Bithumb hacked for $31M and stops withdrawals
Bithumb, one of the largest cryptocurrency exchanges in South Korea by trading volume, is halting asset deposit and withdrawal services after hackers stole 35 billion won $31 million from the platform.
The company said in an announcement today that the hack happened between late Tuesday night until early Wednesday morning Korean time. Bithumb said that the loss will be covered by the platform.
Slovenia’s Bitcoin city will offer 450 shops that accept Bitcoin
A ‘Bitcoin City’ is expected to open in Ljubljana, spread over 250,000 square meters and boasting more than 450 shops and other cryptocurrency related amenities that all accept Bitcoin as payment.
Besides the shopping outlets, Bitcoin city (BTC) will house 70 bars and restaurants, 17 swimming pools, a mini-golf course, a waterpark and an entertainment centre with a 3D cinema and the Crystal Palace, the highest tower in Slovenia.
Tether’s US dollar reserves inspected & results published
Earlier this year, Tether hired a law firm to perform a randomized inspection of the number of Tethers in circulation, as well as the currency reserves.
The firm was authorized to perform unlimited examinations of the balances at Tether’s banks and reviewed hundreds of pages of relevant documents. The resulting “transparency report” is now published
The future of cryptocurrency trusts
It has been shown that not everyone wants to pay taxes on his Bitcoin Holdings for personal reasons or for nefarious reasons. However, the IRS is unlikely to change its attitude towards treating cryptocurrency as property. It’s an issue that has sparked many debates in the past and is likely to continue for some time.
Therefore, all individuals in the United States must pay taxes on their cryptocurrency inventories and investments. However, there is a growing search for solutions that are legal but allow users to (almost) avoid the taxes they would otherwise be exposed to. As is always the case in the financial system, legal loopholes can be found through appropriate research, at least until the IRS decides to address them.
An interesting recent discussion revolved around cryptocurrency trusts. A crypto currency trust is a trust like any other in the financial sector, except that it contains only crypto currency resources. Although these vehicles are still subject to taxes, there are some ways to reduce or negate taxes. This is not something that should be abused by any means as the IRS will sooner or later expose fraudulent behavior.
Separate types of trusts can be identified. There is the living trust that is not taxed separately. The transfer of Bitcoin or another cryptocurrency to such a trust is not taxable, as the living trust is not a separate taxpayer. Another solution is the non-grantee trust, where the transferor is not taxed. However, the trust itself pays taxes and the distribution can be taxed separately.
An advantage shared by virtually all cryptocurrency trusts is that they affect government taxes. Forbes has recently introduced some interesting models in this regard, as some states are better places than others to found such trusts. New York is clearly less attractive in this regard as its legislators are well aware of this “legal trickery” and know how it can be useful to cryptocurrency users. The state of New York has not been a cryptocurrency for quite some time.
Although cryptocurrency trusts can be a few interesting options, it is also obvious that there are many risks. Avoiding taxes of any kind, even by legal means, is always risky for crypto currency users, and it’s not necessarily worth the effort. Whether or not there will be a growing interest in cryptocurrencies remains to be seen.