Cryptocurrency trades became taxable in the US

The new US tax code amendment concerns "like kind exchanges" and makes all cryptocurrency trades taxable
26 December 2017   1871

On December 22, President of the United States Donald Trump signed a new U.S. tax code amending IRC Section 1031 (a)(1). The new tax code is concerned with cryptocurrency trading apart from general taxation. 

The amendment concerns a part of the tax code regarding “like kind exchanges,” which used to allow investors to swap assets without paying taxes for that, and have long been used by traders to avoid taxation for the operations. 

The tax act in Sec. 13303 amends IRC Section 1031 (a)(1) to delete “property” and replace it with “real property” … So, you can see that now I can no longer take the position that my Bitcoin to Litecoin exchange was a like kind one under Sec. 1031, and I have to recognize the gain when I do it.

Suzanne Walsh
a partner at the law firm Murtha Cullina

According to the tax code, all cryptocurrency trading, including swapping one cryptocurrency for another, will become taxable starting from January 1 of 2018.

Until now the owners of digital currency had to pay taxes only when they exchanged cryptocurrency for fiat or physical goods, but the new rule now means that all crypto transactions become taxable.

OKEx to Launch OKChain Based Decetralized Exchange

Great role in the upcoming exchange will be played by OKB coin, which will be trasfered to OKChain as soon as its development finished
22 March 2019   122

OKEx cryptocurrency exchange will launch a decentralized trading platform on its own blockchain.

Currently, the OKChain blockchain is in the final stages of development, and its test network may be launched as early as June 2019. When the OKEx blockchain becomes stable enough, it will transfer OKB to it, which will then perform the function of the native OKChain token and be used to pay commissions, as well as in its own decentralized network applications.

The primary purpose of OKChain is to launch the OKDEx decentralized exchange, where the OKB token will be used to participate in presales. In addition, project teams will use OKB tokens to pay the service fee to the super nodes of the network.

While the total volume of OKB emissions is 1 billion, 300 million tokens are in circulation today, and 700 million remain blocked. Of this number, 300 million OKB will be distributed to users through the loyalty program, and 400 million belong to the OK Blockchain Foundation and the exchange team. However, for a more efficient formation of the OKB ecosystem, the blocking period of these 700 million tokens will be extended from 2020 to 2022, writes OKEx.

In addition, OKB will be the only token to be accepted during the initial exchange offerings (IEO) on the OK Jumpstart platform, announced earlier this month. According to the company, it is currently negotiating with various projects and will soon announce the launch of the first IEO on OK Jumpstart, for which investors will be admitted who have passed personal verification and have OKB tokens in their accounts.