South Korea is preparing to impose the income from cryptocurrency 20% tax

The South Korean authorities can equate the income from cryptocurrency trading «other income», like winning the lottery, reports the local edition of Pulse. This category in the country are subject to 20% tax.

According to «multiple sources from the government», a Department of the Ministry of economy and Finance of South Korea, responsible for income tax, began to revise the taxation of income from transactions with digital assets.

Previously this issue had been answered, the office for tax. Some local experts described the change as a step by the government to the classification of income from trading digital currencies as «other income» and not capital gains as it was reported before.

In accordance with local tax laws as «other income» are subject to 20% tax for 40% of total revenue. The remaining 60% of the income shall not be taxable.

In addition, if profit from trading digital currencies fall into the category of other income, regulators will be able to levy taxes immediately. If the deal with digital assets will be subject to taxation on capital gains, the tax collection authorities will need trade data from cryptocurrency exchanges.

We will remind, in the end of last year, the South Korean tax office put the exchange Bithumb account for more than $68 million.


Financial sovereignty is not for everyone: Eric Vorhes confirmed that Peter Schiff lost the keys to your bitcoin wallet

The CEO of cryptocurrency platform ShapeShift Eric Vorhes commented on the news that bitcoin is a well-known critic and supporter of investment in gold Peter Schiff has lost access to his wallet.

In particular, Works confirmed the words of Schiff, that it helped him to open the wallet, however, further actions were entirely the responsibility of the Schiff.

According to Vorhees in 2018 after a heated debate with Schiff they went together for dinner, during which he helped the economist to open the wallet on the mobile phone, and also gave him $50 in bitcoin. What was the wallet, Edge or BRD, Vorhes’t remember exactly, but definitely encouraged him to secure the wallet, if there will be a significant amount. However, neither password nor passphrase Peter Schiff is not recorded.

Also the head of the ShapeShift told that a day earlier, Schiff wrote him an email outlining the problem.

«I didn’t want to put him in an awkward position on the Internet, but then he publishes this… If I gave him an ounce of gold and he would have lost it on the street, be blamed he’s just as precious metal is that it’s a dumb monetary system?» — asks Works.

«Financial sovereignty — it’s not for everyone,» he concluded.

We will remind, on the eve of Peter Schiff said that he lost access to all my coins, as it is the password to the wallet is no longer valid. For whatever reason it happened, the financial expert found it difficult to answer, saying only that the wallet was «compromised». He refused help offered to him by the co-founder of the investment company Morgan Creek Digital Anthony Pompliano.


Ripple has partnered with 38 of the 100 largest banks in the world

The leading financial conglomerates of America, France and the UK were testing blockchain technology start-up or invest in it. RBC Crypto.

At least 38 of the 100 largest banks in the world have tested, integrated technology, cross-border payments Ripple or invested in it, according to XRPArcade. The largest of them is a Japanese holding Mitsubishi UFJ Financial Group, whose assets in the aggregate total more than $2.5 trillion.

Partners blockchain startups are:

  • the largest financial conglomerate in the UK HSBC Holdings PLC, associated to Ripple through the SABB Bank
  • Bank of America, working through the investment Bank Merryl Lynch
  • French financial conglomerate Crédit Agricole as a client.

The report XRPArcade emphasized that in reality the partner banks Ripple can be more. The reason for this is the relationship of companies with the blockchain startup through a third party.

14 Jan Heath Tarbert, head of the Commission on trade commodity futures U.S. (CFTC) said that he does not consider cryptocurrency XRP securities. According to him, the status of the token Ripple remains uncertain when Bitcoin and Ethereum exactly are the goods.


Price Ethereum is kept at two-month highs

Over the past week the exchange rate of the ether (ETH) jumped 22% coin tested maximum values on 19 January at $175. Last altcon kept on the mark on November 20. During the same period of time, bitcoin was able to grow about 11%, after advancing for a short time above $9000.

But both the bitcoin and have not received sufficient support to hold the positions gained and fell. Monday, January 20, the air is trading at $165, its market capitalization fell to $18,081 billion.

