Preparing Taxes for Poker and Crypto/Bitcoin

Online Poker Game with Chips

If you nurture a passion for online poker game, you must stay acquainted with laws that regulate this virtual gaming platform. Players that earn considerable amounts are needed to abide by the taxation rules to avoid legal complications. This brings us to the question of crypto currency dealings that basically run these online legal gambling sites.

Since transactions taking place in poker games is based on digital currencies, players cannot ignore the crypto tax at any expense. Governments have tightened their control over these virtual dealings and every instance of winning and loses must be reported to the Internal Revenue Service of the US.

Although there are several types of crypto-coins available in the digital financial market, most of the poker game platforms are based on Bitcoins. This article sheds light on how you can proceed with tax preparation while playing pokers and earning in crypto currencies.

Why do the online gaming sites prefer using bitcoins/crypto currencies?

Digital currencies such as Bitcoins, ripple, litecoin and ethereum have become absolute favorites for online game sites. Similarly, the virtual poker games depend on this crypto fortune for its security and flexibility. However, players have often been observed to use these digital coins to place sport bets. Due to its breakability to micro decimals, online poker players can micro-bets on games as well. These factors have lent substantial ease to the players for whom online gaming is an obsession. For obtaining a tax estimate on any of your wins, you must keep access to tax calculating crypto software.

The taxation agency aims to deduct substantially as a form of tax from any type of game win. It could be winning in card game, casinos, bets on racetracks, lotteries, game-show and also pokers. All these come under taxable incomes. Generally, the government demands approximately 20-25% of every game winning that is to be deducted as taxes.

What problems do the online poker/game players encounter?

The foremost problem faced by the online gamers is meticulous compliance requirements with protracted and intricate taxation filing process. Furthermore, winners are almost always reluctant to abide by taxation rules since they do not wish to part with their earnings. Earlier when crypto currencies were devoid of the governmental watch, there was still a scope of tax manipulations. However, the scenario has completely altered in the recent years.

One must realize that government’s intervention in crypto-currency management is here to stay for an infinite period of time. The growing popularity of digital currencies has further invited attention of domestic and international tax regulation agencies. Therefore, it is better to accept the reality and thereby getting prepared for record compilations and tax filing. If the online gaming site you access deals in bitcoin transactions, then be quick to go through bitcoin tax help online.

If you have recently won an online game abroad, then you are still required to abide by every tax legislative requirement. You are wrong to hold the notion that an online earning acquired from another country will save you from tax payment. Upon analyzing previous legal cases, it has been found that online gaming accounts are mandatorily required to fulfill Foreign Bank and Financial Accounts (FBAR) obligations. Therefore, evading tax payment is never wise decision. Not only will you be compelled to pay the due taxes, but will also be required to pay heavy interest and penalties.

How can you make tax payment preparations?

Tax payment

The only solution to the issues discussed above is the correct preparation strategy. Let us next delve into how you can get your earnings organized for tax deductions.

Maintain every record

If you are a passionate poker player or have fascination with any other online game, then you have to keep trace of all your playing records. You can use any of the trackable apps online to search and compile the receipts of all the poker games you have played till date. It keeps a track of all your losses and wins that assists in tax filings for the legal requirement.

Always plan ahead

The entire nexus of online games is rested on digital currencies. Therefore, any winning amounts you receive are in form of either bitcoin or any other crypto currency. It is essential that you plan ahead the management of the earnings that you have made. For an instance, you can take help of reliable bitcoin tax software to separate the taxable money amount from the rest of the spared earning.

Long range saving objectives and accounts

There are various emergent corporation and associates that now provide expert guidance to the professional poker players. They stress on saving schemes and objectives thereby assisting the players to remain tax complaint all throughout his career. The consultants educate the players in functioning of crypto-currencies and guide them on the usage of crypto currency tax software. These firms also distinguish between beginners and experts in this game. This classification helps them to strategize personalized taxation filing plans for individual players.

