Sidechains promise to help Bitcoin adapt to new demands and accommodate new innovation, according to the company behind the seminal sidechain whitepaper, Blockstream. Several different companies have been developing the idea since Blockstream introduce…
Sidechains promise to help Bitcoin adapt to new demands and accommodate new innovation, according to the company behind the seminal sidechain whitepaper, Blockstream. Several different companies have been developing the idea since Blockstream introduced the concept in an October 2014.
On Saturday, July 1, the revised consumption tax law went into effect throughout Japan, and bitcoin transactions no longer incur consumption tax of 8%. On the same day, Australia also ended bitcoin double taxation. Bitcoin.com talked to Yuzo Kano, CEO of the largest Japanese bitcoin exchange by volume, to find out the real implications of
On Saturday, July 1, the revised consumption tax law went into effect throughout Japan, and bitcoin transactions no longer incur consumption tax of 8%. On the same day, Australia also ended bitcoin double taxation. Bitcoin.com talked to Yuzo Kano, CEO of the largest Japanese bitcoin exchange by volume, to find out the real implications of this change in Japan.
The Japanese government has approved the exemption of digital currencies, such as bitcoin, from consumption tax. The “Cabinet Order for Partial Revision of the Order for Enforcement of the Consumption Tax Act” went into effect on July 1. Bitflyer explained:
Effective July 1, 2017, virtual currency transactions [purchases / sales] will become exempt from consumption tax.
Prime Minister Shinzo Abe
The Japanese consumption tax rate is currently 8%, which was scheduled to increase in April of this year. However, on June 1, 2016, Prime Minister Shinzo Abe announced that “the rise in the consumption tax to 10% and the introduction of the reduced tax rate would be postponed until October 2019,” Japan External Trade Organization detailed.
While the revised law abolishes consumption tax on digital currencies, there remain other taxes such as personal income tax, capital gains tax, or corporate income tax that they are subject to. “If income obtained from virtual currency is earned at the individual level, this is (per Japanese taxation standards) treated as miscellaneous income and subject to tax on aggregate income,” Bitflyer detailed. “For corporations, it is treated as operating revenue.”
The Wider Implications of Removing Consumption Tax
Bitflyer’s CEO, Yuzo Kano, told Bitcoin.com on Friday that having no consumption tax on bitcoin in Japan will lead to three significant considerations.
The first is that “users will no longer need to buy more expensive bitcoins, so Japanese users can send BTC abroad without [paying] a price gap,” he conveyed.
In addition, Kano explained that this will have a “psychologically positive” effect on the Japanese people since the cryptocurrency will be seen more like a “real currency”. Nonetheless, he reiterated how bitcoin is a legal method of payment under the Japanese law and not a currency.
The third and the most important consideration, Kano believes, is that:
Bitcoin exchanges will be able to buy bitcoins abroad. This is very important since resident exchanges have been taxed for buying virtual currencies (BTC and altcoins) from non-residents. Japan will finally have access to global markets.
Australia Removed Bitcoin Double Taxation on July 1
On July 1, Australia also enacted legislation that has led to less taxation of digital currencies. “Australia’s GST [Goods and Services Tax] is equivalent to consumption taxes in other parts of the world,” explained Easy GST Refunds, a network of professionals providing GST refund services globally.
After over a year of promise, the Australian government finally announced in its 2017-18 budget that digital currencies will no longer be double taxed. “From July 1, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes.”
Previously, Australian consumers using bitcoin could find themselves paying GST twice: once on the purchase of the bitcoin itself, and the other on its use in exchange for other goods and services that are subject to the GST, according to the budget.
What do you think will be the real effects of removing consumption tax on bitcoin? Let us know in the comments section below.
Images courtesy of Shutterstock and Bitflyer
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Historic legislation has been passed by the state of Delaware’s house of representatives that would make explicit the right of corporations to trade stocks on a blockchain.
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Historic legislation has been passed by the state of Delaware’s house of representatives that would make explicit the right of corporations to trade stocks on a blockchain.
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Colombia’s Financial Superintendent states that the country still does not recognize Bitcoin as a legal currency in the country citing Article 6 of Law 31.
Colombia’s Financial Superintendent states that the country still does not recognize Bitcoin as a legal currency in the country citing Article 6 of Law 31.
Financial TimesSEC Files Fraud Suit Against Bitcoin Startup OwnerCoinDeskAccording to court documents filed today, the SEC accused Renwick Haddow of misleading stakeholders who bought into two companies he founded: Bitcoin Shop Inc., which was advertis…
Following a devastating bear market last week, several major market players saw a reversal pattern called a Double Bottom Reversal. For reference, please check out the previous BTC-USD market analysis where an in-depth description of Double Bottom Reversals is outlined.
The buy-back volume seemed very promising on the reversal pattern and it even saw textbook characteristics of a healthy bull rally. However, if we take a closer look at the market move, we can see something slightly concerning regarding the health of the bull trend. To gain some insight, let’s examine the finer points of the reversal pattern:
The most immediately concerning aspect of this bull run is the failed test of the 100% Fibonacci Retracement. Typically, a healthy Double Bottom Reversal that leads to a prolonged bull run will test the 100% retracement value (sometimes several tests are required) and ultimately yield higher values as the volume supports market interest. However, in our case, not only did this market move see a rejection of the 100% retracement line, but it also continued a trend of decreasing volume. Decreasing volume shows the declining market interest in these high values, and it doesn’t offer much in the way of support for the bullish trend.
