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The IRS has issued guidance (Rev. Rul. 2023-14) addressing the tax consequences of a hypothetical cash-method taxpayer who stakes cryptocurrency native to a proof-of-stake blockchain and receives additional units of cryptocurrency as reward when validation occurs.

Many cryptocurrencies use blockchain technology as a digital ledger, which involves a consensus mechanism for updates to the blockchain. The ruling describes the consensus mechanism referred to as proof-of-stake, in which holders of cryptocurrency may participate in the validation process by staking their holdings if they hold a requisite number of units of a particular cryptocurrency. If a holder is chosen by the protocol, and validation is successful, the holder will receive a reward. However, if a validator is chosen and the validation is unsuccessful, the staked units may be subject to penalty with the staked units being forfeited.

The revenue ruling considered the treatment of a hypothetical cash-method taxpayer, A, who owned 300 units of a cryptocurrency, M, on Date 1. Transactions in M were validated by a proof-of-stake consensus mechanism. A staked 200 of M units and validated a new block of transactions on the M blockchain, which resulted in A receiving two units of M as validation reward. During a brief period ending on Date 2, A lacked the ability to sell, exchange or otherwise dispose of the two M units. However, A had the ability to sell, exchange, or otherwise dispose of the two units of M on a specified date, Date 3.

The IRS ruled that A had an accession to wealth under Section 61 and the principles of Commissioner v. Glenshaw Glass Co. (348 U.S. 426 (1955)) when A gained dominion and control from the ability to sell, exchange, or otherwise dispose of the two units of M received as validation rewards. Accordingly, the IRS ruled that the fair market value of the two units of M were included in As gross income for the taxable year that included Date 3. The fair market value of the two units of M was determined as of the date and time that A gained dominion and control over the two units of M.

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IRS releases guidance on cryptocurrency staking - Grant Thornton

The Associated Press

NEW YORK Weeks after its international launch, Worldcoin is drawing the attention of privacy regulators around the world, with the Kenyas government going so far as to shut down the service indefinitely.

The international ID startup, backed by big names in Silicon Valley, is now having to defend itself in investigations over whether the biometric data that the company is collecting is truly secure.

Heres what to know about Worldcoin and the concerns its raising:

What is Worldcoin?

Worldcoin is the creation of Sam Altman, best known as the CEO of OpenAI, the company that has gained widespread recognition with its artificial intelligence chatbot ChatGPT.

The goal of Worldcoin and the company backing it, Tools for Humanity, is to give people a form of identification that could never be stolen or duplicated. Worldcoin creates a World ID by scanning someones eyeballs through orbs a device that captures an image of their irises, the colored parts of the eyes.

One possible use for such an ID would be online services, where oftentimes people are having to remember multiple passwords and usernames for various websites they have signed up for.

The security of those sites can be flawed, however, and there have been numerous security breaches where usernames and passwords have been stolen. Instead of using old technology like passwords, a person could just sign up using their World ID.

Connection

to crypto?

Worldcoin is first and foremost an identification project but is using cryptocurrency to get people to sign up. The Worldcoin token is trading for roughly $1.90, but its value is largely based on speculation rather than its current usability as a currency.

Worldcoin launched officially in July, and as part of the promotion, early adopters were given an amount of cryptocurrency worth between $50 and $60, depending on the jurisdiction. Most of the countries where Worldcoin launched dont widely use or accept crypto.

Further, $50 is a lot of money in developing countries where people are being asked to sign up, including Kenya, where the average monthly income is roughly $170.

Why is it gaining attention?

Thousands of Kenyans lined up in Nairobi last week at a registration center where Worldcoin scanned their irises in exchange for 25 coins worth about $50. The largely youthful crowd included a special line for mothers who waited with children strapped to their backs.

Some of those in line told local media that they had traveled for miles after friends said free money was being handed out. They acknowledged not knowing why they needed to scan their irises and where that information would go but just wanted the money.

