This piece elucidates facts about the report that says that the servers of 2gether were under attack by some anonymous hackers who also robbed more than 1.39 million USD from accounts of cryptocurrency investments.
2gether is a European crypto trading organization. It was very unfortunate for them to face a massive problem as it became the target for a bunch of hackers. They stole over more than 1.183 million Euros which is equivalent to 1.36 million USD. The CEO of 2gether named Ramon Ferraz Estrada revealed this terrible news through a Twitter post series.
He also mentioned in his posts that the Euro wallets and accounts are still completely safe. To cope up with the major loss, the company came up with the offer to its clients to sell its classic 2GT token with the cost of 5 cents (each) only. The team of 2gether also made a decision to grant an extra fund for covering any further losses they might have faced through this event.
More Details on this Occurring
This particular crypto trading institution made some other statements to the public. The team stated that the application software of 2gether will get rebuilt once again as quickly as possible along with the availability of all security facilities. The customers will get a new benefit of asking about any sort of problem they might face with this application through an Ask Me Anything or AMA session that will be organized on Reddit.
Similar Incident with Cashaa
Cashaa, a United Kingdom-based cryptocurrency trading company, made a report that a little more than 336 bitcoins were stolen by a bunch of hackers just like the event happened with 2gether. Both the happenings were very much similar to each other and causing a heavy suspicion that they might be connected together.
Right after this awful incident happened with Cashaa, it stopped all the transactions linked with cryptocurrencies. With this sudden cease, the clients did not go through any issues to be specific as per the reports say.
The Whale Alert Twitter Update
On the 27th and 28th of July, Whale Alert posted a Twitter series that signified that wallet addresses linked with the current hack of Bitfinex exchange moved 3503 Bitcoins that have approximately held a value of 38.7 million USD, more than 12 transactions.
Obtaining Bitcoin is not as simple as purchasing fiat currency. There are several things you need to know to secure such a purchase. The first thing you need to know becomes where to store the Bitcoin you buy. Since it is a digital currency, you need a digital storage area, known as a wallet in the cryptocurrency world. The wallet essentially stores private keys you use to access your funds when you need to spend them. The keys are like your ATM card pin, without which you cannot access your money.
You can then go ahead to buy your digital currency once you have your wallet in place. There are currently six secure places where you can purchase Bitcoin.
Automated teller machines designated for Bitcoin dispensing are a completely new concept. They offer the most private purchasing experience and will quickly gain ground across the world. You get charged a 3-8 percent commission on your purchase above standard exchange price. And all you have to do is feed the machine funds then scan your wallet’s QR code to get the digital currency deposited. You can optionally get the systems in paper form with directions on how to collect the BTC. These ATMs can never get found in countries that have outlawed Bitcoin or digital currencies.
Gift cards often get purchased by Bitcoin, and the reverse is also true. You can buy Bitcoin using gift cards as several Bitcoin exchanges have sellers who deal in this particular exchange type. You purchase a gift card from a retail store and log into a Bitcoin exchange service. You may need to send an image of the gift card’s code plus the receipt of purchase or send an e-code. The difference depends on the seller with whom you connect. Gift cards tend to save you money as you can purchase them at even 60 percent of their actual value, making them one of the most affordable ways to buy Bitcoin.
Exchanges offer the most open platform for traders to purchase cryptocurrency. They get regulated by the country’s government and require that their clients give their details before engaging in trade. They also need clients to connect active bank accounts to their exchange accounts before they can begin transactions.
Giving details can be a deterring factor to some individuals as it takes away anonymity from Bitcoin trading. The advantage exchanges bring to provide a variety of options to traders and allow fair competition among sellers.
Exchanges also offer Bitcoin storage facilities. The downside to that is they are prone to hackers or even shutting down suddenly, making them unfavorable for cryptocurrency storage. Such incidents have happened before with traders undergoing irreversible losses.
Peer to peer involves buying Bitcoin from an individual seller. The advantage of this kind of purchase is you can keep the transaction anonymous. You have the option of meeting face to face, meeting in a group setting, or transacting online. The most secure of this becomes the group setting, with several buyers and sellers coming together for mutual benefit. You get to learn a lot from those who have gone before you and gain exposure from different approaches to Bitcoin trading.
