Archive Monthly Archives: January 2019

Bitcoin, Ripple, Ethereum, Bitcoin Cash, EOS, Stellar, Litecoin, Tron, Bitcoin SV, Cardano: Price Analysis, Jan. 16

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

The market data is provided by the HitBTC exchange.

Although cryptocurrency prices have so far been unable to stage a recovery, the companies in the industry are still launching products that are required by the institutional players.

Cryptocurrency asset manager LedgerX has launched a Bitcoin (BTC) price volatility index called LedgerX Volatility Index (LXVX) that will function as a “bitcoin fear index,” similar to how the CBOE Volatility Index (VIX) works for the stock markets. Though the index is not tradeable currently, the company plans to make it so in the future.

Despite the market-wide price plunge last year, crypto trading volumes have actually increased in 2018 vs 2017, according to a recent report by research firm Diar. This shows that the traders are still active in the space.

In a survey of United States consumers by Cornerstone Advisors, only 8 percent said that they own any cryptocurrency. Another 17 percent said that they might buy some in the near future. This implies that a lot of money is waiting to enter the markets when the trend changes.

The markets will look for clues from some of the important events expected to take place in 2019. Though crypto prices this year will remain well below their lifetime highs, we expect them to go much higher than the current levels.

BTC/USD

Bitcoin (BTC) is currently range bound between $3,236.09 and $4,255. The 20-day EMA has started to slope down, and the RSI is also in the negative territory. This suggests that the bears have the upper hand in the short term.

The immediate resistance is at the moving averages and above that at the downtrend line. One more resistance line is at $4,255.

BTC/USD

On the downside, a slide below $3,473.47 can result in a retest of $3,236.09. A breakdown to new lows will severely dampen sentiment and trigger a few stops on the long positions. The next support is the psychological level of $3,000.

The BTC/USD pair is likely to indicate a clear direction within the next few days. Due to the uncertainty, we suggest traders wait until a new buy setup forms.

XRP/USD

Ripple (XRP) failed to scale above the moving averages in the past two days. However, as it has not given up much ground, we anticipate another attempt by the bulls to scale the overhead resistance.

XRP/USD

If successful, the XRP/USD pair can rally to the overhead resistance of $0.4, and above it to the resistance line of the descending channel. A break out of the channel will signal the probability of a change in trend.

On the contrary, if the price turns down from the moving averages once again, it is likely to slump to the support at $0.27795. The moving averages are flattening out and the RSI is marginally in the negative territory, which suggests consolidation in the near term. We will wait for a bullish setup to form before recommending a trade in the pair.

ETH/USD

Ethereum (ETH) bounced off the critical support at $116.3 on Jan. 14, but failed to break out of the 20-day EMA. It is currently stuck between both moving averages.

ETH/USD

A break out of the 20-day EMA can carry the price to $167.32, whereas a break down of the 50-day SMA and $116.3 can plunge it to $100, and below that to $83.

The 50-day SMA is flat, which shows that the ETH/USD pair might consolidate between $116.3 and $167.32 for a few days. A new uptrend can be expected if the price sustains above $167.32. We couldn’t find any reliable buy setups yet, so we are not proposing any trades.

BCH/USD

Bitcoin Cash (BCH) has been trading in a tight range since it broke down of the support at $141. While the bears have failed to sink it towards the next support at $100, the bulls have failed to push it back above $141.

BCH/USD

We anticipate a decisive move within the next 3-4 days. If the bulls scale $141 and the moving averages, the BCH/USD pair can move up to $181. If this resistance is also scaled, the rally can extend to $239.

Nevertheless, if the price fails to scale the moving averages, the bears will try to push the virtual currency below $121.3, which can ultimately result in a drop to $100. We shall wait for buyers to return before recommending a trade.

EOS/USD

EOS is trading inside the range of $2.3093–$3.2081. Currently, the bulls are facing resistance at the moving averages. If this resistance is scaled, a rally to the top of the range will be probable.

EOS/USD

The EOS/USD pair will turn positive after the bulls sustain above the range. In such a case, a rally to $3.8723, and further to $4.493, will be probable.

