The Thursday Recap #14

We’ve been super busy over the last week. Hopefully we've been able to address all your queries and concerns and make the necessary fixes to help you all generate accurate returns.

Crypto Governance on the rise

The World Economic Forum (WEF) is launching a global consortium to design a governance framework for cryptocurrencies, including stablecoins.

There has been buy in from central banks in developing nations as well as the Bank of England’s Mark Carney and non-governmental organisations. The news comes just days after the WEF's blockchain lead, Sheila Warren outlined a "Blockchain Bill of Rights".

The goal is to align private-sector leaders, policymakers and consumers in a fundamental vision of how users can and should be protected as blockchain technology develops, particularly around the following pillars:

• Agency and interoperability: The right to own and manage data.
• Privacy and security: The right to data protection.
• Transparency and accessibility: The right to information about the system.
• Accountability and governance: The right to understand available recourse.

This global recognition for governance and financial inclusion shows growing acceptance of crypto as a viable currency, as predicted in our 2020 vision.

HMRC have issued a request for blockchain analysis tools

The £100k contract for Cryptoasset blockchain analysis tools was listed by HMRC on the 17th January. the description reading:

“Provision of a tool that will support intelligence gathering methods to identify and cluster Cryptoasset transactions into linked transactions and identify those linked to Cryptoasset service providers.”

HMRC updated their tax guidance for individuals and business with cryptoassets in 2019, and are believed to have contacted various crypto exchanges requesting information on users so this latest move shows they are definitely cracking down.

Vodafone becomes the latest company to quit Libra

Unlike other former members, who left because of regulatory concerns Vodafone seems to be leaving specifically to focus on its own related service, M-Pesa.

“We have said from the outset that Vodafone's desire is to make a genuine contribution to extending financial inclusion. We remain fully committed to that goal and feel we can make the most contribution by focusing our efforts on M-Pesa." said a Vodafone spokesperson.

The telecoms mobile based transfer service currently serves six African nations and Vodafone plan to expand further. It currently accepts different currencies for remittances and its possible it will accept stablecoins, possibly including Libra in the future.

“We will continue to monitor the development of the Libra Association and do not rule out the possibility of future cooperation,” the Vodafone spokesperson said.

Tether launches Tether Gold

Tether have launched a new stablecoin on the Ethereum and TRON blockchains that is backed by physical gold. One unit of XAU₮ is equivalent one troy fine ounce of gold. At the time of writing XAU₮ is trading near the spot price of physical gold on Bitfinex - it will be interesting to see how closely this gold stablecoin will track that price.

Bitcoin Gold Attack

Bitcoin Gold has undergone another 51% attack with the perpetrators managing to run away with $72,000 worth of BTG. 51% attacks happen when an entity is able to take over a majority of a network’s hash rate. With this control, the entity is then able to reverse transactions or allow for double-spending. BTG previously reported an attack where $18M was stolen back in 2018.

Have you filed your tax return? It’s the UK/HMRC deadline tomorrow!

The UK tax deadline is midnight tomorrow, Friday 31st January. If it’s looking likely that you’ll be filing late (we feel your pain - we’ve been busy too), then here’s what to expect and what to do...

• File up to 3 months late: you’ll get a fixed penalty of £100
• More than 3 months late: you’ll be charged £10 a day (up to £900)
• After six months: HMRC will fine you £300, or charge 5% of the tax you owe, whatever is larger.

You will also face interest on the tax that you owe. You can appeal a penalty if you have a reasonable excuse but this must be done within 30 days. If you are unable to pay before the deadline, you may be able to set up a payment plan by logging into your Government Gateway account or you can contact HMRC’s Payment Support Service.

If you’ve made an error you can resubmit your tax return before the next deadline but must inform HMRC of the change. However, submitting a rushed tax return and then doing this is not the way to avoid any late penalties! You may be penalised if found to have deliberately submitted incorrect information.

Read our UK Crypto Tax Guide or get in touch via chat if you need some help with your taxes.

Reading from across the pond?

E-Filing is now open, meaning US tax season has officially begun! …Just as the UK’s tax season is coming to an end - good timing or unlucky for us - we’re not sure, but either way we’ll now be starting to focus on US tax so stay tuned!

Keep in touch

Check us out on social or join our Telegram group. You can also leave a message via chat on the website or in app. We’d particularly love to hear feedback from anyone we’ve helped with their tax returns - good, bad or downright ugly - it will all help us to make next year run even more smoothly!