Take utmost precaution while transacting online or face to face with a seller as many have been duped this way by fraudsters. Always have a witness with you if meeting physically with a seller. Meet in an open and public space where you can raise the alarm if something goes wrong. For online deals, try to get trusted sellers who have a proven track record in the trade. Referrals work better in such transactions where you are referred to a seller by a friend.
Bitcoin Investment Trust
This investment body is one-of-a-kind. You get to invest in Bitcoin without purchasing any cryptocurrency. You save your money in the trust, which pools the funds sent by investors and funds on your behalf. It currently has an investment pool of $1.8 billion with an appreciation of 1,600 percent from its inception.
The ingenuity of this approach ensures you never have to buy Bitcoin yourself. You also learn about cryptocurrency without the fear of undergoing losses or being duped in a deal.
While Bitcoin has been around since 2009, it is still evolving. Because of this, some governments are still wary of it. Sellers prefer hard cash or direct deposit from the bank to sell you the digital currency, so they don’t get the transaction reversed after transferring Bitcoin. Bitcoin currently has no reverse option in its system.
Remember also to be cautious when buying the cryptocurrency as there are many fraudsters out there. Use trusted sellers as much as possible. The digital currency world is a continually evolving space, and there will be other avenues created for accessing Bitcoin in the future. Security measures will get better and digital currency will continue to get embraced globally.
The traditional perception of Turkey as a crystal-learning nation seems to be discarded in a recent survey. Paribu had the clear goal of locating 1,000 Turkic people who knew something about crypto. Paribu was a major Turkish financial analyst. In order to accomplish this aim, it took more than 6,000-panel discussions in 12 cities in Turkey, mostly during COVID-19 surge. An important myth regarding the Turkish crypto ecosystem has been refuted by the tests. In a previous survey one-fifth of the Turkish people used or used cryptocurrencies, other foreign bitcoin-players have attracted a lot of attention. The Statista worldwide survey, performed in 18 countries by online polling of 1,000 survey participants in the first half of 2019, named Turkey as the world’s leading cryptography firm .. This remarkable approval rate is the highlight of the many specifications provided since the first article was written about Turkey and the part of the country.
The latest Paribu poll, released on the 23rd of July, contrasts dramatically with previous foreign reports that cryptography is less than 1 per cent between Turkish citizens.
Akademetre market research firm performed the investigation on behalf of Paribu itself, and the findings were published in the study on crypto-monetary consciousness and understanding.
The study reveals that of 6,253 respondents, only 44 have been traded in some form of controlling ownership. This means that only 0.7% of Turks have ever purchased tokens or trade in them. However, 97 per cent of respondents had little awareness that cryptocurrency is managed using blockchain technology. Roughly 85 % of the respondents never learned about Bitcoin ( BTC) or crypto-currency.
This led to a second section of the survey. As 44 is too small to carry out accurate testing, Akademetre and Paribu used another sample afterwards. This time, 300 frequent users of cryptographic products were developed. This latest research extensively explored Turkish crypto users’ experiences for the current sample selection. 34% have shared their faith in crypto among this latest group among 300 participants. It was also observed that the Internet (33.3 per cent) and social media (17.7 per cent) are the top two ways to check for knowledge about crypt on social media platforms.
Crypto is primarily used as an exchange or capital expenditure tool with less than one out of three interviewees utilizing cryptocurrencies to move capital. No matter the way it is used, 72.7 per cent of Turkish public are strongly pleased with crypto. Bitcoin with a 68% supremacy is the top alternative for Turkish crypt clients. Ether (ETH) and Bitcoin Cash ( BCH) respectively pursue BTC from a gap of 14.7 and 9.7%. Paribu CEO Yasin Oral elaborated on the survey findings and highlighted the weak crypto acceptance rate in Turkey by adding.
“The viewership in Turkey is immense.
Kyber Network has come up with KyberDAO, an upgrade of the protocol in operation on Mainnet and works along with the decentralized autonomous organization, DAO. Kyber has developed a new Katalyst Protocol upgrade and a decentralized finance solution known as DeFi.
