Tax reporting for Bitcoin trading – Hedged Bitcoin

Bitcoin Trading Taxes

I am starting a week long sprint to do a NodeJS module. Your post sounds like someone I could team with, so hit me up if you are interested.
The project consists of generating bitcoin trading tax reports based on user API keys. Expressed in MVC terms, the model is the user history (API fetch), the controller is the JavaScript i am getting ready to code, and the view(s) are what we make of it, with the bare min consisting of txt file for tax submission, and the first eye candy that pops to mind is a chart of the portfolio value over time. Other nice things would be a JSON dump and a spreadsheet export.
An example can be found at https://bitcoin.tax/
These guys are pretty CYA. I would like to do something that allows the user more options, specifically FIFO vs. LIFO, like-kind accounting, exposing the root cost basis as a variable. My plan is to limit the scope by completely forgoing gifts, purchases, etc... for now and focus just on the data that is available via API keys.
submitted by holyoak to nodetogether [link] [comments]

Nickel and dime bitcoin trading for last 6 years...report on taxes?

I recently got a notice from the IRS asking me to consider filing amended returns due to involvement in cryptocurrency.
From 2103-2018 I traded a bit of bitcoin off and on, and also played a little bitcoin poker. Total poker profits were about $500, and overall from trading bitcoin and ripple I ended up with maybe $1500 in profit, spread out over the years. Is it worth it to go back and amend and file all those returns? Will they come after me if I don't?
submitted by mtgartfan to bitcointaxes [link] [comments]

Cost Basis not showing on Bitcoin.tax reports... help! (crypto to crypto trades)

I have used bitcoin.tax before to generate reports for taxes before without issues, but that was because I did mostly Fiat-crypto , and crypto to fiat transactions...

Last year I did some crypto to crypto trades, which are also taxable events... but when I generate reports from bitcoin.tax (im linking exchanges through API) the reports show cost basis of my crypto to crypto trades as 0... can someone help me out with this?

Thanks
submitted by speedstickman to bitcointaxes [link] [comments]

how can you securely trade bitcoins into USD? Do people link their checking account? And does the bank report it to the IRS and you have to pay tax on it?

submitted by tricep6 to BitcoinMarkets [link] [comments]

Isreal Tax Authority Demands For Bitcoin Trading Report.

Isreal Tax Authority Demands For Bitcoin Trading Report. submitted by jhonsins to CryptoCurrencies [link] [comments]

Do report your Bitcoin on your taxes if you have ONLY purchased them and haven't traded or sold any since the time of purchase?

I purchased bitcoin mid-way through 2017 but have not sold or traded any of it since buying them. In Arizona, do I need to report it because it is unrealized gain/loss?
submitted by uawildcat04 to personalfinance [link] [comments]

Isreal Tax Authority Demands For Bitcoin Trading Report.

Isreal Tax Authority Demands For Bitcoin Trading Report. submitted by arcral to AlternativeCoin [link] [comments]

Mission accomplished: Tax return accepted with hundreds of crypto trades reported as like-kind exchange!!! /r/Bitcoin

Mission accomplished: Tax return accepted with hundreds of crypto trades reported as like-kind exchange!!! /Bitcoin submitted by HiIAMCaptainObvious to BitcoinAll [link] [comments]

IRS Violated 'Taxpayer Bill of Rights' With 2019 Crypto Letters: Watchdog

IRS Violated 'Taxpayer Bill of Rights' With 2019 Crypto Letters: Watchdog submitted by simplelifestyle to Bitcoin [link] [comments]

I took your suggestions and built a tool that builds a spreadsheet of your capital gain/loss on a per trade basis to assist you in reporting cryptocurrency trading on your taxes this year! /r/Bitcoin

I took your suggestions and built a tool that builds a spreadsheet of your capital gain/loss on a per trade basis to assist you in reporting cryptocurrency trading on your taxes this year! /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

