Russia’s Central Bank Drafting Proposal to Classify Bitcoins as Digital Goods

Russia’s Central Bank Drafting Proposal to Classify Bitcoins as Digital Goods

Russia's Central Bank Drafting Proposal to Classify Bitcoins as Digital Goods

The Central Bank of Russia has proposed classifying cryptocurrencies including bitcoin as digital goods for tax purposes, according to local publications. The draft proposal is due in one month.

Also read: Russia Considers Recognizing Bitcoin in 2018 to Fight Money Laundering

Classifying Bitcoins as Digital Goods

The Deputy Governor of the Central Bank of Russia, Olga Skorobogatova, revealed on Thursday that the bank has proposed to classify cryptocurrencies, including bitcoin, as digital goods for tax purposes. Sputnik International reported her saying:

Two months ago we held a meeting with ministries and organizations… on how to classify non-state cryptocurrencies, which are de facto used in Russia. We propose to treat them as digital goods, use the digital goods legislation, with certain amendments on taxes, control and record-keeping.

According to Skorobogatova, the proposal was supported by all ministries, and the central bank is planning to deliver the first draft of the regulations in a month. This proposal follows her promise in February for the central bank to decide whether digital currencies are considered assets, cash or securities by mid-2017.

The Central Bank’s Need to Control Bitcoin

Russia's Central Bank Drafting Proposal to Classify Bitcoins as Digital Goods
Olga Skorobogatova

According to RBC, a leading Russian media group headquartered in Moscow, the central bank claims that they need to start controlling cryptocurrencies in Russia or they can quickly become a threat.

Since digital currencies are not backed by gold reserves and are not state controlled, the deputy governor said that they can lead to instability in the financial markets sooner or later.

She then noted that cryptocurrency trading volumes in Russia have increased since last year, and said (loosely translated):

If people are engaged in this, they have to pay money for it. And we must understand how to control these activities.

Russia’s Struggle to Control Cryptocurrencies

The official government stance on cryptocurrencies has been under constant debate for years. Starting with a very strict stance favoring criminalization, Russian lawmakers have become more lenient over time as the benefits of blockchain technology became apparent in the country.

Russia's Central Bank Drafting Proposal to Classify Bitcoins as Digital Goods
Alexey Moiseev

In December 2016, Vadim Kaluhov, the Director of Financial Technology, Projects and Process Management at the Bank of Russia, warned the government against using excessive measures. He conveyed that if the regulations are too strict, then cryptocurrency transactions will move outside of Russia. “By pushing the process of exchange out of the country, we actually lower the level of security and stability,” he detailed.

In January, Deputy Finance Minister Alexey Moiseev told reporters that the central bank and the Federal Financial Monitoring Service had been watching bitcoin. They did not find it to be a threat. In April, he announced that the country was considering recognizing the digital currency in 2018 to fight money laundering.

This month, the largest online retailer in Russia, Ulmart, announced that it will start accepting bitcoin payments in September.

Meanwhile, trading volume has grown steadily. Localbitcoins, the most popular trading platform in Russia, shows that the country has the second largest trading volume, behind only China. Russia has seen over 400 million rubles worth of trading, or over $7 million USD in weekly volumes for three weeks in a row.

Russia's Central Bank Drafting Proposal to Classify Bitcoins as Digital Goods

What do you think of Russia classifying bitcoin as digital goods? Let us know in the comments section below.


Images courtesy of Shutterstock, RBC Group, Euronext, Coin.dance


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The post Russia’s Central Bank Drafting Proposal to Classify Bitcoins as Digital Goods appeared first on Bitcoin News.

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The Crypto Show with Dave Mitchell, The Arclight Foundation & More on Danny's Crypto Cannabis Tour

Tonight, Danny visits Lake Havasu Az and meets up with Dave Mitchell, founder and CEO of secretluxurybunkers.com. We briefly review the mission and services provided by Dave?’?s company for listeners who may have missed his recent previous appearance on our show, and then we discuss Dave?’?s and Secret Luxury Bunker?’?s involvement in TheArcLightFoundation.org a charity for victims of human trafficking. Finally, in the last segment, Tom of Defense Distributed and Chris chat it up.

Sponsored by: Dash, CryptoCompare Bitmain and Defense Distributed

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Are Asian Markets Creating a Bitcoin Price Bubble?

Asian

Bitcoin’s price has been rising so fast over the past two months people don’t know what to expect next. In Asia, the price is climbing higher than most western exchanges. Now many people are wondering how healthy the current price spike is and whether or not the digital currency is in a bubble that might be followed by a deep correction.

Also read: Bitcoin Helps Venezuelan Families Avoid Starvation

Cryptocurrency Fever In Asia Is Pushing the Price Upwards, but How Long Will It Last?

Are Asian Markets Creating a Bitcoin Price Bubble?
Charles Hayter, Crypto Compare.

Everybody is extremely focused on the price of bitcoin and a number of altcoins increasing in value exponentially. Some people think the digital currency’s value gains are moving too fast while others believe overall global demand supports the price rise. Charles Hayter, founder, and CEO of the cryptocurrency data analysis firm Crypto Compare reached out to Bitcoin.com and detailed his opinion of the situation bitcoin markets are facing.

Hayter believes the increase is a bubble formation but questions the level of speculation. Market bubbles can burst in a short period of time, but some bubbles have lasted years.

“Media begets more price rises and triggers more exposure and buying,” explains the Crypto Compare founder. “The ICO phenomenon is contributing too as traders wash in and out of the major cryptos chasing and pumping the next ten bagger.”

