The recent flash crash in Bitcoin and most other currencies could have been caused by the recent raid in two of the biggest South Korean exchanges this week. Yesterday and article on Reuters explained what had happened and had some quotes by the officials.
"A few officials from the National Tax Service raided our office this week,"
an official at Coinone. The exchange is one of the biggest ones in South Korea with a massive volume which trades these coins:
nonetheless many other currencies are affected in a flash crash as well since most are dependent on Bitcoin because they are primarly traded with it.
"Local police also have been investigating our company since last year, they think what we do is gambling,"
added the official of Coinone and said that they have been cooperating with the investigation of the tax agencies and police.
"We were asked by the tax officials to disclose paperwork and things yesterday,"
said an anonymous official from Bithumb which was also raided. Bithumb is the largest South Korean exchange and offers these coins, note that the volume is probably a lot lower now after these activities and the screenshots are fresh as of writing this article.
Authorities had recently stated that they are investigating 6 banks that offer virtual currency accounts to these institutions as they are concerned the use of these currencies will increase crime. The gambling aspect is also a major concern as many are drawn to trading now after Bitcoin's huge surge last year as cryptocurrency trading just keeps on growing in volumes.
I'm looking to add to the STACK. Reminds me of the China FUD that went down in November.
Also just read this: https://www.forbes.com/sites/pamelaambler/2017/12/12/south-korea-is-not-banning-bitcoin-trade-financial-regulators-clarify/#13bf76f11427
In short - regulators are looking to ban ICOs and weed out the "bad actors" (exchanges evading taxes, etc.) but not looking for an outright ban on cryptocurrencies wholesale.
If I was a day / swing trader, I'd be thanking them for this volatility. But alas I'm a simple HODLer that just adds to my position.
~ Kevin
Managed to get some cheap steem at 28-30k but wouldn't surprise me if we have a few more flash crashes coming.
People overreact easily in these markets. :D
If I learned 1 thing from my poker days it's to become cold as ice when it comes to dips / gains. Now I just need to increase my capital allocation into crypto and stop being such a baby boy :P
Or just trade your way up with a small amount and then you won't be as emotional about it. :)
Never trade with more than you can afford to lose in these markets, anything can happen.
Yup, good call. Been in the game since September, slow going but patience and dollar cost averaging in on project I believe in seems to be working. Hope it all doesn't come crashing down hardcore though.
Buy the crash, lock in the gains in part.
If you don't mind my asking, what's your current crypto allocation in terms of percentage of investable wealth?
I'm around 10% right now. I feel that in a growing, not well-understood market where 10-1000x are (relatively) common, you don't need to allocate a large % of total capital to do well. And you protect your downside if it burns to the ground.
But I truly believe we're in the first true boom where the common man (us) is able to invest directly before most elites, gatekeepers, and institutions. So I'm considering upping my allocation to around 20%.
Thanks for sharing, I appreciate the insight and the thought process.
Happy to - I'm far from an expert (barely a novice) so I relish the chance to talk w/ others!
You go boy.
People tend to stop trading with a particular coin once there is a little crash. We need to stop overreacting.
It's sad our steem couldn't hold $5. :(
Yeah I loaded up on a boatload of EOS on the nice dip.
Well done - EOS is in my "potential ETH killers" part of my portfolio too.
Definitely my number 1 holding. Can't see how any other project can touch it as far as tech is concerned.
Thanks sharing this news.
You're welcome!
What a horror...In Korea it is not clear what is happening with cryptocurrency!
thanks for sharing this news. at least we are aware of what happen out there. this is one of the reason why bitcoin and sbd are down. but i think we can recover. if i have some extra cash its time for me invest. it will go up again someday. i know its kinda risky . but nothing in this world is not risky.
The tax man may be avoidable at first but in the end he will get basically every cent he feels he is "due". Nothing is certain in life but death and taxes and that doesn't appear like it's going to change any time soon.
Governments are going to be clamping down on anonymous purchases/trades in the crypto space, mainly by targeting the fiat entry points such as what is taking place in South Korea right now. Next they will likely start gaining access to various major centralized exchanges to get trade information on the various users of these platforms (similar to what took place with the IRS and Coinbase a few months back). And finally the last wave will be to directly target privacy coins such as Monero/Verge/Nav... as those will become the final tax-haven left standing, and they will target them in a way that centralized exchanges will de-list them and people will only be able to buy/sell them on a peer-to-peer level through a decentralized exchange, but even then the holder wont be able to sell them for fiat or trade them for other non-privacy coins very easily or on any major levels.