So... taxes. Do Coinbase or other exchanges send out any kind of forms? Are they reporting what we bought/sold to the IRS? How do I file my taxes this year after 365 days of trading Bitcoin?

halp
submitted by KingJulien to Bitcoin [link] [comments]

how can you securely trade bitcoins into USD? Do people link their checking account? And does the bank report it to the IRS and you have to pay tax on it? /r/BitcoinMarkets

how can you securely trade bitcoins into USD? Do people link their checking account? And does the bank report it to the IRS and you have to pay tax on it? /BitcoinMarkets submitted by BitcoinAllBot to BitcoinAll [link] [comments]

How do I report bitcoin to the IRS if I've only hoarded and never sold or traded? (I've read the tax compliance section of bitcoin wiki and I'm still confused) /r/Bitcoin

How do I report bitcoin to the IRS if I've only hoarded and never sold or traded? (I've read the tax compliance section of bitcoin wiki and I'm still confused) /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

The UK reportedly plans to scrap value added tax on Bitcoin trades, a boost for the cryptocurrency

The UK reportedly plans to scrap value added tax on Bitcoin trades, a boost for the cryptocurrency submitted by petskup to Bitcoin [link] [comments]

Legal Question

Hello, legal question: Let's say I have 1 BTC. If I transfer that 1 BTC into USD to my bank account, as long as I pay taxes (on the BTC) per the law, am I safe? Or does the IRS investigate where the BTC came from (online gambling system FYI)? Does the IRS care? What if I have 100 BTC? Does higher numbers make them check into it?
Just curious, all insight appreciated. Thank you.
submitted by ksou95 to Bitcoin [link] [comments]

Is coinbase reliable?

Is Coinbase good and reliable as a exchange. I want know how many people use Coinbase as their exchange
submitted by Osage7 to Bitcoin [link] [comments]

