- Bitcoin Price Analysis
- Ethereum, Ripple, Bitcoin cash reversing recent sell-off
- Israel issues draft of Cryptocurrency tax law
Bitcoin Price Fundamental Analysis
Having witnessed the biggest daily sell-off in four months, Bitcoin, the biggest and most traded cryptocurrency and most of its best-known counterparts have staged a comeback. Get updated on the 18 January Bitcoin Price Fundamental Analysis.
Bitcoin, the biggest and most traded cryptocurrency, consolidates its overnight recovery in a $ 1000 range just ahead of the $ 11k mark, as the dust settles over the fears of the regulatory crackdown on the virtual currencies across Asia.
The spot lost almost gave up 50% of its value from record peaks of near $ 20000 levels and fell to four digits on Tuesday at $ 9,231 after speculations mounted that South Korea and Chinese regulators are boosting their crackdown efforts to curb the digital currencies trading.
Ethereum, Ripple, Bitcoin cash reversing recent sell-off
All of its counterparts also reversing the recent sell-off, with Ethereum up +2.3%, Ripple rallying 20% while Bitcoin cash bounces 5% on the day, according to the CoinMarketCap data.
The crypto markets appear to have ignored the latest South Korean headline, citing that the South Korean regulator is said to consider shutting down all virtual currency exchanges. Most industry veterans view the sell-off as a good buying opportunity while adding that the traders could still continue to trading the digital currencies by switching onto exchanges in the countries that haven’t banned the cryptocurrencies.
Meanwhile, the cryptocurrency market cap also increased to $ 544 billion versus yesterday’s $503 billion. More than $200 billion has been wiped off the value of global cryptocurrencies over the last four trading sessions.
Israel issues draft of Cryptocurrency tax law
Israel issues draft of Cryptocurrency tax law, following the decision that cryptocurrencies are assets. The draft also details the taxation obligations of companies that raise money via ICOs.
The Israeli Tax Authority has invited the public to comment on the proposed draft of the new legislation at this moment. As per the spokesperson of ITA, the draft will be open for public comment for 14 days. Afterward, the draft will be finalized.
In addition, the authority has decided that a digital currency is an asset. The reason for this ruling is that a cryptocurrency is a possession belonging to the individual holding it. Thus, a digital currency’s sale is a taxable event, which is subject to capital gains tax.
Firms that buy and sell cryptocurrency should be obliged to report profits and losses, just like with any other asset. The ITA cryptocurrency tax legislation draft reads:
“A person whose income from the sale of tokens reaches the level of a business, his income will be classified as a business income and it will be subject to tax rates under sections 121 or 126 of the ordinance.”
ITA statement on ICOs
Furthermore, the circular states that transactions in Bitcoin will be classified as barrier transactions. They will be measured according to the overall value of assets in the exchange. Additionally, the circular also classifies the taxable status of firms that are selling tokens via and ICO and tokens’ buyers.
The head of the Israeli Tax Authority, Moshe Asher, has commented on the matter:
“The Tax Authority is monitoring the technological developments and is working to provide an answer regarding the tax implications of virtual currency activity and the issue of digital tokens, thereby increasing the certainty and tax transparency of those operating in the field.”
The ITA draft only mentioned tokens used as utilities. Tokens as securities were already dealt with in a separate circular dated January 2017.