Zenledger’s Crypto Tax Guide: Extend, Panic, File

Tax and Bitcoin

Since its inception, cryptocurrency has managed to create a stir in the financial world. Broadly speaking, cryptocurrency is a digital or virtual currency that serves as a medium or platform for exchange. Financial transactions, asset transfer, and creation of more units under this system is only done under stringent cryptography. An important difference between cryptocurrency and other forms of digital currency is that cryptocurrency exclusively relies on decentralized control.

Like real currency, cryptocurrency is also entitled to taxation according to the rules of the land. Here is a comprehensive guide to help you understand the nuances of filing crypto currency taxes.

Taxation of cryptocurrencies

Before we go ahead, it is important to understand that these taxation processes may vary from country to country. Therefore, it is best to read up about the laws pertaining to your country of residence.

Cryptocurrency is considered to be a capital asset in most countries. Consequently, if you use it for sale, purchase or any monetary gain whatsoever, your gains will be under tax scrutiny. Likewise, if you incur losses in cryptocurrency transactions, you can deduct them in your tax ledger and obtain a tax reduction. There might be specific variations in these calculations between countries, but the process for tax calculation remains fairly standard.

When is your cryptocurrency taxable?

The IRS considers cryptocurrency transactions as taxable when a crypto trader sells it for any other currency, trades it for other kinds of cryptocurrency, receives it or uses it to buy something. In contrast, transactions that involve purchase of more cryptocurrency with other currencies, gifting it to someone within limit, transferring it between your wallets, and donating it to an organization that is exempted from tax.

Getting ready to file crypto taxes manually

If you choose to complete your crypto tax return yourself, you need to arrange:

● A complete transaction exports record from all exchanges and currencies, include details about each withdrawal and deposit, marked by trading pairs and commissions.
● Calculate the historical cost basis for the last 2500 transactions.
● Sort out the transactions and identify transfers between wallets and other non-taxable transfers and mark investments, transactions and trades.
● Fill up all relevant forms as specified by the IRS and provide all data that is asked for.

As you see, this process is quite elaborate and necessitates a lot of juggling between transactions across dozens of exchanges and wallets. To make matters more harrowing, there are several data formats to address. It is not uncommon for people to get frustrated with all this work, and end up overpaying taxes.

How does Zenledger help?

The best Tax Software

Crypto accountants and investors may have a difficult time trying to manage their crypto accounts and taxes. This is where a cryptocurrency trading software like zenledger comes to their rescue. It seamlessly monitors their wallets and maintains a clean record of their transactions and exchanges. Here are some ways by which Zenledger makes cryptocurrency taxation and management easy for you.

● Compatible with the IRS system
Zenledger has been designed for optimized functioning with IRS requirements. Therefore, it will create your cryptocurrency account statements and manage transaction details impeccably and in a format that is acceptable and compatible with the IRS guidelines.

● Quick and easy
With a crypto managing software like Zenledger, it is possible to create all necessary documents like income reports, capital gains reports, closing reports and donation reports. All these tasks, and much more, can be done just by a few clicks. Therefore, it is highly unlikely for you to miss any crucial detail that will make you overpay your crypto taxes.

● Compatibility with major exchanges and fiat currencies
Zenledger is a hundred percent compatible with all major cryptocurrency exchanges and fiat currencies across the globe. Examples include Bitcoin, Litecoins, Ethereum, Euros, Dollars, Yen, and Pounds Sterling. Therefore, Zenledger will be the ideal cryptocurrency tax software for anyone.

● Convenient and accurate
Another great feature of a software like Zenledger is that it has a great and intuitive user interface. This means that uploading transaction details, managing these details and creating tax reports is extremely hassle-free. In addition, it also provides details like Form 8949, Schedule D, and tax loss harvesting. It also allows you to visualize your entire transaction history under Grand Unified Accounting.

● Complete transparency
One of the striking features of Zenledger is its complete transparency when it comes to algorithms. This allows you to have total control over each item and to see how your tax obligation is calculated across all your wallets and crypto exchanges.