ETHE & GBTC (Grayscale) Frequently Asked Questions

It is no doubt Grayscale’s booming popularity as a mainstream investment has caused a lot of community hullabaloo lately. As such, I felt it was worth making a FAQ regarding the topic. I’m looking to update this as needed and of course am open to suggestions / adding any questions.
The goal is simply to have a thread we can link to anyone with questions on Grayscale and its products. Instead of explaining the same thing 3 times a day, shoot those posters over to this thread. My hope is that these questions are answered in a fairly simple and easy to understand manner. I think as the sub grows it will be a nice reference point for newcomers.
Disclaimer: I do NOT work for Grayscale and as such am basing all these answers on information that can be found on their website / reports. (Grayscale’s official FAQ can be found here). I also do NOT have a finance degree, I do NOT have a Series 6 / 7 / 140-whatever, and I do NOT work with investment products for my day job. I have an accounting background and work within the finance world so I have the general ‘business’ knowledge to put it all together, but this is all info determined in my best faith effort as a layman. The point being is this --- it is possible I may explain something wrong or missed the technical terms, and if that occurs I am more than happy to update anything that can be proven incorrect
Everything below will be in reference to ETHE but will apply to GBTC as well. If those two segregate in any way, I will note that accordingly.
What is Grayscale? 
Grayscale is the company that created the ETHE product. Their website is https://grayscale.co/
What is ETHE? 
ETHE is essentially a stock that intends to loosely track the price of ETH. It does so by having each ETHE be backed by a specific amount of ETH that is held on chain. Initially, the newly minted ETHE can only be purchased by institutions and accredited investors directly from Grayscale. Once a year has passed (6 months for GBTC) it can then be listed on the OTCQX Best Market exchange for secondary trading. Once listed on OTCQX, anyone investor can purchase at this point. Additional information on ETHE can be found here.
So ETHE is an ETF? 
No. For technical reasons beyond my personal understandings it is not labeled an ETF. I know it all flows back to the “Securities Act Rule 144”, but due to my limited knowledge on SEC regulations I don’t want to misspeak past that. If anyone is more knowledgeable on the subject I am happy to input their answer here.
How long has ETHE existed? 
ETHE was formed 12/14/2017. GBTC was formed 9/25/2013.
How is ETHE created? 
The trust will issue shares to “Authorized Participants” in groups of 100 shares (called baskets). Authorized Participants are the only persons that may place orders to create these baskets and they do it on behalf of the investor.
Source: Creation and Redemption of Shares section on page 39 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Note – The way their reports word this makes it sound like there is an army of authorizers doing the dirty work, but in reality there is only one Authorized Participant. At this moment the “Genesis” company is the sole Authorized Participant. Genesis is owned by the “Digital Currency Group, Inc.” which is the parent company of Grayscale as well. (And to really go down the rabbit hole it looks like DCG is the parent company of CoinDesk and is “backing 150+ companies across 30 countries, including Coinbase, Ripple, and Chainalysis.”)
Source: Digital Currency Group, Inc. informational section on page 77 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here
Source: Barry E. Silbert informational section on page 75 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here
How does Grayscale acquire the ETH to collateralize the ETHE product? 
An Investor may acquire ETHE by paying in cash or exchanging ETH already owned.
Source: Creation and Redemption of Shares section on page 40 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Where does Grayscale store their ETH? Does it have a specific wallet address we can follow? 
ETH is stored with Coinbase Custody Trust Company, LLC. I am unaware of any specific address or set of addresses that can be used to verify the ETH is actually there.
As an aside - I would actually love to see if anyone knows more about this as it’s something that’s sort of peaked my interest after being asked about it… I find it doubtful we can find that however.
Source: Part C. Business Information, Item 8, subsection A. on page 16 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Can ETHE be redeemed for ETH? 
No, currently there is no way to give your shares of ETHE back to Grayscale to receive ETH back. The only method of getting back into ETH would be to sell your ETHE to someone else and then use those proceeds to buy ETH yourself.
Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Why are they not redeeming shares? 
I think the report summarizes it best:
Redemptions of Shares are currently not permitted and the Trust is unable to redeem Shares. Subject to receipt of regulatory approval from the SEC and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. Because the Trust does not believe that the SEC would, at this time, entertain an application for the waiver of rules needed in order to operate an ongoing redemption program, the Trust currently has no intention of seeking regulatory approval from the SEC to operate an ongoing redemption program.
Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the fee structure? 
ETHE has an annual fee of 2.5%. GBTC has an annual fee of 2.0%. Fees are paid by selling the underlying ETH / BTC collateralizing the asset.
Source: ETHE’s informational page on Grayscale’s website - Located Here
Source: Description of Trust on page 31 & 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the ratio of ETH to ETHE? 
At the time of posting (6/19/2020) each ETHE share is backed by .09391605 ETH. Each share of GBTC is backed by .00096038 BTC.
ETHE & GBTC’s specific information page on Grayscale’s website updates the ratio daily – Located Here
