Digital currency mining news

A European nation has said it will bring the law down on crypto miners after the vast amounts of energy needed for the task led to a crisis. A European country has banned bitcoin mining because the large amounts of energy the process needs is crippling the electricity grid and contributing to blackouts. The government of the Balkan state of Kosovo has said security services will find those who continue to mine cryptocurrency and prosecute them. The action comes amid a state of emergency in the country — sandwiched between Serbia, Montenegro, Albania and North Macedonia — after its largest power plant was shut down due to a technical fault that has drained supplies. While Kosovo is cracking down on crypto mining other countries have embraced it with one boldly claiming it will build a whole city dedicated to the task.



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WATCH RELATED VIDEO: BAD Crypto News.. USA Crypto Laws - ETH Mining Profits DOWN - B21 Card

The Political Geography and Environmental Impacts of Cryptocurrency Mining


Amid the crypto boom, mining has become an extremely lucrative venture for many and critical to maintaining decentralized cryptocurrency networks. It is no surprise then that mining has been subject to IRS scrutiny and enforcement. But how is mining taxed? Are the tokens received by taxpayers as rewards for their mining activities deemed to be capital or ordinary gain? Fortunately, the IRS has released detailed guidance on this front in the form of a notice it originally issued in , but which the Service updated this year amidst a skyrocketing crypto market.

In this posting, we will provide a general overview of the tax implications of crypto mining , including the taxation of reward tokens and tax reporting considerations.

Taxpayers engaged in such activities should generally be aware of how mining should be taxed, especially in light of increased IRS attention to cryptocurrencies.

Miners play a critical role in securing cryptocurrency networks, with Bitcoin being the most prominent example. To prevent double-spending, cryptocurrency networks rely on a consensus mechanism known as Proof-of-Work.

Under a proof-of-work consensus mechanism , miners compete to solve complex mathematical problems in order to validate and add a block of transactions to the ledger. Crypto miners will generally face tax consequences 1 when they are rewarded with cryptocurrency for performing mining activities, and 2 when they sell or exchange the reward tokens.

With respect to 1 , the IRS has issued Notice which directly addresses the tax implications of crypto mining. Under the Notice, a miner will recognize gross income upon receipt of the reward tokens in an amount equal to the fair market value of the coins at the time of receipt. If the taxpayer employs miners in the ordinary course of his trade or business, the taxpayer is subject to more tax compliance requirements in the form of federal withholding and issuing the employee a Form W-2 every taxable year.

An example may crystalize the concepts outlined in the Notice above. Additionally, under both circumstances, Adam will be subject to self-employment taxes and be required to remit estimated tax payments on a quarterly basis. A miner will trigger a second taxable event upon the sale of the reward tokens, with the amount of gain or loss equaling the difference between the sales price and the gross income recognized by the taxpayer when he or she initially received the coins in exchange for performing mining activities.

Since Adam held the three Bitcoins for more than year, his gain would be subject to the more preferential long-term capital gains tax rate. Ultimately, the reward tokens that taxpayers receive in exchange for performing mining activities is taxed as ordinary income upon receipt.

The received tokens are also subject to self-employment or payroll taxes, depending on whether the taxpayer is mining as a trade or business, independent contractor or an employee. A taxpayer will trigger another taxable event when he or she ultimately sells the reward tokens, which is subject to short-term or the more preferential long-term capital gain rates, depending on the holding period of the tokens. See more ». This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks.

By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies. Taxation of Crypto Mining. Jason Freeman. To embed, copy and paste the code into your website or blog:. Overview of Mining Miners play a critical role in securing cryptocurrency networks, with Bitcoin being the most prominent example. Tax Implications of Mining Crypto miners will generally face tax consequences 1 when they are rewarded with cryptocurrency for performing mining activities, and 2 when they sell or exchange the reward tokens.

The Takeaway Ultimately, the reward tokens that taxpayers receive in exchange for performing mining activities is taxed as ordinary income upon receipt. Send Print Report. Freeman Law. Published In: Bitcoin Mining. Capital Gains Tax. Digital Currency. Income Taxes. Virtual Currency. Freeman Law on:. Sign Up Log in.



Kazakh Crypto Miners Cut Off From Electricity Supply Until End of January

By Dave Lieber. The city of Denton has leased 31 acres of vacant land next to its gas-fired energy plant to a cryptocurrency mining company. The secretive agreement requires that no news releases be sent out describing the deal, unless special permission is given. The Watchdog will fill you in. City officials say that when the operation opens in the coming months, the amount of electricity used by Denton Municipal Electric customers will suddenly double. Officials say it will stabilize rates for all its customers and not put any further strain on the fragile Texas electric power grid.

The Australian government has just recognized digital currency as a legal payment method. Since July 1, purchases done using digital currencies such as bitcoin.