By choosing a crypto taxation software, you eliminate the hassles associated with arranging and tracking your transactions. Additionally, you ensure that you don’t overpay taxes.

The verdict

Whether you choose to manage crypto and taxes yourself, or choose an appropriate software to do these tasks for your, it is important to pay these taxes. According to latest regulations, many cryptocurrency exchanges have made it mandatory to report trading and transaction history to the designated federal bodies. In addition, several governments themselves are making more stringent laws to collect information about tax evaders buy collecting their crypto wallet and transaction details.

In case you fail to file these crypto tax returns, knowingly or unknowingly, you will be caught by the IRS and be made to pay a hefty fine. Since your crypto transactions are on a public domain and are not editable, it is best to declare any income or gains that you have from cryptocurrency.…

Coinbase Has Added Margin Trading to Its Bitcoin Exchange

We are familiar enough with margin trading. Now, a million dollar question arises that what and how did margin trading contribute towards Bitcoin Exchange? Well, coinbase has added margin trading to its Bitcoin Exchange. You must be wondering how did it happen? No need to worry. We are going to clear all your doubts and queries related to the topic.

bitcoin exchange
Here we go!


A cryptocurrency is nothing but digital cash which works as a medium of exchange.

For the security of final transactions and control of the creation of additional units, it makes use of strong cryptography.

Now, let us have a brief discussion over something called “ecash”.

An American cryptographer, David Chaum created anonymous electronic money called ecash.

So, as the name itself says, ecash is nothing but just the electronic money where “e” means electronic and “cash” means money.
Later, in the year 1995, he implemented it through Digicash. Digicash is an early form of cryptographic electronic payments. It required user software for withdrawal of notes from the bank.

In 1996, the NSA published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash. It described how a cryptocurrency system first got published in an MIT mailing list.

In 1998, Wei Dai published a description of “b-money”, as an anonymous which distributed electronic cash system.

Then, Nick Szabo described bit gold. Similar to bitcoin and other cryptocurrencies that would follow it, bit gold was described as an electronic currency system.

It required users to complete a proof of work function with solutions being cryptographically put together and published. Hal Finney created a currency system which was based on reusable proof.

Coinbase and Margin Trading:

Margin trading

GDAX has added margin trading to the platform, it is a cryptocurrency exchange run by Coinbase. Now, eligible traders can trade three times more leveraged order on Ethereum and Litecoin order books.

As we are pretty familiar with margin trading, we know well that it is a process when an individual borrows money from a broker to buy or sell the asset more than he/she could afford. Via buying and selling traders can make a very good profit than their own cash.

As Coinbase has launched the feature attempting to fit within the boundaries of the Commodity Exchange Act, the feature mainly geared towards institutional investors. It means that it is mandatory for the traders to certify that they meet one of the qualifications to be allowed to trade on margin.

The requirements include things like being a corporation with a net worth exceeding $1,000,000 and trading on margin in order to hedge risks associated with your business. Individuals need to have a minimum of $5,000,000 invested on a discretionary basis in order to be allowed to trade on margin.

Coinbase has excluded a large segment of its user base by deciding to build its product within the guidelines of the Commodity Exchange Act. Exchanges like delta.exchange offer margin trading to all the users. If the company wants consistency, then, it is necessary to move slowly and maintain a favorable relationship.

The company explained: “we’re committed to working with regulators as the blockchain space continues to develop, rather than take on unnecessary risk just to get features out more quickly. Some other digital currency exchanges have decided not to do this. For us, the best approach was to carefully design our margin trading feature and engage with the CFTC to make sure that GDAX remains compliant.”

Final Words

So, it was all about how did coinbase add margin trading to its Bitcoin exchange. We tried our best to discuss all the necessary details related to the subject. If you still have any doubts or queries, just feel free to contact and ask us.

If you have some other details related to the subject which you think can be a part of the content, definitely share with us. It will be great to have a two-way conversation.

Hope the content must have helped you.…

How Is Semiconductor Manufacturing Influenced By Cryptocurrency?