An upgrade is related to Defi move
By keeping the Defi move in mind, the Kyber network would take Katalyst into action using the Kyber DAO liquidity. The kyber DAO is empowering both the communities, i.e., the Kyber and Defi community, to buy the actual stake and decide the future of Kyber. It helps to contribute to the growth of the Kyber. The Kyber network website is overhauled to give a new look and make it the best platform to communicate when there is a change in the protocols and the Kyber Network Crystal token model.
Kyber DAO has entered into Defi
Kyber uses its respective Mainnet through which the Kyber DAO would be running. The Kyber Network is ultimately the on-chain liquidity protocol that gets liquidity from different sources and swaps the decentralized tokens and uses it in various applications.
Kyber DAO takes part in receiving the Ethereum payouts and helps the system run through buying stakes in KNC assets and voting. The Defi sector is widely used for a few months with the blockchain and crypto gaining huge attention.
The Defi movement is driving the cryptocurrency though the price of the asset is increasing to 75% less compared to 2017. The Defi is decentralized finance. There is a notion that the crypto entrepreneurs can come up with the conventional financial instruments in the decentralized architecture and government control.
The decentralized applications have become even more popular to avoid misuse of funds when those are centrally controlled. Bitcoin and Ethereum are Defi applications. A huge network of computers controls these two without banks and financial institutions’ involvement. The investors are using bitcoins equal to gold. It is protected from inflation, whereas Ethereum is instrumental and controversial, helping the new companies get funds.
The best part of using Defi is that traditional finance would depend on various financial institutions like banks to act as intermediaries. Defi applications do not need any kind of arbitrator and intermediate person. The code will be having the solution for every dispute, and users will be controlling the funds all the time. This reduces the amount you spend in using the products and helps you carry out the frictionless financial transactions. The financial services are used on blockchain, so there is no single point failure. The data you track on the blockchain would be shared with different nodes. The framework for the Defi applications is already developed, so it becomes easier to deploy. It becomes highly secure and less complicated.
The best thing about using Defi is that it makes people gain access to the financial system otherwise restricted for few people. The traditional financial system depends on intermediaries to make profits, but Defi would reduce cost, and people with low income can benefit from this service.
In the present age of technology, the latest new options can be much useful to a large extent. The latest option in the field of information technology Blockchain is the most useful option. Many of the leading companies also have adopted this technology. In a shocking development, Wirecard, which was one of the leading crypto debit card issuers, has collapsed, and this has led to a panic situation in the crypto market. The German financial tech company was a significant player in this market, and its sudden collapse has sent shock waves across the industry. This indeed is a huge blow to the industry, and there is a need for more transparency and authority to control such things in the long run. However, there are experts who have suggested various actions that can help the system to have more security and ease of utility.
Crypto association of Wirecard
Like many other segments, there is also an association that can help users and players in this field. German company Wirecard made its association with crypto card providers and emerged as a major payment processor in the market. It even entered the German stock market DAX in recent years. It is much interesting to note at this stage that Wirecard was involved in payment processing tasks for pornographic and gambling sites for 2 decades. With its technological expertise in this field, it became a good bet for the crypto industry in a short time.
The Wirecard scam
In recent weeks, many incidents happened that led to the collapse of this company. Recently, Ernst and Young’s auditors reported that close to $2 billion was untraceable in the accounts of Wirecard. It was later discovered that the funds did not exist at all, and it was just shown in the books. Later, the insolvency filing was done, which led to the arrest of CEO Markus Braun. After this, the UK’s financial regulator suspended the Visa crypto debit cards. But, the ban was lifted after a few days. The situation as of now is very grim for the company, and its stock price has collapsed. However, many investors are showing interest in buying the company, and it may find a suitable partner in the near future. The buyers are willing to have a share in it and take it to a new height.
Impact on the crypto market
This has become an embarrassment for the crypto industry, and many players are now very cautious about the entire industry. The entire regulatory framework of Germany has now been blamed, and many genuine financial institutions are also facing the heat due to this scandal.
How big is this loss?
The company has issued millions of cards over the last few years, and all of them are useless at this stage. If the customers are not able to reactivate their cards through an alternate service provider, they will lose trust in such service providers in the long term. The only saving grace in this entire scandal is that Wirecard did not have access to the funds of users. It was only processing the payments of consumers who used the cards.
