bit coin

Is there a tax evasion for bitcoin users? IRS uses block chain tracking tools to find the truth

The IRS (IRS) is actively tracking the use of bitcoin tax evasion, through the deployment of Chainalysis and other tools to expose tax evasion.

Many people think bitcoin is anonymous. But in fact, it’s semi anonymous. All transactions are connected to specific addresses that are visible on the open and transparent platform of the block chain.

However, it is impossible to link a particular wallet address to a real world person or company without any other information.

Although good privacy protection can prevent information leakage, but bitcoin transactions still will and the traditional monetary system (when you’re in the store to sell or use bitcoin bitcoin exchanges in the intersection, then ID) have become the inevitable.

By reverse inference, it is possible to sort out bitcoin trading chains to a certain extent.

Bitcoin tax

IRS and Chainalysis

IRS has been trying to get details and circumstances of bitcoin transactions involving tax avoidance.

Previously, IRS had asked Coinbase to submit user information for the period 2013 through 2015. According to reports, IRS also signed a contract with Chainalysis, designed to carry out transaction analysis, determine user identity.

Chainalysis uses information gathered in the public forums to tag and identify transactions, and to disclose data sources, including recharge and withdrawals from the Internet and exchanges.

IRS hopes to use such data to track down tax evasion and the criminals who trade drugs and buy illegal goods and services through bitcoin.

bitcoin tax

Is Chainalysis really feasible?

Bitcoin has mixed currency services, specifically designed to disrupt the source of bitcoin. In many mixed currency services, is second to none, but the service suddenly announced a halt to operations.

Coinjoin trading can also make it harder to investigate bitcoin trading sources. Joinmixer and other services can help users with the same intention to mix transactions to enhance privacy.

Although Chainalysis claims to have a large proportion (25%) of bitcoin address information, but these are likely to be privacy measures can not do the address.

If users deliberately obscure their trading trajectory, Chainalysis is unable to obtain such transaction information.

Are competing currencies traceable?

IRS sharpened want to look behind the bitcoin trading information, but this action will be extended to the whole encryption if the currency field is in vain.

Privacy functions such as Dash, Monroe (Monero) and ZCash have been deployed and their transactions are hard to track.

If people turn from bitcoin to this kind of currency, IRS will be busy when investigating tax avoidance.

In addition, it is impractical to gather resources to investigate all encrypted currencies.

The introduction of a concise tax system for the application of encrypted currencies could be the best way to achieve compliance.

At present, the encrypted currency is still in the gray area, so it is likely to conceal its encrypted currency assets from the tax authorities

BitGo CEO: the Segwit2x code, “official version,” is nearing completion

At least that’s what BitGo CEO and project leader Mike Belshe says in the latest mailing list update.
Segwit2x aims to carry out a hard branch to enhance the bitcoin network capacity, in May this year has released some of the code iteration, but according to the development team said, the software version of 1.14.5 may be close to the final release version, the current version is called the “official version”.
Belshe writes:
“This software is running as planned and no bug or failure has occurred.”
He said the stability of the software version has been further demonstrated, given the fact that it has been activated by BIP 91 and Segwit, the two biggest and most watched upgrade of bitcoin in months.
His statement and bitcoin field some well-known developers view contrasts, the developers think the development of Segwit2x software is very hasty, and not enough users and developers to support bitcoin.
However, Belshe says the software version will undergo some changes. “It’s just some bug fixes and documentation changes that will help the November upgrade go smoothly. Maximum security and minimal change are our goals.”
The discussion may be added to change the so-called “replay attack protection” most, this protection will prevent users may lose money, in case the Segwit2x failed to convince the majority of users with the change and give up the current version of the bitcoin software.
In this case, although the hard branching won’t happen before November, Belshe continues to urge Segwit2x developers to keep a close eye on the project:


CCTV financial review talk about bitcoin

Bitcoin Market: according to bitcoin trading platform fire currency network quotes show that, as of August 24th, Beijing time 10 points, bitcoin prices of 28158.60 yuan. Fire coin network bitcoin opened today, the price of 28334.8 yuan, the current highest price of 28500 yuan, the lowest price of 27301 yuan, down 0.62%.
Bitcoin market hourly chart from the fire currency network
Bitcoin market hourly chart from the fire currency network