If there is an industry that stands to gain the most from the emergence of cryptocurrency, it is undoubtedly the semiconductor manufacturers. The industry experts think that both bitcoin, as well as, the digital currency provides increasing opportunity in the face of rapid acceptance around the world. That is primarily because of the usage of the chips in mining virtual currencies, and the key players are focusing on consuming less electricity and allow faster processing of mining. The industry also sees the entry of more big players to get their share.


Advanced Algorithms

Costly mining machines are used to mine digital coins like Bitcoin or Ethereum or Litecoin. These costly computers perform with advanced algorithms, as well as, mathematical equations. This is required to crosscheck transactions apart from retaining a running ledger, chiefexecutive.net reported. If reports are true, then a mining rig could cost anywhere between $3,000 and $10,000. Aside from this, there is also a considerable amount of energy involved a minimum cost of $3,000 even in low-cost utility markets. Therefore, the semiconductor industry is forced to engage in a competition to make the most powerful, as well as, the energy efficient mining rigs.

Companies like Nvidia and AMD have benefited immensely from the growing mining of cryptocurrencies last year. This was also evident when their shares spiked last year partly because of the increase in Ethereum price. That is mainly because of increased demand from Ethereum miners that has created some graphics cards shortage though on a temporary basis. Additional sales from the crypto segment are predicted to be $875 million. This is despite the regulators tightening their noose around the digital coins sector as investors interest is growing at a rapid pace.

Bitcoin continues to be an equipment-intensive one though its prices have tumbled in the current year from last year. The increasing demand has obviously made cryptocurrency mining rig supplier, Canaan, to raise a maximum of $2 billion through an IPO. In 2017, the company could sell over 300,000 mining rigs.

Aside from this, Taiwan Semiconductor Manufacturing disclosed in April about the ambiguity in the cryptocurrency mining for offering weak guidance for the remainder period of the current year. That clearly suggested the influence of the digital coin sector on the semiconductor industry. Manufacturers indicated that mining chips represented about 4.5 percent of their total revenue in the third quarter and added $900 million last year.

Big Players Entry

It appears that big players like Samsung have understood the importance of cryptocurrency in the future digital payments market. This was also quite evident when the Korean firm indicated that it has started producing ASIC chips that are used to mine digital coins. A spokesperson told the media, “Samsung’s foundry business is currently engaged in the manufacturing of cryptocurrency mining chips. However, we are unable to disclose further details regarding our customers.”

Though Intel also disclosed its intention to enter the market, there was a delay in the manufacturing of 10 nm units until next year. Moor Insights & Strategy founder and president, Patrick Moorhead, do not see any scope for prices to fall in respect of ASIC chips.…

Head of Binance Venture Fund Is Waiting for A Crypto Bubble Burst

Being in charge of funding $1 billion in businesses based on blockchain technology, Ila Zhang does not have a positive attitude towards the market. Zhang joined the exchange two months ago to head its venture incubator named Binance Labs. She said, “We’d like the bubble to break. We still see a lot of hype in the market; valuations are high and unreasonable. We really think if the bubble bursts, it’s a good thing for the industry.”


She added that the market is attracting more users and boosting its bullish nature but once the crypto bubble bursts only the deserving projects will emerge. Although she did not speculate about the time, she says it will happen. Until now, Initial Coin Offerings have been able to raise more than $9 billion in 2017.

By volume, it has become the biggest crypto trading exchange after cashing in the boom of December 2017. Currently, it offers more than a dozen virtual coins on its platform.

Zhang is an ex-employee of Alphabet Inc. and a graduate from Stanford University business school. She said that Binance is trying to solve the issues created by frauds in the crypto space while complying with Cryptocurrency Governance Initiatives, or CGI. Initiative’s website is scheduled for a launch next week.

The investor added, “The main purpose of this is to fight scams and sh*t coins, and to boost crypto and blockchain technology.” Binance is trying to encourage token teams to provide their efforts in the initiative. Fund managers are advised to avoid pump and dump schemes and projects will have to work according to the details of their white paper.