All this should not be unexpected as its quite blatantly clear how this is all going to play out. Governments will allow cryptos to thrive in the long run, but not without cementing their ability to collect what they feel is due (taxes, taxes, and more taxes...).
What you're saying is right, Governments will find ways to tax cryptocurrencies one way or another. But two things could happen, firstly governments could render cryptocurrencies worthless due to over-regulation, in other words destroy the reasons why these are so useful i.e. privacy, low fees, real time, etc. thus destroying the blockchain world. Or they will hopefully realise that cryptocurrencies do provide a useful service and so they strike a reasonable balance between regulation and freedom. There's a third thing that is already going down the gurgler, governments could do next to nothing. But this won't happen.
Hopefully governments will find the sweet spot which enables cryptocurrencies to flourish and perform while keeping officials happy. I'm holding my breath but ...
Thanks for mentioning NAV. Remember, they are located in New Zealand, historically one of the hardest nuts to crack for tax authorities. They are also working on seamless encrypted exchanges between coins and fiat. Read between the lines and you'll see the NAV team basically agree with you on what's coming and is preparing.
No prob, NAV is a decent and mostly overlooked privacy coin at the current time. I personally avoid privacy coins but that is just me, to each his own I guess. BTW nice Q quote. :D
I thought the point of decentralized exchanges was that they couldn't be raided? There was actually a building to raid? Is it possible that such a thing could happen in the US or one of the larger countries?
I'm new to all this, but those were the first questions that popped into my head. I think privacy coins are going to be more popular this year, especially in countries where problems like that are likely.
These exchanges are not decentralized.
Woah, what? That's some crazy shit, man. Wonder how much truth there really is to the gambling allegations though. I didn't manage to buy any cheap Steem, but I did pick up some Storj on your recommendation from that one post you made. Kinda good, I guess? lol.
hodl tight, news like this is why you can't just trust technical analysis in these markets. :)
Trust me, I will, man. Not selling out anything anytime soon :P Especially my Steem.
Maybe that’s why crypto prices are going’s down?
In my case I am just holding my steem here in steemit because I can’t move it to an exchange since I don’t have accounts there lol
But I am waiting for bittrex to allow new accounts so I can join them
I want to join, Please allow me.
This will even make the people's trust in cryptos just like after the China's ban on bitcoin, it surged to ATH. Blockchain technology is far behind these temporarily chaos.
We all knew this was going to happen, governments will crack the whip if they think you are tax evading. I don't blame them honestly. These exchanges need to get a little smarter or be replaced by a decentralized exchange instead. Everything is taking a pounding today because of this one country has that much of an effect on these markets still is shameful.
Welm said.. I agree with your knowledgeable opinion @bitcoinflood
Good time to HODL otherwise you will lose.
Good time to BUY steem if you are sure that's the new low.
Keep on steemit.
In Britain, gambling profits are not subject to tax... so it might be considered good to class crypto trading as gambling!
Like most other news there is an initial shock but it will pass.
There will be a massive reckoning shortly as people have bought and sold crypto and never declared their gains. Every transaction is recorded on the block chain so if the authorities can tie exchange accounts to individuals it will be simple to go after them for tax evasion!!
Get your tax affairs in order people.
@acidyo, what exchange would you consider the safest? Open ledger? Can you post link here for those that don't know can see and click :)
if the prices of steem comes down further accumulate it further
Amidst all the flash crash and FUD that is circulating across the crypto world right now, i'm still HODLing on a diverse set of coins. It may take days, weeks, months to get back on track, but we should all keep the faith. ;)
Pokerface activated:
Giphy
It is hardly understandable. In my opinion, Korean government seemed never to understand Blockchain.
Enjoy the vote and reward!
Which government does at this point? I mean US government seems not to understand even what is internet for one.
