Australian Tax Office says it can’t rely on crypto users’ own records

“Our main concern is that many taxpayers believe their cryptocurrency gains are tax-free or only taxable when the holdings are cashed back into Australian dollars,” said the ATO commissioner.

The Australian Tax Office (ATO) says it can’t rely on crypto investors to keep track of their crypto transactions and profits — even though most investors try their best.

Speaking at the 14th International ATAX Conference on Tax Administration conference on Nov. 23, ATO commissioner Chris Jordan stressed that many new crypto investors may not entirely understand their tax reporting obligations:

“In a sector that is growing rapidly with new investors, we can’t rely on taxpayers knowing they need to keep records of their investment income and capital gains and disclose it on their tax returns.”

“Our main concern is that many taxpayers believe their cryptocurrency gains are tax-free or only taxable when the holdings are cashed back into Australian dollars,” he added.

Jordan explained that the ATO has been working on ways to “nudge” people in the right direction such as pre-filling data on tax returns to prompt crypto users to report their investments.

The commissioner also said the ATO has ramped up its trading data matching capabilities in 2021 by sourcing information from cryptocurrency demand-side platforms (DSPs), share registries and brokers.

“We’ve expanded our data matching protocols to get more data from third parties to assist with emerging investments like cryptocurrency.”

He added that, “We are working hard to improve the way we collect, manage, share, and use data, but we are just scratching the surface.”

Related: Reserve Bank warns Aussies over punting on ‘fad driven’ cryptocurrencies

Jordan did note however that “most people do the right thing” as tax reporting compliance, or the “tax performance” of individuals and small businesses in Australia is high with “little or no intervention” from the ATO at 94% and 87% respectively.

Chainalysis down under

A firm that the ATO may call on in future is the Commonwealth Bank of Australia’s partner Chainalysis.

On Nov. 24, Chainalysis’ country manager in Australia and New Zealand Todd Lenfield told the Australian Financial Review that his firm is hoping to provide key expertise to AUSTRAC and the ATO.

“We want to have conversations with AUSTRAC about what they are looking to regulate and explain to the tax office the lessons that can be learned from what the IRS is doing. We can take experience we have got in the space, and provide a local flavor,” he said.

The firm currently provides blockchain analysis services for the U.S. Federal Bureau of Investigation and Internal Revenue Service, it also investigated Russia-based crypto business Suex OTC which was targeted by the U.S. Treasury Department in September over facilitating transactions for ransomware payments.

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Wealth flex? Coinbase now allows users to share their crypto allocations

“We want to empower the cryptoeconomy to share knowledge and information and learn from each other,” said Coinbase senior product manager Rishav Mukherji.

All of United States-based crypto exchange Coinbase’s roughly 68 million verified users can now more easily make information on their portfolio public.

In a Coinbase blog post on Friday, senior product manager Rishav Mukherji said the crypto exchange’s app now includes a feature that shares a user’s allocation percentage — not balances — to their network of friends. He said this would just be the first move in the coming weeks for users to begin sharing additional details on trades conducted on Coinbase.

“We want to empower the cryptoeconomy to share knowledge and information and learn from each other,” said Mukherji.

With a reported 8.8 million monthly active users as of the second quarter of 2021, Coinbase is the largest crypto exchange in the United States, reporting more than $1.2 billion in revenue in Q3. The firm’s profits totaled $406 million the same quarter, marking a 74.7% decrease compared with those of Q2.

Related: ​​Coinbase will buy $500M in crypto and invest 10% of all future profits in digital assets

The social media integration is largely a new move for Coinbase, though some may consider major figures publicly disclosing even the percentage allocation of their funds a market indicator. This week, Apple CEO and billionaire Tim Cook revealed for the first time that he held some crypto in his portfolio, but he did not specify which type and how much. Others, including Shark Tank star Kevin O’Leary and Mad Money host Jim Cramer, have been more open about sharing the crypto percentages of their portfolios.

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Green means go: 5 spectacular altcoin rallies with one thing in common

Serendipity is “a fortunate discovery or event when things come together just perfectly.” You can’t plan for it… or can you?

In crypto trading we often see entire sectors move in tandem. DeFi coins may all curve upwards together, while metaverse tokens soared on news that Facebook’s getting a Facelift.

But this week’s group of top crypto performers have very little in common… except one trading indicator that lit up in pulsating green neon letters before their prices trended upward.

We’re looking today at:

  • Polygon (MATIC) — a layer-2 scaling solution for Ethereum
  • Aave (imaginatively, AAVE) — a decentralized finance (DeFi) asset
  • Voyager (VGX) — a crypto trading platform
  • Koinos (KOIN) — a feeless foundational blockchain built for scalability
  • Linear (LINA) — a cross-chain asset protocol

All have delivered major gains over the last month, and despite their differences they have one thing in common.

Each one achieved a VORTECS™ Score in excess of 90 before reaching their peak price levels.

