IRS Sends Crypto-Related Warning Letters

Some U.S. taxpayers identified as crypto users – allegedly due to disclosures from U.S. crypto exchanges – have received letters from the tax agency warning them to either pay taxes on their crypto holdings or disclose them. This is the second round of such letters, indicating that the IRS is serious about crypto taxes.

Coinbit, a large crypto exchange from Korea, was seized by law enforcement following allegations of fraud. 99% of all BTC volume traded on the exchange for the past year is suspected to have been counterfeited through laundry trading. Coinbit’s owner, Chairman Choi Mo, and his management team have been accused of inflating transaction volumes and manipulating ticket prices using several ghost accounts.

Fidelity Investments, one of the world’s largest asset managers, is seeking regulatory approval from the SEC for a new Bitcoin fund. Details are scarce but so far accredited and institutional investors appear to be able to invest a minimum of $ 100,000. Loyalty already operates a Digital Asset fund and has more than $ 2.7 trillion in assets under management.

Federal Reserve chairman Jerome Powell announced that the U.S. central bank is changing its approach to targeting inflation on average, Powell said in a statement that the Fed will tolerate higher inflation in the future. Immediately after, global markets and Bitcoin responded by initially pumping and withdrawing almost as quickly.

Before we close, this week’s “Bitcoin quick question” is who created Bitcoin?

The honest answer is – no one knows.

Bitcoin was introduced to the world in late 2008 by Satoshi Nakamoto, a pseudonym.

He or she combined existing cryptographic solutions with new innovative ideas resulting in bitcoin.

Nakamoto, by maintaining its connections with developers and other cryptographers through forums and email lists, was active in Bitcoin development and mining in the network’s first two years.

It has mined an estimated 800,000 Bitcoins, worth nearly $ 9 billion today, and disappeared in April 2011 saying “it has moved to other projects”.

Many people have since claimed to be Satoshi, and yet none have been able to prove that he really is.

Do you think he will eventually return one day? If so, let us know in the comments.

Do you have a question you want us to answer? Leave it in the comments section below. And if you want to support our videos, consider using the Brave browser to browse faster and free which can also win you rewards. Go to the link in the description below.

That’s what happened this week in Bitcoin. See you next week.