Bitcoin Slides As Coinbase Informs 13,000 Customers Of Imminent Data Handover To IRS
Content adapted from this Zerohedge.com article : Source
Bitcoin whales could be facing a bit of trouble.
As part of a settlement with the IRS, Coinbase is turning over information on 13,000 accounts. Coinbase is the United States' largest cryptocurrency exchange.
Over the last few days, the price of bitcoin dropped below $10,000 after having peaked recently at the $12,000 mark.
According to Cointelegraph, Coinbase sent out notices on Friday to the individuals who's information is being sent to the IRS. This might be a strenous week for many.
The IRS had [initially asked][7] Coinbase in July 2017 to hand over even more detailed information on every one of its then over 500,000 users in an attempt catch those cheating on their [taxes][8]. However, another court order in Nov. 2017 [reduced this number][9] to around 14,000 "high-transacting" users, which the platform now reports as 13,000, in what Coinbase calls a "partial, but still significant, victory for Coinbase and its customers."
On Friday, Coinbase told the around 13,000 affected customers that the company would be providing their taxpayer ID, name, birth date, address, and historical transaction records from 2013-2015 to the IRS within 21 days.
It has not been a great year for centralized exchanges. This action comes on top of some well-publicized hacks costs hundreds of millions of dollars.
I think everyone should have expected this. As a matter of fact they are trying to slowly decide which regulations would be applied to different kind of transactions.one of the US Bills is to make transactions under $600 tax free However this bill still hasn’t pass as far as I’m concerned. Now, given that the price of bitcoin and other cryptocurrencies have increased so quickly in the past few years, even the most stubborn HODLers would be hard pressed not to consider liquidating at least a portion of their crypto portfolio to lock in their gains. This automatically triggers capital gains tax. Buying and selling cryptocurrencies is the same as buying and selling gold or stock. If you donate regularly, you can also consider donating cryptocurrency to your favorite public charity (not to a private foundation), can help you save taxes on the coins you do sell. The charity gets a large donation, and you get a larger deduction, if you donate the coins to a charity instead of selling the coins and donating cash.
That's all true. The issue is that many if not most Americans have not been reporting their crypto transactions on their federal income tax returns. It's not going to be pleasant for them when they have to pay back taxes plus interest and penalties.
It was still possible to buy bitcoin in 2013 for less than $100. Ethereum didn't even go live until 2015. I'm sure Americans who bought large amounts of bitcoin and ethereum in the early days through Coinbase and have traded them since then without really cashing out are sh*tting bricks if they didn't pay their income taxes.
This is worrying for many of us in the cryptocurrency market. But the IRS doesn't give a damn.. Their job is to catch the tax evaders. And no one can do anything about it. The advantage here is each of those listed has a chance to workout their records and speak to a legal advisor for advice.
Many on the 13,000 shortlist ripped big at the closure of the year 2017.. Some of these have never held any asset outside of crypto, some have investments which have never brought the returns they have got from the investments in cryptocurrency. This shows how many of these are inexperienced investors.. having no idea about the tax code and don't have a single idea about keeping records.
Being tax illiterate would be an excuse.. but this is IRS... They're going to look at everything you've ever done on blockchain, and if your guilty they'll pin you and throw you in jail. This decision can't be turned back.. Let's patiently wait as events unfold and pray the 13,000 are clean. We've seen a lot of dips in just the first two months of this year and we wouldn't want things to get worse than they already have. For those that are not on the list, it's time to review how we report our trading income and learn more about the tax code
Last week there was a bear trend towards the bottom of $ 10800 in the bitcoin price. The price began to drop downward and fell below the $ 10,500 resistance. There was a break below the 23,6% withdrawal level of the 11650 dollar output wave from 8250 US Dollar. Moreover, on the 4-hour chart, we saw that the $ 10350 resistance of the main bull trend was also broken.
The pair showed a tendency toward support of $ 9,400 and fell below the 100 simple moving average. Most importantly, the 5050 Fibonacci retracement of 8250 -11650 up trend was also broken. This opened a door under $ 10,000 for more losses. Below is the $ 9350 support, which prevents the price from going down further. Looking at whether the price goes below $ 9,350, it seems that there is a stroke below $ 9,000. A moderate resistance 76.6% Fib. attention is drawn to the withdrawal.
This could be one of the reasons for BTC price to go down, but right now, the market is feeling the need to go back to the last low and confirm it.
Big Whales are very aware of the taxes they have to pay, so If they don't agree with it, they will just change country and avoid them. For others that don´t have that money to change to other country (not big whales) they will be affected and this could have a even worse effect on BTC price.
This officially marks the end of the ''free'' era of cryptos.
Lovely post. Thanks for information.
hopefully the btc price goes up again
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Bitcoin continues to be a nightmare for the investor, who has often spoken of by his record-setting rise in 2017, which we have left behind.
Bitcoin has seen gold in the level of 10 thousand dollars in the last weeks.
But the only crypto money that made a bad start to 2018 is not Bitcoin. For other large cryptic moneys called Altcoin, it started as a 2018 nightmare. The total market value of the crypto money has dropped by 260 billion dollars in the last week and it is 20 percent on average yesterday.
The decline in Bitcoin continued this morning. In the morning, the price of Bitcoin dropped by 7 percent to 10 thousand 567 dollars. With negative news from Asian economies, Bitcoin saw gold in the past 10 thousand dollars.
WHY IS IT LOW?
The transaction ban on crypto currencies as a result of South Korea's new regulations on crypto money markets caused a visible decline in the market, including Bitcoin and other crypto currencies.
After South Korea banned crypto-currency transactions, South Korean Economy Minister Kim Dong-yeon said in an interview with a local radio station that the ban on crypto-currency transactions was an "option in the hands of the people".
"CONTINUE CONTINUE" CALL
After South Korea's announcement, Deputy Director of the Central Bank of China Pan Gongsheng said that the government should continue the pressure on the cryptographic currencies and ban the centralized trade of virtual currencies, including Bitcoin, as well as the people and businesses that provide the related services.
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