In New Zealand want to release cryptocurrency from double taxation

Tax management New Zealand can refuse to apply to the cryptocurrency of the tax on goods and services.

GST Issues by ForkLog on Scribd

The document also indicates the rapid development of the cryptocurrency sector. At the same time, digital assets cannot accurately be called an investment product, making it difficult to apply the existing tax legislation.

At the moment, crypto-currencies and tokens in New Zealand fall under the category of «property» and are taxed at 15% when transfer of the assets. Later user also relieve the income tax. The IRS intends to waive the tax on goods and services in respect of the assets used as securities or currencies.

In this case in relation to digital assets will leave the tax on the income.

Comments regarding the initiatives the Agency will take until April 9.

We will remind, last year the IRS has recognized lawful the receipt of income in the cryptocurrency employees and published a guide to taxation.


New DAI: race priority liens began

DAI is the largest decentralized steilcoom. On MakerDAO accounts for more than 60% of the assets used in DeFi. The most important event in the history of this stabilini was the transition from monologue Dai (Single-Collateral Dai, SAI) to multicellular Dai (Multi-Collateral Dai, or DAI MCD), which occurred at the end of 2019, two years after the launch of MakerDAO.

The transition from SAI to DAI is that now DAI can be issued not only secured the broadcast wrapped, but secured other ERC20-tokens on the Ethereum blockchain. It is assumed that the diversification of the portfolio collateral will make DAI more reliable. Team Maker stresses that in the long term, with the approval of the holders of MKR (control tokens MakerDAO), licenzirovanie practically any asset that has an acceptable risk parameters can be added to the portfolio of collateral DAI.

These risk parameters has not yet been determined. For example, nobody discusses what risk parameters ETH or other token should be excluded from the portfolio of mortgages DAI. However, the first experience of selecting new collateral to DAI already is, he and the subject of this article.

The selection of new mortgages

Forum Maker offered more than a dozen new pledges for DAI, including Liquidity Uniswap Tokens and stabilini provided by Fiat. To the vote of the holders of MKR on the priority of the mortgage assets, which took place from 12th to 19th August, 2019, issued only 6+1 tokens: OmiseGO (OMG), Golem (GNT), Augur (REP), DigixDAO (DGD), Basic Token Attention (BAT), 0x (ZRX) and Ethereum (ETH).

The results of this voting are as follows:

Total votes Participation Unique voters Yes No
ETH 43 274,50 MKR 4,38% 50 43 274,50 MKR (100,00%) MKR 0 (0.00%)
REP 35 459,37 MKR 3,58% 45 32 697,36 MKR (92,21%) 2 762,00 MKR (7,79%)
BAT 22 565,34 MKR Of 2.28% 45 22 525,05 MKR (99,82%) 40,29 MKR (0,18%)
ZRX 23 201,59 MKR Of 2.35% 39 17 648,57 MKR (76,07%) 5 553,02 MKR (23,93%)
DGD 13 051,22 MKR Of 1.32% 46 5 468,73 MKR (41,90%) 7 582,49 MKR (58,10%)
OMG 12 342,14 MKR 1,25% 43 4 683,70 MKR (37,95%) 7 658,44 MKR (62,05%)
GNT 12 184,94 MKR Of 1.23% 38 2 040,43 MKR (16,75%) 10 144,50 MKR (83,25%)

Source: Vote.MakerDAO

On the eve of launching of MCD, 9 Nov 2019, Head of Backend Services from Foundation Maker Niklas Kunkel mentioned in the Telegram chat MakerDAO all of the contenders on this list, except for the GNT:

«Developed here: the BAT will be included at startup.ZRX, REP, OMG DGD and we are considering adding in the near future.»

Finally, in the post about the launch of the MCD dated November 18, 2019 was mentioned only two ERC20-token:

«The types of mortgages offered in MCD at the moment, it is ETH and BAT, digital advertising token Brave. Community Maker currently estimates that the additional token token al — REP market predictions of the Augur».

Despite the fact that the REP has received the most «for» votes from the holders of MKR, the first and only addition to the ETH became a BAT. In the above post, there is no explanation of this change of priority is contrary to the results of the vote, but the forum Maker in the section on liens one of the most discussed topics is the argument Micah Zoltu against Rep.