Industry news
Do you know much about bitcoin?
Not long ago, CCTV financial review joint number 100 “do you know about bitcoin” problems were investigated, the results showed that 61% of people said the general understanding, 14.7% said very well, only 24% of people said they did not know. In this way, bitcoin is now gradually into the public view.
Will bitcoin continue to rise in the future?
Bitcoin prices recently exceeded thirty thousand mark, really shocked everyone. Wall Street’s forecasts are growing bolder, with Wall Street strategists predicting that bitcoin prices will rise by 40% next year. By the middle of 2018, it would have reached $6000. Then bitcoin will rise? CCTV financial union digital 100 has done a survey, “do you think bitcoin transaction prices will rise in the future?”” According to the chart below, we can see that only 14% of the people said that the future price of bitcoin will not rise again.
CCTV financial review talk about bitcoin
August 21st CCTV financial review again invite financial experts for the bitcoin soared to analyze this program by the chief researcher Zong Liang China bank and CCTV financial commentator Liu Ge.
Bitcoin in the end what?
Chief researcher China bank Zong Liang said bitcoin is a group of combination of numbers obtained by distributed billing and encryption algorithm of digital, the distributed architecture is actually known as block chain technology, the total bitcoin is about 21 million pieces.
CCTV commentator Liu Ge, why do you call the place where bitcoin production is called mine? It’s practically the same as gold and silver in our history. It is also a way to dig out precious metals. A virtual precious metal that is now produced does not need to be issued by the central bank. In history, including the Ming Dynasty, everyone was using silver. In the Qin Dynasty, the central bank issued coins, which became the most important currency in the transaction, because silver became the prevailing currency.
Why bitcoin inflation?
Liu Ge believes that the reason for the surge in bitcoin is recognized by more and more people believe that bitcoin can become a geometric rate of growth in the currency of circulation, resulting in bitcoin prices also rose geometrically. Bitcoin as a virtual currency, so far, bitcoin did not appear too much technical loopholes, that is, everyone recognized the establishment of block chain theory. Not yet see bitcoin demise at present.

Bitcoin today: multi break resistance

1. market trends
Today, August 25, 2017. Coin currency network bitcoin current price of 28900 yuan. Last night, bitcoin prices broke through a few days ago stressed by the analysis of the 28300 resistance position, once again launched an attack on thirty thousand. However, some potential dangers remain to be resolved.

Look at the daily chart, the currency price since August 22nd, the bottom and top of the rebound are in turn up, this is the original trend will continue the strongest signal. As can be seen from the figure, after breaking through resistance positions, many began to attack the thirty thousand key, is expected in the short term bitcoin prices will once again touched 30 thousand.
The process of investment is essentially the process of managing risk. In the long run, how much is the final benefit of the management of potential risks?. What are the main factors that prevent the heavy load?
First of all, it is not satisfactory to break through the volume of resistance. Although there has been a continuous increase in the number of resistance levels after breakthrough, it is more often a false breakthrough. The second is the need to guard against the daily biparietal pattern appearance, history from this potential factors to high price break close at hand.
Ether workshop
From the 4 hours chart, the price rebound is still in the etheric square channel, but since August 21st the downward adjustment in shrinking rise pattern. Aggressive investors can enter the market properly, but they need to pay attention to stop losses, while conservative investors continue to wait for the upside and try to lower their risk.
2. price trend index
“Bitcoin price index is the index trend of” currency area according to the similar potential “the spatial index” domestic bitcoin trading platform statistics, analysis of the current market index is the use of long and short of power distribution, in order to better determine the price trend analysis.
Disclaimer: data and analysis are from the currency area, sosobtc, the article is only for sharing, does not constitute investment advice, reprint, please obtain authorization.

The South African central bank conducts sandbox operations to test digital assets

In Johannesburg (South Africa (its northeastern city)) of the financial strategy of science and Technology Innovation Conference, the Reserve Bank of South Africa Francois Groepe said to the general user issuing digital assets are high risk.
Digital assets such as bitcoin are digital assets recognized by the government and central bank, and are gaining huge support and interest from African countries.
Even if digital assets are universal, the central bank needs to ensure that these payments are not abused or used for illegal money laundering, Groepe said.
A disruptive innovation

Both the South African people and the government have shown goodwill in their currencies, and they are happy to usher in a new era of banking technology.
Groepe says:
“We have witnessed the interruption of financial services. In the past ten years, financial, scientific and technological awareness and publicity have also been increasing”
Mass adoption capability
While the outlook for digital assets is optimistic, the Reserve Bank of South Africa is not yet ready to adopt high-risk digital assets.
Groepe added:
“Although virtual assets already have the potential to be widely adopted. But issuing virtual assets in an open system would have a high risk for the central bank. That’s what we need to think about”
Sandbox testing
In July this year, the South African Reserve Bank has begun actual investigation of digital assets and block chain technology, Bankymoon (a block chain solution service provider) has been the central bank chose to test digital sandbox rules of business assets.

Why do big companies compete to build block chains?