On the other hand, if the bears push the price lower from the current levels and break below $2.1733, a fall to $1.7746 and $1.55 will be on the cards.

We might suggest long positions if the price sustains above the moving averages. Until then, we remain neutral on the cryptocurrency.

XLM/USD

The intraday range in Stellar (XLM) has shrunk in the past two days. This period of smaller ranges is likely to be followed by a range expansion.

XLM/USD

A break out of the downtrend line of the symmetrical triangle can carry the XLM/USD pair to $0.13427050. Above this level, we anticipate a quick move to $0.184.

However, if the bears plunge the price below $0.1, a retest of $0.09285498 will be likely. The downtrend will resume if this support gives way. We couldn’t find any bullish patterns developing yet, so we suggest traders remain on the sidelines.

LTC/USD

Litecoin (LTC) has been struggling to break out of the 20-day EMA for the past five days. A failure to climb above the moving average will attract selling that will test the immediate support at $29.349. A break below $27.701 will increase the chances of a retest of $23.1.

LTC/USD

The combination of flat moving averages and the RSI close to the 50 levels is not pointing to a clear winner yet. The indicators show that there is a balance between the buyers and the sellers.

Nonetheless, if the bulls succeed in breaking out of the 20-day EMA, the LTC/USD pair can move up to $36.428. The zone between $36.428 and $40.784 is a major hurdle, above which, a quick jump to $47.246 is possible. Therefore, traders who hold long positions can keep their stops at $27.5.

TRX/USD

Tron (TRX) is finding it difficult to break out of $0.02815521. On Jan. 15, it turned down from the area of the upper end of the range. If the price takes support at the 20-day EMA, the bulls will attempt to break out of the range again. The uptrending moving averages and the RSI show that the demand currently outweighs the supply.

TRX/USD

Still, if the bulls fail to scale the overhead resistance, a fall to 20-day EMA, followed by a drop to the critical support at $0.0183 is probable.

The next move will start after the TRX/USD pair breaks out or breaks down of the range. We suggest traders wait either for a break out of the range or for a bounce from the bottom of the range to initiate long positions. We couldn’t find any buy setups at the current levels.

BSV/USD

Bitcoin SV (BSV) has entered a period of low volatility, which shows a lack of interest from both the buyers and the sellers.

BSV/USD

The BSV/USD pair will attract selling if it sinks below $74.022. The downward momentum will pick up if the bears break the support at $65.031.

Any attempt to recover from the current levels will face resistance at the moving averages, and above them at $102.58. If this level is crossed, a rally to the top of the broader range at $123.98 will be possible. As we couldn’t find any reliable buy setups, we remain neutral on the pair.

ADA/USD

The bulls have failed to sustain Cardano (ADA) above the 20-day EMA for the past six days, but the positive thing is that the price has not given up much ground. The dip to the 50-day SMA was quickly bought into, which shows demand at lower levels.

ADA/USD

If the ADA/USD pair breaks out of the 20-day EMA, a rally to $0.051468, followed by a move to the resistance line of the ascending channel, will be probable.

On the other hand, if the virtual currency turns down from the current levels, it can correct to the 50-day SMA, and below that to $0.036815, which is close to the support line of the channel.

We expect this level to offer a strong support. The moving averages are flat, and the RSI is also close to the neutral territory, which points to a likely consolidation in the short term. We couldn’t find any reliable buy setups yet, so we are not suggesting a trade.

The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.

Crypto Venture UpStake is Redefining the Industry with a Proof-of-Burn Stable Coin

This is a paid-for submitted press release. CCN does not endorse, nor is responsible for any material included below and isn’t responsible for any damages or losses connected with any products or services mentioned in the press release. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the press release.

UpStake, an exciting cryptocurrency project officially launched last year, is all set to take the global crypto community by storm. Unlike hundreds of crypto ventures that fail to make any impression, UpStake is dedicated to delivering a stable digital currency that will pave the way for mass adoption around the world.

