Tax Payers Needn’t Disclose Merely Holding Crypto: IRS Draft 2020 Guidance
“The U.S.tax agency has clarified who needs to answer “yes” to a question over cryptocurrency activity.
The IRS now explains that tax payers would need to answer in the affirmative if they sold any cryptocurrency, exchanged cryptocurrency for goods or services, or exchanged cryptocurrency for property including other crypto assets.It also sets out that respondents must answer “yes” if they received any cryptocurrency for free, including via airdrops or hard forks.
The IRS draft guidance also makes clear taxpayers need not check yes if they merely held cryptocurrency in 2020 , or moved it from one wallet to another owned by them .” Harvest Finance: $24M Attack Triggers $570M ‘Bank Run’ in Latest DeFi Exploit
“An attacker used a flash loan – a technique that allows a trader to take on massive leverage without any downside – to manipulate DeFi prices for profit.The exploit sent the platform’s native token, FARM, tumbling by 65% in less than an hour, followed by the project’s total value locked (TVL), which dropped from over $1 billion before the exploit to $430 million as of press time.
The funds were eventually swapped for bitcoin (BTC), but not before being swept through Ethereum mixing service Tornado Cash.
Mixing the coins didn’t keep the Harvest Finance team in the dark for long.
The person behind the exploit “is well-known in the crypto community” after leaving “a significant amount of personally identifiable information,” according to the project’s Discord.All seven bitcoin wallets holding the attacker’s funds are also known.
The anonymous developers behind the project do not want to doxx the party but are instead offering a $100,000 bounty for convincing the attacker to send back the funds.” Election 2020: What’s at Stake for the Crypto Industry
“ The election’s most direct impact on crypto policy will likely come through the federal regulators the President will appoint .
At present, the SEC is run by Chair Jay Clayton.In the event Trump wins and Clayton is confirmed to head the prosecutor’s office, Commissioner Hester Peirce could potentially take over the securities regulator, at least temporarily.
This would be a big deal.Peirce has advocated for cryptocurrency development and regulatory leniency in the past, earning the nickname “Crypto Mom” for her positions, which include a safe harbor designed to let token projects get off the ground before facing regulatory burdens.
It’s unclear who Biden might tap to lead the agency should he win.
Ron Hammond, an industry lobbyist and former aide to Rep.Warren Davidson (R-Ohio) expects the agency to take more enforcement actions next year, particularly if Biden wins.
Overall the securities regulator appears to be leaning more toward “regulation by enforcement” rather than developing clear frameworks, he said.
The CFTC is more likely to create these regulatory frameworks, and current Chair Heath Tarbert only took office in 2019, giving him a few more years to helm the commodities regulator.” Notional Launches Out of Stealth to Bring Fixed-Rate Lending to DeFi
“ Notional enables fixed-rate debt on Ethereum using a new on-chain automated market maker (AMM) that can be used by DeFi, CeFi and institutional traders.
To accomplish that, Notional lets DeFi traders lock in borrowing rates on dai (DAI) to finance yield farming activities for up to six months, all while accessing fixed rates on levered long ether (ETH) trades for the same amount of time using a token called fCash.
The ability to lend and borrow at fixed rates is going to open up a brand new dimension, or financial design space, for DeFi and Ethereum’s ecosystem.” British Fintech Firm Opening Physical Crypto Bank Branches in India
“The fintech firm will be partnering with India’s United Multistate Credit Cooperative Society to build a crypto-friendly financial institution called UNICAS.This new venture will reportedly include 34 “physical branches and operations” in northern India, including the cities of Delhi and Gujarat, and the state of Rajasthan.
Earlier this month, Cashaa India stated that it would allow Indian businesses and individuals to open a savings account to buy, store, and save cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), XRP, and its native token CAS.The firm also reportedly will allow customers to use their crypto holdings as collateral for loans.
In addition, Cashaa stated it would retrofit The United’s existing locations into crypto education centers.” Share this:.
