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IRS Introduces New Form 1099-DA for Reporting Income from Digital Asset Transactions | IDOs News

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A preview of the new Form 1099-DA, a tax form that will be used by cryptocurrency brokers to record transactions involving digital assets, has been made available by the Internal Revenue Service (IRS) of the United States of America. As part of the continuous efforts of the Internal Revenue Service (IRS) to enhance compliance and guarantee that taxpayers appropriately report their income from digital assets, this form has been developed.

By the beginning of the year 2025, it is anticipated that Form 1099-DA will be in use. Brokers will be responsible for preparing this form for each client who sells or trades digital assets. According to the form, brokers will be required to disclose certain information, which may include token codes, wallet addresses, and places where blockchain transactions are taking place. It will be possible for the Internal Revenue Service to identify taxpayers who have transactions that may be difficult to detect via standard ways of information reporting if this level of reporting is implemented.

It is clear that the Internal Revenue Service is committed to resolving the tax consequences of transactions involving digital assets, as seen by the issuance of Form 1099-DA. According to the Internal Revenue Service (IRS), the purpose of mandating that brokers record these transactions is to guarantee that taxpayers correctly report their income and pay the required taxes on their activities involving digital assets.

The rising significance of cryptocurrencies, nonfungible tokens (NFTs), and stablecoins in the financial landscape is reflected in the decision made by the Internal Revenue Service (IRS) to list these digital assets as reportable assets on Form 1099-DA. Having a comprehensive grasp of the digital asset transactions that taxpayers engage in is very necessary for the authorities in charge of taxation, given the continued growth in popularity and utilisation of cryptocurrencies.

Among the crucial data elements that are captured by the draft form are the date of acquisition, the date of sale, the proceeds, and the cost basis of the crypto assets that were sold. For taxpayers to correctly submit their cryptocurrency tax filings, it is vital for them to have these information. Furthermore, the form has a checkbox labelled “unhosted wallet provider,” which serves as an indication that the Internal Revenue Service intends to include unhosted wallets within the definition of a broker. When generating unhosted wallets or engaging with platforms using unhosted wallets, users may be required to give know-your-customer (KYC) information as a result of this shift.

Despite the fact that the draft form offers helpful insights into the reporting requirements, it is essential to keep in mind that it may be subject to modifications as a result of the input that would be received during the comment period. Through its website, the Internal Revenue Service (IRS) welcomes members of the public to provide feedback on draft or final versions of forms, instructions, or publications.

As a conclusion, the issuance of Form 1099-DA by the Internal Revenue Service represents an important milestone in the process of regulating and reporting revenue from transactions involving digital assets. Through the requirement that brokers record these transactions, the Internal Revenue Service (IRS) hopes to promote compliance and guarantee that taxpayers appropriately report the income they get from digital assets. In order to prevent possible fines or audits, it is essential for taxpayers to be knowledgeable about their reporting responsibilities for digital assets, since the landscape of digital assets continues to undergo continuous change.

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Sei Community Airdrop: 27 Million SEI Tokens Distributed to Active Users | IDOs News

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Sei, the blockchain platform known for its high performance and parallelized EVM, has announced the distribution of 27,421,200 SEI tokens through its second airdrop. The event targets 43,052 unique addresses, rewarding those who have been actively participating in the Sei ecosystem since its Pacific-1 Mainnet launch.

Background

Since the launch of Sei’s Pacific-1 Mainnet last August, over 100,000 addresses have played a crucial role in securing the network by delegating their voting power. This participation has fostered a thriving economy, with primary activities revolving around the exchange and creation of NFTs. To date, the platform has seen half a million individual NFT purchases, generating tens of millions of SEI in volume.

Sei v2, the latest iteration, further enhances the platform by introducing the first highly performant, parallelized EVM blockchain. This new scaling approach is designed to bolster the Ethereum ecosystem, offering the fastest time to finality of any blockchain currently available.

How the Airdrop Works

The Sei Foundation’s second airdrop focuses on rewarding active users and participants within the Sei ecosystem. Eligible users can check if their wallet addresses qualify by visiting the airdrop app. If eligible, users must connect their wallets and agree to the terms of use to receive their tokens. The deadline for this process is aligned with the commencement of “Phase 3” of the Sei v2 launch, which is scheduled in the coming weeks.

Importantly, the Foundation has cautioned users that no further interactions are required once eligibility is confirmed. Tokens will be sent directly to eligible addresses at the start of Phase 3. Users are advised to ignore any websites claiming to assist in token claims.

Airdrop #2 Allocations

The allocation for Airdrop #2 is designed to reward users based on their involvement in staking, liquid staking, and participation in top NFT communities. Points were assigned based on specific criteria, with snapshots taken on key dates to determine eligibility. Notably, addresses with excessive holdings were excluded to maintain fairness.

Specifically, the criteria included:

  • Staking up to 2,000,000 SEI
  • Holding up to 2,000,000 liquid staked SEI tokens
  • Owning up to 150 NFTs from the top 8 collections by volume

Sei core contributors and wallets associated with the Sei Foundation or Labs are not eligible to participate in this airdrop. The Foundation has emphasized that this distribution is exclusively for the Sei community members who have actively engaged with the platform.

