Earning Bitcoin from Microtasks are Taxable, Japanese prefer BTC over altcoins and first glimpse of Chinese CBDC
Japanese crypto Investors leave Altcoins behind
The crypto enthousiasts of Japan are focusing more and more on Bitcoin. Besides that, the number of active accounts for spot crypto trading reached all time high in April, recovering from the dip in March.
Bitcoin’s monthly traded value amongst Japanese crypto owners is back above 87% dominance. It seems newer users’ main interest is only in bitcoin.
Ripple (XRP) once accounted for about 40% of monthly traded value in the Japanese crypto market, but the dominance structure rapidly changed since the summer of 2019 as bitcoin rose above 80%.
It seems like Japanese investor’s overall interest in altcoins has been shrinking over time relative to their interests in bitcoin. In the past, MonaCoin, the Japanese version of Litecoin, also faced lot of popularity, but loses ground.
Cryptos Earned from Microtasks are Taxable: IRS
According to a memo from the Internal Reveue System (IRS), people who earn an income from micropayments, also have to pay taxes for this.
The question is as follows: “Is convertible virtual currency received by an individual for performing a microtask through a crowdsourcing or similar platform taxable income?”
J. Goldstein, Senior Technician Reviewer specialized in Income Tax & Accounting is clear: Yes, you have to pay these taxes!
Yes, a taxpayer who receives convertible virtual currency in exchange for performing a microtask through a crowdsourcing platform has received consideration in exchange for performing a service, and the convertible virtual currency received is taxable as ordinary income.
He also specified the nature of microtasks that many are indulged in earning a small amount of crypto. With the adoption of the Bitcoin Lightning Network, microtasks are getting more and more mainstream.
Digital Yuan Wallet deactivated after Widespread Attention
The Chinese Construction Bank (CCB) unexpectedly disabled public access of the digital yuan wallet a few hours after a successful soft launch. The CCB is one of the largest state-owned banks in China.
The did this because the feature drew too much attention, according to CoinDesk.
It was observed that around noon on Aug 29, users took notice of the CCB’s digital yuan wallet feature availability inside the bank’s mobile app. The feature temporarily enabled CCB account holders to register and activate the digital yuan wallet using a phone number associated with the account.
Some got lucky and transacted. However, the party was cut short after news reached the mainstream media, forcing the bank to disable the feature.
Subsequently, related searches returned a message urging users to “wait patiently” until the function is officially made available.
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