The problem of spirals of deleverage

Ari Class of Mundt [Ariah Klages-Mundt] and Andria mink [Andreea Minca] in their study of spirals of deleveraging, which is subject to a decentralized stabilini like DAI, found at such tablconv stable and unstable region. The unstable region in their model exist even when a stable price ETH as collateral.

DAI is secured by a portfolio of ETH, BAT and reps that won in the vote on the priority of liens, and more reliable than SAI? We chose to evaluate two criteria. First, price stability and BAT REP, how they react to the fall in the price of ETH and how they are volatile. Second, the liquidity of the BAT and the REP compared to the ETH, as they can withstand large liquidation.

The first criterion: correlation with ETH and volatility

The diversification of the portfolio of mortgages DAI to improve the stability of the system for the price of ETH is complicated by the fact that in 2019 ETH was the most correlated scriptaction. 2019 Annual Crypto-Correlations Review is from Binance Research suggests that scriptactive retain a high correlation with each other, the correlation may increase during adverse price movements.

BAT REP, and have positive correlation with ETH more than 0.5.

Source: Coinmetrics

BAT REP and more volatile than ETH, although since the beginning of 2019, their volatility has declined substantially.

Source: Coinmetrics

Positive correlation with ETH and greater than ETH, the volatility, suggests that in our first BAT REP criterion and not make DAI more reliable than SAI. When ETH price drops, prices BAT REP and also fall but to a greater extent.

The second criterion: liquidity

To compare liquidity ETH, BAT REP and we have used historical data Coinpaprika about the depth of their market, measured as a ten percent section of the stock glass from the average price (10% section of the order book from the midpoint price). We are interested in the possibility of mass sales of collateral, so we do not look at the amount bid — and ask-orders and bid only on orders.

Liquidity ETH rose from the beginning of 2020 by 60%, from $104 million to $166 million.

Source: Coinpaprika

The liquidity of the BAT also increased from the beginning of 2020 and also by 60%, from $2 million to $3.2 million

Source: Coinpaprika

For each collateral asset Maker includes a debt ceiling (debt ceiling) the limit of emission of DAI secured this asset. To assess the balance of the portfolio of mortgages DAI you can use the ratio «liquidity/debt ceiling» (liquidity/debt ceiling).

For example, take the information on the liquidity and the debt ceiling for ETH and BAT for 09 February 2020:

Liquidity Debt ceiling Liquidity/Debt ceiling
ETH $167,844 M $125M Of 1.34
BAT $3,198 M $3M Of 1.07

Source: Coinpaprika, Daistats

Thus, despite the fact that in this day liquidity ETH exceeded the liquidity of the BAT 52.48 times, the coefficient of resistance to mass sales at ETH proved to be more than the BAT, only 1.25 times.

The liquidity of the BAT in the second half of 2019 ranged from $2M to $3 million, so his «liquidity/debt ceiling» were seldom less than 0.67 and more than 1. Liquidity ETH over the same period ranged from $90 million to $140 million, and its «liquidity/debt ceiling» — from 0.72 to 1.12.

Because the BAT is lower than ETH, the ratio of «liquidity/debt ceiling», according to our second criterion is the current version of DAI is also more reliable than SAI.

REP is not yet added to the portfolio of collateral DAI and the debt ceiling is not installed. We can assume that it will be less than the BAT, as REP less liquid.

Source Coinpaprika

Liquidity REP in the second half of 2019 was almost always six figures, but at the beginning of 2020, she began to grow and on February 9, 2020 amounted to $1.283 million, assuming that the ratio of «liquidity/debt ceiling» for all mortgages DAI should be about the same, but REP is still difficult to claim the debt ceiling more than $1 million.

In assessing the sustainability of liens DAI to mass sales it is necessary to consider the sensitivity of the liquidity of the collateral to drop their prices because the bonds are only sold when their price falls. On the charts of the price and liquidity of the ETN, and the BAT REP there is a positive correlation – the drop in prices accompanied by a drop in liquidity.

What’s next?

Join the race of priority liens. The primary evaluation criteria of stability of prices and liquidity is no reason to believe DAI, secured ETH, BAT and REP, more reliable than SAI. On the contrary.