Russian authorities draw up 'road map' to regulate cryptocurrencies

Amid the crypto boom, mining has become an extremely lucrative venture for many and critical to maintaining decentralized cryptocurrency networks. It is no surprise then that mining has been subject to IRS scrutiny and enforcement. But how is mining taxed? Are the tokens received by taxpayers as rewards for their mining activities deemed to be capital or ordinary gain? Fortunately, the IRS has released detailed guidance on this front in the form of a notice it originally issued in , but which the Service updated this year amidst a skyrocketing crypto market. In this posting, we will provide a general overview of the tax implications of crypto mining , including the taxation of reward tokens and tax reporting considerations. Taxpayers engaged in such activities should generally be aware of how mining should be taxed, especially in light of increased IRS attention to cryptocurrencies. Miners play a critical role in securing cryptocurrency networks, with Bitcoin being the most prominent example.


Security 101: The Impact of Cryptocurrency-Mining Malware

digital currency mining news

The negative environmental impact of cryptocurrencies such as Bitcoin has been widely covered in the press in recent weeks and months, and their volatility has also been flagged as a cause for concern. Nevertheless, the UN believes that blockchain, the technology lying behind these online currencies, could be of great benefit to those fighting the climate crisis, and help bring about a more sustainable global economy. This process requires so much energy, that the Bitcoin network is estimated to consume more energy than several countries, including Kazakhstan and the Netherlands. And, as fossil-fuelled power plants still make up a major portion of the global energy mix, Bitcoin mining can be said to be partly responsible for the production of the greenhouse gases that cause climate change although, so far, the impact on the climate is far less than that of heavy hitters such as the agriculture, construction, energy, and transport sectors.

Siblings Ishaan and Aanya Thakur first learnt about cryptocurrencies from their father Manish Raj, a former Wall Street investment banker, who would tell them about alt coins over dinner and at bedtime.

China’s crypto crackdown sparks Thai crypto-mining boom

Still, Pongsakorn, 30, has been able to sell hundreds of units across Thailand as small players jump into cryptocurrencies as China cracks down on the lucrative market. The biggest packed up and shifted operations to the United States — particularly Texas — Malaysia, Russia and Kazakhstan among other countries. That created an opportunity for entrepreneurs like Pongsakorn, who was on hand to whisk the unwanted gear — mainly the Bitmain Antminer SJ19 Pro — from Shenzhen to Thailand. Their ranks include people chasing a stable income during the pandemic, but also investors who believe in the future of digital assets. Many bigger Thai investors are closely watching neighbouring Laos, which is tacitly embracing the rise of cryptocurrencies.


EPA tackles coal-to-crypto industry trend

Times Internet Limited. All rights reserved. For reprint rights. Times Syndication Service. Cryptocurrency mining is causing power shutdowns in Kazakhstan, and China may be to blame Advertisement. Marcia Sekhose. The reason behind the sudden boom in cryptocurrency mining in Kazakhstan is said to be due to the crypto ban in China earlier this year.

1 digital currency sharply lower. Image: KOSOVO-ELECTRICITY-CRYPTOCURRENCY-BLOCKCHAIN-MINING. A Bitcoin cryptocurrency symbol displayed at a.

Crypto Mining Poses Challenges to Public Power Utilities

Unrest in the central Asian country — the second-largest centre for mining of the cryptocurrency — led to an internet blackout. Bitcoin took a hit on Thursday after the internet in Kazakhstan was shut down amid intensifying violence. The central Asian nation in recent days has been rocked by violent clashes between protesters, police and the army.


Kosovo seizes hundreds of cryptocurrency mining devices

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We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. To learn more or opt-out, read our Cookie Policy. Congress members sent a letter to companies mining Bitcoin in the US. Democratic lawmakers are pushing Bitcoin mining companies in the US to divulge how much electricity they use in an effort to assess how that will impact nearby residents and the environment. Eight members of Congress sent letters yesterday to six companies that mine Bitcoin in the US asking them about the energy and environmental impact of their operations. The congresspeople asked the companies to answer questions about how much electricity they use, where it comes from, and how they plan to grow in the US.

Due to cheap power prices in Kosovo in recent years, many young people in Kosovo have got involved in crypto mining. Faced with coal-fired power plant outages and high import prices authorities were forced last month to introduce power cuts.

With the establishment of cryptocurrency, the era of a new means of payment has been ushered Crypto Mining in. We started with Bitcoin, which was first described in by the Japanese Satoshi Nakamoto in the Bitcoin white paper. His idea: The establishment of a digital currency. This should be organized decentrally, i. The maximum number of Bitcoins should be limited to a total of 21 million, in order to exclude inflation from the outset. Unlike central banks, however, Bitcoin units are not printed like banknotes, for example, but can only be generated digitally by computing power. These are then lined up in a linear sequence and linked together via a decentralized peer-to-peer network.

Here's What Investors Should Know. Ethereum Just Hit a 6-Month Low. Upgrade Bitcoin Rewards Card: 1.


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