China Slated To Ban Cryptocurrencies

NewsBTC Ethereum Blockchain $23bn

Considering that the combined market cap of virtual currencies jumped more than 3,300% previous year, the like-kind exchange loophole may have saved cryptocurrency investors a fortune. for now.

Making matters even more complicated is that popular cryptocurrency exchanges aren't guaranteed to provide investors with a 1099 that outlines their cost basis and sale price. Chinese authorities will also aim at individuals and businesses that offer associated services.

Meanwhile, China has indicated it might try to reduce mining activity by withdrawing tax and power benefits for companies. To many people's and businesses' surprise, China chose to ban all initial coin offerings, as well as wreck all cryptocurrency exchanges operating within China's mainland. Orange represents neutral markets that are not outright legalizing Bitcoin, but do not have any major restrictions against the use of cryptocurrency.

China plans to ban cryptocurrency trading in domestic markets along with blocking trader's access to offshore platforms.

Pan Gongsheng, PBOC Vice Governor, said that his suggestions were based on the need to "prevent the build up of risks in that market".

On one hand, treating bitcoin as a capital asset gave investors the chance to claim preferential long-term capital gains rates on sales of cryptocurrencies that they had held for longer than a year.

While crypto exchanges won't be directly harmed, they won't be able to benefit from economic activity from the world's most populated country.

According to local South Korea Yonhap News, cryptocurrency investors in South Korea will be fined for refusing to convert their virtual accounts into real-name ones, authorities said on Sunday. This attempt was not successful, but it was still very much under consideration on Tuesday, according to South Korean Finance Minister Kim Dong-yeon.

However, government may or may not take opinions of experts into consideration to decide whether to regulate or ban the cryptocurrency.

The move comes as South Korea is scrambling to rein in the virtual currency frenzy in Asia's fourth-largest economy, including preparations for a bill to ban cryptocurrency exchanges at home. There are already millions of South Koreans trading cryptocurrencies, and they might regard a ban on trading as an infringement on their property rights.

A total of 1.96 million people may have used apps that allow them to handle digital currencies, such as bitcoin and ethereum, last week, up from 140,000 tallied between October 30 and November 5, according to data from WiseApp, an application analytics company.

In terms of where the market stands today, we are just looking at the start, and there are a lot more things to come this year in the shape of new developments, new features, new ICOs and new money.

"Japan and South Korea usually dominate this market but over the last few days, the volumes have been dropping steadily".

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