Tag: bitcoin news

Police in Chinese city seize 600 computers used to mine bitcoin

BEIJING (Reuters) — Police in the north China city of Tianjin confiscated 600 computers used to mine bitcoin cryptocurrency after the local power grid operator reported abnormal electricity usage, Xinhua reported Wednesday.

Representation of the Bitcoin virtual currency standing on the PC motherboard is seen in this illustration picture, February 3, 2018. REUTERS/Dado Ruvic/Illustration

“Eight high-power fans were also seized,” Xinhua said, quoting local police and added that it was the “largest power theft case in recent years.”

The report didn’t say when the police had seized the equipment.

China was home to the majority of crytopcurrency mining operations before Beijing last year began to discourage it as part of a larger crackdown on bitcoin and other cryptocurrencies. It is unclear how much of mining activity has moved offshore or been shut down.

Reuters reported in January that China’s central bank told a top-level government internet finance group that the monetary authority can tell local governments to regulate the power usage of bitcoin miners to gradually reduce the scale of their production.

Miners use high-powered machines to generate the massive computing power to produce cryptocurrencies, which is done by solving mathematical equations.

The activity is also highly energy intensive, leading miners to seek locations with easy access to cheap electricity.

Five people are under investigation and another has been detained in the Tianjin case, Xinhua said.

Reporting by Elias Glenn; Editing by Shri Navaratnam

Alan Zibluk Markethive Founding Member

Markethive

Bitcoin Exchanges seeking clarity over levy of GST

January 5, 2018

Bitcoin Exchanges seeking clarity over levy of GST

MUMBAI: Are Bitcoin exchanges required to pay goods and services tax? If they are, what would the rate be? And, will GST be levied on the revenues or operating margins of these exchanges?

India's top seven Bitcoin exchanges, which include Zebpay, Unocoin, CoinSecure and BtcxIndia, plan to approach the Advance Authority of Ruling (AAR) for clear answers to these questions, two people with direct knowledge of the matter told ET. AAR is a quasi-judicial body that can decide the applicability of tax rates.

"At least one Bitcoin exchange has already filed an application with the Maharashtra AAR for future tax liability," said one of the persons cited above. "The tax department is currently researching the concept as Bitcoins are a very complex subject." Zebpay, Unocoin, CoinSecure and BtcxIndia didn't respond to queries.

For the exchanges, the rate could depend on what the authorities deem Bitcoins to be — goods, services or currency. If Bitcoin is held to be a currency, there will be no GST. If it's a good, then tax of 18% could be levied, and 12% if deemed to be a service.

"The question for many Bitcoin players is whether GST is applicable on the total revenue or on the margins they earn," said Abhishek A Rastogi, partner at law firm Khaitan & Co. "This is mainly because the tax authority must give clarity on whether Bitcoin exchanges are selling goods and services, or are mere trading platforms that earn margins."

AAR DECISION TO DEFINE BIZ MODEL FOR BITCOIN EXCHANGES

According to another government official, who has reviewed the balance sheets of Bitcoin players, their size is quite substantial. "The combined revenue of top seven players would be around Rs 40,000 crore and they operate at about 20% margins," the official said. "In most cases, whenever there is a 'buy' or a 'sell' order on their platforms, these exchanges charge huge differences, in the range of about Rs 1lakh." ..

If that's the case, the indirect tax department could be looking at potential revenue of up to Rs 7,200 crore (if GST is levied at 18%). AAR's decision will also help establish the business model for Bitcoin exchanges in India, defining the category for cryptocurrencies — goods, services or currency.

"The option of proceeding with advance rulings under GST should be exercised to enable clarity on future tax treatment, more so in cases where existing tax positions are untested," said MS Mani, partner, Deloitte India. Industry insiders said Bitcoin players, including Indian exchanges, earn their revenue through commissions, transaction fees, or price-arbitrage opportunities. Most of the exchanges allow trading of various cryptocurrencies besides Bitcoins.

Experts said some Bitcoin exchanges have not been forthcoming with their data and have not paid any sales tax or VAT until now. One of the persons cited above said some exchanges had submitted different revenue figures to the sales tax and VAT authorities. "When we compared the annual results and explanations submitted to the sales tax and VAT authorities, they were diametrically opposite," he said.

Bitcoin is the most popular cryptocurrency that allows online payments between individuals without the involvement of middlemen or financial institutions. Bitcoin prices lost about 4% Thursday evening, and were trading at $14,546 a unit, Coindesk data showed.

Author: Sachin Dave ET Bureau|Updated: Jan 05, 2018, 10.30 AM IST

Posted By David Ogden Entrepreneur
David ogden cryptocurrency entrepreneur

Alan Zibluk Markethive Founding Member

Markethive

Bitcoin cracks $9,600 just hours after breaking $9,000 level

November 27, 2017

Bitcoin cracks $9,600 just hours after breaking $9,000 level

Bitcoin surged to yet another new record high on Monday
The cryptocurrency jumped to an all-time high of $9,671.84 hours after cracking the $9,400 level on Sunday
The digital currency has risen some 869 percent year-to-date
Bitcoin surged to yet another new record high on Monday, breaking a record set during the Thanksgiving weekend stateside.

The cryptocurrency jumped to an all-time high of $9,671.84 hours after cracking the $9,400 level on Sunday, according to industry site CoinDesk. It later pared some gains to trade at $9,631.21 at 10:00 a.m. HK/SIN, rising some 3.27 percent on the day.

"The move appears to be retail driven," said Brian Kelly, a CNBC contributor and CEO of BKCM, which runs a digital assets strategy.

The largest bitcoin exchange in the U.S., Coinbase, added about 100,000 accounts between Wednesday and Friday — just around Thursday's Thanksgiving holiday — to a total of 13.1 million. That's according to public data available on Coinbase's website and historical records compiled by Alistair Milne, co-founder and chief investment officer of Altana Digital Currency Fund. Coinbase had about 4.9 million users last November, Milne's data showed.

The surge in interest also comes on the back of CME's announcement that it will list bitcoin futures in the second week of December. The launch of a derivatives product for the digital currency will mark another step in establishing bitcoin as a legitimate asset class.

Still, with the digital currency having risen by some 869 percent year-to-date, plenty have taken to pointing out the potential pitfalls of what they see as a price bubble.

JPMorgan Chase CEO Jamie Dimon in October warned that those "stupid" enough to buy bitcoin will ultimately "pay the price for it." He added that he did not comprehend the value of currencies that were not backed by a government and that "[t]he only value of bitcoin is what the other guy'll pay for it."

Still, many others have offered a more moderate assessment for bitcoin and its ascent. Khaldoon Al Mubarak, the head of Abu Dhabi's Mubadala Investment Company, said people ought to be open-minded when looking at the digital currency.

More recently, a poll among chief financial officers on CNBC's Global CFO Council showed 27.9 percent of 43 respondents thought bitcoin was "real but in a bubble" while 27.9 percent thought the cryptocurrency was a "fraud." Just 14 percent of the executives said bitcoin was "real and going higher."

Author: Evelyn Cheng

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

Alan Zibluk Markethive Founding Member