Major Headlines (Coindesk)
IRS Warnings to Bitcoin Traders Offer Clues to Coming Tax Guidance
Bitcoin Price Faces Struggle to Hold Above $11K After Range Breakdown
Coinbase UK Dropping Support for Cryptocurrency Zcash
Colu May Buy Back ICO Tokens in Pivot Away From Blockchain
New Zealand Tax Office Makes It Legal to Pay Salaries in Crypto
IBM, Tata Become First Big Techs to Back Hedera Blockchain
Goldman Sachs Analysts’ Slide Suggests Now’s a Good Time to Buy Bitcoin
China’s Central Bank ‘Close’ to Launching Official Digital Currency
· The IRS’ recent warning letters to 10,000 traders offer hints at what its forthcoming guidance on crypto taxes might say.
· While the letters are not guidance, the tea leaves indicate the IRS might be changing its required methods for calculating the value of crypto holdings and the forms and schedules for reporting them.
· Major questions remain unresolved, including how hard forks and airdrops should be treated.
· Bitcoin’s short duration charts indicate the bears are in control and prices could drop below $11,000 in the next 24 hours.
· A strong bounce from the 5- and 10-week moving averages at $10,804 and $10,625, respectively, could fuel a rise back to $12,000.
· A high-volume weekly close (Sunday, UTC) or a back-to-back daily close above $12,000 is needed to revive the bullish outlook.
· The U.K. arm of Coinbase appears to be dropping support for the privacy-focused cryptocurrency zcash.
· The cryptocurrency exchange gave no specific reason for the removal of the cryptocurrency but said all remaining ZEC balances on Aug. 26 will be automatically converted to British pounds in users accounts.
· Blockchain startup Colu will repurchase approximately 54 million tokens sold during its $17 million ICO from those that participated in the crowd-sale.
· The company launched the token project in four cities, including London, Liverpool and Tel Aviv. It received an additional $14.5 million from financial and insurance company IDB Group for the project.
· Professor of behavioral economics: “Colu DLT’s decision to purchase CLN tokens appears unprecedented in the industry. It demonstrates how the Colu Group’s core values guide its actions. The Colu Group is focused on fostering relations between municipalities, local businesses, residents, and other city stakeholders. These relationships rely on the very same kind of trust and consideration, which is now being shown towards CLN token holders. It is wonderful to see the Colu Group following their ethical standards not just in words but in action. Such acts of giving up profits for the benefits of customers, partners, and investors are crucial to this tech sector if we want it to continue to evolve and grow.”
· New Zealand’s tax office, the Inland Revenue Department (IRD), has made it legal to receive salaries in cryptocurrency, and be taxed accordingly.
· The crypto asset being paid must also be able to be exchanged for fiat currency, and must have the primary purpose of acting like a currency or be pegged to the price of one or more fiat currencies
· As far as tax goes, salaries paid in crypto assets will be treated as PAYE (pay as you earn) income payments. These are deducted by the employer and passed onto the tax department.
· IBM and Indian telecom company Tata Communications have joined the governance council of Hedera Hashgraph, a blockchain-like public network for enterprises.
· Now, eight of the 39 available spots for governing council members are filled.
· Principal offering manager of the IBM Blockchain Platform: “The most exciting part is the proposed Hedera Consensus Service. It has the potential to provide the core innovation of proof-of-work blockchains, like bitcoin and ethereum, without the performance and privacy trade-offs that are typically associated with these networks.”
· Market intel from Goldman Sachs suggests investors should capitalize on the current price dip and buy bitcoin.
· Goldman said that the short-term target for bitcoin (BTC) is $13,971 and that investors should consider buying on any dips in the current scenario.
· Goldman Note: “Any such retracement from $12,916-$13,971 should be viewed as an opportunity to buy on weakness as long as it doesn’t retrace further than the $9,084 low,”
· Deputy director of the payments unit at the People’s Bank of China (PBoC), said its researchers have been hard at work since last year to complete the systems needed to support the digital yuan offering and that it is “close to being out.”
· Early in July, the former governor of the PBoC Zhou Xiaochuan said that Libra poses a threat to payments systems and national currencies.
· Zhou argued that the Chinese government should “make good preparations and make the Chinese yuan a stronger currency,” and that “commercial entities” could be allowed to issue digital yuans, as Hong Kong allows with its dollar.
(All citations of the News Digest are taken from Coindesk.)