Taxes, Regulations, and Pornography Scandal – Cryptocurrency Downtrend Resumes

Cryptocurrencies resumed the selloff after posting gains in the last three days; the market was jolted by several unpleasant reports that have long-standing implications on cryptocurrency markets. Today’s news involves the Internal Revenue Service.

The Internal Revenue Service seems to be broadening their tax range; IRS is now looking to impose capital gains tax on all products that are bought using cryptocurrencies. They will also collect taxes when investors convert digital currencies into fiat currencies or when investors use one digital currency to buy other virtual currency.

Child Pornography on Bitcoin Blockchain
The child pornography scandal added to bearish sentiments; German researchers revealed that individuals have been using bitcoin blockchain to hide child pornography.

The researcher claimed that they examined more than 1000 files in the distributed bitcoin ledger system and they discovered 99% of files contained several links to child pornography. This is a serious allegation on the bitcoin backed blockchain technology considering strict pornography laws across the world.

The Bull Run Ended
Bull Run

Source Image: coinmarketcap.com

Cryptocurrency prices fumbled sharply today; BTC price plunged below the $9,000 level while Ripple (XRP) and Ethereum (ETH) declined at a high mid-single-digit rate. Cardano (ADA), Stellar (XLM) and NEO (NEO) are among the most prominent losers today.

Regulators are also playing a part in ending the latest bull-run. The U.K. has formed a task force to prepare the draft on crypto markets, while Russians called cryptocurrencies as an asset instead of currency.

The market opinion is yet dividend on the status of cryptocurrencies. CEO of Twitter and Square Jack Dorsey predict that Bitcoin has the potential to become the single currency of the planet and the internet. “The world ultimately will have a single currency; the internet will have a single currency,” Dorsey said. “I personally believe that it will be Bitcoin.”