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IRS Stepping Up Cryptocurrency Enforcement Efforts

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The IRS has confirmed that it has begun sending letters to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly. In the announcement, IRS Commissioner Chuck Rettig says that “The IRS is expanding our efforts involving virtual currency, including increased use of data analytics. We are focused on enforcing the law and helping taxpayers fully understand and meet their obligations.”

The IRS identified the taxpayers receiving these letters through various ongoing IRS compliance efforts, likely including customer information that the IRS received last year after successfully enforcing a John Doe summons against Coinbase. The IRS has said that it expects more than 10,000 taxpayers will receive these letters by the end of August.

Taxpayers will receive one of three variations of the letter: Letter 6174, Letter 6174-A, or Letter 6173. Letter 6174 is a “soft notice” that notifies the taxpayer that the IRS is aware that they have or had one or more accounts containing virtual currency, and says that taxpayers should file amended or delinquent returns if they believe they have not accurately reported virtual currency transactions on their tax returns. Letter 6174-A is similar to Letter 6174 but also states that the IRS has information that the taxpayer “may not have properly reported your transactions involving virtual currencies.” Letter 6173 goes another step further, directing taxpayers to respond to the letter either by filing amended or delinquent returns or by providing a written explanation of the actions they have taken to become compliant with their US tax obligations. All three letter variations provide general educational information about taxpayers’ obligations to report virtual currency transactions.

At the same time, the IRS also appears to be stepping up criminal enforcement efforts. On July 19, Don Fort, Chief of the IRS’s Criminal Investigation Division, spoke about the IRS’s criminal enforcement efforts regarding cryptocurrencies, at the RJS Law Tax Controversy Institute in San Diego. Mr. Fort reportedly told the audience that the division is building a number of cryptocurrency-related criminal tax cases, and that details about those cases may soon become public. Earlier this month, Tax Notes published a detailed presentation prepared by the Criminal Investigation Division regarding the use of cryptocurrencies in cyber crimes.

Taxpayers who have received a letter from the IRS may wish to consult a tax advisor to ensure that they have complied with their tax obligations or to determine the best way to respond to the letter or come into compliance.

Source: https://www.steptoeblockchainblog.com/2019/07/irs-stepping-up-cryptocurrency-enforcement-efforts/

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Ethereum, Stellar Lumens, Basic Attention Token Price Analysis: 31 October

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On the last day of October Bitcoin was seen nearing its monthly high as it aimed towards the $13,700 mark. The same bullishness was also visible on the trading charts of Ethereum, Stellar Lumens, and Basic Attention Token (BAT), with the three digital assets recording appreciable single day gains.

While the price recovery in Ethereum was still not as strong enough, both BAT and Stellar Lumens noted a trend reversal to bullish post a descending channel formation.

Ethereum [ETH]

Source: ETH/USD on TradingView

Ethereum gained 1.5% over the last 24 hours as it attempted to retrace some gains after witnessing a consistent dip in the price levels since 23 October.

Although, the price recovery still lacked bullish strength as could be seen from the Aroon indicator. The Aroon Up (orange) remained above the Aroon down (blue), but a fall its level at press time indicated weakness in the uptrend.

Again, despite the gains, a hint of incoming selling sentiment could still be noticed, as the Parabolic SAR too underlined a downtrend for the day’s trading session.

Stellar Lumens [XLM]

Source: XLM/USD on TradingView

The Awesome oscillator in the Stellar Lumens (XLM) market displayed a clear bullish crossover above the zero line.

The upward price rally followed a descending channel formation, that gave early signs of an incoming uptrend.

The divergence in the Bollinger Bands meant that the volatility level was on the rise, and a wide price action, given the bullish scenario also supported the recent uptick, that gave a positive return of 4.5% since yesterday.

A strong buy signal picked up from the technical indicators, might further push up the XLM prices towards the $0.079 resistance level over the next few days.

Basic Attention Token [BAT]

Source: BAT/USD on TradingView

Basic Attention Token was trading just above the $0.187 level of support following a 4% gain in price since yesterday. Relative Strength Index with its higher highs was seen heading towards the 60 level, an indication of rising buying pressure.

MACD although displaying convoluted lines at press time continued to remain in the bullish zone and further stayed above the zero level, as the buying sentiment persisted.

The digital asset sharply rose above the trendline and two of its key support levels. BAT could be headed for a brief consolidation along the $0.187 level of support, before witnessing another upward price rally over the next few days.

Source: https://eng.ambcrypto.com/ethereum-stellar-lumens-basic-attention-token-price-analysis-31-october

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Uniswap Retroactive Proxy Contract Airdrop Proposal Receives 28 Million Votes

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Community voting is on for Uniswap’s new governance proposal. The same will see users receive more than 5 million UNI tokens via a proxy contract. As of now, more than 28 million votes have gone in favor of the airdrop. Around 1.3 million votes are against the proposal.

Voting Begins For Uniswap’s Second UNI Airdrop

The voting process is on for passing Uniswap’s Phase 1 of Retroactive UNI Governance Token Distribution. The proposal, if successfully passed, will see 12,619 wallet addresses receive 400 UNI tokens each. However, for the successful receipt of the tokens, they must have interacted with the DEX through a third party or a proxy contract.

