Invest in crypto currencies: Taxes & Law | #5 Investment Guide

Disclaimer: We are not lawyers, attorneys, tax consultants or the like. This means that all information contained in this article does not constitute advice and is purely an account of experience.

If you understand the possibilities, it is just as important that you can put the concrete steps into practice. Unfortunately, this sometimes includes the unpleasant things in life, such as tax and legal aspects.

Because the topic of crypto investments is so young, there are only a few sources of information that investors can rely on. Therefore, we cannot provide you with any advice at this point either. It is much more important to draw your attention again to the importance of both aspects.

Tax aspects about the Bitcoin news

As a rule, you trade in crypto investments with the intention of making a profit, otherwise you would not read this Bitcoin news. Since in the best case you also make profits, you have to take care of the correct taxation. Keep all the receipts of your transactions so that you can track all necessary purchases and sales more easily in the end. We recommend that you always consult an expert, as the self-made version could prove to be very difficult. Plan your visit to your tax advisor in good time, as the less than favourable visit should not turn your balance sheet into a negative one.

Bitcoin news about the legal aspects

Once again, be aware that with crypto investments you are traveling in a virtual area according to Always be aware that this type of business is not comparable to buying from domestic companies. You often don’t know who is really behind the Bitcoin news. Maybe the person disappears after only a short time with all the money collected? Or does he pay out the promised coins, which remain worthless because the project is never implemented and the coins are therefore not usable?

Don’t rely too much on your rights, which you are used to from other situations. Crypto investments can hardly be compared to securities trading on stock exchanges. In the first case the legislator regulates most processes very strongly and you can rely on a relatively good rights management.

You bear full responsibility for crypto currencies. If you lose your private key, a “Forgot password” function or a “Request new PIN” function will not help you.

We have arrived at the end of the Crypto Investment Guide. It is certainly tempting to want to get started right away and take advantage of the many “unique” opportunities. But: Act with caution. And keep reminding yourself what advantages/disadvantages a certain investment category promises you and what it doesn’t offer you. Because those who are after your money will not always tell you the truth.

CFTC gives green light to Bitcoin futures

The US Commodity Futures Trading Commission CFTC has approved several Bitcoin futures planned by US providers for marketing this Friday, December 1. With the blessing of the derivatives authority, the launch of Bitcoin futures by the CME Group, CBOE and Cantor Fitzgerald is now possible. Their first market entry is planned for December 18. Update: CBOE has now announced that it will list its future contracts on 10 December.

Bitcoin profit establishment enroute?

The project seems to be in dry cloths and is throwing a lot of charcoal at the Bitcoin furnace, which is blazing up again and again these days. With the approval of the Bitcoin profit review, the introduction of the Bitcoin profit futures from the providers CME Group, CBOE and recently Cantor Fitzgerald, which have been planned for months, has been cleared as the most important regulatory hurdle.

After CME CEO Terry Duffy announced last month that the introduction is planned for mid-December, the approval of the authority confirms this schedule. According to the suppliers, CME’s US customers will now be able to take advantage of future business opportunities from 18 December. CBOE is listing its futures a week earlier. Cantor Fitzgerald, on the other hand, is still waiting for concrete details and plans to launch its binary options in the first half of next year.

Specific details of the CME Group, CBOE and Cantor Fitzgerald offers available this month can be found on the providers’ websites.

Attention: No comprehensive Bitcoin profit

As stated in the accompanying press release of the authority, common standards had previously been worked out in intensive cooperation with the Bitcoin profit providers for the introduction in order to explore the new territory around crypto derivatives like this

However, a comprehensive regulation of the Bitcoin derivatives market on the US stock exchanges does not represent the approval of the CFTC. This was underlined by the Commissioner of the Authority, J. Christopher Giancarlo. On the contrary, he emphasized that his agency had limited authority and could not provide holistic supervision of the complex crypto market.

“Market participants should be aware that the relatively young cash markets and transactions behind Bitcoin remain largely unregulated markets over which the CFTC has little legal authority. There are [still] concerns about price volatility and the trading practices of participants within these markets,” said Giancarloin, says Giancarlo.

Despite all warnings, Terry Duffy, Chairman and CEO of the Chicago futures and options exchange CME Group, is confident in an interview with Coindesk that he has put the necessary control mechanisms in place.