Japan, Korea, and Asian interest is causing the price to rise and dragging up Western prices on the back of regulatory moves as well as scaling — The party will end as Asian premia comes back into line with Western markets or even drag them down as panic selling takes hold. The exact trigger is yet to be seen although last time it was Mt Gox.

Are Asian Markets Creating a Bitcoin Price Bubble?
Korean markets are buying Bitcoin at over $4000 – a $1400 premium or 50% premium to the USD price.

A Mixture of Factors Driving the Price

Currently, Asian bitcoin markets are seeing massive trade volume and higher prices per BTC in contrast to most exchanges worldwide. According to Hayter and Crypto Compare statistics, “Korean markets are buying Bitcoin at over $4000 – a $1400 premium or 50% premium to the USD price. Korean volumes hold 11% of total bitcoin trading.” Furthermore, prices are higher than the global average in Japan, India, and other regions as well. Alongside Bitcoin fever, Korea, and other Asian countries are also seeing significant Ethereum trade volume, as well as higher ETH price spreads.

Are Asian Markets Creating a Bitcoin Price Bubble?
Japanese markets are buying Bitcoin at over $3000.

Hayter believes the recent scaling proposal introduced by Barry Silbert may have given traders some optimism, but he believes it is still “unclear if the agreement can be implemented.” However, because some companies like Bitmain and others who opposed supporting Segwit in the past have agreed to the compromise, Hayter believes we are moving in the right direction.

So it’s a mixture of factors driving the price – the scaling solution is removing the negativity that surrounded bitcoin in the Western world, but the Asian markets with their premia are dragging the price higher with their irrational exuberance.

“Both Bitcoin and Ethereum markets have seen global dislocation as price premia have appeared specifically on the JPY and KRW markets Asian and more specifically Korean fever is taking hold,” Hayter adds.

What do you think about Asian markets driving up the price? Do you agree with Charles Hayter that we are in a bubble at the moment? Let us know your thoughts in the comment section below. 


Images via Shutterstock, Crypto Compare, and Pixabay.


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The post Are Asian Markets Creating a Bitcoin Price Bubble? appeared first on Bitcoin News.

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Bitcoin Price Falls Sharply After Nearing a $2800 All-Time High

After rising exponentially for three solid days, bitcoin prices fell sharply on Thursday afternoon dropping over $500 in a four-hour period. The price has rebounded since the drop hovering above a $2300 per BTC average across global trading platforms.

Also read: Leading Japanese ATM Manufacturer Oki Gets into Bitcoin ATM Business

Stairs Going Up, Elevator Going Down

Bitcoin Price Falls Sharply After Nearing a $2800 All-Time High
Four leg drop to $2221 USD. May 25, 2017, Bitstamp.

As the saying goes ‘what goes up must come down.’ At some point, a correction after Bitcoin’s intense bull run was to be expected. During the early morning in the Western Hemisphere on May 25, the price of bitcoin hit an all-time high of $2760 average across global exchanges. A few hours later the price took a downturn seeing a five leg drop to a low of $2221 per BTC.

Of course many had expected the price to correct, but the degree was unknown. There wasn’t any bad news or headlines giving a reason for the dip. A lot of traders believe that it was a typical pre-weekend correction that has taken place every weekend for over a month and a half. The weekend prior to the Consensus 2017 conference in New York was the only exception as there was a lot of hype happening. Additionally, it’s the end of the month, and some traders believe people are merely paying their bills and more than likely most were just taking a profit.

Bitcoin Price Falls Sharply After Nearing a $2800 All-Time High

24-Hour Analysis  

At the time of writing, some technical indicators suggest we could still ride back up the ladder, while other trends tell a different story. Both moving averages still have a nice gap as the 100 Simple Moving Average (SMA) is still higher than the 200 SMA. Alongside this, the Stochastic and Relative Strength Index (RSI) still shows warnings of overbought conditions, but these signals have been saying that for the past two months consecutively.

At press time looking at order books and market depth across a few top exchanges show there seems to be a strong floor in the $2000-2100 range. Even though the dip took place volume has been smoking hot with $2.3 billion USD worth of bitcoins traded on May 25. If the price kicks back into gear, it will likely test many resistance points above the $2500 range and higher.

Will We Relive Memories of the Past — Or Is It a Different Price Story?

Overall bitcoin is still trending up looking at the chart’s weekly view, and the bull stampede may not be over. However many bitcoin traders have great recollections of the 2013 highs and the following year-long bear run in 2014 to a low of $180. Some are convinced there’s a possibility the downtrend pattern could happen again due to these memories of the past. Yet there are those who believe there are strong fundamentals keeping bitcoin’s price this high including more investors, media attention, and the overall rise of cryptocurrency adoption in general.

Bear Scenario: After the recent $500 sell off bears may play their cards and shake more weak hands out. At the moment a drop to the $2000 range looks unlikely but could happen if bulls are exhausted or sitting out for lower levels. At press time bitcoin’s price is moving sideways just above the $2300 range.

Bull Scenario: Bitcoin’s price has consolidated, and buyers can take the reigns once again. If resistance is broken above $2500 in the short term, then we could very well see some benchmark prices again. Markets are still very bullish, and volume is at unprecedented levels causing a few exchanges to lag over the past two weeks.

What do you think about the price of bitcoin dropping to $2200? Do you think bitcoin will continue to rise to higher levels? Or do you expect bears to lower the price further? Let us know in the comments below.

Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”


Images via Shutterstock, Bitcoin.com, Coinmarketcap.com, and Pixabay.


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The post Bitcoin Price Falls Sharply After Nearing a $2800 All-Time High appeared first on Bitcoin News.

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