IRS Seeks Contractors To Check Tax Data Of Cryptocurrency Investors
The US Internal Revenue Service (IRS) is looking for contractors to assess the correctness of tax payments by cryptocurrency investors. Companies will have to verify the data submitted by taxpayers.
According to an email posted by CryptoTrader.Tax, Assistant Deputy IRS Commissioner John Cardone said the agency is looking for contractors to "help our agents calculate taxpayer gains or losses from their cryptoasset transactions." At least one other company, who wished to remain anonymous, also received a similar letter.
The search for contractors was a consequence of the IRS's growing interest in the cryptocurrency industry. In October last year, the IRS published the first guidance in five years on how to calculate taxes on cryptocurrency transactions, as well as when new coins are received as a result of forks and giveaways by developers. In addition, the IRS has added cryptocurrencies to the taxpayer reporting form.
“I don't think users will be happy with this turn of events. However, those who report their tax liabilities related to cryptocurrencies have nothing to worry about, ”said CryptoTrader.Tax CEO David Kemmerer.
In the XRP blockchain, only 2% of transactions are associated with the transfer of funds
A group of researchers from Cornell University found that the vast majority of transactions on the blockchains of the three major cryptocurrencies have no economic value. In many cases, they simply clutter up the blockchain or are used to give out useless tokens.
“Our analysis showed that only a small proportion of transactions are used to transfer economic value,” the authors write. - So, 95% of EOS transactions were carried out in order to airdrop tokens that have no value today. On the Tezos network, 82% of the blockchain's bandwidth is used to maintain consensus, while in the XRP ledger, only 2% of transactions are associated with transfers. ”
In other words, the blockchains of these cryptocurrencies contain a large number of transactions, but in fact their economic value is small.
“In the case of EOS and XRP, most of the transactions exhibit the characteristics of DoS attacks,” analysts write. “XRP ledger bandwidth was consumed by zero value transactions during our observations. We were able to establish that the volume of transactions in the XRP ledger is being seriously manipulated. "
At the same time, according to the authors, these blockchains have a resource for processing large volumes of transactions, but they use it irrationally.
“We can make the following conclusion: the three blockchains reviewed in this study demonstrate the ability to work under high loads. However, their enormous potential is not yet fully realized in accordance with the declared purpose, ”they conclude.
Crystal Blockchain: Cryptocurrency Markets Affected By Regulation
The Crystal Blockchain analyst team has compiled a report on the movement of BTC between countries and cryptocurrency exchanges over the past 7 years.
The study will explore the impact of the new regulation on the cryptocurrency market, including on VASPs (virtual asset service providers). It contains 33 pages of detailed analysis of bitcoin transactions between 436 international exchanges from 70 different countries between 2013 and Q1 2020. The report can be found here.
The purpose of this study is to show how the bitcoin market has changed over the three evolutionary stages of regulation of cryptocurrency exchange, and how it has responded to external factors such as global financial fluctuations and increased regulation of digital assets. The report examines these trends in light of the events of the first quarter of 2020 and compares historical data.
After the G20 countries announced last year that they would apply FATF guidelines for cryptocurrency exchanges, including the "travel rule", as well as the recent EU 5AMLD digital asset legislation passed by the EU (many of which are G20 members), the team Crystal Blockchain has focused its reports mainly on transfers between G20 countries.
Amazing