France’s Conseil d’Etat (Council of State), a body of the national government that provides the executive branch with legal advice and acts as the supreme court for administrative matters, has decided to reduce the tax rate on cryptocurrency sales from 45 to 19 percent, according to the report from Le Monde, local news outlet.
On Thursday, April 26, the Council of State said that such a significant change is a result of a new classification of Bitcoin separate from commercial or non-commercial activity. Currently, gains from the sale of cryptocurrency trading are considered to be “industrial and commercial profits”, while profits from occasional transactions are still non-commercial profits.” So, the profits arising from cryptocurrency sales should be considered as capital gains of “movable property”.
“The sale of ‘bitcoins’ fell under the principle from the category of capital gains of movable property,” the Council of State said.
Le Monde adds, hovewer, that the Council of State said certain types of transactions may “fall under provisions relating to other categories of income,” and that proceeds from cryptocurrency mining as well as commercial activities related to the technology will still be taxed at the BIC rate.
This means that tax on crypto gains can be as high as 45 percent for higher-band taxpayers, and is also added to the country’s generalized social contribution (CSG) of 17.2 percent. Hovewer, considering digital currencies as movable property brings a flat capital gains tax (CGT) liability of 19 percent, plus CSG.
Regulations for crypto transactions in France were established in July 2014. Some investors considered the tax regime harsh, that’s why they took a case to the supreme court over the regulations. According to Le Monde, the decision to change the crypto tax rate came after the appeal. Cutting the crypto tax rate would put an end to suffering of cryptocurrency investors on the tax day in France.
By the way, France has already started working on its crypto regulations. At the beginning of the year, the Minister of Economy created a crypto task force to examine regulation. Later, in March, the government proposed a ban on investment companies to trade in digital currencies until regulations have been implemented. Also in March, France’s financial market regulator was reported to be looking into legislation that would encourage the development of Initial Coin Offerings (ICO).
The Bitcoin price has bounced up to $9,370 following recent a 10 percent decline marked on April 26 that reportedly was triggered by the sale of the Mt. Gox trustee funds while technical figures indicate the feasible potential for a move higher towards major resistance at $10,000.
Bitcoin seems to recover from the price roller coaster it has exhibited for the last few days. At the press time, the king of altcoins hit the $9K mark according to data from cryptocurrency tracker CoinMarketCap and some analysts predict even more upwards in the nearest future. However, the digital currency has had a slow start to today’s trading, which might be signaling that the rally is coming to a pause.
The reason for the experienced decline in Bitcoin price became a Mt. Gox trustee’s major sellout that was said to dump on the public cryptocurrency exchange more than 17,000 Bitcoins over the past 24 hours. At a price of $9,700, 17,000 bitcoins were worth $165 million and that large sum of funds lead to increased volatility at the largest cryptocurrency exchanges.
In spite of the criticism from the cryptocurrency community and the request from investors to utilize the Over-The-Counter market to sell large batches of Bitcoin rather than cryptocurrency exchanges, the Mt. Gox trustee has continued to rely on major exchanges to dispose their funds. Consequently, subsequent to each sale, the price of Bitcoin has fallen by large margins.
Nevertheless, by now Bitcoin has managed to regain the value as well as re-emerge its volume, thus the overall market demand is being balanced. As practice shows, when Bitcoin remains in a neutral zone and is not flooded with sell orders, it tends to perform strong in the short-term giving investors a stimulus to anticipate the Bitcoin price to end April at $10,000, regardless of the recent drop in price triggered by the Mt. Gox sale.
And indeed this assumption might has merit, since over in Chicago the cryptocurrency space was boosted by the highest daily volume for Bitcoin futures trading since their introduction at the CBOE five months ago. The recently obtained market statistics reveals that about 18,210 contacts for the May futures were traded, along with 703 for the June contract and 87 for the July contract and no volume was reported for the exchange’s August-dated contract.
Kevin Davitt, the CBOE Options Institute senior instructor, said that the average daily volume (ADV) runs about 6,600 in XBT Bitcoin Futures when reported the volume was nearly three times ADV that makes approximately a total of 19,000 Bitcoin futures traded across the term structure.
Bitcoin’s recent gains comes amid a larger rebound observed across the cryptocurrency market. The other top 10 digital coins are all posting significant gains for the most recent 24-hour period, with Stellar (XLM) and IOTA (MIOTA) being the standout performers, thanks to their double-digit percentage increases.
