change, but reported a mid-week high of $184 on Monday.

    Ethereum 7-day price chart. Source: CoinMarketCap

    Ethereum 7-day price chart. Source: CoinMarketCap

    During a recent developer meeting this week, Ethereum core developers stated that they are considering more frequent and smaller hard forks.

    Second-largest altcoin Ripple is also seeing fractional losses over the 24 hours to press time and is currently trading at around $0.327. Looking at the coin’s weekly chart, however, its current price over 8% lower than what it reported one week ago.

    Ripple 7-day price chart. Source: CoinMarketCap

    Ripple 7-day price chart. Source: CoinMarketCap

    Among the top 20 cryptocurrencies, the only one reporting notable gains is Binance Coin (BNB), which is up almost three percent. BNB has seen slightly more gains on the week.

    The total market cap of all cryptocurrencies is currently equivalent to $173.1 billion, which is close to two percent lower than $175.6, the value it reported a week ago.

    As Cointelegraph reported yesterday, French insurance markets can now invest in cryptocurrencies, following the passage of a new law.

    Today, Cointelegraph reported that the research arm of major cryptocurrency derivatives platform BitMEX estimates that Bitcoin SV (BSV) miners have accumulated gross losses of $2.2 million.

    The report released by BitMEX Research claims that BSV miners perceived a negative gross profit margin of 12% since the coin was created in a hard fork that split Bitcoin Cash (BCH).

    Source: https://cointelegraph.com/news…cryptos-see-slight-losses

    Bitcoin SV Miners Saw Gross Losses of $2.2 Million Since Fork: BitMEX

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    A tweet published on April 12 by the research arm of major cryptocurrency derivatives platform BitMEX estimates that Bitcoin SV (BSV) miners have accumulated gross losses of $2.2 million.

    The report released by BitMEX Research claims that BSV miners perceived a negative gross profit margin of 12% since the coin was created in a hard fork that split Bitcoin Cash (BCH). The estimate is based on mined coin count, current coin prices and lower bound mining electricity costs.

    The tweet notes that, among costs, the estimate accounts for mining electricity only.

    In November, in the run up to the BCH hard fork, BitMEX research launched a network monitoring tool for Bitcoin (BTC) and Bitcoin Cash. The resource, dubbed Forkmonitor, provided the data that BitMEX referred to in yesterday’s tweet.

    In March, BitMEX Research also launched an Ethereum (ETH) node metrics website. The site, called NodeStats, shows data about five different ETH nodes and updates every five seconds. The website has been launched in partnership with BitMEX Ethereum data partner TokenAnalyst.

    As Cointelegraph reported yesterday, the founder and CEO of major cryptocurrency exchange Binace, Changpeng Zhao, warned that he will delist BSV if the creator of the altcoin, Craig Wright, does not alter his behavior.

    The reaction from Zhao is seemingly motivated by the fact that Wright recently set a bounty over the identity of a Twitter user that called him a fraud for his claims to be Satoshi Nakamoto, Bitcoin’s creator.

    Source: https://cointelegraph.com/news…million-since-fork-bitmex

    France Passes Bill to Allow Insurance Providers to Invest in Crypto and Tokens

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    French insurance markets can now invest in cryptocurrencies, following the passage of a new law, foreign exchange news agency FXStreet reports April 11.

    On April 11, the National Assembly of France adopted a bill that is designed to stimulate local business development, including redirecting savings from individuals to businesses, according to local news agency Les Echos. According to Reuters, the Assemblee Nationale voted 147 in favor and 50 against.

    Known as “Plan d’action pour la croissance et la transformation des entreprises,” (Pacte) the act reportedly allows insurance providers in France to invest in cryptocurrencies such as Bitcoin (BTC) with no limit on the amount of investment.

    According FXStreet, a dual provision of the act enables insurers to invest in crypto through specialized professional funds, and allows them to offer life insurance policies exposed to crypto. The new measure will also impact professional capital investment funds.

    Joel Giraud, deputy and budget manager of Emmanuel Macron’s party La République En Marche, confirmed the news, while claiming that the new crypto-related initiative “was not the primary objective of the Pacte,” according to tech news website TrustNodes.

    The bill mainly targets privatization process, including a sale of the state’s stake in airports group ADP in order to raise money for a new innovation fund.

    Earlier in March, Eric Woerth, head of the Finance Committee of the National Assembly, proposed to ban anonymous cryptocurrencies like Monero (XMR) and ZCash (ZEC).

    Source: https://cointelegraph.com/news…vest-in-crypto-and-tokens

    Lightning Torch Reaches Final Destination, Over 0.4 BTC Donated to Humanitarian Aid

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    Charity-focused organization Bitcoin Venezuela tweeted on April 10 that the so-called Lightning Torch had reached its final destination, with all accumulated Bitcoin (BTC) donated to the group.

