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US Congressmen urge IRS to provide clarity on cryptocurrency taxation laws in new joint letter

Akash Anand

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US Congressmen urge IRS to provide clarity on cryptocurrency taxation laws in new joint letter
Source: Pixabay

Government institutions in the United States of America have played a pivotal role in controlling the fate of cryptocurrencies and the digital asset market, in general. One of the main issues that lawmakers and government officials raise is the taxation on cryptocurrencies like Bitcoin [BTC] and Ethereum [ETH], which was discussed again in a recent letter signed by 21 Congressmen to the Internal Revenue Service [IRS].



The letter was written with the intention to clear any ambiguity concerning cryptocurrency taxation as well as informing cryptocurrency holders on how to assess their virtual assets. The congressmen requested the IRS to clarify three major areas that will help in alleviating the confusion surrounding the cryptocurrency industry. These topics included,

“1) Acceptable methods for calculating the cost basis of virtual currencies. Which specific methods does the IRS consider to constitute “a reasonable manner that is consistently applied,” as required by Notice 2014-21?

2) Acceptable methods of cost basis assignment and lot-relief for virtual currencies. Do taxpayers need to use specific identification whenever they spend or exchange virtual currency, or are other methods, such as first-in-first-out or average cost basis, acceptable as well?

3) The treatment of forks for taxpayers that use virtual currencies, such as the 2017 hard fork of the Bitcoin blockchain.”

In the letter, the Congressmen also requested the IRS to respond before May 15, which is exactly a month after the US Tax Day [April 15]. One of the Congressmen who signed the document was Tom Emmer, who introduced three cryptocurrency bills back in September 2018. He had then claimed that the bills were aimed at furthering the development of the burgeoning industry and that it had to be watched over in a controlled fashion. One of the multiple operative clauses in the bill stated,

“The United States should prioritize accelerating the development of blockchain technology to support transparency, security, and authentication in a way that recognizes its benefits and allows consumer protection while supporting future innovation”





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Altcoins

Binance Chain’s first project Mithril to launch with MITH/USDT trading pair

Namrata Shukla

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Binance Chain's adds Mithril as its first project followed by MITH/USDT trading pair
Source: Pixabay

Binance launched its blockchain protocol on April 18 and it already has its first project launch on its network. Mithril, a decentralized social media platform will migrate to Binance Chain. The company’s MITH token, that ranks 121st on CoinMarketCap will transfer from ERC20 to Binance’s BEP2 standard.

Binance Chain has been a highly anticipated project in the crypto world since its announcement and with its launch, the community provided ample support to the move. According to reports, Binance is luring companies into migrating to their new native chain and leave Ethereum.

According to Mithril’s blog post, the migration commenced after the mainnet launch of the Binance Chain and informed the MITH holders that the deposit and withdrawals on Binance.com will be halted for the initial 12-hour migration period, however, trading will continue. The post added:



“Once the initial migration of ERC20-based MITH to BEP2 MITH is complete, Binance users will be able to withdraw MITH to BEP2 wallets, such as the Ledger Nano S, and begin trading on Binance DEX. ERC20 versions of MITH held in private ETH wallets or on other exchanges will not be impacted.”

As Mithril announced about its migration to Binance chain, the price of MITH, Mithril’s native coin saw a surge. The coin also saw a 70% hike,  followed by a market correction. At press time, MITH was valued at $0.0782 with a market cap of $40 million. The 24-hour trading volume of the coin was $108 million as it pumped by 67.10% over the past day. In the past seven days, the coin noted a surge of a massive 81.47%, which started to dip by 0.84% over the past hour.

Following the addition of the project, Binance announced the listing of MITH/USDT trading pair, which will start trading on April 19, 10 AM UTC.





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