There are tons of news that surround cryptocurrency every day. Most of the information is about Bitcoin; however, other crypto assets are mentioned as well. Here, we will present to you, the most important crypto news that occurred this week. Keep reading to find out more information on the subject.
There are a lot of crypto related events that happen daily in the world. This article will cover the most intriguing ones that happened at the start of the new year. First, we will talk about how South Korea is preparing to tax individual crypto profits. Additionally, we will mention how UK’s first regulated crypto bank is planned for 2020. Last but not least, we have to talk about Bitcoin’s advantages over Altcoins in the new year. As always, more information about crypto can always be found on this website.
South Korea Preparing Legislation for Taxing Crypto Profits
South Korea’s government stated that under current law, it cannot impose income taxes on individuals’ profits from transactions of cryptocurrency. Because of this, Korean exchanges are trying to avoid paying tax on crypto profits. However, as things are right now, the government has no right to ask for these taxes. Individual profits from crypto transactions are not listed in the income tax law. According to the ministry, South Korean income tax law contains an enumeration that only levies on income listed under taxation.
Since individuals’ profits from virtual currency transactions are not listed income, these earnings do not fall under income tax taxation. South Korea is now claiming that they are preparing a legislation. The idea is to find a way on how to tax crypto profits. Their government claims they can’t tax digital asset profits right now. You can’t just create a new tax law to do this. However, a new legislation can do this in the future. South Korea needs to make changes to their taxation laws. That’s the only way they will be able to tax these profits in the future.
However, first they need to define cryptocurrency. The country needs to come up with a clear definition of cryptocurrencies and digital assets. According to reports from SK’ government, they already have something in the works. The new legislation will come during 2020. Their government claims they will be looking at how other countries deal with this issue and then act accordingly.
UK’s First Regulated Crypto Bank is in the Works
Mark Hipperson, who was head of technology for the Barclays group for over a decade as well as co-founder and former CTO at U.K. challenger bank, Starling, is planning a Q1 2020 launch for his latest digital banking venture, Ziglu. This is the next step when it comes to the future of banking. Ziglu will allow multiple currencies, both fiat and digital, to be held in the same account.
Keep in mind that creating this account will be completely free. With it, you will be able to hold balances in multiple currencies. However, you will also be able to exchange funds between those currencies. Cryptocurrency purchases and sales will be available at the best price across multiple exchanges. According to the Ziglu website, this venture is even better than expected. Apparently, any currency you have on the account can be used anywhere in the world. All you need is a mastercard debit card. This includes cryptocurrencies, which will be converted instantly at point of sale.
Nevertheless, Ziglu will remain UK only for now. Although, the plan is to eventually expand to other countries. It’s important to note that Ziglu is not the first company that offers a combined fiat/crypto account. It’s also not the first to have cryptocurrency-backed debit card offering. However, combining these two services in one is something that hasn’t been on the market so far.
Bitcoin vs Altcoins
Besides being the oldest cryptocurrency, Bitcoin is still the most popular one. The reason for this is because Bitcoin has several advantages over other digital assets. Academic Konrad S. Graf shared some words on this matter and claimed 4 major advantages that Bitcoins have over Altcoins.
- Fixed Supply – One big advantage for Bitcoin is that it can control and restrict the production of new bitcoins. Specifically, Bitcoin’s supply cannot be manipulated, nor can its maximum issuance — 21 million units — ever change to dilute it. Most altcoins on the other hand have a mutable supply which is why Bitcoin is above them so far.
- Technical Prowess – Against major altcoins, Bitcoin’s technical prowess means its position as a market leader has been obvious for years, says Graf. For instance, BTC currently has 97 exahashes protecting its network to BCH’s 2.5 exahashes.
- Apolitical Value Transfer – The above characteristic thus makes Bitcoin particularly useful for settlements from anyone to anyone, as a financial protocol immune to the trappings of fiat. This advantage exists because of how superior bitcoin is to fiat currency.
- It’s not an Entity – Last but not least, we have to mention this fact. Bitcoin is not a company or a corporation. Corporate blockchains depend on the people who lead them. This is a major weakness for them, compared to bitcoin. Imagine if the government wanted to somehow influence bitcoin. There is no CEO that they can just summon to Washington and interrogate.
Tune in Next Week!
Check out the Coinbet24 Blog next week for more information and updates about Bitcoin and cryptocurrency. Additionally, visit our Crypto Information section for any extra data on the subject. In the meantime, check Coinbet24.com, a Bitcoin Sportsbook & Online Casino operator.