University graduates were among those who waited for hours, alluding to the high rate of unemployment in Kenya, where many are angry over the rising cost of living.

The Kenyan government has since suspended new sign-ups for Worldcoin as it investigates whether peoples information is being properly protected.

Interior Minister Kithure Kindiki said last week that investigations of the safety and protection of the data being harvested and how the harvesters intend to use the data had started.

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Worldcoin scans eyeballs and offers cryptocurrency | News, Sports ... - Lewistown Sentinel

After a fast start to the year, Bitcoin (BTC 0.27%) has been in a holding pattern of late, unable to break decisively above the $30,000 mark. While Bitcoin is still up 79% for the year, it is actually down 2% over the past 30 days.

But even with this recent sluggishness, Bitcoin is the one cryptocurrency I'd buy right now. There's a lot happening behind the scenes with Bitcoin, and I like what I see. Here are three factors that I think make Bitcoin a compelling buy right now.

One of the biggest catalysts for Bitcoin is the potential for a massive influx of new money from institutional investors. In mid-June, for example, BlackRock Inc. (BLK -0.39%), the largest asset manager in the world, announced plans for a new spot Bitcoin ETF. That was followed up by similar spot Bitcoin ETF applications from other investment firms, including Ark Invest and Fidelity Investments. It's really now just a matter of when, not if, such a spot Bitcoin ETF gets approved by the SEC, and that's when the new influx of institutional money could start to happen.

Image source: Getty Images.

According to the current Bitcoin valuation model from Ark Invest, the long-term trend is for institutional investors to allocate more and more of their portfolios to Bitcoin. Ark Invest says that simply shifting the asset allocation mix for Bitcoin from 1% to 2.5% could have a dramatic effect on the crypto's future price. In the bull case scenario from Ark Invest, the percentage allocated to Bitcoin could be as high as 6.5%.

The conventional view of Bitcoin is that it is one of the most volatile assets in the financial world. While that may have been true in the past, Bitcoin is actually becoming less, not more, volatile over time. Right now, Bitcoin's volatility is approaching multi-year lows, and some traders are actually complaining that Bitcoin is not volatile enough.

While lower volatility for Bitcoin may cap some of its future upside potential, it also makes it relatively less risky. After all, volatility is really just a measure of how much an asset can fluctuate in price over a certain time period, and lower volatility means that the daily zigs and zags in Bitcoin's price could be getting smaller over time. This is fantastic news if you are thinking about holding Bitcoin for the long haul, but bad news for anyone viewing Bitcoin as a short-term speculative asset.

Finally, there's one catalyst for Bitcoin that is going to get a lot more attention as we head into the final months of the year, and that's the upcoming Bitcoin halving. Right now, the Bitcoin halving is scheduled for April 2024, and it's one of the most highly anticipated events in the crypto world. In a halving event, the mining reward for mining a new block on the blockchain drops by one-half.

That might sound like just a purely technical issue, but three previous Bitcoin halvings in 2012, 2016, and 2020 have resulted in strong price gains. The general consensus is that a halving event increases the relative scarcity of Bitcoin, while also making it more deflationary over time. Both of these are very positive signals for investors, which is why past Bitcoin halving events have been so overwhelmingly bullish.

The big caveat here, of course, is that past performance is no guarantee of future performance. We don't really know what will happen this time around, but some investors are now predicting that Bitcoin will surge past the $100,000 mark next year. For example, Standard Chartered Bank now has a revised $120,000 price target for Bitcoin, and a lot of those implied price gains are coming from the anticipated effects of the halving.

The three factors described above suggest that the overall risk-reward profile for Bitcoin may be changing. There's still plenty of upside potential, but some of the risk historically associated with Bitcoin may be disappearing. As more institutional money pours into Bitcoin, I would expect this trend to continue. Simply stated, there will be less short-term, speculative money chasing Bitcoin, and more long-term, buy and hold money investing in Bitcoin. As a result, I'm bullish on Bitcoin over the long haul. It's the one cryptocurrency I'd buy right now.