Online gaming sites have gone global by the virtue of digitalization in last few years. It has necessitated the players to become more vigilant on the taxation front as the governmental control over crypto currency trading is steadily on the rise. This article is aimed at enlightening its readers that are online gamers for understanding the Nitty-gritty of online games and their tax implications. One can easily take help of online software for attaining tax compilations and filings.…

Experts call Google’s Bitcoin Ban ‘Unethical’ and ‘Heavy Handed’

Industry experts are calling Google’s decision to ban all bitcoin and crypto advertisements on it platform a harsh and unethical decision. The internet giant’s new policy will come into effect this month. Other social networking stalwarts, Facebook and Twitter have already put a ban on these ads.

The company announced the ban in March. It wrote in a blogpost, “Ads for the following will no longer be allowed to serve … Cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice.”

The announcement comes at a time when Google, along with Facebook have reportedly been interested in this new space, especially in the blockchain technology. With their personal interest, the market is speculating that the ban isn’t solely because of regulatory pressure to confront criminality. The two companies may be removing all their competition from their platform, long before they launch their own services.

Phillip Nunn, CEO of Blackmore Group, a Manchester-based investment firm said, “I understand that Facebook and Google are under a lot of pressure to regulate what their users are reading, but they are still advertising gambling websites and other unethical practices.”

“I suspect the ban has been implemented to fit in with potential plans to introduce their own cryptocurrency to the market in the near future and therefore removing other crypto adverts allows them to do it on their own terms,” he added.

Google’s cryptocurrency ambitions were revealed when one of the company’s executives approach Vitarik Buterin, the founder of Ethereum. The company’s Ether coins are the second most valuable currency in the digital coins market and its blockchain has been used to create several other digital coins. The company wanted to bring him on their side for a new hush project. The entrepreneur asked his Twitter followers if he should accept the company’s offer but after receiving more than 2,000 votes, he deleted the tweet.

Google never commented on the story publicly. In fact, the company has stayed mum about its plans to launch a currency or even a blockchain based project. The only lead we have is a spokesperson’s comment made in March which suggests that the company was looking into blockchain. He added, “Like many new technologies, we have individuals in various teams exploring potential use of blockchain, but it’s too early for us to speculate about any possible uses or plans.”

Facebook doesn’t want to stay behind in this race. In May, the company announced its biggest ever management reshuffle. Facebook Messenger’s Head David Marcus was called into a new exploratory blockchain group that will reported to the company’s CTO Mike Schroepfer.

The efficacy of the new Google plan is still unknown, but it is highly likely that it may not meet the same fate as Facebook. The company’s new policy that came out in January was easily circumvented by marketers. They simply used ‘c-currency’ instead of ‘cryptocurrency’ to get rid of the ban. Though the two companies are under pressure to do their bit and stop frauds from happening on their platform, these bans are self-imposed.…

NASDAQ CEO Says that Bitcoin is at its Hype’s Peak

President and CEO of NASDAQ Inc., Adena Friedman, recently stated that digital currencies have reached the peak of their hype cycle and can turn out to be a commercial segment of the internet.

Freidman said that NASDAQ has a grey outlook about digital currencies and the company is taking a research-oriented and cautious approach towards its involvement in virtual coins. She said that the company has started to understand the ins and outs of the new technology and hopes that it might become a financial part of the internet.

The CEO added that virtual currencies could be considered as a speculative asset class which lacks a foundation or goals in the world of international commerce. In her view, as soon as the digital asset becomes more mature, it will assist in the smooth functioning of commercial activities. Although she does not know which digital currency would lead the charge yet, she believes that time will create its utility.

As of now, crypto space is enjoying a peak in its hype cycle due to a large number of players in the market. NASDAQ stands out of the crowd as it can provide market information and surveillance technologies to few crypto exchanges. She added that blockchain does not possess the scalability required to handle her company’s super huge trading volume. But, it does have the potential to manage some of the markets.

She said, “There are massive inefficiencies where there is paper instead of automation, where there’s really poor record keeping, and everything’s in a drawer somewhere, like private securities. So we have to deploy blockchain into the private market, where you can find really long settlement cycles, and how [blockchain] can shorten those.”

The CEO does see some substantial opportunities for blockchain to grow. According to her, it is a fascinating technology which can turn out to be troublesome in the long run. It is also difficult to employ as it needs support from a massive network to implement it at the same time. Freidman further said that over time it could become possible and blockchain can be of great help to boost the business.