Users now have to choose another service provider who can take over from here and provide better services. It is also well known that Wirecard may itself continue to issue cards through its subsidiary companies considering all these problems; users are now very cautious about such payment processing companies and losing trust in the entire crypto industry. This can have a negative impact on the industry, and something needs to be done collectively to prevent such issues in the future.
KPMG has recently launched its own crypto asset management tools called Chain Fusion with a myriad of features that would allow financial start-ups and economic firms to provide their crypto-asset services. The new product launched for its institutional clients will allow its customers to manage their data in accordance with all the necessary regulations surrounding security, processing, and reporting. The customers will be able to collect and organize data from blockchain databases and traditional systems properly. The company has been working designing of the suite of tools for over a year, and the building of the tool began since February 2020.
KPMG has been following the cryptocurrency industry for a long time. Its growing usage has caused the global regulators to take attention of it. Companies that offered traditional financial businesses are also integrating cryptocurrency into their system, but most do not have the technology to do it properly. A study conducted by their internal teams has estimated that hackers have stolen about $9.8 billion in cryptocurrencies since the year 2017. Thus, there is a need for greater security and rules for the use and storing of cryptocurrencies where they would follow transaction rules set in place by their governments.
Financial institutions and crypto companies have faced one common problem, and that is to build infrastructure for their blockchain-based systems, which is different than what the traditional systems might need. Another issue that they might face is a way to connect the traditional systems to the blockchain-based system. It is where the new Crypto Asset Management Tool by KPMG can come to the rescue. It allows its users to create a data model for all the different transactions performed by the organization irrespective of whether they are traditional or the blockchain ones. The company will be able to run advanced analytics on the data collected.
KPMG’s new tool will help address a number of the challenges that its users face. For example, the tool will ensure that blockchain data matches that of what is being recorded in the entities’ book. Another way will be able to find information from databases, including that of blockchain, while still running the queries they need to. The company has incorporated a number of different technologies that would suit a varied style of clients. KPMG Chain Fusion will help bring all the different systems together and streamline the processes and offer better control. The company has not yet confirmed how many of its customers have started to use Chain Fusion already, but it did confirm that it was in talks about multiple clients on the use of the particular tool.
KPMG might have taken a bit of risk getting in the crypto-asset management, but its reputation and brand name will surely help it build its client base slowly but steadily. There are already other fintech companies in the business offering similar kinds of services; it is to be seen how KPMG differentiates itself based on its product features and the service they offer to their clients. What could work in their favor is that they already have clients in the industry around the globe, and it is all about convincing them to adapt to the changing times. The suite of advanced analytics will help streamline and enhance the ability of financial institutions and fintech companies. It would help companies make a smooth transition of adopting the crypto-business capabilities. Since a number of traditional businesses have also started to offer crypto services, the tool will come handy in building their abilities efficiently and effectively into their existing traditional data infrastructure.
KPMG is an international network of independent firms offering financial services including accounting, tax, audit, assurance services, and financial advisory. KPMG is the third-largest accounting firm in the world with it’s headquarter in the Netherlands. The company has a presence in over 820 locations around the world in 147 countries. KPMG serves a varied types of clients, including businesses, governments, NGOs, public-sector agencies, and more. The company has won several awards for its exceptional work. In 2015, the company was included in the list of top 100 companies to work on by Fortune. In 2016, Consulting Magazine ranked the company at the 13th number as one of the best firms to work.
You can expertise any subject within a concise period of time if you have dedication. Cryptocurrency might seem complicated in the beginning, but you have to trust yourself and rely on different books and practical knowledge and instincts. You can make your retirement lavish if you master this art. When this system came into existence, bitcoin was worth $2 or so. Now, it’s value has risen to $60,000/coin! Can you imagine? This is how fast the market is growing. Hence, this is the best time to invest, learn, and utilize the digital currency’s power. Your question is, how quickly can you become an expert, isn’t it? Let’s take a look at the aspects you need to look for if you want to become an expert.
Listen to various podcasts, shows, youtube videos by various famous cryptocurrency experts. You will learn different tricks that can boost your confidence and give you the power to apply for practical knowledge about the market when investing in the bitcoin trading system. These videos and podcasts are done frequently on specific streaming mediums. Talk to someone associated with cryptocurrency trading, and they will help you. Everyone has something special, and you will find your specialty while playing your part in the game.