Even when the boom in bitcoin and the etheric square fades, the power behind these “block chaining” technologies is very real. This article analyzes how businesses try block chaining technology – and why they can’t ignore it.
A summer morning in a coffee shop in Broolyn street in the Atlantic, I sat in the MacBook computer, because tens of thousands of global machine ready will repair my records included in the common sense and they will not be able to be erased. I’m creating my own digital token – essentially an online currency – on a wireless, expanding, de centered Ethernet square network.
Bushwick based Goldin development studio ConsenSys, Mike, a software developer, took me through the coding process. Today, Goldin wholeheartedly answers my every question with the greatest patience. “More than 10 hours of software I downloaded the previous day is unnecessary,” he told me. “We’ll do some work in a few minutes, and achieve my goal.”
In my name token considering, “fortunecoin”, “hackettoken”, “neither”, I decided to use the name sounds a bit rude, it led to the last century the Internet bubble in 90s the interruption of “Petsdotcoin”, click “create me”.
Transaction hash
Waiting… Waiting… Waiting……
After twenty-seven seconds and a block confirmation, I am the holder of 500 newly minted “Petsdotcoin” tokens. These tokens are created using the ether, costing $1.57, and encrypted currencies provide the fuel needed for the ether square network. Apart from this charge, my token is worth 0 aether or $0.00. The program reminds me that they’re worthless. However, if I put these things and some valuable business philosophy combined, then Petsdotcoin may provide a new way for investors to support me and tracking their shares, application and participate in a mini, virtual economy. In that respect, my seemingly worthless project is a small part of a deeply economic activity.
If you do not keep track, digital currency is a new asset class that is supported by bitcoin and Ethernet and other crypto money networks. The industry’s interest in frenzied investors this year has brought a huge rise in valuations for these electronic coins, which has led to an unprecedented comparison with the Internet era. (so there is Petsdotcoin.) In the age of news reporting, the total market value of all virtual currencies, up from less than $20 billion at the start of the year, has risen to $135 billion.
Hundreds of projects collectively raised $about one billion through the “Initial Coin Offering” (ICO). The following are the tokens to raise every conceivable attempt: go to the center of the cloud storage (FileCoin, Storj), digital advertising (Basic Attention, Token adToken), a gentleman’s Club of Las Vegas (Legends Room), marijuana (Potcoin), Satire (PonzICO), DentaCoin (there is even a dentist). In a photo posted on Instagram recently, boxer Floyd Mayweather (Floyd Mayweather) sitting on a private plane, surrounded by a bunch of dollar bills, selling a called Stox market, there are some people who think that ICO token speculation has reached to the peak of the crazy.
Wise money is also involved in this area. Established venture capital firms such as Sequoia, Andreessen, Horowitzand and Union Square Venture are investing millions of dollars into crypto money hedge funds. This topic is the most popular in Wall Street. But it is worth noting that long-term investors see this field of money as a mental aberration. “It is now easier to focus on short-term ICO funds.” Andreessen Horowitz general partner Chris Dickson (Chris Dixon) said:
“I think this unfortunate cover up the more important technical stories.”

The FSA said 50 bitcoin exchanges were applying for licences

Commentary: in April 2017, the Japanese government runaway revised fund settlement method, recognize bitcoin legitimate payment. Therefore, the Japanese financial department must complete the registration of the stock exchange before the end of September and guarantee its compliance. Currently, the finance department has received 50 applications for registration of bitcoin exchanges. The audit includes user protection measures, the separation of the exchange assets and user deposits, and the establishment of risk management systems. In addition, many Japanese companies have also increased bitcoin trading services.
Translation: Annie_Xu
The FSA Financial Services Agency announced that it had received 50 applications for registration of bitcoin exchanges since August. Its compliance is currently being reviewed.
Japan’s local news Sankei Shimbun reported that the financial office has begun to audit, involving bitcoin and other virtual currency business exchanges, whether the implementation of measures aimed at protecting users.
Status of digital currency in Japan
In April 2017, the Japanese government amended the fund settlement act, recognizing that bitcoin is a legitimate means of payment. Many people attribute the decision to this year’s bitcoin bull market.
After the bitcoin payment is legitimate, FSA must ensure that the registration of the national virtual currency exchange is completed by the end of September.
Under the new regulations, FSA must ensure that they meet the requirements before the exchange is registered. These include appropriate measures to ensure full protection for users. In addition, the exchange must communicate with FSA, currency fluctuations and other factors caused by economic losses.
FSA also checks whether the assets of the exchange are clearly separate from the user’s deposits, and ensures that a suitable risk management system is established.
Japanese companies increase bitcoin trading services
Large Japanese companies have added bitcoin transactions to their service offerings. March 2016, the listing group Remix Point Inc. launched the company’s first bitcoin exchange Bitpoint. NASDAQ listed financial information provider Fisco Ltd. has launched its bitcoin exchange.
Other companies that set up exchanges included Internet Co, GMO, SBI, Holdings, and Money Partners Group.
Bitcoin continued to integrate into the Japanese economy, the currency price continued to rise in favor of.

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