November 5, 2021 · 3 min read
The Weekly Wrap-Up - Friday 5th November 2021
Proposed Tax Code Bill Could See Crypto Traders Face Criminal Charges
Improper Recording of Crypto-Income Could Mean Jail Time
An amendment to tax code 6050I called the ‘Infrastructure Bill’ has been progressing through US congress which would involve anyone receiving more than $10,000 worth of crypto assets having to submit an IRS 8300 tax form within 15 days, or face a minimum of $25,000 fine and up to five years in prison.
As of yet, it is still uncertain whether the amendment will be passed but if it proceeds, crypto transactions such as NFT purchasing or trading would become taxable as income in the US. Many have scrutinised the fact that the digital asset tax amendment is bundled with various other tax amendments in order for the change to go unnoticed as well as the fact that the significant amendment is articulated in just eight words.
‘Squid Game’ Themed Token Revealed to be Scam
Creators of the Currency Disappear with $3.3M
The creators of a cryptocurrency inspired by the hit Netflix series ‘Squid Game’ have disappeared with $3.3M after it was revealed to be a ‘rug-pull’ scam. The creators claimed that the ‘SQUID’ currency would serve as the token for a new play-to-earn metaverse game. However once the token’s valuation reached $2860, liquidity was drained near-instantaneously causing the price to plummet to zero. Suspicions had already been raised when it was reported that users were unable to resell the token on some decentralised exchanges including Pancakeswap. Binance is now investigating the scam.
Commonwealth Bank Becomes First to Offer Crypto Services
Australian Institutional-Confidence in Crypto Grows
On Wednesday (5th November), Commonwealth Bank of Australia (CBA) announced that customers will soon be able to trade and hold cryptocurrency using their existing bank accounts. The bank’s mobile app will be integrated with Gemini exchange in order to provide the services. Initially, users will be able to trade 3 different crypto assets including BTC and ETH. A pilot for the service begins next week with more features planned to be added in 2022.
Pressure Mounts on South Korea to Rethink Crypto-Stance
Controversial Crypto Tax Bill Causes Stir
(Image: Bitcoin News)
A new law involving crypto trading profits over $2100 per annum being taxed at 20% is proving controversial in South Korea. Critics of the bill claim that the government now has no interest in protecting investors in crypto currencies, and simply intends to profit from it. Further criticism stems from the fact that the bill is intended to come into force just three weeks before South Korea’s Presidential elections. Some consider this to have been done to avoid losing younger ‘crypto-keen’ voters. The move comes after South Korean financial regulators imposed strict legal requirements for crypto exchanges last month - causing a significant number to cease operation.
Coinbase Announce ‘Coinbase One’ and Agara Acquisition
Coinbase Testing Premium Subscription Model
(Image: Business Insider)
Coinbase is reportedly in the testing phase of a new subscription model named ‘Coinbase One’. The service is reported to remove all trading fees for users and grant access to premium trading features such as higher-quality market data and analysis. Coinbase is also set to acquire the AI machine-learning platform Agara. It is speculated that this move is likely to allow the Agara to be used to provide market-insight and support to subscribers to the platform’s new premium subscription model. It is not yet known when ‘Coinbase One’ is set to launch.