Despite such a sharp weakening of the air is still holding above $160 (key resistance), which means that the coin is preparing to repeat the race.

In the giant potential Aldona said the founder of the Mythos Capital Ryan Sean Adams. He predicts the growth of capitalization ETH to $1 trillion. A key driver of value growth is the market of financial services DeFi, which has recently been rapidly expanding. The popularity of these services is growing due to their decentralized nature.

According to Adams, in many countries, for example, in Argentina, growing demand for the digital currency and on the aether in particular. Mass adoption of the cryptocurrency will increase its value.

In this case, the achievement of the capitalization level to $1 trillion, can become a reality, summed up Adams.


Eric Voorhes: Schiff bitcoins lost by his own stupidity, not because of the «essence» of cryptocurrency

Chapter cryptocurrency platform ShapeShift Eric Voorhes, who previously helped Schiff to have a cryptocurrency wallet that confirmed that the access bitcoin lost, however, to blame the holder.

In his Twitter he said that one of the joint Lunches, he created a new address for Schiff and transferred the first $50 in BTC, stressing that security should be a place to record all related information in a safe place.

However, at the time Peter Schiff did not bother to record all the necessary passwords and access keys, and therefore there was the current situation.

«If I gave him an ounce of gold, and he would have lost it somewhere- would this be a reason to blame the precious metal in the incident? – surprised Voorhes, Fiscal sovereignty is not suitable for all».

Recall Peter Schiff accused the nature of the cryptocurrencies that he lost access to his wallet.



Analyst Cipherblade: Means purses COSS was sent to Binance

Singapore exchange cryptocurrency COSS 8 January without any prior notice translated their platform in maintenance mode for 3-4 weeks, thus, in fact, vetoed $2 million in assets users. While the exchange continues to insist that the event is associated with the need for imminent updates, expert analyst firm Cipherblade Richard Sanders believes there could be other ulterior motives.

«There’s no reason to close the exchange for 3-4 weeks to update the platform,» he said in a conversation with the Decrypt.

Sanders posted on Twitter a scheme of the intended transfer of assets in bitcoin wallets with COSS on Binance about the same time with suspension of service. Such transaction, the expert considers suspicious.

According to him, the platform may attempt to hide assets users before publicly report them missing.

«»The perfect crime» – restart COSS with a minimal set of new features», he added.

Manager of public relations COSS Satiart Mishra argues that the exchange itself is nothing to Binance to translate:

«So you can pull multiple addresses from any blockchain Explorer and tell someone you will call at its discretion, to carry out these transactions».

Sanders with these arguments can not agree:

«This seems to be translated from a normal user to Binance, and the transaction of the person who controls the wallets of exchanges and moves the assets on Binance, instead of sending them to their own hot wallet».

COSS opened the Ethereum address of your wallet, while the remaining assets are in the «undisclosed» cold wallets. The administration Telegram-group COSS, meanwhile, actively thwart any attempts of discussion of the solvency of the trading platform and blocks unwanted users.


The oldest bitcoin exchange Sweden plans to hold an IPO

Swedish cryptocurrency exchange BTCX intends to hold an initial public offering (IPO) by the end of the third quarter of this year. Information about this CoinDesk confirmed SEO exchange Soderstrom Oscar (Oskar Soderstrom).

According to him, therefore, the framework intends to attract traditional investors to the market, «the new Finance»:

«Our goal is to spread bitcoin among the masses and to bridge the gap between new and traditional Finance. The listing of «new Finance» in the traditional way seems a natural next step in achieving this goal,» said Soderstrom.

He also stressed that the IPO a bitcoin exchange should increase transparency of the industry in the eyes of regulators to the public.

Launched in 2012 BTCX supports trading bitcoin and Ethereum. The exchange also offers the facility «quick exchange» of digital and Fiat currencies. In 2017, the Board of Directors headed by a former member of the Swedish Parliament from the Liberal party and a longtime fan of cryptocurrencies Mathias Sundin.

