Coinbase: ‘Partial Victory’ Appears To Put End To 12-Month Legal Battle

Coinbase will only need to send three percent of the original data summons to US tax authorities, a court has ruled.

Coinbase has hailed as a “partial victory” a court order to hand over transaction details of almost 15,000 customers to the government.

In a summary of the US exchange’s now year-long legal battle with the Internal Revenue Service (IRS), communications officer David Farmer confirmed previous hints that only three percent of the original data demands would be sent to lawmakers.

The issue focuses on IRS suspicions that Bitcoin holders transacting through Coinbase were not paying appropriate taxes on profits.

After Coinbase ignored a request to inspect every transaction made through the company from 2013-2015, a court summons saw months of posturing before the IRS’ position finally became untenable.

The tax authority’s request, commentators and now legal entities confirmed, was too “broad” in its scope.

“…While today’s result is not the complete victory we hoped for, it does represent a substantial and unprecedented victory for the industry and the hundreds of thousands of customers that would have been unfairly targeted if it weren’t for our action,” Farmer said, adding Coinbase was “reviewing” the order to turn over all transactions of $20,000 or more.

The results provide a brief respite for Coinbase as its infrastructure feels the strain once again from Bitcoin price volatility.

As USD rates fluctuated by thousands of dollars over the past 48 hours, the exchange saw its servers go offline as it failed to cope with demand. Similar events occurred earlier this year as hundreds of thousands of new users opened wallets on a weekly basis.

Source: Coin Telegraph




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Coinbase Wins Partial Victory Over IRS, Government Data Request Reduced

Coinbase wins a partial victory in its legal dispute with the IRS, reducing the number of affected users by 97%.

Coinbase has won a partial victory in their ongoing legal battle with the IRS regarding the disclosure of private user information. According to Coinbase, the government initially sought records on over 500,000 users in their efforts to catch tax cheats. After months of legal wrangling, Coinbase announced that the IRS has reduced their records request to only 14,000 users, a 97% reduction.

Coinbase also announced that the amount of documentation requested by the IRS has been substantially reduced. The company’s blog post did not reveal the criteria used to determine the 14,000 “high volume” users the IRS is interested in. Nor did Coinbase reveal the extent of the documentation that the tax agency is now seeking.

Setting precedents

The partial win for the cryptocurrency exchange is an important step in general cryptocurrency tax consideration. According to Coinbase, most companies simply hand information over to the IRS, but they sought to maintain user privacy:

“Coinbase started this process more than 12 months ago, and while today’s result is not the complete victory we hoped for, it does represent a substantial and unprecedented victory for the industry and the hundreds of thousands of customers that would have been unfairly targeted if it weren’t for our action. Although we are disappointed not to be able to entirely defeat the summons, we are proud to fight for our customers and in the result we were able to achieve as a small company against a large government agency.”

The company promised that, should they be required to submit the requested information on the final 14,000 users, they would inform them before the actual disclosure takes place. The company’s legal staff is currently evaluating the order before proceeding.

Source: Coin Telegraph




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Experts Answer Question: “How Did Bitcoin Reach $10,000?”

With Bitcoin having hit the magical $10,000 mark, experts chime in on how we got here.

In January this year, $1,000 was the milestone Bitcoin owners were eager to reach. The digital currency hit that, overcame it and increased ten-fold to over $10,000. This year has been filled with good news for digital currency, from another Asian market boom, to Bitcoin’s integration with the Square App, the launching of regulated futures markets and growing mainstream adoption. Despite being laughed off for years, Bitcoin is only just beginning to become a force to be reckoned with in the global economy.

Cointelegraph had the opportunity to speak with several experts and ask them the question: “How did Bitcoin get to $10,000?” We have shared their responses below.

Institutional money

Hedge funds, pension funds, family offices and the like have shown extraordinary interest in Bitcoin this year. Such “institutions” control vast amounts of money. As an example, the UK-based hedge fund Man Group, which has expressed interest in trading Bitcoin, controls assets exceeding $100 bln.

Simon Yu, CEO of StormX, said:

“The Bitcoin price is at an all-time high is due to institutional money finally starting to flow into the cryptocurrency market. Recently, announcements from the South Korean Bank Hyosung in support of Bitcoin, from CME Group announcing they'll be launching a Bitcoin futures market, and from Square Cash announcing Bitcoin will be supported caused bullish behavior in the market, pointing to a major shift.