    By the time it got to the organization, the Lightning Torch had grown to exactly 0.4108021 BTC, which is currently equivalent to over $2,000.

    The Torch is an experiment first initiated by anonymous Twitter user Hodlnaut. The Lightning Torch is passed by sending the same BTC from user to user adding a little every time via the scalability solution, Lightning Network (LN).

    Bitcoin Venezuela is reportedly responsible for the humanitarian initiative “Bitcoin for Venezuela,” recently reporting it had given away meals to people in the country during a power outage.

    The organization also seemingly partnered with the donation-funded Locha Mesh Network development initiative. The project aims to develop cheap and open source do-it-yourself devices capable of maintaining an independent, decentralized and censorship-resistant network, allowing its users to communicate securely and send Bitcoin without access to the internet.

    The Twitter user who first initiated the Lightning Torch relay has recently become embroiled in a conflict with Craig Wright — the industry figure behind the coin Bitcoin Satoshi Vision (BSV) who is also known for proclaiming himself to be Satoshi Nakamoto on multiple occasions.

    Pro-BSV media outlet Coingeek reported on April 11 that Wright has set a $5,000 bounty in BSV for information regarding the identity of Hodlnaut, after the latter allegedly posted “highly defamatory and abusive tweets” about Wright.

    The CEO of major cryptocurrency exchange Binace Changpeng Zhao then stepped in with a tweet on April 11, saying that if Wright does not change his conduct, Binance delist BSV from its platform.

    In February, the Lightning Torch was passed on by LinkedIn co-founder and former PayPal exec Reid Hoffman. Before him, Twitter co-founder and CEO Jack Dorsey also passed the Torch, as did many other high-profile figures in crypto and finance.

    Source: https://cointelegraph.com/news…nated-to-humanitarian-aid

    Bitcoin, Ethereum, Ripple, Litecoin, EOS, Bitcoin Cash, Binance Coin, Stellar, Cardano, TRON: Price Analysis April 12

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    The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

    Market data is provided by the HitBTC exchange.

    The launch of the eagerly awaited platform Bakkt has been postponed a few times, but the firm has continued to focus on building its team. It recently hired a former engineering executive at PayPal and Google as its chief product officer. These appointments show that the firm is able to attract talent from the traditional heavyweights, which is positive.

    Blockstack is planning to launch a $50 million token sale that is SEC-qualified. If approved, this will be the first sale under the SEC Regulation A+ framework. Harvard Endowment fund is expected to participate in the purchase.

    While the blockchain and cryptocurrency space has a lot of potential, their adoption is still not widespread. A survey of 90,000 developers by the website StackOverflow shows that 80 percent of organizations are still not using blockchain. However, Frank Xiong, vice president of blockchain product development at Oracle expects 50 percent of all companies to use blockchain within the next three years.

    The developments in the sector are encouraging, but the industry still lacks the full-fledged involvement of institutional players. Goldman Sachs CEO David Solomon has denied that the bank ever wanted to open a crypto trading desk, as reported by the media a few months back.

    After the recent spell of profit booking, let’s see what the charts project.

    BTC/USD

    We were expecting Bitcoin (BTC) to rally to $5,600 and above it to $5,900 following the breakout above $5,309.31. But the digital currency turned down from $5,404.82. It is currently attempting to hold the support at $4,914.11. The 38.2 percent Fibonacci retracement of the recent upswing is also located close to this level. If the price rebounds from the current levels, it will indicate that sentiment has changed from sell on rallies to buy on dips. The immediate target on the upside is $5,600 and above it $5,900.

    BTC/USD

    Both the moving averages are sloping up and the RSI is close to the overbought zone. This shows that the bulls are in command and the trend remains up.

    The BTC/USD pair will turn negative if it turns down from the current level and slides below the 20-day EMA. Therefore, we suggest traders keep the stop loss on the remaining long positions at $4,600.

    ETH/USD

    Ethereum (ETH) declined below the breakout level of $167.32 on April 11. This is a bearish sign. After a breakout of a major pattern like the ascending triangle, we expected the $167.32 level to hold. However, the bulls are trying to defend the 20-day EMA. If they can push the price back above $167.32 quickly, it will indicate buying at lower levels.

    ETH/USD

    The ETH/USD pair will pick up momentum if the bulls scale above $187.98. The target remains $251.64. Our bullish view will be invalidated if the pair turns around from the current levels or from $187.98 and plummets below the 20-day EMA. Such a move will confirm that the breakout was a bull trap. For now, traders can retain the stop loss on the remaining long positions at $150.

    XRP/USD

    Ripple (XRP) broke below the immediate support of $0.350 and the 20-day EMA on April 11. It has again re-entered the descending channel, which is a bearish sign. The bulls are presently trying to defend the 50-day SMA.