London, UK – Jan 16, 2019

London-based crypto startup UpStake is well on its way to revolutionising the global cryptocurrency industry by eliminating many of the limitations that have stifled growth for years. Launched in 2018, this promising initiative is focused on ensuring mass adoption of cryptocurrency by providing a usable, stable form of digital currency to the crypto and blockchain communities across the globe.

This proposed blockchain ecosystem is built around UpStake tokens (UPS), the platform’s proprietary token. UpStake asserts that these tokens have been designed to increase in value over time, and set the stage to build great products and services which result in better user experiences.

In order to ensure continuous increase in value of UPS over time, UpStake has built a Proof-of-Burn model that burns a certain percentage of tokens sold through their exchange.  This model helps create the value that contributes to the ever-growing price point of the token. It not only enables the token price to increase every hour, but also keeps it well protected from market volatility.

Highly volatile and unregulated markets have so far obstructed the path of mass cryptocurrency adoption. In order to eliminate this concern and enable mass adoption, UpStake relies on token features such as limited circulation, hourly increase of value, proof of burn, and anti-exchange manipulation.  

Having developed a product that is immune to market-related uncertainties, UpStake is confident in bringing about a paradigm shift in the crypto world’s operations.  Individuals and businesses using UpStake can now gain access to an asset with a store of value that can be safely used in day-to-day transactions. This will undoubtedly play a critical role in bringing cryptocurrency to conventional shopping, employee payroll, gaming, online gambling, network marketing, and much more.

“Knowing the future token price doesn’t create value,” said UpStake global influencer manager Seth Fontaine. “It creates a platform of transparency, and a foundation to build great products and services with an even better user experience than traditional fiat/banking.”

The UpStake platform also includes useful features such as its own exchange designed to combat market manipulation, a micro-networking investing product known as Edge, an affiliate program, and upcoming projects such as a dedicated UpStake marketplace and peer-to-peer transfer capabilities.

To find out more, please visit https://upstake.com/

About UpStake: UpStake is an exciting cryptocurrency project focused on delivering a stable digital currency that will pave the way for mass crypto adoption around the world. UpStake accomplishes this feat with a Proof-of-Burn model that periodically burns a certain percentage of tokens sold through their exchange.

Press Contact:

Seth Fontaine


Global Influencer Manager


Telegram: @sethfontaine


[email protected]


ConsenSys Joins News Industry Leaders to Invest in New WordPress Publishing Platform

Blockchain tech firm ConsenSys has joined news industry leaders to contribute to the creation of a new revenue-generating news platform by WordPress, according to an official press release published on Jan. 14.

ConsenSys has invested $350,000 in the new WordPress project called Newspack, an open-source publishing platform for news companies.

Through the investment, the major global blockchain company has joined leading industry organizations such as Google News, The Lenfest Institute for Journalism and The John S. and James L. Knight Foundation. In total, WordPress’ parent company Automattic and its partners Spirited Media and News Revenue Hub have secured $2.4 million for the first-year funding of the initiative.

Apart from investing in the new proof-of-concept (PoC) initiative by WordPress, which is the world’s most popular website management system, ConsenSys will also provide the new publishing platform with a blockchain-powered native plugin for Civil. Backed by ConsenSys, Civil will allow any interested newsroom to join its community-owned journalism network and archive their content on decentralized storage systems.

Civil Media is a ConsenSys-backed firm that claims to deploy cryptocurrency to save journalism. In October 2018, the company raised $1.4 million in an initial coin offering (ICO) out of a targeted $8 million. However, the since the goal was not met, Civil refunded the money but announced plans to launch in February 2019 despite the failure to meet the target.

ConsenSys reportedly turned out to be the largest buyer of Civil Media (CVL) tokens, having bought 80 percent of the tokens that were sold. In October 2018, Civil had noted that it would create a blockchain-publishing plugin for WordPress.

Released in 2003, the WordPress online content management system (CMS) is used by more than 60 million websites, including Time.com, CNN and Quartz. Back in 2012, WordPress added Bitcoin (BTC) as a payment option for its CMS upgrades, claiming that “unlike credit cards and PayPal, Bitcoin has no central authority and no way to lock entire countries out of the network.”

