Cryptos Crushed: Bitcoin Battered Below $8k On China Crackdown, India Tax

Having tested $8,000 last week, and bounced, Bitcoin has broken back below it - to six-week lows - as the entire crypto-space is under pressure following China crackdown headlines and news that India is considering a major crypto tax.

image courtesy of CoinTelegraph

It's a sea of red across cryptos...

 

So much for Blockchain Week...

And the entire cryptospace is accelerating lower...

 

While it is never clear what the driver of price action is, news from China and India appear to major potential catalysts in the last 24-48 hours...

CoinTelegraph reports that India is working on proposals to make cryptocurrency transactions subject to goods and services tax (GST), sources told Bloomberg May 23.

According to the anonymous parties with “direct knowledge” of the plans, the government’s Central Board of Indirect Taxes is considering applying the 18 percent tax to exchange operations, which it would view as “intangible goods.”

“Purchase or sale of cryptocurrencies should be considered as supply of goods, and those facilitating transactions like supply, transfer, storage, accounting, among others, will be treated as services,” the publication reports in a summary.

India has so far refrained from issuing regulations on cryptocurrency, despite efforts by its central bank to reduce the ability of businesses and citizens to interact with them.

In April, the Reserve Bank of India formally forbade domestic institutions from servicing cryptocurrency businesses in a move which has so far failed to curb the proliferation of new exchanges.

If the taxation rule goes ahead, it would signal a move towards legitimacy of the industry in the continued absence of hard-and-fast legislation.

“If buyers and sellers are in India, the transaction would be treated as a supply of software and the buyer’s location will be the place of supply,” Bloomberg continues, noting elsewhere that: “Transactions beyond the Indian territory will be liable for integrated GST, and would be considered as import or export of goods. IGST will be levied on cross-border supplies.”

The move is not the first targeting taxation of cryptocurrency in India. In February, letters were sent to around half a million traders demanding they report profits on exchange activities.

Meanwhile, CoinTelegraph notes a new report issued by China’s Ministry of Industry and Information Technology, reiterated the Chinese government’s concerns about “certain risks that cannot be ignored” in regards to ICOs, pyramid schemes, and fraud, with a new government-led study detecting 421 fake cryptocurrencies in China’s crypto space.

Comments

Buckaroo Banzai USA USA Wed, 05/23/2018 - 11:58 Permalink

Corruption in India is rampant, and getting around taxes is the #1 national pastime, for people who have enough money to matter.

What's especially hilarious is, India just got done effectively eliminating cash, and making the rupee virtually 100% electronic. Now they think they can control where the electrons go? Ha ha. This is a country where hundreds of millions of people take a shit in the street every day. They can't even control where their own people take a dump.

In reply to by USA USA

nekten Justin Case Wed, 05/23/2018 - 16:21 Permalink

Quote from someone who knows nothing about the Bitcoin ecosystem.

Blockchain only is meaningful in a trustless, decentralized system, to guarantee the ledger's security. Otherwise, it's an energy-intensive, non-scalable, inefficient bloat. Safeguarding the ledger requires bitcoin, as payment to those (miners) providing that security.

Institutions thinking blockchain by itself are those thinking of private, trusted, permissioned systems, that they'll control, offering orders of magnitude _LESS_ security than Bitcoin.

In reply to by Justin Case

Wild Bill Steamcock lookslikecraptome Wed, 05/23/2018 - 16:57 Permalink

Right.  And if it had any real value, why not hoard it all for themselves? Why are they so damned gung-ho about getting everyone and anyone to buy-in? Oh, wait...it's to pump the price above what they bought at....  *cough, cough* ponzi scheme *cough, cough*

And you shitcoin acolytes can spare me the "it isn't a ponzi scheme, retard" comments. 

 

In reply to by lookslikecraptome

Wild Bill Steamcock nekten Wed, 05/23/2018 - 19:28 Permalink

I'm not attacking those who feel bitcoin is a good investment opportunity or what not.  I actually have no qualms with crypto whatsoever, even though it's not something for me.  If someone wants to invest, go ahead. What do I care? What I do hate is evangelicals of any stripe.

And as far as left vs. right goes, I don't play that game. I pick and choose.  Not a regressive, not an alt-righter either. 

