May 14 – 20, 2018 | Advisor Education, Consensus Wrap-up & More Crypto News
3iQ Research Group consolidates the top five cryptoasset stories of interest
to investment advisors and our investors.
Investors are Going to Buy Bitcoin, Whether Advisors Like it or Not
May 16, 2018 – Investors continue to be eager to enter the cryptocurrency market, despite hesitation from the investment advisor community. Many advisors are still receiving questions from clients about cryptocurrency investments, but unfortunately cannot provide advice due to lack of knowledge on this growing market. Some major financial firms, like Merrill Lynch, have completely banned bitcoin buying across the entire firm, while some firms are taking a more proactive approach, such as Goldman Sachs and their introduction of bitcoin trading desks this year.
Lex Sokolin, the Global Director of Fintech Strategy at Autonomous Research, thinks that advisors who turn a blind-eye to cryptocurrencies as investable opportunities may be making a big mistake. He believes advisors need to take the time to brush up on subjects within cryptocurrencies and the blockchain so they can address client questions properly. “Advisors really need to start to understand the basics of how blockchain works,” he said. “Start to understand why there are different cryptocurrencies.” He delves into the topic further by saying “all of these things are different, so advisors have to spend the time so they can actually help their clients make sense of this.”
3iQ is proud to work with Canadian advisors who have taken the time to be more knowledgeable in the blockchain and cryptoasset space, and those who are looking to improve their knowledge for the benefit of their clients. 3iQ offers “roundtable” education sessions to advisors to improve the understanding of blockchain basics and cryptoasset networks, as well as investment rationale for this asset class.
For more information, call or email us using our contact information here.
3iQ Research Group produces original cryptoasset research, from coin profiles to the latest developments in crypto technology:
How Canada Taxes Bitcoin and Other Cryptocurrencies
Recap – Chief taxation officer at Northwood Family Office, Lorn Kutner, addressed the Canadian tax implications for cryptocurrencies on BNN Bloomberg from several perspectives. He notes that the government has said that cryptocurrencies and bitcoin are not seen by them as “currencies”, and should be treated just like stocks on your tax returns. If an investor sold cryptocurrency, they would be obligated to report this on their tax return as a disposition of the bitcoin position in CAD at the time in comparison to their acquisition price in CAD. Whether it is a capital gain or loss, it will be treated as such, just like with stocks. Just like capital gains taxes, they can be carried back three years. However, cryptocurrency traders who buy and sell with regularity, would have to report any gains to an income account, and any losses would be fully deducted against all sources of income, unlike capital gains.
From a transactional standpoint, if a contractor would take bitcoin as a payment, that would be recognized as income for the contractor, and they would have to report and remit applicable taxes on it. If you pay a contractor in bitcoin, you would have to report what you bought it at versus what it was disposed of. For businesses who accept bitcoin, those business receipts are business income.
May 16, 2018 – Now that the biggest cryptocurrency and blockchain event Consensus 2018 has wrapped up, Coinlive.io has provided a full timeline of what you may have missed from the event. The interactive timeline contains the developments that happened during the event, including press releases, articles, and the time of the release.
The emergence of cryptocurrencies and blockchain has brought forth a slew of new media outlets that cover this growing industry. Coinlive.io is a live feed that compiles news in the industry from a wide range of disseminators for investment advisors and investors alike.
Twitter/Square CEO Jack Dorsey Re-Iterates Bullish Stance on Bitcoin
May 16, 2018 – Outspoken Twitter/Square CEO Jack Dorsey has continued to express optimism on bitcoin becoming the leading payment method across the internet. He believes that “the internet deserves a native currency” and bitcoin will be a legitimate means of global payment. His payment processing company, Square, has been on a tear this year, with the price of the stock near its all-time highs. Back in February, the company announced it will allow almost all of its users to buy and sell bitcoin through its Cash App.
Not everybody at Square believes the early move into cryptocurrencies was a good idea. Dorsey said that “this was a pretty contentious move in the company,” and there are still fights and debates over the topic, including resistance from some of the company’s directors. “The world ultimately will have a single currency; the Internet will have a single currency. I personally believe that it will be Bitcoin,” said Dorsey.
Goldman-backed Circle Raises $110 Million, Plans USD-Backed Coin
May 16, 2018 – Goldman-Sachs backed firm Circle announced it has raised $110 million USD in a series E funding round which was led by the Chinese firm, Bitmain Technologies. Circle is now one of the largest cryptocurrency firms in the world, joining Coinbase as leaders in the space. Circle’s funding round will in part be used to issue a US Dollar-backed cryptocurrency labeled “USD-C”.