Users are encouraged to participate in the ecosystem by building on Sei, exploring various projects, or engaging with the community on platforms like Discord.

The official Sei Twitter account will announce the start of Phase 3 and the distribution of tokens. Eligible users must ensure they agree to the terms on the airdrop app to receive their SEI tokens from the Foundation.

For further details on the Sei Community Airdrop, visit the original announcement.

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Binance Expands Loanable Assets for Flexible Rate and VIP Loans | IDOs News

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Binance Introduces New Loanable Assets

Leading cryptocurrency exchange Binance has announced the addition of new loanable assets to its Binance Loans (Flexible Rate) and VIP Loan services, according to Binance.com. This expansion aims to provide users with more options and flexibility in managing their digital assets.

Details about Binance Loans (Flexible Rate)

Binance Loans (Flexible Rate) is a dynamic loan product allowing users to borrow cryptocurrencies by collateralizing assets in their Simple Earn Flexible Products subscriptions. This service offers the advantage of not requiring a fixed loan term, providing users with greater flexibility. Loan rates are updated every minute, and users can start with a minimum loan amount of 1 USDT equivalent. Additionally, users can earn Real-Time APR rewards through Simple Earn Flexible Products while managing their loans.

Insights into Binance VIP Loan

Binance VIP Loan is designed for large personal and institutional borrowers, offering competitive rates, terms, and services. This over-collateralized loan service is aimed at providing greater liquidity for long-term investment funds, leveraged trading, and hedging strategies. Users interested in this service can contact the Binance VIP Key Account Coverage team for more details.

Important Considerations

  • Users are advised to refer to the latest interest rates and a complete list of loanable and collateral assets on the Loan Data and VIP Loan pages.
  • To place new Binance Loans (Flexible Rate) orders via the Binance App, users must upgrade to at least iOS v2.78.0 or Android v2.78.0. Older versions do not support the placement of new orders.
  • For the most accurate information, users should refer to the original English version of the announcement, as there may be discrepancies in translated versions.

Conclusion

This update from Binance highlights its commitment to enhancing user experience by expanding the range of loanable assets and offering more flexible loan options. Users are encouraged to stay informed and leverage these new services to better manage their cryptocurrency investments.

Disclaimer: Digital asset prices are subject to high market risk and price volatility. The value of investments may fluctuate, and past performance is not indicative of future results. Users should consult an independent financial adviser and carefully consider their investment objectives before making any decisions.

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BitTorrent (BTT): Halving of BTFS Storage Rewards | IDOs News

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BTFS Announces Halving of Storage Rewards

To sustain the growth and success of the BitTorrent (BTT) ecosystem, BTFS is set to implement a halving on the next round of rewards for storage miners. According to BitTorrent Inc., from 00:00 (UTC) June 25, 2024, the daily rewards for storage miners on the BTFS network will be halved from 15 billion BTT to 7.5 billion BTT.

Understanding BTFS

The BitTorrent File System (BTFS) is a decentralized file storage system that utilizes blockchain technology and peer-to-peer transmission. It allows users to store their files across multiple nodes in a distributed manner, enhancing file security and reliability. BTFS also offers rapid file transfer and access, giving users greater convenience in managing and sharing files. By integrating key features of the BitTorrent Chain (BTTC), such as cross-chain connectivity and multichannel payment options, BTFS significantly enhances user experience.

Current Network Status and Growth

Currently, the BTFS network is experiencing rapid growth with over 8 million nodes across the network, including more than 6 million super miners, according to BTFS SCAN. To support the efficient operations of these nodes, BTFS initiated a rewards program and has provided an aggregate of 25 trillion BTT since the launch of BTFS Mainnet in 2019.

Every two years, the BTFS rewards halving will occur, causing the rewards for all storage miners across the network to be cut in half. This halving mechanism aims to sustain the long-term growth and stability of the BTFS network.

Impact of Halving

The halving will prompt miners to improve node performance by optimizing node operation and reducing waste. In addition, an upgrade of the official website for the BTFS technical community and the release of BTFS v3.0.0 Mainnet will be scheduled in sync with the halving. These developments are expected to improve the efficiency of the BTFS protocol, expand the user base, and enhance its overall functionality.

Future Plans

Looking ahead, BTFS is committed to continuously refining its storage rewards strategies. The goal is to expand the network of nodes participating in file storage on BTFS, providing developers with an efficient, secure, and reliable storage solution, boosting both the capacity and the transaction efficiency of the BTTC network.

About BTFS

The BitTorrent File System (BTFS) is both a protocol and a web application that provides a content-addressable peer-to-peer mechanism for storing and sharing digital content in a decentralized file system, as well as a base platform for decentralized applications (Dapp). The BTFS team has been working on the latest network operations and BTT market sentiment, among other factors, to make a series of dynamic adjustments such as upload prices and airdrop reward schemes.

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