At the time, he became the first Swedish politician who has begun to accept donations solely in bitcoin, but in 2014, when he was elected to the Riksdag (Parliament), he made a great contribution to transform the country’s banks in the most progressive in the world from the point of view of cooperation with bitcoin startups.

Recall, according to media reports, the IPO through a reverse takeover plans cryptocurrency exchange Huobi.


She has been the victim of a fraudulent website for cryptocurrency trading

54-the summer inhabitant of Volgograd has addressed in police after her account on one of the crypto sites has become unavailable. About it reports a press-service of the local Department of internal Affairs.

According to the victim, she found in the Internet announcement of the sale of cryptocurrency and have registered on the site, which supposedly was to trade on the exchange.

Russian woman transferred the money to the account of the personal Cabinet and for some time made trading operations. When the balance has reached 310 000, she tried to withdraw money, but her account was already inaccessible.

A search of the suspects.

At the end of December 2019, the Russians lost 4 million rubles «cryptocurrency» after the call of the unknown.

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Largest hacking kryptomere 2019


Mechanisms inherent in the device of cryptocurrencies make them the standard of safety in comparison with banks and other payment systems. Hacking the top of the block chain is a daunting task even for the Pentagon. In the entire history of the Bitcoin network her, no one was able to crack: any hackers in search of easy money, nor the security services in an attempt to freeze suspicious assets, no Bank experts in order to weaken a growing rival. Alas, but against cryptocurrency exchanges, the situation is quite different. Each year the hackers to break their security system and the withdrawal of coins equivalent in millions of dollars. And no matter small is the stock market, or a large giant market promising unprecedented resistance to cracking. Over the past 2019 cybercriminals hacked into seven major kryptomere, leaving in their budgets a huge hole in the amount of $164 million to Who, when and how became the target of hackers and what consequences it led to, the DeCenter.

January — Cryptopia

During the new year holidays, relatives and friends of users Cryptopia certainly wish them prosperity and financial stability, but these wishes have not come true. The year has started for them the loss of all digital assets that were once one of the largest cryptocurrency exchanges. The fifteenth of January, the exchange went offline, posting a message about significant losses and on gaps in the security system.

Until the end of February, the event had no immediate comment, and the work was not renewed. The guide explained that has no right to say anything during a police investigation. It is possible that in this there is a certain amount of guile. The real reason for the silence could be due to the normal fear to tell the truth.

As it turned out, Cryptopia was hacked, and the alleged damage amounted to $16 million the Number of victims — 900 000 people. It is still unclear what kind of security gap was used by cybercriminals. In August, the investigation revealed that the site did not create separate wallets

for users, but kept all the money in one place and never checked assets customer base with «total Treasury.»

The new Zealand platform tried to recover from the incident and in March was resumed trade, but the miracle did not happen. Users have lost confidence in it, so in may she began the process of liquidating and ten days later declared bankruptcy. The victims have not received compensation so far, and not the fact that he would receive it ever.

March DragonEx

At the end of March last year, the Singapore exchange DragonEx shocked its customers the sad news of the hacker attack. Initially the team site refused to name the amount of damage, but four days later, in his Telegram channel reported losses in the amount of $7 million as a result of hacking of the security system.

The argument that in the exchange there was a critical vulnerability, not convinced management of the need to provide users a full refund. Instead, the platform stated that work on the «prior compensation plan» under which victims will receive compensation in the equivalent of the Tether and/or the local Dragon Token. Today, the exchange continues to operate with a daily turnover of about $200 million.

March BitHumb

Less than a week after hacking DragonEx hackers have used the vulnerability of the South Korean giant Bithumb and brought to their addresses EOS 3 million ($13 million) and 20 million XRP ($6 million). The total damage amounted to about $19 million, but most notably, for Bithumb this is not the first case. The hacking occurred a year after large-scale hacking in 2018, as a result of the actions of criminals, presumably borne by the authorities of the DPRK, the South Korean stock exchange lost $31 million.