For a full historical look at this ratio, it can be found on the Grayscale home page on the upper right side if you go to Tax Documents > 2019 Tax Documents > Grayscale Ethereum Trust 2019 Tax Letter.
Why is the ratio not 1:1? Why is it always decreasing? 
While I cannot say for certain why the initial distribution was not a 1:1 backing, it is more than likely to keep the price down and allow more investors a chance to purchase ETHE / GBTC.
As noted above, fees are paid by selling off the ETH collateralizing ETHE. So this number will always be trending downward as time goes on.
Source: Description of Trust on page 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
I keep hearing about how this is locked supply… explain? 
As noted above, there is currently no redemption program for converting your ETHE back into ETH. This means that once an ETHE is issued, it will remain in circulation until a redemption program is formed --- something that doesn’t seem to be too urgent for the SEC or Grayscale at the moment. Tiny amounts will naturally be removed due to fees, but the bulk of the asset is in there for good.
Knowing that ETHE cannot be taken back and destroyed at this time, the ETH collateralizing it will not be removed from the wallet for the foreseeable future. While it is not fully locked in the sense of say a totally lost key, it is not coming out any time soon.
Per their annual statement:
The Trust’s ETH will be transferred out of the ETH Account only in the following circumstances: (i) transferred to pay the Sponsor’s Fee or any Additional Trust Expenses, (ii) distributed in connection with the redemption of Baskets (subject to the Trust’s obtaining regulatory approval from the SEC to operate an ongoing redemption program and the consent of the Sponsor), (iii) sold on an as-needed basis to pay Additional Trust Expenses or (iv) sold on behalf of the Trust in the event the Trust terminates and liquidates its assets or as otherwise required by law or regulation.
Source: Description of Trust on page 31 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Grayscale now owns a huge chunk of both ETH and BTC’s supply… should we be worried about manipulation, a sell off to crash the market crash, a staking cartel? 
First, it’s important to remember Grayscale is a lot more akin to an exchange then say an investment firm. Grayscale is working on behalf of its investors to create this product for investor control. Grayscale doesn’t ‘control’ the ETH it holds any more then Coinbase ‘controls’ the ETH in its hot wallet. (Note: There are likely some varying levels of control, but specific to this topic Grayscale cannot simply sell [legally, at least] the ETH by their own decision in the same manner Coinbase wouldn't be able to either.)
That said, there shouldn’t be any worry in the short to medium time-frame. As noted above, Grayscale can’t really remove ETH other than for fees or termination of the product. At 2.5% a year, fees are noise in terms of volume. Grayscale seems to be the fastest growing product in the crypto space at the moment and termination of the product seems unlikely.
IF redemptions were to happen tomorrow, it’s extremely unlikely we would see a mass exodus out of the product to redeem for ETH. And even if there was incentive to get back to ETH, the premium makes it so that it would be much more cost effective to just sell your ETHE on the secondary market and buy ETH yourself. Remember, any redemption is up to the investors and NOT something Grayscale has direct control over.
Yes, but what about [insert criminal act here]… 
Alright, yes. Technically nothing is stopping Grayscale from selling all the ETH / BTC and running off to the Bahamas (Hawaii?). BUT there is no real reason for them to do so. Barry is an extremely public figure and it won’t be easy for him to get away with that. Grayscale’s Bitcoin Trust creates SEC reports weekly / bi-weekly and I’m sure given the sentiment towards crypto is being watched carefully. Plus, Grayscale is making tons of consistent revenue and thus has little to no incentive to give that up for a quick buck.
That’s a lot of ‘happy little feels’ Bob, is there even an independent audit or is this Tether 2.0? 
Actually yes, an independent auditor report can be found in their annual reports. It is clearly aimed more towards the financial side and I doubt the auditors are crypto savants, but it is at least one extra set of eyes. Auditors are Friedman LLP – Auditor since 2015.
Source: Independent Auditor Report starting on page 116 (of the PDF itself) of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
As mentioned by user TheCrpytosAndBloods (In Comments Below), a fun fact:
The company’s auditors Friedman LLP were also coincidentally TetheBitfinex’s auditors until They controversially parted ways in 2018 when the Tether controversy was at its height. I am not suggesting for one moment that there is anything shady about DCG - I just find it interesting it’s the same auditor.
“Grayscale sounds kind of lame” / “Not your keys not your crypto!” / “Why is anyone buying this, it sounds like a scam?” 
Welp, for starters this honestly is not really a product aimed at the people likely to be reading this post. To each their own, but do remember just because something provides no value to you doesn’t mean it can’t provide value to someone else. That said some of the advertised benefits are as follows:
So for example, I can set up an IRA at a brokerage account that has $0 trading fees. Then I can trade GBTC and ETHE all day without having to worry about tracking my taxes. All with the relative safety something like E-Trade provides over Binance.
As for how it benefits the everyday ETH holder? I think the supply lock is a positive. I also think this product exposes the Ethereum ecosystem to people who otherwise wouldn’t know about it.
Why is there a premium? Why is ETHE’s premium so insanely high compared to GBTC’s premium? 
There are a handful of theories of why a premium exists at all, some even mentioned in the annual report. The short list is as follows:
Why is ETHE’s so much higher the GBTC’s? Again, a few thoughts:

