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France Amends its 2019 Budget Bill to Reduce Tax On Cryptocurrencies

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France has adopted an amendment to its 2019 budget bill that reduces capital gains tax on bitcoin from 36.2 percent to 30 percent.

Very often, taxing gains from cryptocurrencies lead to confusion among investors around the globe. For its part, the governments are also trying their best to remove the uncertainty on treating the gains from virtual assets. As a result, the percentage of tax varied from the regular capital gains tax. Given this background, France has adopted an amendment to its 2019 budget bill that reduces capital gains tax on bitcoin from 36.2 percent to 30 percent. The move could be interpreted in several ways.

 

Non-Real Estate Assets

For instance, the reduction in tax rate could be taken as a move to encourage bitcoin and other digital coins. However, the government is transparent in its thinking, i.e., to bring the transactions in respect of cryptocurrencies on par with any other non-real estate assets. Incidentally, this segment has attracted a flat tax rate of 30 percent only. The finance commission has adopted the budget amendment in the Parliament’s lower house. However, it is not enough to become a full-fledged law.

For the final version of the bill, it must be approved by a more full Parliament and only then it will become a law. If things go as planned, then the new tax rate will come into effect in January 2019. In any case, the move assumed significance since, at one point in time, taxes in France has hit 45 percent for gains from cryptocurrencies. However, this has been reduced by the Council of State by bringing it on par with the capital gains of movable property.

 

Exception of Earnings

There was a considerable reduction in tax rate. At the same time, earnings from the mining of digital currencies were exempted since it is taxed as non-commercial profits. Also, such income is treated as income from professional activity, which comes under industrial and commercial benefits. The country’s president, Emmanuel Macron, is doing all that he can to transform the country into a business haven and that included virtual currencies.

For instance, he has unveiled the “Action Plan for Business Growth and Transformation” (PACTE) early this year with the objective of making it easy for enterprises to operate in the country. This included legal framework for fundraising exercises with the help of token sales, which is emerging rapidly. This was followed by guidelines for initial coin offerings (ICOs) in September. At that time, France finance minister, Bruno Le Maire, indicated that the regulations would allow Authority des Marches Financiers (AMF) to approve the ICOS.

 

Specific Guarantees

The financial regulator was also empowered to permit enterprises to float ICOs in the country. However, it has placed restrictions, i.e., only if “those projects provide specific guarantees for investors.” This meant that those raising money through tokens would have to provide complete disclosure to the AMF. The government was keen that investors should be provided with whatever disclosures available so that they make informed decisions.

Before this, the regulator has raised concern on the absence of regulation in respect of digital token sales. The AMF felt that there existed an inherent risk thus increasing the possibility of incurring losses by investors. Similarly, the regulator was concerned about using the virtual asset for illegal purposes like terror funding and money laundering.

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Bitcoin is Halal? Will crypto rise with mass Muslim adoption?

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Many Islamic Scholars are discussing the real nature of cryptocurrencies with some of them calling it a 'HARAM' while others calling it a 'HALAL'.

Erol Yarar, the chairman of the international business forum has suggested all Islamic nations to adopt the cryptocurrency system for transactions with each other rather than adopting the US Dollar as according to him the US Dollar is used as a weapon by the United States to wreak economic havoc.

 

Calling US Dollar a ‘Punishing Tool’

Yarar expressed his concerns by stating that the US dollar is used by the United States Government to punish a specific country that the United States is not willing to be in peace with. He also stated that the United States Government uses the US Dollar to lower down the money transactions, for imposing sanctions and for making nations bowing down in front of the United States.

 

Yarar said that the US Dollar is not just a common currency but also a sanctioning tool. Also saying that at the International Business Forum this year, they will discuss the term monetary pluralism for implementing a democratic trading environment and the top features to be discussed at the next International Business Forum meeting would be the usage of Blockchain Technology and Cryptocurrency for the financial sector in the Muslim countries especially the middle east.

 

Yarar said:

“We will make a cryptocurrency system, that will be used for international trade among Islamic countries, a current issue.”

 

Bitcoin Halal?

Many Islamic Scholars are discussing the real nature of cryptocurrencies with some of them calling it a ‘HARAM SYSTEM’ or ‘ILLEGAL SYSTEM’ while others calling it a ‘HALAL SYSTEM’ or ‘LEGAL SYSTEM’ according to the Islamic principals with some Mosques such as the Shacklewell Lane Mosque in London have also started to accept cryptocurrencies as donations.

 

What do you think about bitcoin and other cryptocurrencies being termed as Halal? Tell us in the comments section below.

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Bitcoin ETF: Worlds first Cryptocurrency ETF approved

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ETF: The world's first Cryptocurrency ETF has been approved by the Switzerland authorities which will start trading on SIX, 4th largest exchange in whole Europe.

The world’s first Cryptocurrency ETF has been approved by the Switzerland authorities which will start trading on SIX, the 4th largest exchange in whole Europe which has a market capitalization of over $1.6 trillion.

 

ETF offered by Amun AG

Amun AG, a cryptocurrency startup is offering the fund that will allow the institutional investors to invest in the major cryptocurrencies such as bitcoin, ethereum, ripple, litecoin, and bitcoin cash.

Hany Rashwan, the CEO and Co-founder of the company said that the following ETP will provide an opportunity to the institutional investors that are restricted to investing in just securities and also give the same opportunity to retail investors that are unable to access cryptocurrency exchanges to due regulatory pressure. The CEO also said that before choosing Switzerland, the company had explored 23 other destinations around the world but found Swiss the most suitable.

 

The ETF will allow investors in buying the market and investing in crypto market as a whole. When investors will be investing in a fund, an amount equal to their purchase value will be held on their behalf by the custodian.

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Bitcoin Cash BCH Hash Wars: Who is winning?

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The Bitcoin Cash hash war is still on with close to 300 blocks mined on the BCHABC side using the new ruleset, which has also given the BCH network the most accumulated proof of work. Cryptocompare has given the BCH ticker to BCHABC chain followed by Bittrex also appointing the ABC chain with the BCH ticker. The ABC chain has gained more support and also mined more blocks since the split of the BCH chain into BCHABC and BCHSV. The SV chain has performed less work till now.

 

Faketoshi “Satoshi’s Shotgun”

Craig Wright had earlier threatened that he will destroy the BCH ABC chain by mining empty blocks using his huge hash power, which is being called “Satoshi’s Shotgun”. BCH ABC has apparently survived the Shotgun. Peter Rizun from Bitcoin Unlimited said:

“The difference in network effect stark: BSV has few users, no OSX or Windows clients, no block explorer, perhaps one mobile wallet, and a shotgun that doesn’t shoot so straight,”

According to cash.coin.dance, BCH ABC is currently 51.9% ahead on proof of work and is 15 blocks ahead, meaning miners will to secure the BCH ABC side and that exchanges ca resume deposits and get everything back to normal. Many supports believe that the ABC side has already won the battle.
Bittrex has listed the ABC chain as BCH and the SV chain as BSV.

While many BCH supports are claiming that the war is over and the ABC side is close to winning it, SV supporters still believe that the hash war will continue for weeks and Craig Wright continues to claim that he will destroy the ABC chain by mining empty blocks.

What do you think about the hash war? Comment below

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