In fact, all these tokens exhibited patterns of trading and social behavior that were strikingly similar to conditions in the past that preceded rallies. And once these tremendously robust trading conditions were detected, most of these cryptos entered virtuous cycles wherein their price dynamics generated increased trading and tweet volumes, which, in turn, powered the next phase of a rally.

Was there a chance for traders to hop on these moon-bound shuttles early?

A sign of extreme confidence

The indicator that screamed of the extremely bullish conditions is called the VORTECS™ Score, a tool available via Cointelegraph’s subscription-based data intelligence platform, Markets Pro.

Its job is to compare the current trading and sentiment conditions to historically-similar situations, and to alert traders when bullish patterns are detected. Live testing of the VORTECS algorithm has been ongoing for over ten months.

A VORTECS™ Score above 80 is considered confidently bullish. On average, there are from 30 to 50 weekly instances of assets crossing the 80-score threshold.

Scores of 90 or above, however, are rare. In an average week, there are usually no more than 4-5 instances of such scores, and sometimes a full week can pass without a single 90.

These ultra-high scores signify the algorithm’s strong confidence that the observed conditions are similar to those that preceded an asset’s stellar price performance in the past. As previously reported, scores above 90 sometimes precede price appreciation that can last for several days.

Here is how it worked with some of the highest-VORTECS™ assets this past month.

KOIN: +100% after peak score

KOIN, an asset whose first VORTECS™ Score had been calculated on Nov. 5, was off to a formidable start right out of the gate. The asset’s score touched the 90 mark several hours after its debut at the price of 22 cents.

Within a day, it reached a high of $0.44, a 100% increase. The pump was accompanied by additional 432% of trading volume and 221% of the usual level of tweets.

VORTECS™ Score (green) vs. KOIN price, Oct. 31 – Nov. 6. Source: Cointelegraph Markets Pro

It’s possible that the particularly striking results of the Koinos price appreciation event are partly attributable to its low market capitalization, which stood at just $20 million before the dramatic price rise.

MATIC: +35% after peak VORTECS Score

MATIC’s stellar run this month has been powered by a surge in the number of active Polygon addresses, as well as project launches on the Polygon network. The asset’s peak VORTECS™ Score of 94.2 came on Oct. 16 (red circle in the chart), when the asset was trading at $1.56.

VORTECS™ Score (green) vs. MATIC price, Oct. 5 – Nov. 5. Source: Cointelegraph Markets Pro

Following the peak score, MATIC’s price did not skyrocket immediately, as the favorable conditions did not fully materialize until almost two weeks later. However, the maximum price increase registered after the record Score amounted to 35%, with an attendant 6.68% spike in trading volume and a 11.08% increase in tweets mentioning the asset.

AAVE: +11% after peak score

AAVE’s high-water mark came on Oct. 18 when it flashed a VORTECS™ Score of 90.8. At that moment, the DeFi token had been changing hands for $304.

VORTECS™ Score (green) vs. AAVE price, Oct. 5 – Nov. 5. Source: Cointelegraph Markets Pro

AAVE’s ultra-high score anticipated a rally that lasted for another 11 days, culminating at the price of $338 registered on Oct. 29. The gains in trading and tweet volume were even more impressive: 488% and 118%, respectively.

LINA: +13.4% after peak score

LINA had its most bullish historical outlook registered on Oct. 11 when its VORTECS™ Score reached 90.2 against the price of $0.052.

VORTECS™ Score (green) vs. LINA price, Oct. 5 – Nov. 5. Source: Cointelegraph Markets Pro

The next phase of its price action saw the price rise to $0.059 over a seven-day period, accompanied by a staggering 439% increase in trading volume and 200% rise in tweets. 

VGX: +3.7% after peak score

Voyager Token (VGX) flashed its highest VORTECS™ Score of the month (91.9) rather late into its tremendous hike from $2.11 to $3.05.

VORTECS™ Score (green) vs. VGX price, Oct. 5 – Nov. 5. Source: Cointelegraph Markets Pro

The asset’s price continued to hover above $3 for the next four days, powered by a 42.89% increase in trading volume and a 10.19% more intense Twitter conversation in the aftermath of the historically bullish outlook. VGX’s momentum has somewhat faded in early November, yet the robust fundamentals could point to an impending resurgence.

We may conclude from previous analysis that looking at tokens that hit the VORTECS™ Score of 80 proved to be an efficient strategy for traders seeking to identify a range of assets with a good chance of performing well within the next few days. 

Focusing on those few that score beyond 90 may better serve Markets Pro members who prefer to operate on higher confidence levels and longer timeframes.

Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial advisor before making financial decisions.

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Most Americans Quit Low Paying Jobs After Gaining Crypto Wealth, New Survey

Most Americans Quit Low Paying Jobs After Gaining Crypto Wealth, New Survey

Approximately 6 million people (4% of 167 million in the workforce) in the US have quit their jobs after making more money from cryptocurrency investments than from their low-income jobs, according to a new survey by intelligence firm Civic Science. Civic Science surveyed over 17,000 respondents across the country for a period of seven months starting […]

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