The Legal Way To Avoid Crypto Taxes and Reporting

and cryptocurrencies offer investors, traders, and HODLers the rare opportunity for asymmetrical gains.  A little money can turn into a lot of money quickly.  But the IRS wants its cut. You probably know by that every purchase and sale using Bitcoin or any other altcoin is going to be taxed like a stock […]
Source: bitcoinwarrior
The Legal Way To Avoid Crypto Taxes and Reporting

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The Legal Way To Avoid Crypto Taxes and Reporting – Cryptopolitan

The To Crypto Taxes and Reporting  CryptopolitanBitcoin and cryptocurrencies offer investors, traders, and HODLers the rare opportunity for asymmetrical gains. A little money can turn into a lot of mone.
Source: worldnewsoffice
The Legal Way To Avoid Crypto Taxes and Reporting – Cryptopolitan

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Legal Expert Katharina Pistor Weighs in on Facebook’s Libra

Is Facebook’s Libra a “concentration of power… unmatched by any meaningful accountability to anyone?” Pistor thinks so.
Source: coindesk
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Legal Expert Katharina Pistor Weighs in on Facebook’s Libra

Is Facebook’s Libra a “concentration of power… unmatched by any meaningful accountability to anyone?” Pistor thinks so.
Source: worldnewsoffice
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Bitcoin Is Now a Legal Form of Payment in New Zealand

In the August 2019 issue of New Zealand’s Tax Information Bulletin (published by the Inland Revenue Department), a new public ruling integrates “crypto-assets” as and taxable forms of payment. Correspondingly, New Zealand becomes one of the first nation states to create a proper framework for employees to receive cryptocurrency as part of their wages. However, it should be noted that the new provisions don’t concern self-employed taxpayers, and a couple of conditions are implied: no lock-up period on the coins and an easy convertibility to a fiat currency.

According to comments by the New Zealand Commissioner of Inland Revenue, has all of the required qualities to be considered a form of payment, but it has the legal of “property” rather than money. Correspondingly, criteria which make it a legal means of payment and, therefore, subject to taxation include convertibility into fiat and ability to be transferred as a means of payment. 

Bitcoin is mentioned no fewer than 18 times within the document. And in the sections where practical examples for fair tax calculations are required, it’s BTC that receives the spotlight. Not only does this highlight bitcoin’s supremacy as the best and most popular of cryptocurrencies, but it also emphasizes the fact that BTC payments to employees are taxable events regardless of “non-money” legal status and community narrative. 

Furthermore, it’s worth pointing out that the tax rate in New Zealand is 33 percent and citizens must make the payments in NZD. In this regard, the Inland Revenue Department doesn’t accept BTC itself; rather, it expects taxpayers to convert their crypto into fiat, according to the market valuation around the time when the wage transaction happened.

This is really good news for Bitcoin, as companies in New Zealand are finally able to offer their employees the option to receive a certain percentage of their salaries in BTC. the process of #stackingsats on payday has become more seamless. It also opens the door for third-party fees to be eliminated if the company itself already owns the bitcoin — which translates into more satoshis for the employees and extra reasons to HODL until hyperbitcoinization.

The post Bitcoin Is Now a Legal Form of Payment in New Zealand appeared first on Bitcoin Magazine.


Source: bitcoinmagazine
Bitcoin Is Now a Legal Form of Payment in New Zealand

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Who’s Responsible? On Legal Liability in Decentralized Systems

The cryptocurrency industry is fraught with illicit activity. When it comes to liability, ’s ?
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Quadriga CX Legal Charges Stand at $1.6 Million

Quadriga CX Legal Charges Stand at $1.6 Million

This article was originally posted on Ethereum World News – an independent news provider covereing Ethereum, , Ripple, Litecoin dApps, start-off ICO’s and the whole Blockchain […]
Source: cryptonewsmonitor
Quadriga CX Legal Charges Stand at .6 Million

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Quadriga CX Legal Charges Stand at $1.6 Million

Quadriga Legal Charges

Towards the end of 2018, users of
Canada’s largest crypto exchange, , assumed that failure to withdraw
their funds was a technical hitch that would soon be resolved. Unfortunately,
this was the unfolding of a nightmare.

At the start of 2019, everything was crystal clear when it was revealed that Quadriga’s founder, Gerald Cotten, had died. Surprisingly, Cotten was the sole custodian of private keys that allowed the transfer of funds from the exchange’s wallets. Consequently, $190 million worth of , ETH, Litecoin, and other virtual currencies could not be retrieved. Therefore, withdrawals never went through.

As one user lamented:

“I wasn’t using it [Quadriga] for trading. I just wanted to move my money over to my Canadian bank account. What I didn’t know was that my withdrawal would be pending or incomplete, and it never got deposited in my bank account. I’ve been waiting [for months].”

Cotten’s widow, Jennifer Robertson, in a court filing, said that “after Gerry’s death, Quadriga’s inventory of cryptocurrency has become unavailable and some of it may be lost. [Therefore], the company’s access to currency has been severely compromised.”