The new “USD-C” cryptocurrency will be based on the existing Ethereum network, which is the most popular choice amongst new developers. The efforts to release a US Dollar-backed cryptocurrency arose from the need to create a cryptocurrency that is supported by a stable asset class. Circle recently acquired one of the largest cryptocurrency exchanges, Poloniex, earlier this year. The company plans to release several new services, such as Circle Invest, Circle Trade, and Circle Pay.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
Due to applicable legal restrictions, you may not access the following content. 'a0 We apologize for any inconvenience this may cause.
WARNING: THIS SECTION OF THE WEBSITE CONTAINS ANNOUNCEMENTS, DOCUMENTS AND INFORMATION (TOGETHER THE “INFORMATION”), ACCESS TO WHICH MAY BE RESTRICTED UNDER THE SECURITIES LAWS OF CERTAIN JURISDICTIONS. IN PARTICULAR THE INFORMATION IS NOT DIRECTED AT, AND IS NOT ACCESSIBLE BY, PERSONS RESIDENT, OR OTHERWISE LOCATED, IN THE UNITED STATES OF AMERICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.
THE INFORMATION IS BEING MADE AVAILABLE BY 3iQ Corp. (“3iQ”) IN GOOD FAITH AND FOR INFORMATION PURPOSES ONLY. THE AVAILABILITY OF THE INFORMATION IS SUBJECT TO THE TERMS AND CONDITIONS SET OUT BELOW.
Please read this notice carefully - it applies to all persons who view this webpage. This notice may be amended or updated by 3iQ from time to time and accordingly it should be read carefully in full each time you wish to view the Information. In addition, the content of the site, and its availability to persons resident in certain jurisdictions, may be amended at any time in whole or in part at the sole discretion of 3iQ.
Basis of access
Please read this notice carefully before clicking “I agree” or “I disagree” below. This notice applies to all persons who view the Information. Access to these materials is being made available on this webpage by 3iQ in good faith and for information purposes only. Any person seeking access to this webpage represents and warrants to 3iQ that they are doing so for information purposes only.
Nothing on, or which can be downloaded from, this webpage constitutes an offer for sale or subscription or any solicitation for any offer to buy of subscribe for any securities in any jurisdiction. Making the Information available does not constitute a recommendation by 3iQ or any other party to sell or buy securities.
Confirmation of representation
Any person seeking access to this webpage certifies that they are not located in the United States of America or any other jurisdiction where the release, publication or distribution of these materials would be unlawful. Any person seeking access to this site confirms that they have read and understood this disclaimer and agree to be bound by its terms.
The information contained on this website does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or in any jurisdiction in which such offers or sales are unlawful. The securities referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or under the applicable securities laws of any state or other jurisdiction in the United States. The securities referred to herein may not be offered, sold, resold, taken up, transferred, delivered or distributed, directly or indirectly, within, into or in the United States or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration of such securities in, the relevant jurisdiction except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. There will be no public offer of securities in the United States.
The materials are only addressed to and directed at persons in Canada.
If you are not permitted to view materials on this website or are in any doubt as to whether you are permitted to view these materials, please exit this website. These materials must not be released or otherwise forwarded, distributed or sent in or into the United States or any jurisdiction in which such offers or sales are unlawful. Persons receiving such documents (including custodians, nominees and trustees) must not distribute or send them in, into or from the United States or any other jurisdiction where to do so would be unlawful.
Acceptance of this notice
To visit the following pages of the site, you must confirm that you have understood the above sentences and agree to comply with the restrictions.
By selecting "I agree" below, you:
confirm that you have read, understood and agree to be bound by the terms of the notice set out above;
warrant and represent that you are not a resident of, or otherwise located in, the United States of America (including its territories and possessions, any state of the United States and the District of Columbia) or any other jurisdiction where accessing the Information would constitute a violation of the relevant laws or regulations of that jurisdiction.
agree that you will not transmit or otherwise send (directly or indirectly) any Information to any person in the United States of America (including its territories and possessions, any state of the United States and the District of Columbia) or any other jurisdiction if to do so would breach any applicable law or regulation; and
confirm that you are not a person to whom the communication of the information contained on the site is restricted and are not acting for the benefit of any such person.