PayPal Partners With Paxos to Facilitate Crypto Trading

PayPal Partners With Paxos to Facilitate Crypto Trading
July 23, 2020

 

The cryptocurrency market has turned bullish, with Bitcoin (BTC) once again crossing $9,500 levels. At the time of writing this article, Bitcoin was trading at $9,513, reflecting a gain of 1.4% in the past 24 hours. Ether (ETH) was trading at $264.54, an increase of 8.1% in the same period. XRP gained 2.6% to trade at $0.2040. Major altcoins which have gained ground in the past 24 hours include Monero (XMR-$71.35, 2.0%), LEO (LEO-$1.18, 0.1%), Huobi (HT-$4.34, 2.4%), IOTA (IOTA-$0.2818, 6.4%), Ethereum Classic (ETC-$6.37, 3.4%), Litecoin (LTC-$45.26, 3.1%), Tron (TRX-$0.0180, 2.0%), EOS (EOS-$2.67, 2.2%), Dash (DASH-$73.37, 2.0%), Bitcoin SV (BSV-$183.89, 3.8%), ChainLink (LINK-$7.70, 6.3%), Cosmos (ATOM, $4.02, 1.7%), Stellar (XLM-$0.0983, 3.0%), Tezos (XTZ-3.09, 2.8%), Bitcoin Cash (BCH-$239.21, 4.3%), Cardano (ADA-$0.1252, 2.5%), Binance Coin (BNB-$18.27, 3.2%) and OKB (OKB-$5.49, 5.8%).

 

Government level initiatives

People’s Bank of China included Chengdu in blockchain financial platform trial

China’s central bank, the People’s Bank of China, has included Chengdu (capital of Sichuan) in the list of towns conducting a trial of a blockchain-powered financial platform under the Fintech innovation supervision program, also referred to as the fintech “regulatory sandbox.” Other cities/towns which have participated in the trial include Beijing, Shanghai, Chongqing, Shenzhen, Xiongan New District, Hangzhou, Suzhou, and Guangzhou.

Chengdu will concentrate on big data, cloud computing, artificial intelligence, and blockchain technologies. It is expediting the creation of domestic financial regulatory sandboxes to improve the financial regulator’s abilities and quality of services.

The central bank rolled out its initial trial last December in Beijing to assist financial institutions and tech firms in abiding with the laws, while managing risk efficiently.

The objective is to study the benefits of emerging technologies, strengthen the financial sector by improving the quality of service, and support the economy.

 

Private sector initiatives

PayPal and Paxos collaborate to facilitate crypto trading

PayPal, a global digital payment processing firm, intends to facilitate cryptocurrency trading through collaboration with stablecoin operator Paxos. The company intends to roll out cryptocurrency trading via the brokerage service recently opened by Paxos. PayPal, however, is yet to clarify the list of cryptocurrency assets that will be supported.

Paxos launched a cryptocurrency brokerage firm on July 15th. The firm facilitates the integration of crypto trading functions in other platforms. This can be done through the inclusion of a simple API (Application Programming Interface), and regulatory compliance can be handled. PayPal intends to utilize the service of Paxos to roll out the cryptocurrency trading facility. The arrival of PayPal in the cryptocurrency domain marks a major move in the crypto sector.

 

Copper enables USD remittance through Signet

Copper, the UK based cryptocurrency custodian, has started facilitating US dollar remittance via Signature Bank’s blockchain-powered payment processing platform, named Signet. The integration with Signet will enable Copper’s clients to send and receive US dollars and other fiat currencies on a real-time basis.

The integration is expected to “vastly reduce the time and other issues that asset managers face in transferring traditional currencies” between related trading platforms and bank accounts. Notably, cryptocurrency exchanges such as Bitstamp, LMAX, OKCoin, Huobi, and Kraken are already integrated with both Copper and Signet.

Copper CEO Dmitry Tokarev elaborated on the development of blockchain technology in the past few years.

Tokarev said, “Over the course of 2020 […] the maturation of the crypto market has significantly accelerated. The industry has seen increased interest from more traditional hedge funds and asset managers taking crypto positions as a hedge against the weaker market and the risk of hyperinflation, while central banks are turning to digital currencies and blockchain as a potential foundation for the next generation of financial services.”

 

Miscellaneous

South Korea implements tax rate on profits from crypto trading

South Korea has officially announced the implementation of a tax rate of 20% on gains from cryptocurrency trading. The decision was made during the Tax Development Review Committee meeting conducted yesterday. Furthermore, the ministry of Economy and Finance has published the amended tax code related to the crypto rules.

The publication titled “Taxation on Virtual Asset Transaction Income,” also carried a note by the ministry, which points out that until now, digital assets held by both individuals (residents and non-residents) and foreign companies were not subject to taxation.

Citing taxation of crypto gains by other countries, the government has clarified that taxing crypto assets has become a need. As per the latest rules, profits generated from cryptocurrencies and intangible assets will be categorized as taxable income, computed annually. Income below 2.5 million won per year ($2,000), generated from cryptocurrencies, will come under the minimum ceiling and will not be subject to taxation.

Above the minimum limit, a tax rate of 20% will be applied, comparable with the basic tax rate applied for capital gains in South Korea. All gains must be reported, and appropriate tax should be paid annually in May.

Even non-residents and foreign companies that buy and sell cryptos on South Korean exchanges will be subject to taxation. In this regard, cryptocurrency exchanges will be responsible for tax deduction at source and payment to the Korean customs office. The National Assembly will consider the amended tax code, which would be sent before September 3rd. After approval by Parliament, the amended tax code will become effective on October 1st, 2021.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins


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