Read various books on cryptocurrencies. The theoretical knowledge is essential for crypto trading along with practical knowledge. You have to know every process and also, a way out of you losing some. Winning and losing an essential feature of trading; hence, it is essential to learn the methods that lead to favorable probabilities of winning. The best books for learning about cryptocurrencies are,
- Cryptoassets by Chris Burniske and Jack Tatar
- The Book of Satoshi by Phil Champagne
- The Basics of Bitcoins and Blockchains by Antony Lewis
- The Blockchain Developer by Elad Elrom
- The Age of Cryptocurrency by Paul Vigna and Micheal Casey
- Mastering Bitcoin: Unlocking Digital Cryptocurrencies by Andreas Antonopoulos, etc.
Keep an eye on the global trends in the market. Market trends speak a lot about the necessary steps you have to take in order to save your capital. Capital that you have invested is hard-earned, and therefore, knowing the theories are important.
Check the market cap. It is one of the important aspects to look into. Market cap can be expanded to a market civilization, which suggests the overall value of the cryptocurrencies in circulation.
Dig deeper to know more about your crypto leaders. The team you are associated with needs to be checked. Check if your leaders are avoiding communication or not, whether their profiles are legitimate or not, check their bio, etc. Keeping an eye on your team will help you be safe. You should be aware of every little change because it’s your hard-earned money, and it’s your team.
Check your crypto community duly. Bigger communities don’t mean it’s a good one, read reviews about them, do a duly research, and then proceed. Check social media, make friendship with the community members, and collect information if you ever receive any eerie information, check, and if necessary leave. Communicate with your teammates regularly to get a regular follow up of every market situation.
Becoming a crypto trading expert won’t be an easy task because you have to be disciplined, patient, analytical, and wise. Read books, watch videos of experts, take extra measures to study the market daily, keep your plan ready for your face loss, don’t be disheartened if you fail, rise up, and trade again. Don’t trust anyone with your money, take advice, but the investment decision should be yours, be your own master, and become the expert!
What is Bitcoin halving?
Bitcoin halving would reduce the value of the bitcoins to half. Whatever the amount that miners are expecting would be cut down. This halving will happen once in every four years or sometimes very frequently. To be precise, it happens for every 2, 10,000 transactions. The reward that the bitcoin miners would receive for every block would be cut to half. In 2009, every bitcoin miner received just 50 bitcoins for a block. However, after a few days, the reward has been cut down to 25. In 2016 it was curtailed to 12.5, and the next value would be 6.25.
A report submitted by Cointelegraph Markets found that the bitcoin stocks have started to perform even better despite its halving.
Bitcoin continues to flourish.
Based on the reports, it is clear that the price of the bitcoin is still stable, and the reactions that are received from across the globe are making its value even stronger. Many analysts are waiting to see the value of the bitcoins pre-halve and post-halve in the price of the bitcoin that does not occur. When halving the bitcoins happens in May, its impact on the bitcoin price would be on the cryptocurrency. There is evidence that proves that the accumulation of bitcoins and digital currencies is still on the rise among the retail investors and institutional investors.
Halving will not stop bitcoins from outperforming.
The data collected from Skew suggest that bitcoins will be the digital asset in the market, with the value going to rise to 35.95% every year. Many institutional investors have started to increase the value of the coins. The institutional investors have started to collect the bitcoins. The crypto funds started to increase up to 150% with the generation of new coins that are getting halved since May 11. There are many companies which are allocated some funds for the bitcoins.
Bitcoin is optimistic
Retail investors are vesting double interest in the digital currency. One of the digital payment companies named Square has stated that the bitcoin revenue has hiked up to USD 306 million and has been increased to 71% in the last quarter. Due to the uncertainty in the global market, there is a surge in using the bitcoins. There are exchanges taking place in Latin America and Africa.
The bullish outlook of bitcoin is not going to impact the global market due to bitcoin halving. Based on the on-chain data reports, it is clear that investors who are investing long-term are keeping the coins with them through a drop of the value up to USD 3, 750. The prices of the bitcoin may increase, and the assets would take a different path. The investors are trying to buy the bitcoins when they decline to USD 9,500
When does bitcoin halving happen?
