The price of Bitcoin (BTC) and Ether (ETH) fell by 15% and 20%, respectively, on April 23 as the cryptocurrency market became engulfed in a major correction. Five factors likely caused the price of Bitcoin and Ether to steeply drop in a single day, including mass liquidation, an overheated futures market, the decline of Kimchi premium, whales selling and concerns over United States President Joe Biden's tax plans. Overcrowded futures market sees $4 billion worth of liquidations On April 23, in a 24-hour span, the cryptocurrency market saw over $4 billion worth of positions liquidated. According to Bybt a data …

The city government of South Korea’s capital Seoul has announced the seizure of cryptocurrencies worth 25 billion won ($22 million) from individuals and company heads. According to a report by The Korea Times, the confiscated crypto came from people identified as tax delinquents by the city’s tax collection agency. As part of the investigation, the Seoul office of the National Tax Service identified 1,566 individuals and company heads with overdue taxes. The NTS office in Seoul then proceeded to seize $22 million in digital currencies held by 676 of them on three crypto exchanges. With mandatory real-name crypto trading in …

The Norwegian Tax Administration has issued a warning to crypto traders in advance of Norway's April 30 deadline to file tax returns. According to a notice from the Norwegian Tax Administration on Wednesday, the government agency advises all taxpayers who owned or sold crypto in 2020 to enter it on their returns or "risk paying additional tax." The NTA said roughly 2% of cryptocurrency holders declared what tokens they owned or earned in 2019, less than 4,700 people out of an estimated 235,000. "We think a lot of the gap is due to the fact that some crypto owners mistakenly …

The United States Internal Revenue Service has been hunting crypto vigorously for more than five years now, and the pace is getting faster. A couple of decades ago, the IRS was after offshore accounts, and that effort was among the most successful in the IRS’ history. Now, it’s crypto the IRS is after, and there’s no suggestion that the IRS intends to fail. The IRS wants crypto tax data in a big way, from asking about crypto on each tax return to its latest Hidden Treasure initiative and more. The collective efforts of the IRS are impressive, and it is …

The United States Department of Treasury is again sharpening its sword upon crypto. In January 2021, the Department of Treasury’s Financial Crimes Enforcement Network issued Notice 2020-2. The Notice states that FinCEN intends to amend its regulations concerning the reporting of foreign financial accounts to include digital currency as a type of reportable account. In simple terms, this means FinCEN may soon require crypto users to file annual Reports of Foreign Bank and Financial Accounts, or FBARs, for crypto held on foreign exchanges. The effects of such an amendment are expansive. A mere paragraph long, the notice carries several implications …

A Miami-Dade County commissioner is backing a new resolution to allow residents to use cryptocurrencies like Bitcoin (BTC) to pay local taxes. According to a Thursday document acquired by the Miami New Times, County Commissioner Cohen Higgins has brought a resolution to Miami-Dade’s Infrastructure, Operations and Innovations Committee calling for the establishment of a 13-member crypto task force. The task force would examine the feasibility of allowing residents to pay their county taxes, as well as pay for fees and services, using digital currencies including Bitcoin, Ether (ETH) and Litecoin (LTC). According to the document, crypto payments have the “potential …

The number of cryptocurrency holding disclosures in Russia has been on the rise over the past several months, according to a new report. Russian news agency Izvestia reports Thursday that Russians have been increasingly disclosing their income from crypto trading for tax purposes. The report cites data from consulting and law firms such as KPMG, PricewaterhouseCoopers, FTL Advisers, as well as Moscow-based public policy think tank the Center for Strategic Research. “We’ve observed that Russian residents have started voluntarily disclosing income from operations with digital assets, mainly with cryptocurrency, in tax declarations,” FTL Advisers’ partner Maria Kukla said. She noted …

Just a few weeks before the filing deadline for U.S. taxpayers, cryptocurrency accounting and data company Lukka said it had raised an additional $53 million in a new funding round. In an announcement today, Lukka said it had completed a $53 million Series D funding round led by Soros Fund Management — a fund created by billionaire investor George Soros — S&P Global, and accounting advisor CPA.com. Lukka said it planned to add additional features for customers dealing in derivatives, DeFi products, and other products of the crypto space. “Innovation in the crypto ecosystem has exposed traditional finance to a …

Levying a progressive tax on the ultra-wealthy has been a talking point long popular with many United States Democrats, yet such a policy would have been unimaginable under a Republican administration and a split Congress. Now that the Democratic Party is back in control of both the White House and Capitol Hill, the initiative is formally on the table: On March 1, a group of Democratic lawmakers led by Sen. Elizabeth Warren introduced legislation proposing an annual tax on the households and trusts worth more than $50 million, including the value of assets such as real estate and stocks. As …

Tax season is almost upon crypto users based in the United States, and even if they plan on keeping their assets digital, nonfungible token — or NFT — buyers might not get off scot-free. According to a CNBC report today, people who use the profits from their crypto holdings to purchase NFTs will likely still have to pay capital gains tax up to 20% when filing their U.S. taxes. "Collectors who are buying NFTs with their cryptocurrency gains could face large tax bills this year for deals that most probably thought were tax free," said CNBC’s Robert Frank. "The IRS …

The United States and other countries could “impose prohibitions” on Bitcoin (BTC) as part of “shocking” tax changes, investor Ray Dalio has warned. In his latest article on LinkedIn, Dalio — a recent convert to Bitcoin as an investment opportunity — laid out a stark future for U.S. investors. Dalio: Prepare for "shocking" tax changes With the onset of the coronavirus pandemic, bonds have become all but redundant for preserving wealth. In an attempt to claw back some of the huge amounts of debt created as its response, the U.S. government plans to raise taxes — and the impact could …

The National Tax Service of South Korea is increasing its efforts to combat tax evasion and is now focusing on the use of cryptocurrencies for such illicit activities. According to the Korea Herald, the tax agency has identified more than 2,400 tax evaders who used cryptocurrencies to hide assets worth over 36.6 billion won ($32 million) from the government. The NTS said it targeted individuals with more than 10 million won ($8,800) in tax defaults while also recovering cash, bonds and other hidden assets. Indeed, the agency reportedly plans to conduct a deeper probe of some of the individuals caught …