Cryptocurrencies are on the rise, as two of the world’s biggest cryptocurrencies, Bitcoin and Ethereum, soared on Monday to new records as Ether hits its all-time high, exceeding $4,700.
The world’s leading digital asset, Bitcoin, rose to its latest upshot by jumping 7 percent, reaching a valuation of $66,170, almost binding to its October 20’s groundbreaking growth of $67,016.50.
In parallel, Ethereum, the world’s second-largest crypto asset, marked its latest rising record of $4,768.07 on Monday.
The reason behind the upscale in these assets’ valuation has yet to be revealed, with some speculating that Ether will most plausibly witness another extended upsurge based on the token’s past growth.
Since early October of the current year, Ethereum magnified its valuation by 59 percent, and its predecessor, Bitcoin, marked a 51 increase. Investors hailed last month the initiation of a U.S.-based Bitcoin exchange-traded fund and sought its exposure as a first-class asset.
“Financial institutions want to be a part of it, regulators, don’t want to clamp down on it too much,” an analyst at broker IG Markets, Kyle Rodda, said in a statement.
“We’re almost past the inflection point, where it’s part of the system, and it is going to be very, very hard to extricate it,” he added.
In the past couple of weeks, some of the world’s leading countries announced their acceptance of Cryptocurrency.
Commonwealth Bank of Australia (CBA), the country’s largest bank became the first financial entity to deliver its customer base with the opportunity to buy, sell, and obtain crypto-assets through the bank’s platform.
In a partnership with Gemini, the world’s biggest regulated cryptocurrency exchange and custodians, in addition to blockchain analysis firm, Chainalysis, CBA will be tooled with the fitting means to initiate its vision.
These unisons with the CBA will weaponize the financial entity to create a crypto exchange and custody service to be delivered to users via various features on the bank’s application.
In addition, another country has shown an immense prospect on its part, to adopt the decentralized technology to its framework, Singapore.
The country is set to mark its presence in the digital industrial evolution by displaying itself as one of the major players in the cryptocurrency league amongst countries.
“We believe the best approach is not to crack down or ban these things,” the managing director of the Monetary Authority of Singapore (MAS), Ravi Menon, addressed the country’s approach towards decentralized currencies.
Menon, who regulates banks and financial companies, also added that MAS will implement “strict regulations,” to ensure that firms are governing the needed regulatory requirements. All while addressing the complexity of potential risks that might align with crypto adoption.
While it is true that the country’s approach towards digital assets varies, one thing remains the same. Each state is deploying its tactics to welcome the adoption of crypto in its ecosystem. China, Japan, the U.S., Singapore, Australia, and many more, will pave the way for their neighboring countries to follow its lead.
Coinbase adds tax center to platforms to report crypto taxes
Famous cryptocurrency exchange, Coinbase, uncovered plans to add its latest tax center on its platforms to assist U.S.-based customers in figuring out how much taxes they owe the IRS from their cryptocurrency transactions.
When tax day comes, the section will assemble every transaction made and put them all together into one space to facilitate their taxes.
While we might consider some of the leading cryptocurrencies on the market, such as Bitcoin and Ethereum, with the same monetary value as fiat money, the Internal Revenue Service (IRS) considers these decentralized assets as property with monetary value according to the federal agency’s FAQ.
Meaning, to the IRS, any type of cryptocurrency transaction will be considered as capital gains and losses and will be reported as such. In parallel, this also means keeping a record of the asset’s value when bought and sold throughout time.
Coinbase perceives that its new section will reveal “a personalized summary of [a customer’s] taxable activity on Coinbase, broken out over time by realized gains/losses and miscellaneous income.”
Then, this data can be shared with an accountant specializing in cryptocurrency and taxes or can even be implemented into tax software, such as TurboTax. Coinbase also accentuated that in case users were transferring crypto to external exchanges, wallets, or other decentralized finance (DeFi) services, users will also be able to receive tax reports covering an estimate of 3,000 transactions with CoinTracker, for free.
Customers can access the cryptocurrency exchange’s tax section from their account’s profile icon at the top right-hand corner of the interface. Once the “Taxes” shows on the menu item, users can access it and receive reports.
As for the application, users can access the Taxes section from the “Profile & Settings” menu – accessed from the top left of the application’s interface. Moreover, Coinbase is in the works to deliver written guidelines and assistance videos in the upcoming weeks to elaborate on how cryptocurrency and digital assets taxes works.
Swiss National Bank against issuing retail central bank digital currency
The Swiss National Bank does not see any overall benefit from issuing a central bank digital currency (CBDC) to be used by the general public and used in day to day transactions, governing board member Andrea Maechler said on Tuesday.
“We believe the risks outweigh the benefits,” Maechler told a financial conference held in Frankfurt, saying a retail CBDC meant central banks taking on the risks carried by the private sector and increased the risk of bank runs.
There also needed to be a balance struck between safeguarding privacy and the potential misuse of retail CBDCs in criminal activity, Maechler said.
Financial inclusion was also not a sufficient argument for CBDCs in Switzerland, Maechler said, with almost 100% of the country’s working population having access to bank accounts, while cash was still widely used.
“This does not mean the SNB is not interested in CBDC, but our focus is to look at the role that wholesale CBDCs could play,” Maechler said, referring to their use in transactions between financial institutions like banks.
The SNB last week said it has successfully used digital currency to settle transactions involving five commercial banks, and has also looked into how the technology can be used to improve cross-border payments..
Still, Maechler remained cautious.
“None of these projects are an indication that the SNB is ready to issue a wholesale CBDC,” she said.
Singapore bank issues guidelines to discourage crypto trading by public
The Monetary Authority of Singapore (MAS) on Monday issued guidelines that limit cryptocurrency trading service providers from promoting their services to the general public, as part of a bid to shield retail investors from potential risks.
Singapore is a popular location for cryptocurrency companies due to a comparatively clear regulatory and operating environment and is among the forerunners globally in developing a formal licensing framework.
But the city-state’s authorities have repeatedly warned that trading in digital payment tokens (DPT), or cryptocurrency, is highly risky and not suitable for the general public, as they are subject to sharp speculative swings.
The new guidelines clarify the expectations of MAS that companies should not engage in marketing or advertising of DPT services in public areas in Singapore or through the engagement of third parties, such as social media influencers, to promote DPT services to the general public.
They can only market or advertise on their own corporate websites, mobile applications or official social media accounts.
“MAS strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases,” Loo Siew Yee, MAS Assistant Managing Director (Policy, Payments and Financial Crime), said in a statement.
“But the trading of cryptocurrencies is highly risky and not suitable for the general public. DPT service providers should therefore not portray the trading of DPTs in a manner that trivialises the high risks of trading in DPTs, nor engage in marketing activities that target the general public.”
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