“We are pleased to bring Bitcoin futures to the market after working closely with the CFTC and other market participants to design a regulated offering […] with opportunities for transparency, price development and risk transfer.

With the approval of the CFTC, Bitcoin is taking an important step towards established financial markets. The fact that this trend could continue in the near future is confirmed, among other things, by the announcement of the New York Nasdaq stock exchange. As BTC-ECHO reports, the largest electronic exchange provider also announced this week its intention to launch crypto derivatives.

In addition, a chain reaction is likely to set in motion at the end of the year as the westerly winds from Chicago and New York carry the business model into European latitudes. Luke Ellis, Managing Director of the British hedge fund Man Group, had announced that he would also venture into new business territory with crypto derivatives.

USA: Rapid growth in blockchain jobs

Blockchain technology is creating more and more jobs in the USA. Despite the bear year 2018, the number of job offers from US blockchain companies has increased by 300 percent.

While the crypto market around Bitcoin & Co. is currently moving sideways at best, blockchain-related occupations in the USA and elsewhere can record significant growth. This is the result of the latest analysis of the Glassdoor job and evaluation portal.

Glassdoor searched its own database and found significant growth in job offers in the crypto sector. Glassdoor recorded 1,775 job offers (as of August 2018) for this sector – 1,329 more than in the previous year.

Two cities dominate in particular the Bitcoin news trader scam

New York and San Francisco, with 24 and 21 percent respectively, are by far the cities with the most in the USA. San Diego in California ranks third with a share of only 6 percent as seen here After all, around 21 percent of jobs are spread across the whole country beyond the Bitcoin news trader scam metropolises.

The profession of software developer is particularly in demand. At 19 percent, just under every fifth job offer relates to this occupational field. The second most frequently sought are intermediaries between companies and technology analysts (analyst relations), followed by product managers.

Attractive payment for the Bitcoin formula scam

Companies appear to be willing to reward Bitcoin formula scam review accordingly. Glassdoor’s figures show that occupations in this sector generate an average annual income of 84,884 US dollars. This is significantly more than the Bitcoin formula scam US average, which Glassdoor estimates at 52,461 US dollars in an August 2018 report. Depending on the occupational profile and location, annual salaries in the US blockchain industry range between 36,000 and 224,000 US dollars.

At the forefront: ConsenSys and IBM
Most employees are looking for IBM and ConsenSys. With 214 jobs each, they are together responsible for almost a quarter of the job advertisements. The Coinbase crypto exchange ranks third (4 percent or 63 offers).

Glassdoor also took a look at the international blockchain hubs. This is where most experts are sought in London, followed by Singapore, Toronto, Hong Kong – and Berlin.

Anyone looking around for blockchain jobs in Germany (even outside Berlin) might want to take a look at our job exchange. Who knows, maybe “What with Blockchain” will become the new “What with Media” in the not too distant future?

Bitcoin struggles with mainstream acceptance

The number of companies accepting Bitcoin continued to grow very slowly in Q1 2015. The reason for the slow acceptance of Bitcoin by the companies is less the interest of the companies in Bitcoin than the slow spread among the general public.

In Q1, a total of 1 million new Bitcoin Wallets were created, reflecting 14% growth. In February, Blockchain Wallets broke the 3 million mark.

For 2015, CoinDesk forecasts a total of 12 millionne wallets

Wall Street’s interest in Bitcoin was mainly due to the migration of financial managers to the Bitcoin industry (slide 77).

Leading banks such as Citi and UBS have also launched their own programs to further explore the blockchain. This development enables Bitcoin start-ups to establish important links to the traditional financial system.

The latest version of the New York BitLicense was published in February (slide 80). Even though a positive development could be observed in principle, some passages of the license still raise questions and require clarification.

Positive signals from Wall Street and regulators

The British Ministry of Finance also announced a new regulatory framework for digital currencies. The draft is generally seen as a positive development.

Mark Preuss is founder and managing director of BTC-ECHO
After studying economics in the Netherlands and China, he held various positions in finance, first in Switzerland and finally in Düsseldorf. Early on, he became enthusiastic about digital currencies and blockchain technology. In the absence of a contact point in German-speaking countries, Mark finally decided at the end of 2013 to launch BTC-ECHO, his own media platform for digital currencies and blockchain. Since then, he has developed BTC-ECHO into the most widely used German-language platform for crypto currencies.