Finance experts have warned that a loophole which reduces crypto gains to zero can be exploited on tax returns in the UK. It was reported that this could potentially deprive the government of millions in lost revenue. HMRC will be expecting a large number of profit declarations on tax returns after the crypto market capacity soared by almost 2000% in the past year. However, the taxman could be seeing far less than anticipated due to a loophole which currently enables crypto profits to be declared as gambling winnings, which are not taxable (bitcoinist).
Several South Korean exchanges have announced that they will ban foreign residents from trading cryptocurrencies. A recent article by Trustnodes reported that South Korea’s major cryptocurrency exchange, Korbit, would ban foreign residents from trading cryptocurrencies. The report states: “If you are not a Korean citizen, the KRW deposit to the domestic virtual currency exchange will be stopped when you switch to the new KRW deposit method in January. It applies to both domestic residents and non-residents.” Analysts believe that more cryptocurrency companies might move from China and South Korea to Japan, a country with more favorable cryptocurrency and blockchain regulations (bitcoinist).
The U.S. city of Virginia Beach has granted $500,000 to help establish a new bitcoin mine in the area. On Tuesday, the Virginia Beach Development Authority revealed that it was giving the funds to Bcause LLC in an effort to help generate as many as jobs within Virginia Beach. The mine – which is currently under construction but could open as soon as later this month, according to The Virginian-Pilot – is being funded to the tune of nearly $65 million. The grant is a notable one, demonstrating a kind of convergence between public-sector efforts to boost job growth and the cryptocurrency space. In addition to the funds, Bcause will be eligible to seek reduced taxes on computers and other expenses related to the data center being built (coindesk).
Bitcoin exchanges are under fire in India, as many of the nation’s top banks have suspended or greatly halted functionality on exchange accounts. State Bank of India (SBI), Axis Bank, HDFC Bank, ICICI Bank and Yes Bank have all taken strong action toward crypto exchanges, either closing accounts or severely limiting functionality. The banks cite the risk of dubious transactions, according to local reports. Additionally, the Ministry of Finance referred to Bitcoin as a ponzi scheme before the end of last year (cointelegraph).
And lastly, Morgan Stanley is now clearing Bitcoin futures for their clients, meaning that Goldman Sachs is no longer the sole Wall Street firm doing so. Morgan Stanley joins Goldman Sachs, TD Ameritrade, E*Trade and others in clearing CME and CBOE Bitcoin futures. The reaction of the Bitcoin community has been divided over the creation of regulated Bitcoin futures, with some suggesting manipulation of the underlying Bitcoin market. However, it’s clear that the more Wall Street firms that get involved in anything related to Bitcoin, the more legitimacy it gives to digital currency (cointelegraph).
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