    XRP/USD

    Both the moving averages have flattened out and the RSI is close to 50. This points to a consolidation in the short-term. If the XRP/USD pair rises above the resistance line of the descending channel, it might move up to $0.37835. A breakout of this level will signal a change in trend that can be bought.

    However, if the pair breaks down of the 50-day SMA, it can drop to $0.27795. We do not find any reliable buy setup at the current level; hence, we are not suggesting any trade in it.

    LTC/USD

    Litecoin (LTC) witnessed profit booking as it failed to climb above $91 on April 10. The correction stalled at the 20-day EMA. Currently, the bulls are trying to stabilize the price around the 20-day EMA and resume the recovery.

    LTC/USD

    The 20-day EMA is flattening out and the RSI has dropped to just above the midpoint. This suggests consolidation in the short term. However, the long-term trend remains up as the 50-day SMA is still trending higher.

    The LTC/USD pair will face resistance in the $91 to $100 zone on the upside. If this zone is crossed, the next targets to watch are $159 and above it $180. On the other hand, if the pair sinks below the 20-day EMA, it can fall to $62.450. We will watch for a couple of days before recommending long positions once again.

    BCH/USD

    Bitcoin Cash (BCH) dipped below the range of $272.41 to $332.58 and triggered our suggested stop loss of $265 on the remaining long positions. Currently, it is attempting to bounce back from the 20-day EMA, which is a positive sign. This shows that the bulls are keen to defend the first major support of the 20-day EMA.

    BCH/USD

    The BCH/USD pair can now move up to $332.58 and above it to $363.30. If the bulls push the price above this resistance, the rally can extend to $451.32. There is a minor resistance at $400 but we expect it to be crossed. Both the moving averages are trending up and the RSI is in the positive zone. This indicates that the bulls have the upper hand.

    However, if the bulls fail to push the price above $332.58, the digital currency might remain range bound between $255 and $332.58 for a few days. We shall wait for a reliable buy setup to form before proposing long positions once again. The trend will favor the bears if the cryptocurrency dives below $239.

    EOS/USD

    As the RSI was deeply overbought, we had recommended trailing the remaining long positions with a close stop loss in our previous analysis. EOS reversed direction from the resistance line on April 10. Due to the fall, the RSI has dropped out of the overbought zone.

    EOS/USD

    The bulls are trying to bounce off the 20-day EMA. If successful, the EOS/USD pair might again move up to the resistance line and if that is crossed the up-move can extend to $6.8299. With both the moving averages still sloping up, the bulls are at an advantage.

    Our positive view will be invalidated if the bears sink the pair below the 20-day EMA. In such a case, the digital currency might consolidate in a large range of $4.4930–$6.8299 for a few more days.

    BNB/USD

    Binance Coin (BNB) broke down of the ascending channel and the 20-day EMA on April 11, but buying on dips has again pushed the price back above the 20-day EMA, which is a positive sign. It shows that the bulls continue to buy on every dip and have been defending the 20-day EMA aggressively.

    BNB/USD

    With the recent correction, the 20-day EMA has flattened out and the RSI has dipped back into neutral territory. This points to a range formation in the short term. Nonetheless, the long-term trend still remains up as the 50-day SMA is sloping up.

    The BNB/USD pair might rise to $22 after it closes above the downtrend line. On the downside, it has strong support at the 50-day SMA. We remain positive on the pair and will suggest long positions once again at the first available opportunity. Our bullish view will be negated if the bears sink the price below the 50-day SMA.

    XLM/USD

    Stellar (XLM) continues to trade inside the wedge. It slipped below the 20-day EMA and triggered our recommended stop loss of $0.1130 on the remaining long position. Currently, the bulls are trying to defend the 50-day SMA.

    XLM/USD

    Both the moving averages are flattening out and the RSI has dipped back to the neutral zone. This points to a consolidation in the near term. The XLM/USD pair has support at the uptrend line and resistance at $0.14861760. It will pick up momentum and signal a trend change if it sustains above $0.14861760. Until then, we remain neutral on the digital currency.

    ADA/USD

    Cardano (ADA) turned around from the overhead resistance of $0.094256 and plunged below the support at $0.082952 on April 11. The down move triggered our suggest stop loss at $0.080 on the remaining long positions. It is currently attempting to bounce off the 20-day EMA, which is a positive sign. The bulls will again try to ascend the overhead resistance of $0.094256. If successful, the target on the upside is $0.20 with a minor resistance at $0.112598

    ADA/USD

    But if the ADA/USD pair turns down and dips below the 20-day EMA, it can decline to the 50-day SMA. However, with both the moving averages still sloping up and the RSI in positive territory, the path of least resistance is to the upside. We shall watch for a couple of days and recommend entering long positions once again if we find a reliable buy setup.

