Blockchains and Bagels: the morning market update to get you ready for the day ahead. Today, Bitcoin investing causing tax headache for hedge funds. Vietnam bans all Bitcoin/cryptocurrencies mining equipment imports.
Hedge funds investing into cryptocurrencies dont know if they are calculating their taxes correctly, since regulators have been slow to define their views on digital currencies. Currently the IRS views theses assets as property, whereas the Commodity Futures Trading Commission deems them to be commodities, which gives the asset tax advantages.
Following a proposed blanket ban by Vietnams Ministry of Finance after increased scrutiny into the cryptocurrency sector, Vietnam has completely halted imports of cryptocurrency mining equipment. This prohibition comes on the back of a nationwide ICO-fraud that was estimated to cost domestic investors $660 million, and led a nationwide crackdown on the scam and ban on all cryptocurrencies transactions.
Facebook is reported to have talked with several major crypto projects as it finds ways to use blockchain technology to drive new business initiatives. Facebooks blockchain team has met with payments open-source payments company Stellar to discuss potential opportunities. Although there is no indication of a potential partnership, these talks highlight Facebooks desire to establish a presence the financial system.
Decentraland, a decentralized virtual world on the Ethereum blockchain, is investing $5 million into blockchain based gaming projects that are built on the Decentraland platform. The Genesis Content Program will allow developers to submit their game proposals for funding.
Buy Bitcoin, Ethereum, and other digital currencies on Coinsquare, Canadas most secure trading platform.
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