The company will take strict actions against teams who break their commitments. In a telephonic interview from Beijing, Zhang said that it expects the 20 digital currency funds part of the new $1 billion fund to join CGI. The company has planned to use the $1 billion fund in the coming three to five years. The average investment will range from $1 million to $10 million. Till now four investments have been made with long-term plans in effect.

The exchange is focusing on companies that aim to solve issues in blockchain technology. However, some venture capitalists are still confused between investing in equity and tokens. Zhang, who also served as a director in Kleiner Perkins Caufield & Byers, a venture firm, for four years, believes that equity and tokens are valued separately.

She concluded, “If we see founders contribute to both sides, we’ll hold both sides. Sometimes it’s hard to see which one is more valuable, but our position is to support the founders and create value for the project as a whole.”

It should be noted that Binance coin saw an instant rise in its prices a few days ago to $16 but came down back again below $15. Market experts predict that the coins will undergo a steady and gradual rise in values. It is being hoped that the company will be guiding other projects towards more compliance with government regulations.…

Toronto Police Warns of Crypto Scams after a Business was Duped of $5000

Toronto police is warning the citizens of cryptocurrency scams, where fraudsters are posing as government officials and asking for payments in digital currencies. These payments are made in thousands of dollars at a time and transactions are usually completed in bitcoin, the world’s largest currency by market capitalization.

The warnings come after a local business was duped of $5,000 by the fraudsters who posed as officials from ‘Toronto Hydro’ and asked for a bitcoin payment within half an hour. They claimed that failing to pay the money would lead to the power of the establishment being turned off. The criminals even went as far ahead as spoofing the number they were calling from, so it appears that the call came from the real utility and nobody had any doubts. The police have not identified the company. No suspects have been named in this case yet.

Constable Jenifferjit Sidhu, said that such reports have become very common in the past few months. Scrupulous people would call unsuspecting businesses and individuals and pose as government officials like Toronto Hydro and Canada Revenue Agency. The people are usually asked to pay in bitcoins with legitimate-looking notices regarding non-payment of taxes, fines, or other threats. The victims can get calls, texts or emails asking for such payments. Some people have also been called by fake immigration services and asked to pay a hefty fine or get deported by authorities immediately.

Sidhu said, “I had a woman approach me once saying that she got a call from Immigration ― she’s been in the country for like 50 years, but her heart sank, and she was so worried and panicking … believing that Immigration was going to send her and her husband somewhere if they didn’t pay a certain [amount] of money.”

The woman realized it was a fraud in time, but the official noted that “a lot of people fall for this and provide the money.” Sums in thousands of dollars are also commonplace in these cases. She noted that a person even cashed in their RRSPs to provide the payment they were asked for by fake Canada Revenue Service officials. They suffered a substantial loss due to the same.

Tori Grass, spokesperson for Toronto Hydro said that a number of these scam artists are using fake bills along with a dangerous level of personal information to make believe that they are real. She clarified that the utility company doesn’t accept any cryptocurrencies now and would not disconnect a customer’s power at a moment’s notice. This process is often lengthy and involves several phone calls, letters, and negotiations.

The city police are appalled by the sheer frequency of such activities. However, they remain helpless because payments made in digital currencies are anonymous and they could be obscured by several means to hide the identity of the frauds. They also released a statement in May asking people to understand that people committing such scams usually ask for payment in bitcoins which is not the preferred payment mechanism of any government agency or department.…

Ripple CEO Explains Why Banks Could Use Cryptocurrency

Ripple thinks that dozens of banks would have to use cryptocurrency next year though banks have indicated the time and again that they will not accept any digital currency. Its CEO, Brad Garlinghousse, thinks that he has got enough reasons to believe that banks would have no alternative but accept virtual currencies. One of the reasons is that blockchain product required the new age currency to work with. However, the central bank of any country should be ready to allow the commercial banks to accept them.

Solution for Cross-Border Money Transaction

Ripple indicated that it is engaged in creating a solution so that cross-border money transaction could be allowed between banks. The objective is to not only ensure faster way but also offer cheaper service compared to the existing system. The solution would be based on blockchain technology that strengthens multiple digital currencies. Aside from that, it has several products based on blockchain technology, and one among them is xCurrent. The company disclosed that a number of banks are currently using it. This included Santander. The product allows the information is checking processes that are needed to make quicker transactions. However, this does not need any digital currency to work.