    TRX/USD

    Tron (TRX) plunged back into the range on April 11. This is the third time the digital currency has re-entered the range after breaking out of it this year. It shows that demand dries up at higher levels.

    TRX/USD

    After the sharp fall on April 11, the TRX/USD pair is trying to take support close to the 50-day SMA. If the bulls push the price back above $0.02815521, it will be a positive development. The pair will pick up momentum after it crosses $0.03575668. The target levels to watch on the upside are $0.040 and above it $0.0480.

    However, if the price fails to bounce off the current levels, it can plummet below the 50-day SMA to $0.02094452. Therefore, we suggest traders retain the stop loss on the long positions at $0.0240.

    Мarket data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.

    Source: https://cointelegraph.com/news…n-price-analysis-april-12

    Binance CEO CZ: Whether It's an ICO or an IEO, Regulatory Compliance Is Still an Issue

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    Changpeng Zhao, the CEO and founder of top crypto exchange Binance, has underscored that exchange-hosted token offerings are no less subject to regulatory hurdles than their initial coin offering (ICO) predecessors.

    The CEO, better known in the industry as “CZ,” made his remarks in an interview with Bloomberg on April 10.

    As previously reported, so-called initial exchange offerings (IEOs) have latterly emerged as an alternative model of token offering wherein a centralized crypto exchange acts as a form of underwriter. The exchange generally operates sales and ostensibly vets both the projects themselves and prospective investors.

    In the interview, CZ emphasized that while IEOs may indeed offer the benefit of having a third-party do due diligence on projects, regulatory compliance issues are no less onerous for the new model of offering than for ICOs:

    “Regulatory compliance does not change regardless of if you do an ICO or IEO. If you issue a token representing shares of your company, then it is a security (in most countries), and you need to do some work on compliance.”

    He also corrected the narrative that Binance itself spearheaded the concept of an IEO, noting that he is not aware of the roots of the new “IEO” term, and that Binance’s Launchpad has not formally presented itself as such. He added:

    “Back in 2017 when ICOs were hot, there were other ‘centralized ICO’ websites. We borrowed the idea from there. Exchange-facilitated initial sales is not a new concept. The only minor tweak is using cryptocurrencies instead of fiat.”

    As Cointelegraph has reported, Binance’s token sales platform Launchpad hosted a high-profile token sale for the Tron-based BitTorrent token (BTT) this January, followed by another IEO for AI and smart contract project Fetch.AI in February, as well as for Celer Network in March.

    In mid-March, crypto exchange Bittrex’s Malta-based counterpart cancelled its first IEO token sale just two days after its announcement. It later conducted a different inaugural IEO in April.

    Earlier this week, industry critics and advisors weighed in on the potential drawbacks of the IEO trend. One securities lawyer noted that the exchange-hosted model could make regulators even more likely to deem offerings to be securities sales. Others pointed to the paradox of introducing intermediaries to a space that prizes decentralization, as well as criticizing exchanges for allegedly using IEOs as an opportunity to push sales and use of their own native tokens.

    Source: https://cointelegraph.com/news…pliance-is-still-an-issue

    Chainalysis Urges FATF to Rethink Data Demands on Crypto Exchanges

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    Blockchain analysis firm Chainalysis has hit back at recommendations from intergovernmental financial anti-crime organization the Financial Action Task Force (FATF) in a direct letter dated April 8.

    The letter, which Chainalysis sent to the FATF, criticizes the organization’s demands to make cryptocurrency exchanges identify and keep records of senders and recipients involved in cryptocurrency transactions.

    These demands had surfaced at the end of February, with the FATF subsequently inviting public feedback on its literature.

    According to Chainalysis, such requests would place exchanges, which the FATF calls “Virtual Asset Service Providers (VASPs),” in an almost impossible position.

    Should exchanges shut down due to non-compliance, illicit activity would be driven underground to decentralized platforms, making fighting crime harder, not easier, for authorities, Chainalysis argues.

    “There is no infrastructure to transmit information between VASPs today, and no one has the ability to change how virtual asset blockchains work,” the letter reads. It continues:

    “Forcing onerous investment and friction onto regulated VASPs, who are critical allies to law enforcement, could reduce their prevalence, drive activity to decentralized and peer-to-peer exchanges, and lead to further de-risking by financial institutions. Such measures would decrease the transparency that is currently available to law enforcement.”

    The FATF has meanwhile kept up pressure on governments on its list of countries making insufficient progress fighting issues such as money laundering and terrorist financing.

    As Cointelegraph reported this month, Pakistan announced that it would implement cryptocurrency regulations in response to criticism that an unregulated landscape facilitates financial crime. Pakistan’s central bank banned cryptocurrency trading in April 2018.

    Source: https://cointelegraph.com/news…mands-on-crypto-exchanges