If you don’t like those conclusions, then perhaps you do not like the fact that MKR as collateral of last resort for DAI not too different from a BAT REP in terms of correlation with ETH, volatility and liquidity. At the same for MKR, as collateral of last resort, the debt ceiling does not exist by definition.

DAI is positioned as a decentralized stablon. Stablon have decentralized the decentralized provision of alternative tokens open public blockchains and tokens of decentralized applications on these blockchains. The problem is that these tokens are characterized by a strong positive correlation, which could increase in periods of adverse price movements, as well as high volatility and low liquidity. This complicates the diversification of the portfolio of mortgages DAI and forced to think about ERC20 tokens secured by traditional assets under the control of the custodian. Think about how stabilio it is important to remain decentralized.

Rune Christensen saw the potential resolution of the dispute on pledge of the real world to save SAI under the name PurityDai. The idea that MakerDAO emits not one but two stablein: SAI provided only ETH and DAI, which are provided by a portfolio of mortgages, including traditional assets. He, in particular, notes:

«What’s really cool about this approach is that PurityDai will be a unique asset in the sense that it will be provided only ETH and the Deposit cannot be confiscated, but he will be protected against «black swans» that could happen with the price of ETH, because it will use the same MKR that Dai and other synthetic assets, and thus will benefit from a highly diversified protection against black swans, which give the real assets of the world.»

In the case monologues Dai liquidity MKR as the guarantee of last resort should be enough for «black swans» that could happen with the price of ETH. In the current version multilogue Dai liquidity MKR already should be enough for «black swans» not one, but two mortgages — ETH and BAT. Question how will change the liquidity of the MKR as the growth in supply of synthetic assets MakerDAO and adding new mortgages, remains open.

In the end, no matter what it is the community as a result of disputes about potential collateral for DAI, decisions about adding new collateral and the debt ceiling for them to accept pseudonymous MKR holders who are not required to publicly justify their choice.

Dmitriy Bondar


Analyst CoinDesk: Bitcoin confirmed bearish reversal

Bitcoin has reached a three-week low on Wednesday, rolling back much of the increase since the beginning of the year. Crypto currency touched a low of $9 095, which is not traded on 4 February. Thus it was eliminated about 38% increase from $6 850 to $10 500 that occurred during the six weeks ending February 13.

According to the analyst CoinDesk, rally may not resume in the near future. Bitcoin fell below $400 9 Tuesday, technically confirming the bearish reversal. In addition, sellers managed to push through 50 day moving average for the first time since January 3.

12-hour schedule

12-hour chart reveals the figure of «head and shoulders», confirming the trend change to bearish and vulnerable to fall to $8 300. To return of the bullish trend requires a rise above the lower high at $10 028.

Daily chart

The histogram MACD is used to identify the trend change and assess its strength, has reached the lowest level since November 26, the strongest confirming a bearish tone over the last three months.

The relative strength index also paints a bearish picture, staying below the 50 level. In addition, the course fell below the 50-day moving average and key support of $9 188. A slight rebound could Herald a further decline, says the analyst.

Hourly chart

On the hourly chart the MACD has painted a higher low, going against a lower low in price. This bullish divergence tells about the depletion of the sellers. It is not excluded corrective rise to $9 230 or $9 400.


The condition of the head Binance has doubled over the past year

Chinese Hurun research Institute this Wednesday unveiled a new edition of its ranking of the rich. It included six representatives of the industry of cryptocurrency, writes 8btc.

42-year-old CEO Binance Changban Zhao continued to build up their personal assets with the expansion of the company. His condition has reached $2.6 billion, doubling compared to last year. This allowed him to become the most wealthy figure in the crypto industry in the Hurun list.

Second place in the segment of Mikri Jean, co-founder of mining company Bitmain. As at 31 January 2020, his fortune was estimated at $1.6 billion For the year, Jean has lost 41% of the capital – last January it had $2.7 billion and was ranked first in the ranking of the richest crypto-entrepreneurs. The other co-founder of Bitmain – Jihan Wu then was the third, and this year could not even get on the list.

The founder of OKEx exchanges OKCoin and Xu Minsin owns a fortune of $1.4 billion, the founder of Huobi Li Ling – $1.1 billion, the founder of Coinbase Brian Armstrong – $1 billion in Addition to Mikri Jean, the list includes only one crypto-entrepreneur, who founded the not own bitcoin exchange. This Ripple co-founder Chris Larsen with $1.3 billion.

