Today, the overall cryptocurrency market is witnessing soft trading with most of the cryptocurrencies showing minor movement. In the last 24-hours, the overall cryptocurrency market is relatively stable around $120.5 billion, according to the data on . Similarly, is showing a soft movement and is currently trading 0.12% up at $6539.
Earlier this week, the announcement of shot the bitcoin price up over $6900 levels. However, this momentum was short-lived with bitcoin managing to end the day, October 15, at just over $6600 level. The entry of Financial Services giant Fidelity Investments is a big vote of confidence in the cryptocurrency market. The crypto exchange Fidelity Assets will provide cryptocurrency storage and trading services to institutional and enterprise clients.
Fidelity Chairman and CEO, Abigail P. Johnson said:
“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors,” said Abigail. “We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”
Crypto Experts Comment on the Latest bitcoin Volatility
Looking at bitcoin’s sudden price swing this week, experts yet again warned against the crypto’s extreme volatile behavior. Sam Enrico Williams, of cryptocurrency due diligence platform Zloadr.com, told :
“The crypto market is still extremely volatile so you need to keep an eye on your assets 24/7. The market can be brutal. My brother and I have got some horror stories of friends of ours going to bed a millionaire and waking up a pauper because their holdings tanked overnight.”
CME Reports a 41% Jump In bitcoin Futures Trading
Derivative exchange group CME said that there was a 41% jump in bitcoin Futures Trading quarter-over-quarter during the Q3. During this period, CME averaged nearly 5053 contracts, each contract equivalent to 5BTC traded during daily trading sessions. This amounts to 25,265 BTC traded in volume terms.
In comparison to Q2, the open interest in market jumped by 19% during the Q3.
In Q3, bitcoin futures average daily volume rose 41% and open interest was up 19% over Q2 . Learn how market participants are using BTC to manage risk in changing markets.
— CMEGroup (@CMEGroup)
Although there is a steady increase in BTC volumes, CME CEO Tery Duffy said that the company is not rushing to list new products. Earlier in July 2018, Duffy was quoted saying:
“Before we get into any other cryptocurrencies, we’re going to see how this one goes, and I think that six to eight months as a listing of bitcoin is not a good enough barometer to decide what your future should be for any other cryptocurrency. I will not just put products up there to see where they’re going to go. I will take a wait and see approach with bitcoin for now.”
A number of global institutions are now increasingly looking towards bitcoin. Chairman of the Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo, also acknowledged this fact. He said that more institutions are interacting with bitcoin and other crypto assets. He called it a sign of growing maturity in the crypto market.
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Cryptocurrency trading steadily forms a new relevant multi-million industry that generates a large source of revenue for companies and private investors engaged into this risky endeavor.
However, despite the wide-world adoption of digital assets, only a few countries so far have devised a deliberate regulatory framework, which fully covers all of legal aspects occur during cryptocurrency-related activities.
International Experience
Coinspeaker repeatedly reported many European and Asian countries where cryptocurrency trading is especially popular to start amend their taxation to reap benefits from enormous income pumped out of the industry.
Today tax authorities have to resolve two task simultaneously. First, they are to set an effective tax system that will benefit a government budget and secondly the system is expected to be crypto-friendly and potentially to boost the blockchain activity in the region.
Each county is pursuing their goals differently. While abundant in cryptos has been chasing investors with a new set of regulations ultimately slowing down the pace of crypto-development, is looking forward to host crypto-related businesses easing up the tax rate on cryptocurrency sales from 45 to 19 percent.
Japanese Attempts to Facilitate Crypto Taxation
On the other hand, Japan famed for being one of the leading counties in terms of blockchain-based patents filed by Japanese residents, still did not elaborate a single system for crypto-taxation.
Nonetheless it became known that Japan’s Tax Commission is looking for ways to simplify the current tax filing system for cryptocurrencies in order to ensure investors accurately report their gains.
The commision is reportedly planning to implement an improved system that would standardized the tax filing process and make it easier for taxpayers to calculate their profits on the sales of digital assets against both fiat currencies and other cryptocurrencies.
A Change of Crypto Taxation Form
Today Japanese entities involved into crypto-sphere have to undergo a cumbersome process of tax filing since there is a lack of unified classification of the income reported from cryptocurrency trading.
Currently, profits from the sale of cryptocurrencies in Japan fall under “miscellaneous income.” A sliding tax rate from 15 to 55 percent is applied, depending on the actual amount of gains above a threshold of 200,000 yen per year, or about $1,800.
Now the commission is considering a shift of from its current form of crypto taxation to that of “separate declared taxation,” although Japan’s deputy prime minister was cautious about making such a change earlier this year.
He believes that the general public would have difficulties with understanding of such a change. He cited the “international nature” of cryptocurrency as one reason why Japanese residents might dislike a change in tax classification. The finance minister also said he was unsure about the “tax fairness” of implementing such a change.
Therefore it remains an open question whether Japan’s deputy prime minister has changes his mind or the tax commission has meant something else to facilitate current system.
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