Following yesterday's extremely heavy volume (Tokyo Whale?) plunge in Bitcoin, regulators in Japan have cracked down on seven cryptocurrency exchanges (and ordered month-long suspensions for two more).
Interestingly, prices were relatively stable as the news hit (perhaps yesterday's selling was pre-emptive?)
As CoinTelegraph reports, the Japanese Financial Services Agency (FSA) has sent “punishment notices” to seven crypto exchanges and temporarily halted the activities of two more after a round of inspections prompted by January’s Coincheck hack, CNBC reports Thursday, March 8.
The FSA issued business improvement orders for a lack of “the proper and required internal control systems” to seven exchanges, including Coincheck, which was specifically cited as lacking a system for preventing money laundering and the financing of terrorism.
image courtesy of CoinTelegraph
Exchanges Bit Station and FSHO are to be closed for one month from today, according to CNBC. The FSA reported that a senior Bit Station official used exchange customers’ Bitcoin (BTC) for personal purposes, and Bit Station has ended its application for registering as an exchange.
The hack of more than $500 mln of NEM from the Japanese Coincheck crypto exchange has been attributed to the fact that the coins were stored on a low-security hot wallet. In the aftermath of the hack, the FSA inspected Coincheck and ordered all Japanese crypto exchanges to submit reports on their risk management systems.
The FSA also announced in mid-February on-site inspections of 15 Japanese crypto exchanges, those currently awaiting registration, of their computer safety system measures.
Coincheck had promised customers to refund all stolen coins, a statement supported by the FSA, who confirmed through CNBC that Coincheck had enough funds to do so and would be releasing a reimbursement plan later today.
Comments
It's money!
Ah, but to the IRS it's property to be taxed. Imagine that, intangible zeros and ones are now 'property' ...
In reply to It's money! by ParkAveFlasher
Bad Japanese translator. What was really said is...
The American system for this, of course, is the IRS.
In reply to Ah, but to the IRS it's… by GunnerySgtHartman
The terms "Money Laundering" and "Terrorism" are but excuses to front-run the real problem on the fiat horizon:
Massive escapes from the Fiat Slave Plantation, to the freedom of the Decentralized Parallel Economy -- by lawful people, who choose to repudiate and leave one for the other.
Their pretext only hurts them. But a mass, biblical Exodus kills them. Savvy?
In reply to … by hedgeless_horseman
Moar stupid, old-bugs. ARRRRRGGGHHH!!!!
BUY BITCOIN. Losers!
In reply to The terms "Money Laundering"… by HRClinton
Exactly.
In reply to The terms "Money Laundering"… by HRClinton
So some guy from a piddly exchange used customer funds as his own?
The guy didn't use to work for MF Global did he?
Gonna run for Senate of gov of NJ?
pods
In reply to Ah, but to the IRS it's… by GunnerySgtHartman
The more you tighten your grip, Tokyo, the more HODLers will slip through your fingers.
In reply to So some guy from a piddly… by pods
...still breathing free air...
...justice! Pah!
In reply to So some guy from a piddly… by pods
If they want to pretend it is real property, then tax it like real property. Good for them.
In reply to Ah, but to the IRS it's… by GunnerySgtHartman
If they are pretending that zeros and ones are real property, then the taxes assessed should be pretend taxes. lol
In reply to If they want to pretend it… by Yogizuna
Who created and runs the IR $? Clue: The family has lots of Barons in it.
In reply to Ah, but to the IRS it's… by GunnerySgtHartman
buttcoin turning to 💩
In reply to Ah, but to the IRS it's… by GunnerySgtHartman
IRS is about to do a major crackdown on Bitcoin tax cheats. They already subpoenaed user records from Coinbase and other exchanges!
Vote me down if you are worried..
In reply to It's money! by ParkAveFlasher
So report the gains. Simple.
In reply to IRS is about to do a major… by lester1
.
In reply to So report the gains. Simple. by StackShinyStuff
So keep the records. If you know that this data is being kept somewhere (E.g. you trade on Coinbase), follow the rules. You can download the data from them. You may not like the tax laws, but having to pay tax on gains is a good problem to have. Now this is trading. As for other activities they deem taxable (making purchases with Bitcoin, etc), fuck-em. They have not the manpower or the data to track shit like that.
In reply to Provided records were kept… by Justin Case
Just like any other sale they provided a 1099-k. Its up to the investor to make sure the movements are covered in the taxes.
The BIG issue is if they record transfers of bitcoin as if they were transfers of cash. If you move your bitcoin from an exchange to a private wallet, that could show as BIG money, when it really isn't.
Report your gains. Keep records. It really isnt that big of a deal.
In reply to Provided records were kept… by Justin Case
I paid taxes on my gains in all cryptos so I'm not worried 1 bit, get the pun, 1 bit... 0's a 1's hahhh that made me chuckle
In reply to IRS is about to do a major… by lester1
...or just downvote Lester because he's a fucking idiot.
In reply to IRS is about to do a major… by lester1
You say "tax cheats" as if you love the way IRS cock tastes in your mouth.
In reply to IRS is about to do a major… by lester1
I tell coiners that USD is a private currency just like Bitcoin. Its not government issue. They seem surprised.
But the FRN mines you...
In reply to I tell coiners that USD is a… by Francis Marx
LOL, that is an AWESOME way to let people in on the scheme that 90% of Amerikans have zero idea about.
pods
In reply to I tell coiners that USD is a… by Francis Marx
Bitcoin isn’t private, it’s the people’s currency.
In reply to I tell coiners that USD is a… by Francis Marx
doesn't that make it even worse for the dollar?
In reply to I tell coiners that USD is a… by Francis Marx
Inflationary bullshit is the same as deflationary Bitcoin?
Wrong again, but this is ZH commenters we're talking about here... they just keep pulling shit from their ass. Must be a retiree thing.
In reply to I tell coiners that USD is a… by Francis Marx
Bitcoin is,,,,for Fags.
You must have heaps of it then.
In reply to Bitcoin is,,,,for Fags. by ZENDOG
Cheapest way for a govt to own Bitcoin: Make it illegal and then just take it all.
(Yes, yes, IF they can find it.)
When govt wants something but doesn't want to pay for it, they make it illegal and then take it.
Why would government want Bitcoin? It has no intristic value.
In reply to Cheapest way for a govt to… by PT
You mean like the US dollar?
In reply to Why would government want… by lester1
When you're done tongue-punching your boyfriend's fartbox, maybe take a step back and learn to spell it right. Then take another step back and fall out the window.
There, all better.
In reply to Why would government want… by lester1
Always a +1 for that line.
In reply to When you're done tongue… by Exponere Mendaces
People keep coming back for additional abuse and losses. They'll never learn. Greed has a funny way of distorting ones perspective.
Just the beginning of the end for this nonsense.
You cannot beat Big Brother.
This is how they deal with gold's digital analog. If regulators don't like it, it's because the banks don't like it. Nothing to do with representing the general population's wishes.
The sooner all crypto exchanges understand that they must pay graft to the right folks in the chain of command, the better off for them.
If big gubmint thinks you are giving them the finger and not greasing their palms, then they will cut you off at the knees.
Government is set up to be our overlords, and will extract their pound of flesh.
Here's my Lester1 impression:
Bitcoin tax cheats need to pay their taxes
so we can fund our young soldiers going to die in wars fighting Israel's neighbors!