I can see a pattern forming, first they pump intensive FUD they institutions buy the dips then they pump the media with intensive positive information and prices Moon; then they sell and do it all over again!
that's bad news
Its BUY BUY BUY and HOLD time. Ups and Downs are market trends
thanks for share this news
Great post!!
thanks for sharing information about tax of crypto coin!! Very happy to see this things in your post!!!!@acidyo
thanks for sharing this news. at least we are aware of what happen out there. this is one of the reason why bitcoin and sbd are down. but i think we can recover. if i have some extra cash its time for me invest. it will go up again someday. i know its kinda risky . but nothing in this world is not risky.
Good Job @acidyo you are grea. Regular i like to check your post @acidyo
Nice one I upvote u please follow and support my posts
This post very nice..i like this news..thanks for sharing this post..best of luck..
this is really affecting the crypto market, china and korea are the biggest market when it comes to crypto
It's so great
Very nice information. We can learn a lot about your beautiful post, thanks.
I’m giving you a 100% vote while my steem is still worth something. So the tax authorities want some info on who owns crypto? Well the timing is a “nice” warning before people fill in their 2017 tax return.... better to know before you sent in the tax return than after.
Everything we do with the money is gambling. It's just that the rich get better odds than the rest of us.
That sucks to hear about Bithumb.
I'm kind of surprised the rest of the world isn't doing the same already.
Very unfortunate events that should not happen. Hopefully soon there is a point of completion. I only had time to buy some steem with cheap price. Thank you very much for the information @acidyo.
Oh come on! One of these days one of these silly dips won't directly line up with me being low on fiat!
But still, I'm glad someone stepped up to the plate and banned bitcoin again. China, you've been slacking for montgs now.
I am still hodling.. but i am more concerned about SBD and steem fall as it will directly affect the Voting Worth.. Steem Blockchain has withdrawn its delegated SP from accounts too and now our "generous" vote is not so generous anymore.. I had just started to earn some good amount of SBD and now i have no other option than to HODL it :/
I was wondering why market is in downward trajactory and now i know the reason.. thanks mate.. hopefully korea will come back to its senses :P
Thanks for the information
Very soon Bitcoin and other crypto coins will be stable
Nonsense, trying to bring them down by all means. Why not investigate thoroughly before invading them.
Bingo. It's theater. The "authorities" are simply trying to generate bad press and scare investors away from crypto. If they were serious they would have went in with indictments and walked the owners out in handcuffs.
it is great information...
I think all these types of activities are going on continuously but they can't do anything for the most decentralized currency. But we have to remain alert all the time so that our hard work money may not ruins any way. Thanks for sharing such an important information, take care my friend.
Ouch!!
So this is why all my coins are bleeding today...
JGV
Well Great post brothers. It is so funny what the fiat system is trying to do. There are lots of scams out there but they have a fear of what cryptocurrency can do. Fiats has no where to go, no real volicity and there cant really compare to cryptos. when they could fight 10 a 1000 more is starting up. Great post man.
Thanks for gave more valuable info @acidyo. I saw with last week SBD and steem prices drop down very immediately. I guess That's one of reason Coinone and Bithumb raided.
Fortunately I can't move any money to both exchanges.
Not buying as I don't have funds but I'll hodl as much steem and sbd that I'll earn in the platform.
It already happened last time and I'm optimistic that like in the past the market will recover in the near future.
@acidyo am looking for good news.All year long, Bitcoin has been the gift that keeps on giving. But days before the largest gift-giving holiday in the world, the only thing the cryptocurrency is giving its investors is a headache. Bitcoin's value has taken a massive plunge in less than a week, losing more than 30 percent of its value, putting a .share
Oh this is part of what caused the crash in the digital money, at least now I know the reason.
a correction is bound to happen but lets hope it won't go further too much. in some way, it is healthy as the market has gone up too quickly in my opinion
i put my dash into steem...im not sure if this was a totally noob move...
Gambling???? Why has no one raided the stock market?
Never did I think issues with exchanges in South Korea would be a cause for problems with the entire crypto market. I thought America would be the first to possibly start messing it up with regulation...
Just keep those hands strong
Thanks for letting us know about this, @acidyo! Do you think this is the reason why Steem fell such in value the last day?
I was a bit confused what caused so red days statistics , every day different issue. Now we have South Korean exchanges arrested. Personally i see it as opportunity to widen my portfolio , the only thing I don't like is how it influences Steem and Teem payouts. A price went down but we still get 50% in sbd and 5% in Steem Power, this kind of sucks
its very nice and informationable news.not only me but also all people benefited from here...