Since the cryptocurrency had hit the market in 2009, the halving of bitcoins is taking place, and it happens once every four years. Based on the reports, it is clear that halving happened twice to date. The first halving is in 2012 as per Forbes. Due to halving, there is an increase from USD 11 to USD 11,000. However, this growth was not observed until a year. The second time the halving took place in 2016 where the bitcoin has been increased from USD 700 to USD 20000. It is evident that due to halving, the future supply of the bitcoins would be reduced, but the demand remains the same. It hikes the price of the bitcoin.
Due to halving, there is a huge retail demand for bitcoins in the market. The investors see a pool of opportunities by investing in this digital currency. There are big cryptocurrency investors called whales who have accumulated the bitcoins at a low price and will start to sell them at a lucrative price once the demand for them begins to grow.
The next halving of the bitcoin was expected in May 2020. It is tough to predict how the bitcoins would be halved since it takes some time to create new blocks. There is around 64 bitcoin halving before the 21 million would be hit. When this happens, the bitcoin miners can’t collect the rewards. They depend on the charging fee to carry out transactions like credit card companies.
Is there a chance of bitcoin price to rise due to halving?
When the previous halving scenarios are considered, the halving has increased the price of bitcoin. In 2012, bitcoin gained a profit of 8000% in the last 12 months. There is a cut in the rewards and has risen to 1000% in 2016 cut. With the initial coin offerings, the bitcoin has gained a considerable demand. The halving will have a huge psychological impact and would continue to impact the price of the bitcoin significantly.
In the history of bitcoin, the halving took place in May. The popularity of bitcoin is accepted globally and is used in various applications.
Recently, the co-founder of BiLira, the very first stablecoin to go with Turkish Lira, created a stir in Turkey’s crypto-world by announcing that by the end of the next year, they may announce a “new regulatory framework” for the blockchain technology. The COO and co-founder of BiLira, Vidal Arditi, said in an interview that the new framework is primarily meant to safeguard the interests of the new people joining the crypto world and the existing investors, rather than to create a bump in the sector’s growth.
Vidal Arditi also said in the interview that Turkey’s government is highly enthusiastic and invested in the future of blockchain technology and what it can achieve. He went on the say that the top government officials have been backing and supporting the blockchain associations, student clubs, blockchain pools, blockchain accelerators, and so on. He said that “I’m sure we’ll see a lot more projects in the crypto space one year from now in Turkey, and we’ll see how the government will respond.”
Turkey’s government, as per Arditi, is interested in integrating the blockchain technology to its financial sphere. The Central Bank of Turkey has even gone on to publicly declare that they are interested in a cryptocurrency or a blockchain-based ledger currency for transactions. The COO of BiLira said that the stablecoin enjoys endorsement from the government and banking agencies and authorities in Turkey. There are ongoing discussions going on between BiLira’s officials and the government as well as the country’s financial and banking regulatory departments.
Arditi went on to say that the Turkey government has offered its support to the company and have saluted their efforts to integrate blockchain technology to the country’s financial sphere. The Turkey government is keen on making BiLira a huge success and has extended its support to the fullest extent possible. However, Arditi did mention that there are a few hiccups that the company is facing as of now from local legal professionals who are experienced in advanced distributed ledger systems and technologies.
Vidal Arditi said that the blockchain technology, as well as cryptocurrency, belongs to an ecosystem that is relatively new and nascent. To fully integrate it into the domestic and global financial sphere flawlessly requires a lot of knowledge, research, and technical aggregation, the expertise that Turkey currently lacks to some extent. After its launch last year, BiLira has been able to service over 1,500 users and counting with the token issued of over $14 million worth of Turkish Lira.
Recently, good news came for the Turkish people as BTSE, one of the foremost crypto trading platforms, announced the spot listing services for BiLira against USDT or Tether. It provides an average crypto trader and investor in Turkey to gain much-needed exposure to the USD. It comes as a welcoming measure by the platform, especially during the financial crisis the country is facing.
