Staying updated on the ever-changing cryptocurrency market doesn’t have to be as tough as keeping up with the Kardashians! I’ve rounded up the latest set of news to help y’all stay in the loop.
Tax deadline spurs profit-taking
Bitcoin and its buddies weren’t off to the best of starts this week as the looming tax filing deadline on April 17 prompted investors to close out positions in order to meet their liabilities.
This has actually been one of the reasons weighing on cryptocurrencies for the previous weeks, not to mention increased SEC oversight, the ban by India and Pakistan, and the crackdown on ICO advertisements.
With that, bitcoin price tanked more than 6% below the $7,000 mark on Monday. An estimated $25 billion in capital gains taxes are owed by U.S. households while investors likely realized a record $1.04 trillion in capital gains for cryptocurrencies and stocks, according to Wall Street analyst Thomas Lee.
Increased industry oversight
Financial watchdogs continue to keep a close eye on cryptocurrencies, this time with regulatory updates coming from the Land Down Under. Australia now requires digital currency exchange providers with operations in the country to register with the Australian Transaction Reports and Analysis Center (AUSTRAC).
In that side of the world, this is the agency responsible for monitoring money laundering activity, particularly those that might be related to cybercrime and terrorist financing.
Over in China, Alibaba’s subsidiary Taobao (That’s Chinese for Amazon.) announced a ban on online sellers providing ICO services to take effect by next week. Prior to this, the online shopping website has already banned customers from availing of bitcoin-related hardware and services like mining tutorials.
Large hedge funds ready to place bets?
On a more positive note for cryptocurrency fans, George Soros a.k.a. The Man Who Broke the Bank of England a.k.a. He Who Said That Bitcoin Is in a Bubble appears to be prepping to place big bets on the market.
As it turns out, Soros Fund Management or his $26 billion family fortune factory just secured internal approval to trade virtual currencies recently but has yet to make its first wager.It didn’t take long for reporters to dig up intel on how well-known investor families like the Rockefellers and Rothschilds are also investing in the space.
Venrock, which is owned by the former, signed a partnership with cryptocurrency investment fund Coinfund to place some of their venture capital virtual tokens and blockchain-based innovations. The latter reportedly took some bitcoin exposure thru Grayscale Bitcoin Trust last year.
Ethereum, Ripple, and Monero developments
Altcoins have taken big steps forward this week on the launch of new applications that utilize the magical powers of their respective blockchains.
Ethereum got a boost from the mainnet launch of Golem, which is a peer-to-peer application that allows one to “rent out” excess CPU power to those who need more. It basically allows you to make moolah out of your computer when you’re not using it!
This project is still in Brass Beta phase, which tests its feasibility for creating computer-generated imagery (CGI) using an open-source software for animated films, visual effects, interactive 3D applications and video games. Cool stuff, huh?
As for Ripple, Spain-based bank Santander just launched its Ripple-powered payment network called One Pay FX. This should enable its clients to cut the cost and waiting time involved in international fund transfers.
Meanwhile, Monero is also taking great strides as it gears up for official support from cryptocurrency hardware wallet manufacturer Ledger, just days after its hard fork.