Stellar’s robust performance have allowed the coin to overtake Cardano (ADA) as the seventh-largest digital currency by market capitalization. The second most valuable cryptocurrency, Ethereum (ETH), has turned in impressive performance too, gaining 7% over the period.
As a result of the rebound, the cryptocurrency market’s total valuation reached the $415-billion mark reached that once again nourishes the expectation of Pantera Capital CEO, Dan Morehead, who the other day has predicted a possible $40 trillion worthiness of cryptocurrency market capitalization.
Now coming to the new agenda of news wavering in the financial markets related to BOND traders aka Chinese Bond Traders aka Vietname bonds etc etc, all the bonds do exist and are well traded on the regulated or non regulated exchanges between the traders ( can be private or institutional or retail ), but not the way they are show on the bogus advertisements on linkedin.com by the fake traders. I do not intend to criticize anyone but I intend to show be honest with the people who have wealth or who intend to make wealth and who are constantly in search of such wealth generation opportunities.
If real opportunities exist then provide the credentials of the business opportunities ! this is my appeal to the financial consultants, and the HYIP traders !.
But make a strong note, Investors should not advance any personal or corporate document, which has their financial status disclosed, to the online so called traders asking them to fill the 11 page hefty compliance documentation. Its bogus. None requires it !!! Anyone who asks so is fake, bogus, and a joker broker.
Any bond trader who is advertising on any forum or free floating forum, make sure you post the authentic information or atleat declare a official advertisement from a regualted trading house providing the same informtion duly certified.
As if you do not provide such information, then its only termed as SCAM effort.
Anyone with IQ over 50 KNOWS that HYIP/PPP is just another SCAM
Primarily let me clear the floating rumour around the financial markets that HYIP(High Yield Investment Programme) is a total scam protocol !! Whereas the reality is its not actually the way its shown. HYIP ( High Yield Investment Programme ) does basically exist for over several years and will continue in the future also. But whats exactly existing in real HYIP is the simple working protocol, that is an investors or a group of investors combine together and collaborate with a Good Fund Manager, Yes I repeat a good fund manager!! Definition of a Good Fund Manager is as simple, who is well experienced, knows how the financial markets react in different situations, and know how to place RISK TO REWARD RATIO in a particular financial market! That can be any financial instrument such as FOREX, BONDS, MTN, TREASURY BONDS, STOCKS, and MUTUAL FUNDS etc. A Good Fund Manager will have his past track record duly audited from a good Financial Auditor, such as KPMG, PWC, etc….
What basically the fund manager does is draws down a financial target to meet up a profit goal, derived from trading any of the above listed financial instruments, over a period of time. The quantity of trading in terms of volumes of trading is bit high, due to which two points are most common to happen, one is the profit ratio will be very high and other point is if the trade is not performing as per the correct direction, the risk will be also high, but that’s where a good fund manager comes to play. Fund Managers due to his long lasting financial history and market experience knows which tide will take him upwards and which tide may sink him down, so accordingly he manages the funds and allocates the volumes per trade!! This is the correct picture of a existing successful model of a performing HYIP.
Now lets come down to non performing or Pseudo HYIP AKA SCAMS ones.
Most of the times to lure investors and pool up large funds, few similar minded people with negative mentality goof up around with bunch of marketing professionals, who are masters in convincing people around !! This is the initialization of the HYIP step one. Lemme repeat what is HYIP, High Yield Investment Programme. But here the real scenarios are a lot different, these people do really trade good for some time to win the confidence, of the investors to pool up more funds from the investors end and once the investor pours all in as per the pooling campaign goal, only two things have happened in the past ! Either the so called fund managers working with the marketing professionals, disappear with total funds, by just a single black out window and will shut down their website overnight ! Or the so called fund managers will post the most common message, “INVESTMENTS ARE SUBJECTED TO MARKET RISK “ , and will show out a good reason which will cover that their trade which they had opened went in the wrong direction due to some of the reasons which shall be one of the following ( Central Bank Policy Change, Central Bank Intervention, Market Crash due to Economic News, etc ). And the investor believes that what can the trader do, its the Central Bank policy which altered the trade !!! This is one of the most common successful gimmick played over by Fake HYIP runners in the markets !!!
I hope this article provides good insights of staying away from Fake HYIPs !!!