The money of May saw a rapid decline in the value of Turkey’s Lira as the banking regulators aimed at protecting the currency and country’s financial situation by imposing strict restrictions against any overseas transactions in Turkey’s Lira. It was primarily meant to stop foreign efforts to short-sell the currency and reduce any negative speculation. BiLira announced on June 8 that it would be soon issuing its token on the AVA platform once they complete their mainnet launch. The company would also continue to issue its BiLira in the form of ERC-20 tokens on the Ethereum network.
Adriti added that his team has been working on developing for the AVA platform a few months ago, especially as the company is currently facing many issues with Ethereum at the moment, including the issues of scalability and completion. He also hinted towards the fact that BiLira would continue to work on expanding its presence by adapting to different blockchain ecosystems as they surface.
There are different types of misconceptions about cryptocurrency all over the world. People are in confusion about the uses, value, appearance, and transaction of Cryptocurrency. If we call it in simple language then this is virtual money with similar effects ordinary type of money. The way we use dollars, pounds, yen, and euros, this digital or virtual money presents the same way to deal or transact. The difference is only their invalid physical counterpart just like we do with banknotes and coins.
The misconceptions are just because of a lack of proper knowledge. Where a portion of the public is unaware of the crypto income where a large portion is earning huge profit by utilizing it very well. Bitcoins are leading to their advantages. The existence of cryptocurrency in electronic form has made it more popular. Some of the people refuse to deal with this rare type of asset or money.
Where the advancement of this money at the international level has forced the South Korean government to plan new income taxation in the year 2021. For that purpose, they have planned to impose a tax on the crypto income. Traders, miners, and more will have to follow this new income tax plan. The Korean Tax Agency is engaged in introducing the regulations of this new taxation plan to Economy, finance, and other ministries.
Below are a few aspects associated with the South Korean plan for taxation from the year 2021:
- Addition of clause in amendments: They have added new clauses related to crypto which will be mandatory to be followed from the effect of the year 2021. As per a current report, Korean ministries are following the process to finalize required amendments for income tax with updates. These updates will be related to cryptocurrency.
- Only profitable income will take part: They are also focusing on different sources to impose different forms of income tax. This income tax will be charged on the profits of domestic and international investors by using cryptocurrency.
- Security of the clause: According to the Ministry of Information and Technology, the additions/changes in amendments are done to secure that only profitable income will be categorized for tax. Once noticing the earning of investors with cryptocurrency without paying tax the ministry of South Korea has decided to act with these clauses.
- Finalization of amendment: As per the information, this amendment will appear in parliament Korea in September months of the current year. The finalization will be done before the submission in parliament. The earlier efforts for the same were done in 2017 but due to some reasons, that time enforcement was not given to this taxation law for cryptocurrency. This time the hopes are high. The investors are gaining higher profits by investing in cryptocurrency. If we look at the last Korean assembly response of march month then also, we get a positive hope for the enforcement of taxation law for cryptocurrency income.
- Responsibilities of crypto exchanges: Crypto exchanges are told to prepare the proper records and details on investors, their, profitable income, and further information. They will have to prepare a secured and real data which they will have to submit to the authorities in the case of requirement. The exchanges will be also responsible to report FIU to support FSC of South Korea.
The efforts of the Korean government show that they want to enter their name in the list of countries that levy income tax on the income of cryptocurrency. America, Australia, Germany, Japan have already started levying tax on cryptocurrency.
This could be bad news for the investors of cryptocurrency. Some of the investors have shown interest in this new provision where many are against. However, the Korean government has planned for it, and hopefully, in 2021, this new provision will apply to the crypto income. Further plans will take part after getting approval from the authorities.
Some other important points associated with the taxable crypto income in South Korea:
- Rate of interest: As per the government of South Korea They have considered imposing a 20% tax on crypto income.
- The income tax: The Korean ministry of economy and finance has introduced the proposal of taxable crypto income to their country. This is the image of further terms and doubts.
Japan treats crypto income as similar as miscellaneous income. South Korea is also looking for the view and proceeding accordingly. The rate of interest may vary as per the fluctuation of the income of cryptocurrency investors may arise. We can think with different views by giving importance to various reports until the amendment gets approval. A clear image will be in front of everyone once it is officially declared that crypto income is taxable income in South Korea. Many countries are waiting to watch the new tax law of South Korea about crypto income. We must wait patiently, till then investors are required to prepare themselves.