However, the company subsequently shut down the Bitcoin payment option in 2015, stating that Bitcoin was lower in priority, but still noting that the company was still a big believer in Bitcoin and might add its support back in the future.

BitGo & Genesis Trading Want to Help Whales Avoid Crypto Exchanges


bitcoin whale bitgo genesis trading
BitGo and Genesis Global Trading have formed a partnership to help whales avoid crypto exchanges. | Source: Shutterstock

Blockchain security firm BitGo has entered a partnership that will allow its clients to trade cryptocurrency assets that are held in its custody.

The partnership with over-the-counter exchange Genesis Global Trading will allow BitGo clients to trade their digital assets without having to move them from the custody service to a crypto exchange. Under the partnership, Genesis will execute the trades without requiring BitGo’s clients to open new accounts.

BitGo’s clients will access the service at no extra fee. Genesis Global Trading will make money by pocketing the bid-offer spread or the difference between the buy and sell rates.

No Change in the Security or Safety of Crypto in Custody

According to the CEO of BitGo, Mike Belshe, the service will come with the same security and safety guarantees:

Some custodians are choosing to sacrifice security and safety by enabling fast withdrawals from cold-storage which makes their clients more susceptible to hacking, false instructions, and theft. Our partnership with Genesis, a FINRA and SEC regulated company, gives our clients access to liquidity through Genesis’ robust network of trading partners. And that solves the real problem which is the need to access liquidity – not the need to speed up withdrawals.

Per the CEO of Genesis Trading, Michael Moro, institutional crypto investors and large traders prefer over-the-counter markets because of the deeper liquidity available. Additionally, hacking risks discourage them from using exchanges. As previously reported, blockchain security firm CipherTrace estimated that in the first three quarters of 2018 cryptocurrencies worth nearly $1 billion were stolen.

Another advantage that users of the service can expect to enjoy by trading their digital assets while in cold storage is more predictability with regards to prices. Currently, there is a risk that prices could move against investors when they are loading their digital assets to the hot wallets of crypto exchanges. Usually, this is a process that takes a day or two, according to Bloomberg.

BitGo gets U.S. Crypto Custody License

This comes a little over four months since BitGo received U.S. regulatory approval to provide crypto custody services.

BitGo Receives Approval to Operate as Regulated Cryptocurrency Custodian https://t.co/Lasciv2Uo8

— CCN.com (@CryptoCoinsNews) September 16, 2018

At the time of getting the approval, Belshe stated that crypto custody services would help lure institutional investors into the digital asset market, as CCN reported:

This is the missing piece for infrastructure — it’s a treacherous environment today. Hedge funds need it, family offices need it, they can’t participate in digital currency until they have a place to store it that’s regulated […] This is early stages in an industry that’s volatile right now. We’re in a down cycle in terms of where we’re going, but the institutions see an opportunity. It’s going to progress quickly.

Featured Image from Shutterstock

S&P 500 Will Rally in 2019, Predicts ‘Stubborn Bull’ Joseph Zidle


wall street bull s&P 500 dow jones
Joseph Zidle does not believe the government shutdown will have a prolonged effect on the S&P 500. | Source: Shutterstock

Blackstone’s new chief strategist, Joseph Zidle, says the government shutdown won’t have a lasting effect on the US stock market and predicts that the S&P 500 is heading for a 15% rally.

Zidle Not Concerned about Government Shutdown

Zidle recently succeeded the legendary strategist Byron Wien at Blackstone. Speaking this week on CNBC’s “Fast Money,” he said of the shutdown and its impact on the stock market:

I don’t see any real lasting effect here because people are going to get paid and they’re going to be made whole.

Other Wall Street analysts are starting to raise concerns about the government shutdown. It’s now into its 26th day, and US President Donald Trump, Republicans, and Democrats can’t seem to find common ground.

JP Morgan CEO Jamie Dimon believes the shutdown could cut economic growth in the US to zero and called for “good government policy.”

The White House says the shutdown may hit US growth by 0.1 percent each week, and nearly four weeks in that could be 0.4% off growth.