Are there any other differences between ETHE and GBTC? 
I touched on a few of the smaller differences, but one of the more interesting changes is GBTC is now a “SEC reporting company” as of January 2020. Which again goes beyond my scope of knowledge so I won’t comment on it too much… but the net result is GBTC is now putting out weekly / bi-weekly 8-K’s and annual 10-K’s. This means you can track GBTC that much easier at the moment as well as there is an extra layer of validity to the product IMO.
I’m looking for some statistics on ETHE… such as who is buying, how much is bought, etc? 
There is a great Q1 2020 report I recommend you give a read that has a lot of cool graphs and data on the product. It’s a little GBTC centric, but there is some ETHE data as well. It can be found here hidden within the 8-K filings.Q1 2020 is the 4/16/2020 8-K filing.
For those more into a GAAP style report see the 2019 annual 10-K of the same location.
Is Grayscale only just for BTC and ETH? 
No, there are other products as well. In terms of a secondary market product, ETCG is the Ethereum Classic version of ETHE. Fun Fact – ETCG was actually put out to the secondary market first. It also has a 3% fee tied to it where 1% of it goes to some type of ETC development fund.
In terms of institutional and accredited investors, there are a few ‘fan favorites’ such as Bitcoin Cash, Litcoin, Stellar, XRP, and Zcash. Something called Horizion (Backed by ZEN I guess? Idk to be honest what that is…). And a diversified Mutual Fund type fund that has a little bit of all of those. None of these products are available on the secondary market.
Are there alternatives to Grayscale? 
I know they exist, but I don’t follow them. I’ll leave this as a “to be edited” section and will add as others comment on what they know.
Per user Over-analyser (in comments below):
Coinshares (Formerly XBT provider) are the only similar product I know of. BTC, ETH, XRP and LTC as Exchange Traded Notes (ETN).
It looks like they are fully backed with the underlying crypto (no premium).
https://coinshares.com/etps/xbt-provideinvestor-resources/daily-hedging-position
Denominated in SEK and EUR. Certainly available in some UK pensions (SIPP).
As asked by pegcity - Okay so I was under the impression you can just give them your own ETH and get ETHE, but do you get 11 ETHE per ETH or do you get the market value of ETH in USD worth of ETHE? 
I have always understood that the ETHE issued directly through Grayscale is issued without the premium. As in, if I were to trade 1 ETH for ETHE I would get 11, not say only 2 or 3 because the secondary market premium is so high. And if I were paying cash only I would be paying the price to buy 1 ETH to get my 11 ETHE. Per page 39 of their annual statement, it reads as follows:
The Trust will issue Shares to Authorized Participants from time to time, but only in one or more Baskets (with a Basket being a block of 100 Shares). The Trust will not issue fractions of a Basket. The creation (and, should the Trust commence a redemption program, redemption) of Baskets will be made only in exchange for the delivery to the Trust, or the distribution by the Trust, of the number of whole and fractional ETH represented by each Basket being created (or, should the Trust commence a redemption program, redeemed), which is determined by dividing (x) the number of ETH owned by the Trust at 4:00 p.m., New York time, on the trade date of a creation or redemption order, after deducting the number of ETH representing the U.S. dollar value of accrued but unpaid fees and expenses of the Trust (converted using the ETH Index Price at such time, and carried to the eighth decimal place), by (y) the number of Shares outstanding at such time (with the quotient so obtained calculated to one one-hundred-millionth of one ETH (i.e., carried to the eighth decimal place)), and multiplying such quotient by 100 (the “Basket ETH Amount”). All questions as to the calculation of the Basket ETH Amount will be conclusively determined by the Sponsor and will be final and binding on all persons interested in the Trust. The Basket ETH Amount multiplied by the number of Baskets being created or redeemed is the “Total Basket ETH Amount.” The number of ETH represented by a Share will gradually decrease over time as the Trust’s ETH are used to pay the Trust’s expenses. Each Share represented approximately 0.0950 ETH and 0.0974 ETH as of December 31, 2019 and 2018, respectively.