Given that the exchange anticipated discontent and anger from clients, it moved to the Nova Scotia Supreme Court where it filed for creditor protection. In its filing, the exchange fronted Ernst and Young (EY), an international professional services company, as a monitor. With creditor protection, affected users would not sue the exchange for lost funds.

EY Appointment and the $1.6 Million Bill

To ensure transparency, EY was appointed by the court as a monitor to oversee a successful recovery. Luckily, the exchange was granted creditor protection with Maurice Chiasson from Stewart McKelvey, a Canadian law firm, representing Quadriga. Elizabeth Pillon from Stikeman Elliot represented EY. Since the case started, different law firms have been representing diverse interests in the Nova Scotia Supreme Court.

To help settle the expenses incurred by EY and the law firms, Judge Darlene Jamieson of the Nova Scotia Supreme court has authorized $1.6 million. Interestingly, out of roughly $190 million owed, the 115,000 users will have to share the recovered $25 million.

According to Jamieson:

“There being no expressed opposition to the activities and accounts as presented by the monitor nor to the fees of its counsel, I approve the fees and activities to the monitor during the CCAA (Companies’ Creditor Arrangement Act) proceedings and the fees present towards counsel. The monitor’s work has been extensive in administering the CCAA proceedings and seeking to recover funds on behalf of Quadriga and its affected users.”

To explain, the authorized amount will
cover the legal fees incurred by EY, Stikeman Elliot, EY’s American legal
counsel (Kirkland & Ellis), Cox & Palmer and Miller Thompson. The
latter two are representative counsels. Justifying the hefty payments, the
judge noted that EY encountered “complicating factors” which included, but not
limited to, using external parties to store information.

Quadriga Is Official Bankrupt

The approval by the court marks the
end of the CCAA process. For this reason, Quadriga has been officially declared
bankrupt. In general, out of the approved $1.6 million, EY’s expenses amounted
to $592.4K. Additionally, Stikeman Elliot, Kirkland & Ellis, Miller
Thompson, and Cox & Palmer will receive $684.7K, $14.4K, $302.7K, and
$37.02K respectively.

Bitcoin status is “legal” in China: Hangzhou court approves BTC ownership

It gives us a great pleasure to bring it to our readers the is “” in China . While a lot has been discussed about Bitcoin’s status and store of value, the ancient city of Hangzhou in China steps up to confirm the digital currency’s identity as “virtual property”. The city’s court recently […]
Source: bitcoinwarrior
Bitcoin status is “legal” in China: Hangzhou court approves BTC ownership

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Bitcoin Still Legal In India; Crypto Regulation in Works

Bitcoin still legal in India

will remain in India while the government works on regulations, a minister has said in new positive comments on the fate of the industry.


Finance Minister: Bitcoin Regulations Coming

Responding to a request for clarity on the state’s view of cryptocurrency, Anurag Thakur, India’s Minister of State for Finance & Corporate Affairs, firmly denied any token was illegal. 

The comments contradict the content of an alleged draft law which surfaced last week, which outlined plans for a blanket ban on cryptocurrency and prison sentences for its use. 

The document, which appeared online from a local lawyer, appeared to form the basis of the queries to Thakur, nonetheless did not refer to its contents explicitly.

“No, Sir,” he replied when asked whether the government “has prohibited cryptocurrency.”

“Taking note of the issue, the Government has constituted an Inter-Ministerial Committee (IMC) under the Chairmanship of Secretary (EA). The IMC has submitted the Report to the Government,” he continued.

As Bitcoinist reported, India continues to find itself in a state of flux after highly-mixed messages from authorities and the central bank. 

In July 2018, the Reserve Bank of India (RBI) forbade banks from serving cryptocurrency businesses, resulting in shutdowns for some and exodus overseas for others.

The draft bill, which has not seen recognition, made further reference to the creation of a digital rupee, which its author or authors said would become India’s only legally-allowed domestic digital currency. 

The industry has meanwhile sought to overturn the RBI ban via the courts, a process which appears to have run into multiple delays. 

‘Careful Steps Forward’

Summarizing, Thakur struck a cautious tone, signaling that existing rules applied to cryptocurrency while Delhi thrashed out new regulations.

“Presently, there is no separate law for dealing with issues relating to cryptocurrencies. Hence, all concerned Departments and law enforcement agencies, such as RBI, Enforcement Directorate and Income Tax authorities, etc. take action as per the relevant existing laws,” he confirmed.

“Similarly, police/courts take action on IPC offenses. Further, in view of the risks and dangers associated with cryptocurrencies, Government and RBI have been issuing advisories, press releases, and circulars to the public.”

His words saw a warm welcome among the local cryptocurrency industry, with Nischal Shetty, CEO of exchange WazirX, saying the government was taking “careful steps forward.”

The government saw direct backlash when the draft law emerged, with investor Tim Draper openly calling it “pathetic and corrupt” for allegedly suggesting the ban.


What do you think about the latest comments on bitcoin from India? Let us know in the comments below!


Images via Shutterstock

The post Bitcoin Still Legal In India; Crypto Regulation in Works appeared first on Bitcoinist.com.


Source: bitcoinist
Bitcoin Still Legal In India; Crypto Regulation in Works

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