US GDP Source: Trading Economics

800,000 government workers and an estimated four million contractors might also not agree with Zidle. Though furloughed workers will be paid eventually, the contractors won’t. After missing a first paycheck on Friday, affected government workers are already going into debt and running the risk of losing their homes.

Delta Airlines CEO Ed Bastian predicted that the shutdown would cost the airline $25 million in January alone as fewer government workers and officials travel.

Delta’s share price has fallen back over the last couple of days but is recovering today.

Delta Airlines Share Price Over the Last Month | Source: Trading View

S&P 500 to Rally 15%

Zidle says the shutdown’s impact on the markets will be short-lived. He expects the S&P 500 to rebound to 2,875 this year after its decline at the end of 2018. He says:

If we do see a drop to first quarter growth or if we see some sort of hit to corporate profits, I think [in] the second quarter we’re going to see all that coming back and more.

But, the trade war and tariffs between the US and China is a “completely different issue” to Zidle and may affect US equities:

I think we need to get that wrapped up in order to have any type of meaningful rally in the stock market.

s&p 500 dow jones
S&P 500 (Blue) Dow Jones Industrial Average (Red) and Nasdaq (Yellow) Performance Over the Last Year | Source: Trading View

After falling back on Monday, the S&P 500 is climbing again today, 0.26% up at the time of writing. The Dow Jones is also up 0.46%, and the Nasdaq is up 1.63%.

The Dow Jones Industrial Average shook off yesterday’s Brexit debacle to trade sharply higher this morning. The overall impact of Brexit on the US stock markets could be minor, but lower economic growth in Europe may impact the US and world markets over the long-term.

Featured Image from Shutterstock. Price Charts from TradingView.

Booming Chinese Capital Outflows May Result In 2019 Crypto Bull Run

Increasing rates of Chinese capital outflows over the past few months are presenting the cryptocurrency space with an unprecedented opportunity as citizens of one of the world’s most strictly regulated jurisdictions find ever more ingenious ways to get around financial movement restrictions.

China’s Capital Restriction Problem

In theory, China has perhaps the most stringent capital restrictions of any major world economy. Regulations state that individuals are not allowed to move more than $50,000 out of the country and companies are only allowed to exchange yuan for other currencies with approval from authorities. This is a rule that dates back to the era when Chinese industrialization was being developed under the principle of national self-reliance and conservation of scarce foreign reserves. These days, critics claim that such capital restrictions serve no purpose other than to coerce wealthy Chinese nationals to toe the communist party line under threat of losing their assets forcibly domiciled in the country.

In practice, even the Chinese government has a limit to how effectively or extensively it can enforce such regulations. Over the past 10  years, a vast number of Chinese elites have found ways to move their money abroad, with their extensive real estate holdings even becoming a subject of political controversy in Vancouver and London due to perceived inflationary pressure on local housing markets. This is not to mention a significant number of well-funded Swiss bank accounts held by Chinese nationals.

Opportunity For Crypto

While the central government with its tremendous surveillance capacity is not unaware of the various creative ways Chinese nationals use to export capital beyond the $50,000 limit, it is only likely to carry out a thorough crackdown in the highly unlikely event that foreign reserves become depleted. With over $1 trillion in American bonds on its books, such a scenario is extremely remote, and this creates a juicy opening for cryptocurrencies.

Chinese trade data from last month shows that capital outflows increased significantly. The last time a surge of this level happened, bitcoin embarked on a prolonged bull run starting from $200 and eventually culminating at its $20,000 all-time high as Chinese traders and exporters used cryptocurrency to move large amounts of money out of the country.

Going by last month’s trade data as well as the current rise of the Yuan, it is likely that over the next few months, Chinese money will make its way into crypto, which may herald the start of another Bitcoin bull run.

‘Critical’ Vulnerability in Beam Wallet Could Have Put Funds At Risk, Devs Say After Fix


news

Developers behind the privacy-focused cryptocurrency Beam have revealed that the “critical” bug discovered and subsequently fixed in their wallet software last week could have put user funds directly at risk.

As stated in a Medium post published today, the vulnerability would have allowed an attacker to create “modified transactions” and subsequently send funds directly into the attacker’s wallet.

