HyperLinq : Weekly Digital Asset Digest #3


The HyperLinq Weekly Digest is the one-stop source for the HyperLinq community to access important news involving digital assets, where we essentially outline key industry updates that our members may have missed. We are always open to suggestions and feedback so please do not hesitate to let us know what you think!


4 Crypto Tax Tricks from Deloitte That Will Maximize Your Tax Return : P. H. Madore | CCN.com

According to Deloitte tax partner, Jim Calvin, the hardest thing about accounting in cryptocurrency is the transfer from exchange to exchange. A recently developed technology, Node40 automates this transfer for the user, finding the cost-basis and generating an accurate report for tax purposes. However, Node40 isn't perfect yet, and using accounting firms is still recommended for serious traders with large transaction histories.
Crypto Tax Trick #1 : Using the highest cost basis -> As regards to Bitcoin, Calvin says the top strategy is to use the highest possible cost basis. Since, "standing instructions" are used, anything you sell will use your highest cost coin. So the earlier the coin sale, the costlier it will be, thus either minimizing gains or maximizing profit.
Crypto Tax Trick #2 : Wash sales are legal in crypto -> Unlike stock trading, in crypto assets, you can claim losses if you buy the asset back, immediately after selling it. You can thus, keep your holdings and file your losses, which can further be carried forward and used against gains, but can't be carried back.
Crypto Tax Trick #3 : Air drops and chainsplits can be helpful......or not -> Air drops and chainsplits are taxable as ordinary income, but fortunately, they aren't taxable until you've claimed and made an income on them. It's thus advisable, to claim airdrops and chainsplits, when their value appreciates, because that profit you make can offset the ordinary income tax.
Crypto Tax Trick #4 : Lost coins might be a theft loss -> Cryptocurrency funds lost to theft may not be deductible, but only if it's a personal asset. For example, if the Bitcoins you use for purchase are listed on an exchange, it's highly unlikely that it would be a personal asset. If you can prove that the crypto spent, was in fact stolen, then it should be deductible.

Note : All four of these tax tricks are the opinions and tips of Deloitte tax partner, Jim Calvin and not HyperLinq. They are also yet to face the test of court cases.

Samsung Pay Will Integrate Cryptocurrencies for 10 Million Users : Joseph Young | CCN.com

It is well established news now, that Samsung is set to integrate a cryptocurrency wallet into its flagship phone, the Samsung Galaxy S10. Industry sources also report that Samsung Pay, a widely used digital payments application with over 10 million active users, is behind Galaxy S10's cryptocurrency wallet. Samsung Pay considers cryptocurrency integration as a way to expand its user base internationally, and to position itself as a complete fintech platform. Samsung has a great track record of pursuing aggressive acquisitions, product launches and the integration of newly emerging technologies, Samsung Pay is expected to take a lead in the cryptocurrency sector.

Bitcoin-Friendly Square Headlines London Stock Exchange’s Blockchain ETF : P. H Madore | CCN.com

Invesco and Elwood, an American and British digital asset investment company, respectively, announced the launch of a blockchain ETF on the London Stock Exchange on March 11, 2019, which features 48 companies with ties to the blockchain industry, including companies that are involved or have been involved in the Bitcoin or crypto space. The objective of the "Invesco Elwood Global Blockchain UCITS ETF' is to provide exposure to companies looking to make real money from the blockchain industry. The ETF includes firms like Square, Verizon, Overstock, TSMC and Samsung. Many traders see the prospect of this ETF as the last major hurdle before mass acceptance and adoption.

Colorado Exempts Cryptocurrencies From Securities Laws : Abhimanyu Krishnan | InvestInBlockchain

Jared Polis, the governor of Colorado, has signed a new law, first introduced in January exempting cryptocurrencies from securities laws. The bill has been described as providing "limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens.” The Digital Token Act, that will take effect on August 2, 2019, will ensure that the application of blockchain technology and the growth of companies in the blockchain space become much easier as they will not encounter stricter regulations. However, these digital assets will not be prohibited only if they are for "consumptive purposes" (a means to provide or receive goods, services, or content, including access to goods, services, or content.) and if they meet all of the criteria.

Owner of Burj Khalifa, World's Tallest Building, Plans ICO : Nikhilesh De | CoinDesk

Emaar Group, owner of Burj Khalifa and one of UAE's largest real estate developers announced on March 12, 2019 that it wanted to develop the "Emaar Community Token" for its partners and customers by the end of 2019. However, the final goal is to launch an Initial Coin Offering (ICO). The firm has decided to join ranks with a Swiss based crypto-startup, Lykke AG, to build a token based on Ethereum (ETH) complying with the ERC-20 standard. Customers will be able to use the token as a referral and loyalty system, at any malls, entertainment facilities, online shopping venues or other properties owned by Emaar, who expect a potential user base of 1 billion internet users. However, the amount of money Emaar intends to raise was not revealed and the ICO will only be available to European buyers.

Users Can Now Send Crypto Directly from Coinbase.Com to the Wallet App : Yogita Khatri | CoinDesk

The San Francisco based cryptocurrency exchange announced a new feature on March 13, 2019 that will allow users to directly transfer crypto-holdings on Coinbase.com to accounts in the firm's Wallet app. Unlike Coinbase.com, where the exchange stores the keys centrally, users can safeguard their own keys with the new Wallet app. Users will be informed about the new feature through an in-app notification, and the wallet-website account linking can be turned off at a later date from the Settings menu. Last month, the Wallet app also announced compatibility with Bitcoin (BTC), Bitcoin Cash (BCH) and Litecoin (LTC) on both, iOS and Android.

Fidelity Exec Says Hundreds of Institutions Interested in Crypto Investment : Nick Chong | NewsBTC

Fidelity Investments, a finance giant headquartered in Boston, has released their Digital Asset Services (FDAS) branch to a limited audience. However, the custodial services and trade execution centered platform supports only Bitcoin (BTC) as of now and is stalling its verdict on Ethereum (ETH) due to potential blockchain upgrades. Wall Street veteran, Jessop has noted that 20% of the 450 institutions, be it family offices, venture groups, crypto-native companies, financial advisors or hedge funds, all have some semblance of a crypto-investment. This can be seen as a huge step when it comes to institutional players in the cryptocurrency realm. While there may be thousands of players in the space, there are much more on the sidelines waiting for optimal market conditions.

SEC chairman makes comments about bitcoin ETF, on Fox Business : Benjamin Pirus | CryptoInsider

Jay Clayton, SEC chairman, reportedly told Fox Business that his concern isn't about Bitcoin itself, but about the possibility of the cryptocurrency's manipulation. The United States Securities and Exchange Commission (SEC) has been fairly involved in the crypto space in the past year, delaying the movement of the VanEck-SolidX Bitcoin Exchange Traded Fund (ETF) several times before the Chicago Board Options Exchange (CBOE) withdrew its listing request. Clayton believes that the technology has and is constantly demonstrating significant promise and that there may be a case where a Bitcoin ETF could satisfy their rules.

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