Earlier in April, she claimed that the stock market was capable of trading digital coins in the future under more regulations from the authority. NASDAQ can possibly become a crypto exchange if things go as planned.

It should be noted that virtual currencies are still having a tough time in America as owners do not want to consider their tokens as securities. The SEC has also launched many probes in cases of ICO as most of them have duped investors in the past. Meanwhile few crypto experts have speculated bitcoin to surpass the $20,000 mark by the end of the year.

Most of the big players in the market are not making irrational decisions about getting into the world of cryptocurrencies. Blockchain, on the other hand, is enjoying compliments from around the globe. It won’t be a shock id someday NASDAQ becomes a fully functional crypto exchange.…

Blockchain Technology Could Bring a Revolution in online Security

Co-founder of Ethereum, the second biggest cryptocurrency in terms of market cap, Joe Lubin thinks that the internet is awesome though it is broken. It is probably because of this reason there were security threats. However, he believes that blockchain technology could revolutionize the online security with advantages attached to the new age technology. One of the notable speaker during the two-day MoneyConf in RDS in which about 5.137 persons have attended from 84 countries.

Inherently Unsafe

The co-founder of Ethereum pointed out that the internet was not safe historically. He attributed it mainly because of lack of identity construction at its heart. Alternatively, he believes that it was not created with natively-built money, Irish Times reported. Some of the experts have reiterated time and again that the blockchain technology as a secured one though there were hacking in some of the cryptocurrency exchanges in the current year itself.

Lubin said that “We have built a world of internet services that have turned out to be wonderful in so many ways, but they have outgrown the architecture of the internet and the web.” He called for a more reliable and collaborative infrastructure from the public blockchain platform. That is because it could lead to a completely free market design offering low entry barriers.

Offline Payment

On the other hand, Square’s chief financial officer, Sarah Friar, thinks that there is enough hype around the financial technology. However, the reality is quite different as most people are making payments only through offline mode even now. Incidentally, the company is founded by Twitter’s co-founder, Jack Dorsey, who thinks that bitcoin could become the single biggest currency in about ten years.

At the MoneyConf, Square CFO pointed out that 20 million small businesses have failed to accept electronic payments in the United States. As far as Great Britain is concerned, half of the smaller companies are not ready to accept them. Incidentally, the market is starting to be a growing one. The payments company is managing over $50 billion in transactions per year.

Banking Is Not Disrupted

Friar also pointed out that banking sector is not disrupted due to digital transformation compared to other industry sectors. However, the change is happening with start-ups showing the way to the rest. In any case, she thinks that it is not an easy thing for the incumbents to disrupt as they come from tech stacks, which are of older in nature. That also makes it harder to nimble and moves quickly.

Friar’s frustration with the banks was quite evident when she said that it was a slow-going process whenever the CFO had to work with banks. She pointed out it might take even three-month for getting a signature for a non-disclosure agreement. That does not bode well for the kind of pace with which the sector is moving forward to innovate.

Meanwhile, the organizer of the Web Summit indicated that it might hold more events in Dublin since it could accommodate a maximum of 20,000 people. That meant MoneyConf would be located in Ireland.…

Three of Cryptocurrency Heist Pleads Not Guilty

Three of Cryptocurrency Heist Pleads Not Guilty

Three cyber criminals who were involved in an elaborate heist of $1.8 million digital currency pleaded that they are not guilty of charges slapped on them. This included an education department staffer and a church worker. The trio is facing charges of kidnapping, grand larceny, and other charges and faces a maximum of 25 years in jail if the court founds them to be guilty. In the current year alone, more than $1 billion worth of digital currencies were stolen.

Scheme Organized

According to New York Post, Louis Meza, aged 35, has allegedly organized a scheme on November 4 last year. He was arrested later in May for the theft. He was accused of establishing a meeting with an unidentified victim then. The prosecutors said that he pretended to order an Uber to take him home whereas Allan Nunez, who was also in the similar age group, posed as a driver of the cab.