The company is also having another product called as xRapid. The objective of the solution is to focus on institutions that have a presence in emerging economies. Its contention is that payments required the pre-funded local currency accounts throughout the globe. The company explained the process of sending money through its xRapid that would be converted into XRP so that it could move faster. Once this is done, it would be converted back into any cryptocurrency that is needed at the other end.

Ripple cited that XRP is having only a four-second transaction time suggesting that the process would be quicker than expected. Though there are other companies like Moneygram and Western Union, they are trailing behind xRapid. Significantly, they have not made any commitments to make the transactions in quick time. Therefore, the CEO thinks that a large number of institutions would have to use its blockchain products before the end of the next year.

According to a CNBC report, Garlinghouse told media during an interview that “I’ve publicly stated that by the end of this year I have every confidence that major banks will use XRapid as a liquidity tool.” He was in Europe fintech conference in Netherland when he aired the views.

Demand for XRP to Increase

The XRP digital currency is a publicly traded one and is traded around 67 cents recently. The current year has witnessed a number of digital currencies price witnessing a significant drop after the regulators have started tightening their noose. That is primarily because of unimaginable growth in most of the virtual currency prices last year.

However, there is an expectation that once bigger institutions started using Ripple’s product, demand for XRP token would increase due to large-scale transactions. That could also boost the acceptance level among the enterprises as a means of currency.…

New ICO Aims to Bring open Accounting to the Crypto World

A new ICO project called Xriba will launch today to bring a unique ‘open accounting’ protocol to the world. It aims to bring more transparency in the financial world, by helping reduce bookkeeping efforts and address ambiguous transactions easily. The company is focusing on creating crystal clear transactions possible, reducing the chances of frauds and keep trade transparent on both ends. This is the first time that an innovative blockchain concept is being utilized in the accounting industry.

The unique protocol helps in bringing the benefits of decentralization to the financial industry, which in turn in helpful in saving, archiving and querying records quickly, with lesser chances of ambiguity. It used an Open API that can be used by any third party to build accounting applications and tools. With the help of this blockchain, both cryptocurrency and traditional companies will get a benchmark accounting tool that can be used to provide fully transparent services to their users as well as investors.

The public decentralized ledger can be used to store all queries and records of transactions which are forever cemented in the blockchain once executed. The good thing about the blockchain is that it is a open platform. Organizations can develop their entire business accounting networks on the blockchain while ensuring that they follow these unique and robust protocols.

One of the most important things to note about Xriba is its status of a founding member in the TokenCheck Foundation. This decentralized network helps in bringing the features of training financing to the cryptocurrency world. Startups could now get seed-investments funding rounds while other organizations can make use of their partner verification program. Compliance with government rules, technological regulations and legal rules could also be made possible, complete with self-auditing features.

As the project is one of the founding members of TokenCheck Foundation, it gives many advantages to the users. It will use the Foundation’s crowd sale smart contracts that come with a unique feature called ‘Fund released milestones’. With the help of this feature, crowd sale funds will be pre-defined by every company and become locked into the blockchain forever. Once a milestone has been achieved, the company must perform a mandatory audit on the process which double checks its safe and transparent completion. It brings the benefits of traditional financing to the world of cryptocurrencies and will be very helpful to startups looking for seed funding.

It is not just the protocol that makes the project unique. It also has two state-of-the-art bookkeeping applications. One of them can be used by cryptocurrency business and is known as Cryptobooks while the other can be used by traditional businesses and is known as Mastrobook. Both applications using Artificial Intelligence technology and ORC systems to reduce data entry by as much as 72%.

The token currency for the blockchain, known as Xriba tokens (XRA) will go on sale today, June 7th. These can be used to pay for services on the protocol. At launch, 148 million tokens out of 275 million will be up for grabs at the price of $0.30 each. As the number of users grow larges, the total circulating supply of the tokens will become smaller. All investors will become founding members of TokenCheck Foundation.…