This time Bithumb suspects that the hacking was carried out by someone from the internal staff of the platform, since one of the exchange’s wallets guide recorded «crazy output». The management assured that the losses relate exclusively to herself and will not affect customers. Bithumb continues with a daily turnover of about $70 million.

May Binance

In late spring the attackers encroached on the largest cryptocurrency exchange turnover with the most active community — Binance. Chanpen Zhao has repeatedly positioned its platform as a super -, but in fact words with deeds. May 7, hackers emptied hot wallet of the exchange, and brought more than 7000 BTC in one transaction. They were able to access the user’s API-key, 2FA codes and other information. Loss at that time amounted to $40.7 million.

Hackers quickly moved the coins and managed to convert a lot of stolen coins in Fiat. In response, the exchange market for the week closed I/o for enhanced security protocols and Troubleshooting, resuming full operation only on may 15. Team site assures that the losses were insignificant — the purse was kept only 2% of the total of all assets. But it is still more than $40 million that are owned by users. The management promised to compensate for 100% of all losses from your emergency Fund #SAFU.

In August the hacker onslaught on the stock exchange continued. Unknown under the pseudonym Platon Bnatov reported that broke into the account of the employee Binance and tracked the stolen in may. He also said that he owns the personal data of 60 000 verified users, therefore, began to blackmail the stock exchange, demanding a ransom of 300 BTC for silence. The management of the areas refused to cooperate and offered a reward of 25 BTC to anyone who will reveal the identity of the cybercriminal.

Not having received satisfaction of his claim, the hacker started to upload KYC data of users in social networks and Telegram channels. In the hands of cyber criminals was also the photo documents of the Russian traders. Binance said the leaked data does not correspond to reality, but in conversation with DeCenter one of the victims confirmed the authenticity of their personal information. Binance continues with a daily turnover of about $500 million.

June BiTrue

In addition DragonEx, this year, suffered another Singaporean giant of the stock market — BiTrue. Hackers broke into the security system and managed to log into different users. They brought 9.3 million coins XRP ($4.01 million) and 2.5 million coins ADA ($232 000) on other exchanges. Thus the marketplace has lost access to $4 million custom tools.

Once it became known that a digital money went into the accounts of other exchanges, BiTrue tried to negotiate with them, asking to freeze the stolen assets. In the end, the leadership has promised to compensate all victims. BiTrue continues with a daily turnover of about $70 million.

July BITPoint

In spring and summer, hackers were particularly active and did not miss the opportunity to look at the Asian market. In July, a victim of the burglars fell to the Japanese cryptocurrency exchange BITPoint. Information about how the attackers used the vulnerabilities has not been disclosed but it is known that as a result of hacking affected 50,000 customers, which together lost $23 million on their accounts, and another $5 million was stolen from the exchange. The total damage — $28 million

To cope with the consequences, the platform stopped work for a whole month, but to do on their own and failed. In the end, the parent company Remixpoint agreed to assume obligations to compensate victims of hacking. In August, kleptoplasty BITPoint resumed trading.

November Upbit

Almost all fall from hackers was quiet, until 6 November, when they cleaned out his last substantial sacrifice in 2019, the South Korean giant Upbit, once won the honorable first place in turnover on CoinMarketCap. Once the largest exchange on the planet for a few minutes lost 342 000 ETH coins — so much went to the address of the hacker. The damage amounted to $49 million, and the stolen coin has already successfully moved.

Representatives of the South Korean courts have assured that the losses will not affect users, and the damage suffered exclusively by the team of the exchange. However, trading was suspended for two weeks. Now Upbit continues with a daily turnover of about $30 million Despite the fact that, according to the manual, the situation was not supposed to touch clients at the same CoinMarketCap vengeance emblazoned inscription: «We have received reports about obstacles withdrawals and deposits on Upbit. Please be careful with your money».

Draw your own conclusions

2019 showed that in terms of security exchanges remain extremely inefficient. Major platform, shouting to the world about their invulnerability, chacales all year round — winter, spring, summer and autumn. Some users lose all their money. Others get compensation, but still suffer the damage:

Payment is charged immediately;

It is not always adequate to the losses;

Sites were forced to stop work for an indefinite period, therefore, in this period lost the opportunity of earning at the auction;

In certain cases, the hackers «merge» in the network and even passport data.

