US Congress Introduces Crypto Tax Bill!!! – Crypto Daily News
For today’s news segment, I have found four very cool pieces of news to discuss with you. Let me give you a glance at what they are. First up, it looks like while ICOs have decreased in its value since the ICO boom of 2017, crypto companies are still able to raise millions of dollars this year. Second, the attitude of the online communities towards cryptocurrencies are still pretty positive regardless of recent bad news. In addition to this, a tax bill with the aim to enable the exclusion of gain or loss on crypto exchanges has been presented to the United States House of Representatives (I know that was quite a handfull – what it really means is that the exchange of virtual currency for virtual currency of like kind will be treated in the same manner as the exchange of real property or real property of like-kind – great to see governments looking to take crypto more seriously.) And the last piece of news for today, The South Korean Financial Services Commission has just announced that it will change from indirectly to directly regulating cryptocurrency exchanges. If you find these pieces of news interesting and want to know all about them, please make sure you stay with me until the very end.
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The Market Today
Now, let’s see how the crypto market is performing. On our top 10, most of the coins are still in greens. Bitcoin remains in the first position. It’s currently on an upward trend with a 3.73% increase from yesterday. Ethereum and XRP are nearly breaking even as Ethereum gains 0.03% for today, while XRP shows a slight drop of 0.24%. Moving on to the top 20. Here we have a market mixed with greens and reds. However, the increases are not very significant. No token is gaining more than 1% guys. Meanwhile, Tezos is plummeting up to 8.45% in the past 24 hours.
ICOs have decreased but crypto companies still raise millions of dollars
Now, let’s jump to our first news segment. As reported on Cointelegraph ICOs are decreasing in value (ever since 2017 and the whole uproar concerning the majority of ICOs as scams), but startups are still faring well since many are still receiving millions in funding via this funding vehicle. 2017 and 2018 were the years when ICOs flourished with crypto startups. But with anything that grows exponentially, there are bound to be scams lurking about. And that’s what happened, millions of dollars were lost which left many investors devastated. This year it looks like the ICO boom has officially stopped with fundraising figures significantly lower than what they were in 2017. According to a report of ICOdata.io, token sales raised up to $346 million in 2019 from 83 ICOs. To give you a clear comparison, in June 2018 alone, token sales raised more than $900 million while we can only see less than $10 million in June 2019. So, what is the reason behind all of this? Joe DiPasquale, CEO of BitBull Capital — a crypto and blockchain hedge fund firm, said in a conversation with Cointelegraph:
“The ICO market was largely driven by greed, as speculators scrambled, hoping to find the next ETH. Unfortunately, the space was rife with scams as people soon realized they could raise hundreds of thousands if not millions, with vague promises and plagiarized whitepapers. “
In this situation, what could be the alternative? In an interview, Igor Chugunov, CEO of Credits, a blockchain startup, pointed out that:
“Venture capital has not lost its interest in investing in cryptocurrencies, but the requirements for projects, in particular for products, teams, economic models and adhering to the roadmaps have grown significantly.”
Online crypto communities are still pretty positive
“While there will always be different camps or schools of thought on the crypto industry, the overall sentiment across social media continues to be bullish, both on future price growth and mainstream adoption of the technology.”
A tax bill on crypto has been presented to the US House of Representatives
And here we come to the third piece of news. The United States House of Representatives has just received a new tax bill regarding the exclusion of gain or loss on cryptocurrency exchanges. Specifically, the bill was named “Virtual Value Tax Fix Act of 2019” and was initially introduced by Rep. Ted Budd (NC-R) on July 25. It claims that:
“the exchange of virtual currency for virtual currency of like-kind shall be treated in the same manner as the exchange of real property for real property of like kind.”
Now, if this tax bill can pass through and come into effect, it would release cryptocurrencies from double taxation under the Internal Revenue Code.
South Korea will directly regulate cryptocurrency exchanges
Moving to the last news item for today guys. A new report reveals that the Financial Intelligence Unit (FIU) of South Korea’s Financial Services Commission is changing its plan to now, directly regulating cryptocurrency exchanges in the country. In the effort to bring crypto exchanges into the country’s regulatory system, FIU will apply a crypto exchange licensing system which is expected to provide better transparency of cryptocurrency transactions. In regard to this approach, Lee Tae-hoon, head of administration and planning at the FIU, stated: “If an amendment to the Act on Reporting and Use of Certain Financial Transaction Information, which reflects the FATF’s international standards for cryptocurrencies, passes the National Assembly, it will be possible to prevent money laundering through cryptocurrencies.” Now, this new regulation is proposed as the Financial Action Task Force (FATF) who wants to strengthen control over crypto exchanges in order to better combat money laundering.
So what are your thoughts regarding all the news?
Are you a proud supporter of the ICO movement in 2019?
Are you glad to hear of the overall positive sentiment concerning crypto online?
What are your thoughts on the new bill?
And do you think it is a good approach to directly monitor crypto exchanges?
Please leave a comment right below to let me know what you guys are thinking. And guys, please don’t forget to like and subscribe to go into the draw to win $70 worth of Bitcoin. It’s your girl Cindy with CryptoPig. I’ll see you guys tomorrow.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.