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Regulation

Crypto Income In New Zealand Is Legal And Taxable

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U.s. IRS

Crypto income in New Zealand is now legal and taxable according to the tax authorities which ruled the new legislation since new guidance was provided on how they should be taxed as we are reading in today’s coming altcoin news.

In a tax information bulletin that was published on July 4, the New Zealand Inland Revenue Department, we can read the summarized provisions of the public ruling which was made under s91D of the country’s Tax Administration Act 1994. The new guidance on crypto income tax applies to payments in crypto that form a piece of an employee’s regular salary and is fixed at a predetermined amount rather than payments that form part of an employee share scheme. Also, it will apply to salaries and wage earners but not to the self-employed taxpayers covering both the services and bonuses and remuneration, commissions and gratuities. For a crypto salary to be taxable, the ruling determines that the crypto asset paid to the employees cannot be a subject to lock-up period and have to convertible into fiat:

 “In the current environment where crypto-assets are not readily accepted as payment for goods and services, the Commissioner’s view is that crypto-assets that cannot be converted directly into fiat currency on an exchange […] are not sufficiently “money-like” to be considered salary or wages.”

Assets such as cryptocurrencies are further defined as assets that provide general peer-to-peer payment system rather than assets that operate in a similar way to vouchers, debt securities, and shares. For the wage to be taxable, the authorities deem that a significant purpose of the crypto asset in question has to be that it operates as a currency or is otherwise pegged to one or more fiat currencies. As explained in the latest cryptocurrency news, the tax authorities and lawmakers are focusing more on cryptocurrencies now clarifying which provisions will they fall under and attempting to tighten their bid on evasion.

Just last week, a crypto industry source claimed that the United Kingdom tax authority has started requesting digital currency exchanges to provide information about customers’ names, transaction details, transaction histories all in order to make sure that they prevent tax evasion.

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Regulation

Mike Pompeo Wants To Heavily Regulate Crypto Transactions

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Mike Pompeo, the U.S. Secretary of State in the Trump Administration says that we need to regulate crypto transactions with heavier regulations. The US administration seems that it doesn’t want to give the crypto industry some breathing space and we take a closer look on his stance in the latest cryptocurrency news below. During the interview with the CNBC’s Squawk Box panel back on Tuesday, Mike Pompeo doubled down that the digital assets transactions have to be heavily enforced and regulated. With cryptocurrencies getting more and more important into the global markets, CNBC’s resident Bitcoin bull Joe Kernen took a chance on Tuesday to bring up cryptocurrencies in the interview with the US Secretary of State. Surprisingly, Mike Pompeo took the bait but asserted that he doesn’t want to create a viral moment or a meme from himself by taking a certain stance on the growing technology. Pompeo even argued that the anonymous transactions that the cryptocurrencies are capable of carrying out, can enable or even pose a security risk and threat to the country and the country’s allies. Back to the point, Mike Pompeo cited the 9/11 attacks which is something that Congressman Brad Sherman also did to bash Libra last month:
 “We know this from 9/11 and terror activity that took place in the 15 years preceding that where we didn’t have good tracking, we didn’t have the capacity to understand money flows and who was moving money.”
In order to mitigate a redux of the 9/11 attacks which were enabled through financial technologies, Pompeo proposed that ‘’electronic financial transactions’’ should be regulated by the same laws that a global platform like SWIFT is regulated under as well. He admitted however that it will be very difficult to do so and stated that the world is much less secure without the proper regulation over a cashless world. In fact, Mike Pompeo argued that the regulatory oversight over fiat finance has ‘’helped keep the entire world secure and to fight terrorism and other nefarious activity.’’ In his statement, Mike Pompeo didn’t really mention certain fintech platforms or even cryptocurrencies but he commented directly to an inquiry from Kernen. His statements on the crypto industry are coming right after other members from the Trump administration commented on digital assets as well. The President of the United States himself claimed that cryptocurrencies such as Bitcoin can facilitate illicit activity and that Libra should also abide by traditional banking laws as we read in the altcoin news previously.
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Regulation