In an exclusive interview with CoinDesk, Beam CTO Alex Romanov explained that by leveraging Beam’s Secure Bulletin Board System (SBBS) – a custom-built system to enable offline encrypted messaging between Beam wallets – attackers “currently listening in on active SBBS addresses … would be able to cause these wallets to send money to an attacker.”

Romanov stressed that the issue was application-specific and in no way related to the privacy-enhancing technology mimblewimble, saying:

“The vulnerability is not related to mimblewimble or cryptography or any underlying technology. Basically, it’s a bug in the application itself … It just affected the wallets because it would be possible to create this specific transaction.”

And though the existence of the vulnerability was disclosed to the public the same day it was found by Beam’s internal development team, the exact nature of the threat was not made public until today.

The reason for this according to Romanov was to prevent opening up any “possible attack vectors” for users who had not seen the announcement of the vulnerability last Wednesday.

Elaborating that people are “not online all the time, sometimes there are time differences, people may be asleep,” Romanov told CoinDesk that withholding further details was a way to buy time for users “especially pools and exchanges” to implement the code fix.

Speaking to the issued patch, Romanov explained that the fix was relatively simple.

“We have just prevented this specific scenario in which this custom transaction would have been accepted by a running wallet and that’s it,” said Romanov to CoinDesk.

The next upgrade

Beam officially launched on Thursday, January 3. Since that point, Romanov said that feedback from users is already being worked into a new upgrade for the Beam software currently being tested and set for release “in the next couple days.”

“We have taken into consideration all the issues raised by users, all the requests, all the misunderstanding that in retrospect was pretty obvious because mimblewimble is a very new technology … and we have created an update which will improve the user experience,” said Romanov.

Calling it version 1.0.1, Romanov highlighted that use of Beam systems as a result of mimblewimble has caused “pools and also exchanges to significantly modify the way they operate and the way they handle transactions.”

“There were a lot of learning curves from all sides … [The update] will reduce the amount of potential misunderstandings or problems. Sometimes, even though the system functions properly, it’s not clear for the [user] what is happening,” Romanov told CoinDesk:

Wallet image via Shutterstock

This article and its headline have been updated for clarity.

Victory: Eddie Lampert’s $5.2 Billion Bid Rescues Sears from Bankruptcy


sears eddie lampert
Eddie Lampert’s $5.2 billion bid rescued Sears from liquidation. | Source: AP Photo/Gregory Bull, File

ESL Investments CEO Eddie Lampert has emerged victorious in the Sears Holding Corporation bankruptcy auction with a $5.2 billion bid that potentially saves tens of thousands of jobs and keeps 425 Sears stores open across the United States.

Sears Shares Leap after Lampert Wins Bankruptcy Auction

Earlier in January, CCN reported that Lampert was granted more time by a judge to up his rejected $4.4 billion bid to take over the ailing retailer. While the deal comes as a relief to the estimated 45,000 people whose jobs still remain technically at risk, it still needs to be ratified by a judge.

At the time, it was also reported that creditors preferred a liquidation to the prospect of Lampert taking over the iconic retailer, owing to several controversial decision made during Lampert’s tenure as CEO of Sears where he still holds the position of chairman.

Coming after weeks of negotiations and legal tussles, news of the deal sent the 126-year-old retailer’s share price up 68 percent to a 3-month high of $.084.

sears eddie lampert
Sears Holding Corporation Stock Price jumped 68 percent on news of Lampert’s successful bid | Source: TradingView

Bankruptcy Controversy Amid Amazon’s Prolonged Retail Disruption

According to sources quoted by ReutersLampert’s bid went through in the early hours of Wednesday after he put in additional cash and liabilities to improve the previous bid. The successful conclusion of the auction is only the first part of any prospective recovery for Sears, as the deal must be documented and is still subject to regulatory approval by a U.S. bankruptcy judge.

In addition, a group of creditors is still opposed to the deal, claiming that they stand to recover more from a total wind-down and from civil lawsuits against ESL Investments over controversial deals carried out with Sears – which Lampert insists were above board – during his tenure as CEO. His sole challenger during the auction process was Sears itself, whose concern was that Lampert’s previous bids would not cover the bills incurred by the retailer since it went into administration. The new bid is expected to fully cover these liabilities, which is a key requirement for bankruptcy protection.