I upvoted because you're not an asshole (even though I am)

In reply to by nekten

52821740 Coinista Wed, 05/23/2018 - 13:17 Permalink

.... yeah folks there you have it right there from Coinpissta. These cryptoheads are desperate to keep getting new blood in to prop up the ponzi scheme so it doesn't end up in a crypt.  

'Your old and know nothing about new technology' 'go back to your nursing home '  'buy bitcoin losers ' 

The fact that they have to keep pumping it up just shows how precarious it is when it doesn't generate any income like real assets which have INTRINSIC value so relies on new entrants in their game of pass the parcel until the music stops.

In reply to by Coinista

inhibi Coinista Wed, 05/23/2018 - 15:03 Permalink

God I love it, the more irate you get, the funnier it is.

Like Ive said since the inception of BTC, it was made with anonymous payments in mind. You take away the anonymity, you take away the ease of money transfer, you stick the IRS, and all the other government agencies on it, and youve made something that was merely useful to buy illegal shit online (or capital flight), worthless.

Not that I think BTC will reach 0 anytime soon. Only that $17k was probably the peak. I mean seriously, how many more articles would they have to write to get the hype back? Already hundreds of thousands, so another million or so?

A pyramid scheme is only great in the beginning. When the new money runs out, and the growth takes a dive, people start to wonder about their investments.

In reply to by Coinista

UGrev Buckaroo Banzai Wed, 05/23/2018 - 12:38 Permalink

When my ex-wife ran her accounting business, the East Indians would come to her to do their corp taxes. Now, if you knew my ex, and you don't, but let me tell you, EVERYTHING was done by the book, to the letter with no corners cut. Needless to say the Indians did NOT like that at all and would fight with her on every little thing. Those bastards don't want to pay for good work and they will do anything to get around the tax law. 

That being said, taxes are theft so I can't say that I blame them; but they are fucking assholes when it comes to actually paying someone for a service. 

In reply to by Buckaroo Banzai

52821740 Buckaroo Banzai Wed, 05/23/2018 - 12:52 Permalink

I'm currently in India and have been traveling around various towns for almost 6 months.  Your comment re hundreds of millions of Indians taking a dump in the street every day is wrong.  I could probably count on one hand the number of people I've seen taking a dump in public during my time here.  Things aren't as bad as they are made out to be and I've spent time in about 20 different towns from the south to the north and both coasts as well as the Andaman islands. 

However I wouldn't doubt Ugrev's wife's experience with them. 

In reply to by Buckaroo Banzai

Buckaroo Banzai 52821740 Wed, 05/23/2018 - 17:27 Permalink

"Your comment re hundreds of millions of Indians taking a dump in the street every day is wrong."

You're right, I checked. "Hundreds of millions" is a little vague, it's actually 620 million-- at least according to the Indians themselves.

It's such a big problem, they even built an ad campaign around it!

https://www.youtube.com/watch?v=s1C04Ir1GYw

Even CNN admits its a gigantic problem, "over half of India's population doesn't even have access to basic sanitation"

https://www.youtube.com/watch?v=NNZA86wXDig

In reply to by 52821740

lookslikecraptome Buckaroo Banzai Wed, 05/23/2018 - 13:46 Permalink

Not sure y u pointed out corruption in India as being rampant, does corruption in Mexico, Honduras, China, N kor, S kor, Britain, Germany, US, Venezuela ring a bell. Shit dude, put a world map up on the wall, hit a country with a dart, it is corrupt. 

Taking a dump in the streets sounds like any Major city in the US, Seattle, LA, San Fran, NY, Boston, Baltimore, DC, need I go further? Ok Chicago, Detroit, St, Louis, Denver, Santa Cruz, Bakersfield, San Diego,    Ok Need I go further?  

In reply to by Buckaroo Banzai

Exponere Mendaces Buckaroo Banzai Wed, 05/23/2018 - 19:51 Permalink

ZH loves backfitting news on to price action, no big surprise.

What ZH should be doing is reading articles like these - or posting them - because it involves the basic technical decisions that some of the altforks/altcoins have made.

The outlook isn't good for these shitcoins.

Link - https://medium.com/@StopAndDecrypt/the-ethereum-blockchain-size-has-exc…

Scaling is hard, and these fucks are about to find out the hard way.

Bitcoin is king for a reason.

In reply to by Buckaroo Banzai