US Secretary Of State: Crypto Should Be Regulated Like SWIFT Transactions

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The US Secretary Of State recently voiced his opinion on cryptocurrency, suggesting regulation of digital currencies in the same way as SWIFT (financial) transactions. Also known as Michael Pompeo, the expert spoke in an interview with CNBC's Squawk Box show on Tuesday. During the interview, Pompeo was asked on the best way to regulate Facebook's Libra or Bitcoin. As the US Secretary Of State said:
“My sense is this: We should use the same framework that we use to regulate all other electronic financial transactions today. That’s essentially what these are. These are monies moving through markets, or in some case dis-intermediated transactions.”
His statement is all over the latest cryptocurrency news. Michael Pompeo is now seen as one of the optimists for cryptocurrencies. As he said, the same rules that apply to transactions “flowing through SWIFT or flowing though our financial institutions ought to apply to those transactions as well." He also agreed that it will be difficult to establish a regulation like this. The interview covered a range of issues. From the state-run propaganda farms using Twitter and Facebook to the Hong Kong protests, the Trump adviser and US Secretary of State addressed the use of pseudonymous cryptocurrencies in the funding of terrorism and money laundering. He also argued that if such private transactions became a norm, it would “decrease the security for the world if that’s the direction we travel.” The US Secretary of State agreed that being able to track the flows of money around the world has helped a lot over the years. As he said:
“This has helped keep the entire world secure and to fight terrorism and other nefarious activity … We need to preserve a financial system, a global financial system, that protects that,” Pompeo said.
Many best cryptocurrency news sites took a new idea from this interview - and showed the US Secretary of State also agrees with the interviewers who joked that all money laundering until now has been conducted with fiat currency. For those of you who don't follow our Bitcoin and altcoin news, the regulation of cryptocurrencies in the United States shows that it is legal to use Bitcoin (BTC) in the country - but the payments are subject to taxes and reporting requirements - just like any other cryptocurrency - through ledgers which are used to keep track of the existence of BTC.  
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Regulation

ICO Rating Charged For $268,998 Following Violation Of Anti-Touting Provisions

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The United States Securities and Exchange Commission, better known as SEC, has recently charged the Russian analytical agency ICO Rating for $268,998 because of a violation of the anti-touting provisions. According to an official announcement, the agency was charged with these numbers because of multiple violations. The announcement sees SEC claiming that ICO Rating violated the anti-touting provisions of Section 17(b) of the Securities Act established in 1933 - mostly by failing to disclose payments that it received from the initial coin offering (ICO) issuers that it rated and published on the platform. According to Melissa Hodgman who is an Associate Director at SEC's Enforcement Division, ICO Rating violated the rules. In the latest cryptocurrency news and updates, she explained:
“The securities laws require promoters, including both people and entities, to disclose compensation they receive for touting investments so that potential investors are aware they are viewing a paid promotional item. [...] This requirement applies regardless of whether the securities being touted are issued using traditional certificates or on the blockchain.”
Without admitting or denying the findings by the SEC, ICO Rating agreed to cease and desist from committing any future violations in the realm of these provisions. The agency also paid disgorgement and prejudgment interest of $106,998 and a civil penalty of $162,000. In August this year, many best cryptocurrency news sites reported that the SEC reached a $7 million dollar settlement with PlexCorps and its owner Dominique Lacroix, as well as the business partner Sabrina Paradis-Royer and the company itself over an allegedly fraudulent ICO. Unlike the ICO Rating case, this was a more complicated lawsuit. This month, the New England based firm SimplyVital Health Inc. also settled with SEC over an alleged sum of $6.3 million used for an unregistered ICO. The company did not confirm or deny the allegations that it violated certain aspects of the 1933 Securities Act - but was featured in the altcoin news for agreeing on a cease and desist order that was levied by the SEC. As it stands, the United States Securities and Exchange Commission (SEC) is getting stricter towards ICO companies and potentially fraudulent initial coin offerings (ICOs). The agency penalized several big projects so far and it seems like it won't stop doing the same in the future.
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Regulation

Israel Bitcoin Association Wants Local Banks To Disclose Crypto Policies

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The latest cryptocurrency news show that Bitcoiners in Israel are prepared to change a lot of things in their country. According to the Israel Bitcoin Association which is a nonprofit promoting the use of Bitcoin (BTC) and crypto, a freedom of information petition was filed with a Jerusalem court - seeking to require local banks to disclose their policies on money originating from cryptocurrencies. The news first appeared in the local news daily outlet Globes on August 19. As many best cryptocurrency news sites then showed, state banks are required to report reasons for refusing transactions to the central bank of the country, the Bank of Israel. This is why the association previously reached out to the bank, asking for clarification on cryptocurrency policies of commercial banks - but was refused. The association chairman Meni Rosenfeld then told Globes that the Bank of Israel refused the request on the grounds that these were "industry secrets." This is why the Israel Bitcoin Association moved forward with a legal petition to make the disclosure mandatory. As the legal adviser Jonathan Klinger said:
"Under the Banking (Licensing) Law, it is the duty of a bank to state to the Bank of Israel the policy under which it refuses to conduct transactions. We therefore contacted the Bank of Israel and asked for this information, but the Bank of Israel did not agree to disclose this policy to us. We therefore decided to petition the court to force the Bank of Israel to provide us with a copy of the policy submitted to it by the banks.”
Israeli banks have been denying the Israel Bitcoin Association the ability to open accounts in the country, even though the association does not buy or sell cryptocurrency. This, as the report shows, is likely due to the association's name which includes the word Bitcoin. So far, many other traders and crypto related businesses have struggled with difficulties making deposits and remaining tax compliant because of the crypto-averse banking policies in Israel. According to some reports in the altcoin news, cryptocurrency traders in Israel cannot pay taxes and are unable to make deposits of funds obtained through cryptocurrencies.
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