submitted by Bob-Rossi to ethfinance [link] [comments]

The ATO just sent out more Crypto letters

How many I don't know, but I am getting a lot of new users coming to CryptoTaxCalculator who just received a letter to their email address. My best guess is that the ATO is ramping up efforts this tax season. They seem to now be working with third party blockchain analysis services, not just Australian crypto exchanges anymore, as indicated on recent updates to the ATO website here.
Edit: I just added a blog post detailing what you should do if you have received this email.
submitted by shhbrunette to BitcoinAUS [link] [comments]

Over the past year my team and I have been tirelessly working to build a Bitcoin onramp built by Bitcoiners, for Bitcoiners. Today, I'm excited to introduce River Financial: the best place to buy, sell, and use Bitcoin for the long term investor.

Hey /bitcoin! I'm Alex Leishman, a longtime Bitcoiner and member of this sub.
Today I'm very proud to announce the launch of River Financial (river.com), a financial institution built specifically for long-term Bitcoin investors.
TL;DR At River.com you can:
Background
Like many of you, I became quite frustrated over the last few years as I watched many once-respected companies in the space (e.g. Coinbase) turn their backs on Bitcoin and become casinos for altcoin trading. So, I decided to compete with them and build the company that Bitcoin deserves.
At River.com we deeply believe that Bitcoin (and Bitcoin alone) will continue to grow in its role as a globally recognized currency and store of value, and will eventually sit alongside or challenge today’s government-backed fiat currencies. We're building a financial institution around this hypothesis.
We have built our technical infrastructure from the ground up. All core applications run on our own servers sitting in a 2,000lb vault only we have access to (not your servers, not your company). And, of course, the vast majority of funds are held in a multisig PSBT-based cold storage system. By focusing exclusively on Bitcoin, we can provide access to the latest features Bitcoin has to offer. We already support the Lightning Network and will be ready to go with Schnorr support if/when the taproot soft fork is accepted by the network!
If you'd like to read more about River Financial and who we are, check out our blog post here.
We are based in San Francisco, and growing quickly. We are currently still in invite-only mode as we scale up. If you are eager to get access, sign up here river.com/request and DM me. I'll see what I can do ;)
Feel free to ask any questions below!
FAQ
How are you better than Coinbase?
What states do you currently support?
With many more coming early next year.
Will you support other cryptocurrencies?
No.
submitted by alex_leishman to Bitcoin [link] [comments]

[FULL ANALYSIS] Bitcoin exchanges and payment processors in Canada are now regulated as Money Service Businesses

Hello Bitcoiners!
Many of you saw my tweet yesterday about the Bitcoin regulations in Canada. As usual, some journalists decided to write articles about my tweets without asking me for the full context :P Which means there has been a lot of misunderstanding. Particuarly, these regulations mean that we can lower the KYC requirements and no longer require ID documents or bank account connections! We can also increase the daily transaction limit from $3,000 per day to $10,000 per day for unverified accounts. The main difference is that we now have a $1,000 per-transaction limit (instead of per day) and we must report suspicious transactions. It's important to read about our reporting requirements, as it is the main difference since pretty much every exchange was doing KYC anyway.
Hopefully you appreciate the transparency, and I'm available for questions!
Cheers,
Francis
*********************************************
Text below is copied from: https://medium.com/bull-bitcoin/bitcoin-exchanges-and-payment-processors-in-canada-are-now-regulated-as-money-service-businesses-1ca820575511

Bitcoin is money, regulated like money

Notice to Canadian Bitcoin users

If you are the user of a Canadian Bitcoin company, be assured that:
You may notice that the exchange service you are using has change its transactions limits or is now requiring more information from you.
You can stop reading this email now without any consequence! Otherwise, keep regarding if you are interested in my unique insights into this important topic!