The third person, Darrell Colon, has hidden on the minivan’s back. As soon as the victim entered the cab, Colon has pulled a gun and demanded a memory stick connected with his Ether currency account and the keys. Colon told investigators that “I stuck the gun in the guy’s ribs and took his stuff.” The accused has confirmed that the weapon was a BB gun.

The trio has frightened the victim and held him as a captive for two hours inside the van with a hood on his head before the victim has started to escape. This was disclosed before the Manhattan Supreme Court by an Assistant District Attorney, James Vinocur. The prosecutor also pointed out that the victim was on the run until he reached a grocery store and called 911 for help. He was a terrified lot and ran two blocks.

Meza felt that he could recruit his friend, Cesar Guzman, who was working as a DOE professional so that they could plan the heist. On the other hand, Guzman, at the age of 38, has enlisted a church worker, Nunez, apart from Colon from his motorcycle club. Even as the victim was trapped inside the van, Guzman and Meza have broken into the victim’s house.

Incidentally, Meza was accused of stealing data with the purpose of moving the funds to his personal account. However, authorities indicated that they were able to recover most of the stolen digital currency.

Seeks Bail

Guzman Lawyer, Michael Barsky, has argued for a reasonable bail for his client citing that he is managing a neighborhood charity apart from taking care of his autistic nephew. Similarly, Nunez lawyer, Rob Georges, has sought a bail pointing out the case involving movie magnate Harvey Weinstein for the alleged sex assault.

Georges also pointed out that the disgraced producer was given a bail package terming it as a pre-arranged one. However, the Justice, Melissa Jackson, did not want to compare the two cases. Instead, the Judge ordered bail for Nunez on $50,000 and Colon on $75,000 while Guzman faced $100,000. The three cyber criminals could face a maximum of 25 years in jail if the court finds them of committing the frauds.…

Bittrex will allow users to use USD for Crypto trading

US based cryptocurrency exchange Bittrex now allows its users to buy altcoins using US Dollars. The exchange previously allowed only crypto to crypto purchases in these coins. Founder Bill Shihara remains confident that the company will be able to come out of the regulatory puzzle with flying colors.

The Seattle-based exchange is planning to follow the example of Coinbase. The California-based exchange allows users to buy cryptocurrencies with US dollars. On Bittrex, the users first had to buy bitcoins and then exchange them for the altcoin of their choice. The process was complicated and lengthy. Also, it made the bitcoin prices very tightly knit with altcoin prices.

Bill Shihara, Founder and CEO looked positive on their new step and said the company wants to “expand out to as many markets as possible on Bittrex, As well as expand it so that every customer on Bittrex will be able to have access to U.S. dollar trading.” As more investors will feel comfortable trading directly in dollars, the exchange will help in moving the market and decoupling BTC prices from other coin prices. The exchange currently facilitates trade in 200 cryptocurrencies, a small fraction of more than 1500 digital coins floating in the market.

For now, a “small, select number of launch partners” are working with Bittrex to make USD trading a reality. The CEO also said, “In this phase, we’re stress-testing our system. We’re working with the banks very closely to ensure that they can process the FIAT deposits and withdrawals. Also, the engine itself that we use to trade, is going to be able to properly handle the load.”

Regulatory pressures in the industry could be one of the major concerns that the exchange will have to face soon. Many financial institutions and individuals have become increasingly skeptical of the coins, equating some of them with large scale frauds. A new story about heists, cryptocrimes and ICO frauds makes headlines every day which is driving investors away from the market. Some traders have reportedly moved to foreign markets as well.

Shihara believes that working with US agencies could help the industry in bettering its growth prospects add more value to the crypto markets as well. “We think that solving the regulatory puzzle in the United States really unlocks a lot of capital that really can’t trade on a foreign exchange that doesn’t have proper [anti-money laundering] controls or proper compliance,” he noted.

This move will have some far-reaching consequences as well. One of the largest US exchanges by volume, it has the power to change the entire crypto industry. Bitcoin prices could also take a beating and there could at least some drop in the trading volume of the currency in the immediate future as investors will not have to get BTC to buy other coins of their choice. It is also to be noted that the impact that it has on the crypto market could also change in due course of time. Some experts also believe that Ethereum could take over as the most important, if not valuable currency in the next few years.…