The retailer’s woes tell a wider story of disruption and falling fortunes in the physical retail sector which has been devastated by the growth of Amazon and other online shopping platforms. Despite merging with Kmart in an $11 billion deal in 2005, Sears eventually succumbed to the same circumstances that have befallen a number of big-box retailers including Toys R Us Inc., J.C. Penney and Bon-Ton Stores Inc., among others.

Eddie Lampert Image from AP Photo/Gregory Bull, File

US Lawmaker Reintroduces Bill Seeking ‘Safe Harbor’ for Some Crypto Startups


news

U.S. Representative Tom Emmer wants to boost crypto companies which may be impacted by state-level money transmission laws with a bill aimed at creating exceptions for firms which do not store any coins.

House Resolution 528, which aims “to provide a safe harbor from licensing and registration for certain non-controlling blockchain developers and providers of blockchain services,” would allow companies which use or trade cryptocurrencies but do not hold users’ coins to be exempt from money transmission laws if passed.

The bill is identical to one Emmer introduced last year with the 115th Congress, though there are a few key differences which may ensure its passage through the House – or at least give it a boost. The first is that unlike its previous iteration, the bill now has bipartisan support, a spokesperson for the Congressman told CoinDesk.

Representative Darren Soto, a Democrat, is now listed as a co-sponsor for the bill.

Further, “this time around, this bill … will be referred to the Financial Services committee which Congressman Emmer sits on, and we intend to see the House take up the measure,” the spokesperson added.

D.C. advocacy group Coin Center noted previously that “state money transmission licensing laws are broadly drafted and carry harsh penalties for failure to comply,” after the bill was last introduced.

The key issue is that “only custodians present a risk of loss that would be sensibly addressed through licensing,” the group wrote at the time.

Through a spokesperson, Coin Center executive director Jerry Brito told CoinDesk that he hopes the bill will move through Congress, “even though the Hill is focused on other priorities at the moment,” adding:

“We worked closely with Rep. Emmer and his staff to develop this bill last year and we’re very happy to see it reintroduced in this new Congress with bipartisan support.”

According to congress.gov, the bill has been referred to the Judiciary committee as well as the Financial Services committee, and each group will consider the provisions of the bill relevant to their mandates.

Tom Emmer image via Al Mueller / Shutterstock

Survey: US Investors That Sold BTC Lost $1.7 Billion, Many Don’t Intend to Deduct Losses

Crypto investors in the

United States

who sold their Bitcoin (

BTC

) holdings lost $1.7 billion, but many do not plan to deduct the losses, a survey conducted by personal finance company Credit Karma

published

on Jan. 15.

The survey was conducted by research firm Qualtrics for Credit Karma, and surveyed 1,009 American BTC investors over the age of 18 in November 2018.

According to the aforementioned survey, a slight majority of Americans — 53 percent — plan to report their Bitcoin gains and losses for their taxes, while 19 percent are still undecided. The survey also found that 35 percent of the participants that sold their crypto at a loss will not report their losses on their tax returns.

Out of the investors who reported profits, 50 percent plan to report their gains, while only 38 percent of the investors who incurred losses intend on reporting them. Furthermore, the report states that the investors that aren’t reporting losses may be missing out valuable deductions.

As well, 35 percent of the surveyed U.S. Bitcoin investors believe that they are not required to report their profits or losses, and 58 percent were not aware that they could claim a tax deduction for their losses. The unrealized losses of the considered investor group amount to $5.7 billion, according to the report.

More than half (55 percent) of the surveyed Bitcoin investors that do not intend to report their crypto transactions on their tax returns assume that they didn’t gain or lose enough to be required to do it.

As Cointelegraph reported in April last year, the Credit Karma Tax platform announced that less than 100 people have reported capital gains from crypto investments out of the 250,000 most recent tax filers.

In October 2018, an advisory committee of the U.S. Internal Revenue Service reported that they want the agency to provide additional guidelines for the taxation of crypto transactions.

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