Background on regulation

Today marks an important chapter for Bitcoin’s history in Canada: Bitcoin is officially regulated as money (virtual currency) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act of Canada (PCMLTFA), under the jurisdiction of the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC).
This is the culmination of 5 years of effort by numerous Bitcoin Canadian advocates collaborating with the Ministry of Finance, Fintrac and other Canadian government agencies.
It is important to note that there is no new Bitcoin law in Canada. In June of 2014, the Governor General of Canada (representing Her Majesty Queen Elizabeth II) gave royal asset to Bill C-31, voted by parliament under Stephen Harper’s Conservative government, which included amendments to the PCMLTFA to included Bitcoin companies (named “dealers in virtual currency”) as a category of Money Service Businesses.
Thereafter, FINTRAC engaged in the process of defining what exactly is meant by “dealing in virtual currency” and what particular rules would apply to the businesses in this category. Much of our work was centred around excluding things like non-custodial wallets, nodes, mining and other activities that were not related exchange or payments processing.
To give an idea, the other categories that apply to traditional fiat currency businesses are:
When we say that Bitcoin is now regulated, what we mean is that these questions have been settled, officially published, and that they are now legally binding.
Businesses that are deemed to be “dealing in virtual currency” must register with FINTRAC as a money service business, just like they would if they were doing traditional currency exchange or payment processing.
There is no “license” required, which means that you do not need the government’s approval before you can operate a Bitcoin exchange business. However, when you operate a Money Service Business, you must register and comply with the laws… otherwise you risk jail time and large fines.

What activities are regulated as Money Service Business activity?

A virtual currency exchange transaction is defined as: “an exchange, at the request of another person or entity, of virtual currency for funds, funds for virtual currency or one virtual currency for another.” This includes, but is not limited to:

Notice to foreign Bitcoin companies with clients in Canada

Regardless of whether or not your business is based in Canada, you must register with FINTRAC as a Foreign Money Service Business, if:

How this affects BullBitcoin.com and Bylls.com

The regulation of Bitcoin exchange and payment services has always been inevitable. If we want Bitcoin to be considered as money, we must accept that it will be regulated like other monies. Our stance on the regulation issue has always been that Bitcoin exchanges and payment processors should be regulated like fiat currency exchanges and payment processors, no more, no less. This is the outcome we obtained.
To comply with these regulations, we are implementing a few changes to our Know-Your-Customer requirement and transaction limits which may paradoxically make your experience using Bull Bitcoin and Bylls even more private and convenient!

The bad news

The good news

To understand these regulations, we highly recommend reading this summary by our good friends and partners at Outlier Compliance.

Summary of our obligations

Our responsibilities:
The information required to perform a compliant know-your-customer validation:
Record keeping obligations:

Suspicious transaction reporting

Satoshi Portal is required to make suspicious transactions report to FINTRAC after we have detected a fact that amounts to reasonable grounds to suspect that one of your transactions is related to the commission or attempted commission of a money laundering offence or a terrorist activity financing offence.
Failure by Satoshi Portal Inc. to report a suspicious transaction could lead to up to five years imprisonment, a fine of up to $2,000,000, or both, for its executives.
We are not allowed to share with anyone other than FINTRAC, including our clients, the contents of a suspicious transaction report as well as the fact that a suspicious transaction report has been filed.

What is suspicious activity?

Note for bitcoinca: this section applies ONLY to Bull Bitcoin. Most exchanges have much stricter interpretation of what is suspicious. You should operate under the assumption that using Coinjoin or TOR will get you flagged at some other exchanges even though it's okay for Bull Bitcoin. That is simply because we have a more sophisticated understanding of privacy best practices.
Identifying suspicious behavior is heavily dependent on the context of each transaction. We understand and take into account that for many of our customers, privacy and libertarian beliefs are of the utmost importance, and that some users may not know that the behavior they are engaging in is suspicious. When we are concerned or confused about the behaviors of our users, we endeavour to discuss it with them before jumping to conclusions.
In general, here are a few tips:
Here are some examples of behavior that we do not consider suspicious:
Here are some example indicators of behavior that would lead us to investigate whether or not a transaction is suspicious:

What does this mean for Bitcoin?