The second concerning element of this bull run is the retracement it is currently seeing: The market is testing the 61% Fibonacci Retracement values which coincide with a significant level of support for this run (shown in orange). At the time of this article, this run tested the support level three times and is now moving on to test the 61% value. These lower values are paired with increasing spikes in sell volume.
On the higher timescales, the MACD (an indicator of market momentum) still remains on the bullish side but is beginning to head toward bearish values. The 4-hour MACD has flipped to bearish, and the current market doesn’t show any indication in the near future of slowing its downward climb.
In order to maintain the support at the 61% value, we will need to see an increase in buy volume to stymie the slowly descending trend we are currently witnessing. In the coming hours/days, if the market fails the test of the 61% line, we can expect the following support levels:
Figure 3: ETH-USD, 30Min Candles, GDAX, Expected Support Levels Following 61% Failure
During both the previous bear run and the formation of the Double Bottom Reversal pattern, we saw levels of support/resistance at the 50% retracement values (shown in pink) and the 38% retracement values (shown in green). A further test of those values will prove crucial if the ETH-USD markets are to remain in this pseudo-bullish trend. Failure to see a significant increase in volume will undoubtedly lead to another bear market situation. Given the declining volume throughout this entire reversal, at this moment I’m inclined to lean more toward a bearish outlook in the near future. Until volume begins to pick up, the market will continue to slowly hemorrhage as market sentiment declines.
Summary:
Double Bottom Reversal failed the test of the 100% retracement from the previous bear trend.
Until a significant increase in volume is seen, the market will most likely continue this descending trend.
Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTCMedia related sites do not necessarily reflect the opinion of BTCMedia and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.
Following a devastating bear market last week, several major market players saw a reversal pattern called a Double Bottom Reversal. For reference, please check out the previous BTC-USD market analysis where an in-depth description of Double Bottom Reversals is outlined.
The buy-back volume seemed very promising on the reversal pattern and it even saw textbook characteristics of a healthy bull rally. However, if we take a closer look at the market move, we can see something slightly concerning regarding the health of the bull trend. To gain some insight, let’s examine the finer points of the reversal pattern:
The most immediately concerning aspect of this bull run is the failed test of the 100% Fibonacci Retracement. Typically, a healthy Double Bottom Reversal that leads to a prolonged bull run will test the 100% retracement value (sometimes several tests are required) and ultimately yield higher values as the volume supports market interest. However, in our case, not only did this market move see a rejection of the 100% retracement line, but it also continued a trend of decreasing volume. Decreasing volume shows the declining market interest in these high values, and it doesn’t offer much in the way of support for the bullish trend.
The second concerning element of this bull run is the retracement it is currently seeing: The market is testing the 61% Fibonacci Retracement values which coincide with a significant level of support for this run (shown in orange). At the time of this article, this run tested the support level three times and is now moving on to test the 61% value. These lower values are paired with increasing spikes in sell volume.
On the higher timescales, the MACD (an indicator of market momentum) still remains on the bullish side but is beginning to head toward bearish values. The 4-hour MACD has flipped to bearish, and the current market doesn’t show any indication in the near future of slowing its downward climb.
In order to maintain the support at the 61% value, we will need to see an increase in buy volume to stymie the slowly descending trend we are currently witnessing. In the coming hours/days, if the market fails the test of the 61% line, we can expect the following support levels:
Figure 3: ETH-USD, 30Min Candles, GDAX, Expected Support Levels Following 61% Failure
During both the previous bear run and the formation of the Double Bottom Reversal pattern, we saw levels of support/resistance at the 50% retracement values (shown in pink) and the 38% retracement values (shown in green). A further test of those values will prove crucial if the ETH-USD markets are to remain in this pseudo-bullish trend. Failure to see a significant increase in volume will undoubtedly lead to another bear market situation. Given the declining volume throughout this entire reversal, at this moment I’m inclined to lean more toward a bearish outlook in the near future. Until volume begins to pick up, the market will continue to slowly hemorrhage as market sentiment declines.
Summary:
Double Bottom Reversal failed the test of the 100% retracement from the previous bear trend.
Until a significant increase in volume is seen, the market will most likely continue this descending trend.
Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTCMedia related sites do not necessarily reflect the opinion of BTCMedia and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.
On Saturday, July 1, the revised consumption tax law went into effect throughout Japan, and bitcoin transactions no longer incur consumption tax of 8%. On the same day, Australia also ended bitcoin double taxation. Bitcoin.com talked to Yuzo Kano, CEO of the largest Japanese bitcoin exchange by volume, to find out the real implications of 
Bitflyer’s CEO, Yuzo Kano, told Bitcoin.com on Friday that having no consumption tax on bitcoin in Japan will lead to three significant considerations.
On July 1, Australia also enacted legislation that has led to less taxation of digital currencies. “Australia’s GST [Goods and Services Tax] is equivalent to consumption taxes in other parts of the world,” explained Easy GST Refunds, a network of professionals providing GST refund services globally.
Figure 1: ETH-USD, 4HR Candles, Gemini, Double Bottom Reversal
Figure 2: ETH-USD, 30Min Candles, Gemini, Failed 100% Retracement
Figure 3: ETH-USD, 30Min Candles, GDAX, Expected Support Levels Following 61% Failure