The rating Hurun called the Chinese version of the Forbes list. This year he’s hit 2 816 billionaires from 71 countries. For the third consecutive year leader Amazon founder Jeff Bezos, who owns the capital by $140 billion as CEO of Louis Vuitton Moët Hennessy Bernard Arnault came in second place with $107 billion, bill gates and Warren Buffett is the third and fourth with $106 billion and $102 billion respectively.

799 billionaires in the list are of Chinese origin. The most wealthy of them is the founder of Alibaba Group Jack MA – $45 billion.


Bitcoin exchange BTSE IEO will conduct the sidechained Liquid from Blockstream in early March

Cryptocurrency platform BTSE will hold an initial exchange offer (IEO) on the Liquid sidechained from the company Blockstream 5 Mar.

BTSE plans to sell verified users up to 25,000 tokens at a price of $2. Thus, the maximum amount involved during the IEO funds is $50 million, the exchange will launch spot trading a couple of BTSE/USD.

According to a press release, BTSE has already conducted a private placement of the token, beginning in October.

«We recently completed a round of private placement of tokens through participation investors like FBG Capital, Lemniscap, CMS Holdings, Taureon Capital, GBCI Ventures and BCB Blockchain» — said exchange CEO Jonathan Leong.

Note that due to regulatory difficulties BTSE recently changed Dubai to the virgin Islands. According to the Block, informed the Central Bank of the UAE said that BTSE is missing the necessary license.

We will remind, earlier BTSE launched futures on Monero.

Subscribe to the channel ForkLog in YouTube!


The Bank of Canada refused to issue CBDC in the near future

The Bank is not going to in the near future to issue its own digital currency (CBDC), said the Deputy Governor of the Central Bank Timothy lane.

He noted that many Canadians are faced with the problems of long delays and high cost of cross-border transfers, which can solve the digital currency.

Bitcoin has not coped with the task of becoming the «future of money», according to lane, however, stabilini potentially able to «transform the world of payments.» He stressed the growing popularity of private digital currencies, separately highlighting the upcoming launch of the Libra project from Facebook.

However, the Bank of Canada is not yet ready to issue its own digital currency.

«We came to the conclusion that there is currently no strong arguments in favor of the release of the CBDC. Canadians will use the existing payment ecosystem, if it is modernized,» said lane.

In this case the regulator does not deny the issue of the CBDC in the future. According to the representative of the Central Bank, this may occur when the rejection of the use of cash or extensive use of private digital currencies.

«This may be one dominant digital currency, created by a major technology company — a monopoly that will harm competition and privacy and will pose a challenge for the monetary sovereignty of Canada,» said lane.

The Bank of Canada will continue to explore opportunities CBDC and the demand of citizens to such an asset, he concluded.

We will remind, about the possibility of creating its own digital currency in the canadian Central Bank said last year.


Why the market IEO did not repeat the success of the ICO?

Recently, experts BitMEX evaluated the effectiveness of the investment in 12 projects that triggered the Initial Exchange Offering (initial exchange offer, IEO) in 2019. The study showed that the tokens lost up to 98%. The exception was Matic. Just failure turned into 67% IEO.

Journalist the Block Larry Cermak at the end of January stated that the average yield of investments in IEO for the previous 200 days closer to 0%. He said:

«IEO is dead. Such suggestions do not matter in the long term.»

Cermak analyzed five cryptocurrency exchanges. Only one of them — Binance — retained a positive dynamics of profitability IEO. Other venues are in the red.

What is the reason?

The main feature of the IEO is the full reference to the exchanges that govern all organisational issues, since the number of proposed coins and ending with the conditions of their repurchase.

It was assumed that the IEO will be a reliable investment, because projects were reviewed and approved by the stock exchanges. However, the exchanges had their own interest and Finance. Therefore, sites were interested in holding IEO more and more often.

As a result, many IEO, which, though not fraudulent, are projects that do not bring any benefit and only the promise of further technological breakthroughs (as once promised a Scam-ICO).

If you examine the descriptions of many IEO, it is possible to meet such expressions as «infinite scalability», «revolutionary technology», «absolute transparency», «providing confidence, security and motivation» — remind you of anything?