Moreover, on the Internet there are unconfirmed rumors that in some cases nobody hacks, and all the «hacking» is actually just an invention of cryptocurrency exchanges. Supposedly some go to this step with the aim to assign funds, while others want to show what they are cool to compensate all the losses and continue high-quality work even after a multi-million dollar «hacking».

Not the fact that in 2020 the situation will become better, so draw your own conclusions. We DeCenter we believe that they suggest themselves:

 Do not store cryptocurrency exchanges use a personal wallet. Remember: exchange exists for trading.

 Periodically withdraw profits, do not accumulate capital by trading platforms.

 If we do not want to trade — send large assets.

 Diversify trade, not using all capital on one platform.

2019 showed that the size of the exchange is not important. Any can be cracked entirely at any time. If you keep money there, remember that you can lose. Keep an eye on decentralized exchanges are the future.


What indicates «healthy» growth coins?

To predict the price movements of the cryptocurrency very difficult. However, the market analysis can help traders understand the probability of accomplishment of any of the events above. Here it is also worth noting the nature of the dependence of almost all altcoins of the price movement of Bitcoin and their individual performance according to the type of the number of active addresses, transactions, trading volume and other things. In some cases, correlations — that is, the connection of these quantities, you can benefit immensely.

How to analyze the cryptocurrency market?

Analysts Coin Metrics visually represented the Pearson correlation coefficient between the top 20 CoinMarketCap cryptocurrencies. The only time not taken into account stabilini and project Cosmos, which researchers have no complete data.

Recall that the Pearson correlation coefficient — an indicator of linear dependence between two variables X and Y, which takes values from -1 to 1. At correlation -1 X inversely proportional to Y, or Vice versa. That is, when one variable increase the other decreases. The coefficient takes the value 1 when an increase in X increases Y.

In the diagram below, the purple color indicates the correlation of the price of the crypto currency in dollars relative to the number of active addresses. Pink columns represent the dependencies between price and number of transactions in the blockchain.

The correlation between transaction price, active addresses and know. Source: Coin Metrics

Data for Bitcoin is to be expected: from the main coins can you expect high value, because she has a lot of transactions in the blockchain and active users. The higher these indicators, the higher the demand for money, hence the higher price and in limited supply.

The other coin is not so clear. For example, Bitcoin Cash Bitcoin and SV have virtually no correlation between the above variables, as their coefficients are close to zero. Accordingly, the recent growth of the BSV for a minimum of 150 percent can be considered ordinary at the pump — that is an artificial increase. But Binance Coin, TRON and Tezos observed average level of dependence. Note that statistics active addresses Monero is not because of the anonymity of the blockchain cryptocurrency, which is why purple’s style XMR is missing.

As the diagram Coin Metrics reflected the full history of each coin, compare them with each other a bit unfair. In the diagram below, which shows the same data is used from 1 January 2018 to 12 January 2020. This need for more direct and accurate comparison for some of the oldest coins from the collection. Although we note that several of these cryptocurrencies under two years of age.

The correlation between transaction price, active address and the rate in the period from 2018 to January 2020. Source: Coin Metrics

Of course, one should not draw conclusions about the future of the project, just based on the history of dependency between the metrics. However, they can tell how the growth of one or another Aldona is «healthy», that is caused by real demand from real users and not just another pump. At least to improve its value must correspond to the baseline — that is, the activity of the owners of the coins.

It is important not to forget that attempts to guess future price movements of the cryptocurrency usually end in failure. Here we can recall the sixteen representatives of the industry who were doing their betting on BTC value at the beginning of 2020. Of these, only two people were relatively right. Although they somehow guessed a figure, because to predict the future is still impossible.

And the forecasts themselves — a topic for discussion. Some think they are detrimental to the industry of cryptocurrencies, others do not agree with this.