Author: Yahoo Finance
Starting in 2022, the Internal Revenue Service (IRS) is expected to shut down a longtime tax loophole that allows cryptocurrency investors to harvest their losses to offset their tax burden. Digital coins, already under heavy selling pressure as the holidays approach, are getting hit by wealthy investors fearing a tighter tax regime next year. The shrinking loophole could be making matters worse. Following a “relief rally” after the Federal Reserve’s policy decision, cryptocurrencies have been hammered along with stocks, as Omicron variant fears grip markets again. While short-term volatility has come to define crypto trading, year-end tax positioning may also be playing…
Ray Dalio, who runs the world’s largest hedge fund, Bridgewater Associates, has been slow to embrace cryptocurrency. He volunteered during a Coindesk event in May that he “has some bitcoin,” but he also told CNBC this fall that regulators will “kill” cryptocurrency if it becomes too successful. He predicted in an interview with Yahoo Finance late last year that he didn’t think digital currencies would “succeed in the way people hoped they would,” in part because of possible government action. And in a separate interview with Yahoo Finance this past May, he said it was likely that bitcoin could be outlawed. “Every country treasures its monopoly on…
Investment scams involving digital coins have become the biggest source of cryptocurrency-based crime in 2021, according to new data released on Thursday. In a report, Blockchain analytics company Chainalysis found that “rug pulls” has been a key driver behind the $7.7 billion in crypto taken from victims this year. The term describes a new scam in which developers of a crypto project issue what appears to be a legitimate crypto asset, lure in unsuspecting investors — only to run off with the funds, or sell all their holdings at a significantly higher premium. Rug-pulling drew attention recently, as a cryptocurrency associated with…