As per the numbers shared in the description on the official Uniswap website:

Specifically, this proposal transfers 5,047,600 UNI to a new MerkleDistributor contract, which will then allow for 400 UNI to be claimed by each of the 12,619 accounts held by users of the following projects:

Project Accounts % of total
Argent 3418 27.09%
DeFi Saver 890 7.05%
Dharma 2833 22.45%
eidoo 301 2.39%
FURUCOMBO 57 0.45%
MEW 4278 33.90%
Monolith 19 0.15%
Nuo 740 5.86%
Opyn 79 0.63%
rebalance 4 0.03%

Currently, the airdrop proposal has received upwards of 28 million votes. And around 1.3 million are against the helicopter-like distribution of Uniswap’s governance tokens. Voting will end on October 31 at 8 AM UTC. A quorum of 40 million votes is necessary to pass the proposal.

Dharma Protocol Proposed The Proposal Because…

Back in September, its users were left out of the initial airdrop. According to the Dharma team,

the way the retroactive airdrop was architected seemed to make a slight oversight in the snapshotting process — only addresses which directly called the Uniswap contracts were considered to be users.

Also, increased programmatic bot proliferation might have resulted in one user having multiple addresses. As per the description:

The Phase determination was made based on how easy it is to programmatically hook a trading bot into them, as this is a proxy for what portion of these cohorts risk representing multiple addresses per end-user. Phase 1 is the less programmatically accessible cohort, indicating a lower likelihood of multiple addresses per end-user.

If Phase 1 Passes, There Will Be Phase 2

On the successful passing of the first phase, Dharma has pledged to put in place a second UNI governance token distribution proposal. But they have also discretely mentioned their agreement to the final result (success or failure) of both voting processes.

If either Phase fails, we will accept that as the final determination of the Uniswap community. Should both Phases pass, we will not vote in favor of any further retroactive airdops.

Has this proposal gone down well with other members of the community? Well, some like Jeff Dorman, CIO of the investment management firm Arca have presented a bullish case for UNI (as opposed to those who think the proposal will actually devalue the token’s price).

In a detailed Tweet thread, Jeff called Uniswap’s governance token a ‘pass-thru token.’

UNI is being misrepresented as a “governance” token, and the market has shown that governance has no value. But in reality, UNI is a pass-thru token — where revenues will be passed thru to token holders. $UNI holders are about to earn a very large revenue stream in Feb 2021.
Will Jeff’s views hold true, and will we see the current phase of the UNI airdrop proposal win a majority? That remains to be seen.
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Source: https://cryptopotato.com/uniswap-retroactive-proxy-contract-airdrop-proposal-receives-28-million-votes/

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BREAKING: Bitcoin Just Broke To Its Highest Price Since Jan-2018

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Bitcoin is having a good year despite the coronavirus panics and the nervousness of the markets.

After reaching an annual high of about $13863 on Oct. 28, the world’s largest cryptocurrency by market capitalization underwent a sharp correction of almost $1000 before rebounding and stabilizing at $13281.

From that point on, it began a stable recovery process, with small daily growths, closing on Friday near $13680.

Today October 31st, Bitcoin managed to break that record, reaching $14,100 (Bitstamp) at the time of writing. This represents a 5% growth in the last 24 hours.

Bitcoin’s Ascend to New Highs

Bitcoin has been on a bullish streak since March, when the crash in the financial markets erased all the gains it had made throughout the year, taking the token to the lowest level since April 2019.

For those swing and position traders, things are looking pretty rosy. The cryptocurrency has respected the bullish channel that was formed since March. If the trend continues, the most robust support in the channel could be near $11,500 with significant resistance above $14,500, a level not experienced since early 2018, when the BTC bearish run began after the 2017 bubble burst.

btcusd_oct31
BTC/USD. Source: TradingVIew

From a technical standpoint, Bitcoin is in an overbought zone. The RSI is above 70 points, so caution is advised in the face of a possible later sell-off. Market sentiment and announcements from large financial institutions are currently serving as support to continue pushing up prices.

For example, MicroStrategy recently raised its investment in Bitcoin to $450 million. Square bought $50 million in Bitcoin, and PayPal added support for purchasing cryptocurrency. This has undoubtedly helped boost investors’ confidence who are tired of almost 2 years of struggling.

The MACD doesn’t give a clear signal to traders. Still, it does point to a continuation of the uptrend in the short term – although the closeness between the “short” and “long” lines shows that a normal correction can occur at any time.

Respecting Short-Term Boundaries

In the short term, Bitcoin has respected the Fibonacci retracements: The corrections have not broken below the $12,900 support, and both the RSI and MACD point to a possible price correction after the recovery.

The proximity of the U.S. presidential election could also play a key role in Bitcoin’s behavior in the coming weeks. There is a general belief that an eventual victory for Trump could lift investors’ optimism. At the same time, Biden could cause nervousness and a possible fall in the stock markets.

Bitcoin could follow these trends, although there are reports that, in general terms, the crypto is decoupling itself from any other traditional financial market. However, an eventual change of president in the United States is an event big enough to consider before making any investment.

If things stay within ordinary, Bitcoin could touch its ATH halfway through next year. Never before has Bitcoin’s price been above $10,000 for so long, and this is a sign of strength.

The bullish run of the past few months could also be considered the most apparent upward trend since the 2017 bubble. In fact, this movement looks more natural and mature than the one of 3 years ago.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/breaking-bitcoin-just-broke-to-its-highest-price-since-jan-2018/

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