It was always standard practice for Bitcoin companies to operate under the assumption they would eventually be regulated and adopt policies and procedures as if they were already regulated. The same practices used for legal KYC were already commonplace to mitigate fraud (chargebacks).
In addition, law enforcement and other government agencies in Canada were already issuing subpoenas and information requests to Bitcoin companies to obtain the information of users that were under investigation.
We suspect that cash-based Bitcoin exchanges, whether Bitcoin ATMs, physical Bitcoin exchanges or Peer-to-Peer trading, will be the most affected since they will no longer be able to operate without KYC and the absence of KYC was the primary feature that allowed them to justify charging such high fees and exchange rate premiums.
One thing is certain, as of today, there is no ambiguity whatsoever that Bitcoin is 100% legal and regulated in Canada!
submitted by FrancisPouliot to BitcoinCA [link] [comments]

[Hiring] (San Francisco) Senior Kubernetes Engineer

A cryptocurrency start-up with an Infrastructure team in downtown San Francisco is looking for a Kubernetes Engineer to join the growing team. This bootstrap start-up builds a real-time trading platform for digital currencies. Doing over half a billion dollars of Bitcoin transactions a day this start-up does more Bitcoin (BTC) trading than any other platform in the world.
Due to the COVID-19 pandemic, this position is temporarily 100% remote. Once both the state and company determine that it is safe to work, the Senior Kubernetes Engineer will be expected to work in the San Francisco office.
Reporting directly to the Head of DevOps, this Senior Kubernetes Engineer will partner closely with the other DevOps and Kubernetes Engineers on the Infrastructure team to improve internal k8s components and applications across multiple clusters and troubleshoot issues as needed. The Senior Kubernetes Engineer will also play a consultative role and collaborate with the Security, Front End, and Engineering teams.
Tech environment also includes AWS, Terraform, Chef, Golang, Python, Prometheus, Docker, Github, and uses GitOps paradigm.

Required Skills & Experience

Desired Skills & Experience

What You Will Be Doing

Tech Breakdown
Daily Responsibilities

The Offer

You will receive the following benefits:
Applicants must be currently authorized to work in the United States on a full-time basis now and in the future.
This position does not offer sponsorship.
Jobspring Partners, part of the Motion Recruitment network, provides IT Staffing Solutions (Contract, Contract-to-Hire, and Direct Hire) across 10 major North American markets. Our unique expertise in today’s highest demand tech skill sets, paired with our deep networks and knowledge of our local technology markets, results in an exemplary track record with candidates and clients.

Interested in applying? Please send a direct message on reddit, or an email with your resume to [email protected]
submitted by John-ODell to sysadminjobs [link] [comments]

The French central bank loses their mind over decentralized crypto currencies: "Bitcoin is only for criminals!" just as they launch their own backed up crypto currency.

Source (in French), translation below, by yours truly.
The French central bank has just released its bimonthly report and there's an entire section dedicated to cryptos.
Their first statement is that: "Bitcoin, and other decentralized crypto currencies (as in not backed by any government), are 'pseudo-money' with no future".
The French central bank considers the use of decentralized crypto currencies to be barbaric and uncivilized.
According to them, decentralized crypto currencies are only used for activities such as:
You get it, for the French central bank, Bitcoin is all bad and evil, crypto currencies should be controlled by governments."
LMAO, next step they'll make trading crypto illegal except for the ones that are backed up by governments. They are clenching with all their strength to their outdated economic model.
submitted by GuianaSurvivor to Bitcoin [link] [comments]

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