“The general public is starting to realize Cryptocurrency is beginning to be adopted to mainstream markets and will continue an upward trend as they see the potential for more companies to adopt cryptocurrency.”

Christopher Grey, COO of Caplinked, agrees with Yu’s statements, but is far less Bullish in the matter:

“Investors unfamiliar with crypto are piling new money into Bitcoin right now, making the situation highly unstable as investors expect the price of Bitcoin to keep going up. Any declines could be exaggerated dramatically because they are not stable owners of Crypto.

“Alternatively, the price could continue to rise parabolically, drawing in enormous sums in the tens of billions of dollars from other risky liquid investments like growth stocks and junk bonds. This could cause the prices of those investments to weaken as a result of this liquidity moving out of them and into Crypto.”

“Either way, this situation is not stable and cannot continue for an extended period of time. Something needs to give in one of the risk markets, as liquidity in these markets is not infinite and nothing here is being created, just moved from one risk market to another by speculators. This didn’t matter when total crypto value was small, but at these levels of hundreds of billions in value, it becomes a substantial user of global risk capital.”

Newcomers are still early adopters

In 2014, when Bitcoin hit its first real mainstream swing with Coinbase and other exchanges upping their user experience, people were already asking: “Is it too late get into Bitcoin?”

Those questions persist today, and recur every time Bitcoin’s price rises another $1,000. However, since only an estimated half-percent of the global population uses digital currency, there is still plenty of time to be an early adopter.

Jon Chou, CEO of Bee Token says:

“People often complain that it's too late to get into Bitcoin, that most of the early adopters have been in since 2010 and there's no more or little room for upside. I'll offer an alternative long term-angle; this is not financial advice. According to Blockchain.info, there are approximately 700,000 Bitcoin addresses as of November 2017.

“One of the main problems Bitcoin claims to solve is the issue of remittances, basically globally distributed access….Well, there are seven billion people in this world. Assuming a 10% penetration rate and if everyone owns just one address, then there are still 700 million address potentially in the future. That's a potential 1000x in user base. Regardless of fluctuations in price in the short term, it's important to realize how early we are in the Blockchain space as a whole.”

Sol Lederer, Blockchain Director at LOOMIA echoes Chou’s point, stating that Bitcoin is still in its infancy, and that Bitcoiners from 2010 and earlier are now starting to be vindicated rather than victimized.

“Long-time Bitcoiners finally feel vindicated that their currency that has been ridiculed for years, is at last being taken seriously. Naysayers may still say Bitcoin is a bubble, but very few would argue it’s worthless or a scam, yet only a year ago this was a common narrative.

“Bitcoin’s future is still uncertain; it faces the same serious technical challenges it has for years, and faces stiff competition from newer, more sophisticated Blockchains. But even if it were to crash, it’s apparent that Bitcoin is here to stay. Whether it trades at $10,000, $5,000, or $500, it’s not going away.”

Source: Coin Telegraph




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So Long, $10k: Bitcoin Price Unstoppable As $11,000 Becomes New Benchmark

Bitcoin has reached $11,000 just hours after major exchanges saw $10,000 come and go.

Despite hitting $10,000 among major exchanges just hours ago, Bitcoin has already tackled $11,000 as markets show no signs of slowing.

The first hours of Wednesday saw $10,000 come and ago on Coinbase, Bitstamp, Bitfinex and others, with trading continuing to just below $10,700 before a correction.

That correction was short-lived, however, with Bitcoin then passing that mark to first hover around $10,750 and then continue to the next barrier soon afterwards.

Both Bitcoin’s rate of growth and comparative lack of volatility are unprecedented in its history.

Prices are up almost 1500% in 2017 alone, with expectations by even the more optimistic forecasters now seeming modest.

New bubble warnings in the mainstream press contrast with investment sources at a loss as to how high Bitcoin could go in 2018.

BTCC CEO Bobby Lee even took a randomized approach, basing his $48,000 prediction on the number of his Twitter followers.

Meanwhile, Tone Vays, the technical commentator who has seen his short-term tips come true with remarkable accuracy in recent months, said that $12,000 would now come “quickly” due to profit takers having completed their activity.

At the time, Bitcoin was still at $9900.

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Source: Coin Telegraph




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Bitclub Network allows you to buy mining shares with daily payouts

CCG Mining now offers open end contracts. Bitcoin, Ethereum, Zcash, Litecoin and others

Cointracking keeps track of all your coins automatically. Many exchanges and wallets supported