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1 Cryptocurrency I'd Buy Right Now - The Motley Fool

Topcredit Int Enters Top 70 List of Cryptocurrency Spot Exchanges on CoinMarketCap

Toronto, Ontario--(Newsfile Corp. - August 14, 2023) - Topcredit Int, a cryptocurrency exchange platform, has achieved a prominent position in CoinMarketCap's global exchange rankings, ranking at No. 67 on the Top Cryptocurrency Spot Exchanges list. This recognition on a renowned crypto data platform showcases Topcredit's acknowledgment in the global crypto trading market and marks a significant milestone in its global expansion strategy.

Topcredit Int

Founded in June 2020 and based in Hong Kong, Topcredit Exchange's team primarily comes from traditional financial backgrounds, understanding the core demands of asset management for users and recognizing trading as a vital tool for efficient asset management and returns. From the outset, Topcredit Exchange has been committed to providing users with a secure, convenient, and efficient asset management tool. After successfully operating in the regional market, serving 1.2 million users securely for three years, Topcredit Int officially launched its deep global expansion strategy in June 2023.

Continuing its commitment to innovation and upgrades, Topcredit Int is soon introducing virtual card services to offer users a more convenient digital asset payment and consumption experience. Stay tuned for Topcredit Int's announcements to learn more about the details of the virtual card service.

About Topcredit Int

As a global fintech company focused on cryptocurrency trading and digital asset management, Topcredit Int offers a next-generation all-in-one asset management tool, providing users with a wide range of financial product choices. Users can flexibly choose between spot and contract trading for digital currencies and other derivatives, as well as easily engage in trading US and Hong Kong stocks, enabling streamlined management of various digital and traditional financial assets in one place to meet different investors' risk preferences and fund usage habits. The platform features fast trade execution, real-time global market data analysis, and robust security measures, ensuring secure and efficient digital asset trading and management for users.

Currently, Topcredit Int offers 140 spot trading currencies, 43 contract trading pairs, 54 US stocks, and 39 Hong Kong stocks. Recently, one of the significant additions is the "Dollar-Cost Averaging" (DCA) strategy, aimed at providing users with a better investment experience.

For more information about Topcredit Int:

Website:https://www.tope.com/Twitter:https://twitter.com/TopcreditExTelegram:https://t.me/Topcredit_Int_GroupEN

Media Contact:Jerry LucasMail: support@tope.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/176889

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Topcredit Int Enters Top 70 List of Cryptocurrency Spot Exchanges ... - InvestorsObserver

Cryptocurrency worth more than 750,000 has been seized from a hacker under a High Court Civil Recovery Order, in what may be the first such recovery of a digital wallet.

Police executed search warrants and seized a black book containing 12 recovery seeds which enabled officers to reconstruct a digital wallet, the Crown Prosecution Service announced. The wallet contained a large amount of cryptocurrency.Two further recovery seeds were located, leading to police seizing a smaller amount of cryptocurrency from another digital wallet.

The CPS, working with the Tarian Regional Economic Crime Unit in South Wales, secured the civil recovery order against the computer hacker.The cryptocurrency was found to have been obtained prior to and in connection with the original hacking offences. Under the Proceeds of Crime Act 2002, the CPS applied for a non-conviction-based property freezing order to preserve the assets.

The hacker consented to a civil recovery order being made, forfeiting all the cryptocurrency, with more than 750,000 being paid to public funds.

Adrian Foster, head of the CPS proceeds of crime division said: This criminal thought that he had managed to hide his crypto but, working with law enforcement, we were able to locate, seize and recovery this tainted property so that he could not benefit from his illicit wealth on release from prison.

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750,000 of cryptocurrency seized through civil recovery order ... - Law Gazette