It might seem that the IEO was not able to obtain such popularity as ICO in 2017, due to the fact that cryptologist was passionate about other issues — such as Libra and TON. However, judging by economic indicators, the IEO market is more dead than alive.


Chanpen Zhao: it is Necessary to regulate fake news

Fake news — a fairly common phenomenon in the world of cryptocurrency. The market continues to suffer from public relations and information stuffing along with the sensational data. However, is this enough for regulation? According to General Director Binance, apparently, it is.

«To regulate fake news»

In a recent tweet, Chanpen Zhao (CZ) made fun of those who has a limited view of the world, and then began to call it «news.» CZ just said, «we need to regulate fake news». The attack was directed against the founder of the Mike Block Dudas. It recorded all this on the screenshot.

It is unclear how you can «regulate» fake news or who will understand what is true in the industry. This would lead us on a dangerous path that many have criticized.

The founder of TRON (TRX) Justin San and CZ stated that they will seek to create a «Fund for the fight against fear, uncertainty and doubt (FUD)», which apparently will require more than $1 million Then Justin San stated that «distributors of FUD has to pay!». We should not forget that this is the same Justin San, who used the death of Kobe Bryant and even fear around the coronavirus to entice customers TRON. Frankly, it would be difficult to argue that the Fund, or any other, will be impartial.

Undesirable precedent

The fake news is spread not only in the cryptocurrency industry, and attempt to «regulate» them would be a dangerous precedent. Moreover, if we assume «self-regulation» of the industry by the very participants who benefit from this the greatest benefit, it will cause more damage.

Chanpen Zhao wrote these comments after a hectic week for the largest cryptocurrency exchanges. The media closely followed the developments from the lack of USDT for margin trading to internal problems with the processing of orders and balances. Also there was recent news about the headquarters of the Binance after it became known that the exchange generally is not registered in Malta.

Of course, this is disappointing news for Binance, but they are not unfounded, and it’s not «FUD». Although cryptocurrency media is prone to sensationalism, this problem affects all media. The exchanges and companies just need to learn to work in this environment because the alternative is much worse.


MoneyGram received an additional $11 million investment from Ripple

Money transfer service MoneyGram has received from FINTECH start-up Ripple $11.3 million investment over the second half of last year. It is reported by CoinDesk, citing statements to the Commission on securities and exchange Commission (SEC).

Funds from the California startup has received two tranches of $2.4 million in the third quarter and $8.9 million in the fourth.

«Being the first money transfer service, large-scale involved of the ability of the blockchain, MoneyGram expanded its strategic partnership with Ripple», — reported in a press release.

The new document is not specified, which was sent $11 million investment. However, the report for the third quarter States that the funds will enable MoneyGram to involve the solution of On-Demand Liquidity (ODL, formerly known as xRapid) for cross-border payments:

«The company expects that this large-scale partnership will reduce its working capital needs and provide an opportunity to generate additional cash flow and profit»

At the end of last year, MoneyGram announced the beginning of active use of ODL on the basis of the token XRP from Ripple. According to the head of the company Alex Holmes, ODL handles 10% of remittances between the U.S. and Mexico.

We will remind, the transaction is $50 million between Ripple and MoneyGram was closed at the end of last year. According to its results, the California startup owns 9.95% of the shares in the money transfer service.


CBR: scammers are using bitcoin to steal money from gullible Russians

Promises of investments in the cryptocurrency, the organizers of financial pyramids in the Internet used in the year 2019 most often to raise funds for the Russians. About it have informed «news» the Bank of Russia.

One of the largest of the pyramids last year, the Central Bank believes AirBitClub, attracting investments to issue its own digital currency. According to preliminary estimates, it was involved in about 60 thousand people, and the amount of investment exceeded 500 million rubles.

In addition to the large pyramids on the market there are many such small projects, which can attract up to 30 million rubles.

Experts believe that the popularity of cryptocurrencies environments fraudsters due to the rise of the price of bitcoins in 2017 and also absence in Russia the regulation of scriptaction.

Earlier, the Central Bank saidthat in 2019, the regulator has identified 237 organizations with signs of financial pyramids, which was the highest figure in five years their search.