2 months ago
Cryptocurrency News

Bitcoin Rallies; Bulgaria’s Tax Agency to Investigate Crypto Companies

Investing.com - Cryptocurrency prices inched up and Bitcoin rallied past the $3,500 mark on Tuesday, shrugging off news that

Investing.com - Cryptocurrency prices inched up and Bitcoin rallied past the $3,500 mark on Tuesday, shrugging off news that Bulgaria’s tax agency plans to investigate digital currency companies.

Bulgaria is the latest to join a host of countries making sure that investors in virtual currencies - whether individuals or companies - are paying taxes properly.

Bitcoin rallied 3.58% to $3,641.00 on the Investing.com Index, as of 8:47 AM ET (13:47 GMT).

Cryptocurrencies overall were higher, with the total coin market capitalization at $123 billion at the time of writing, compared to $118 billion on Monday.

Ethereum rose 9.5% to $128.56 and Litecoin was at $32.12, up 6%, while XRP increased 4% to $0.33051.

Bulgaria’s National Revenue Agency plans to investigate companies in the country that trade cryptocurrencies, the agency announced on Monday. The agency will look at the companies' taxes, as well as platform users. Any profit from the sale of digital currencies is considered income under Bulgarian law.

Other tax agencies have also considered taxing digital coins. G20 leaders, whose countries account for over 90% of world GDP, said at their summit in December that they would regulate them to stop money-laundering and would "consider other responses, as needed".

On Monday Denmark’s tax agency announced it would collect information on digital currency trades from exchanges, including names, addresses and personal tax numbers. Japan has also put in measures to track cryptocurrency earnings.

In other news, New Zealand-based exchange Cryptopia is in maintenance mode after it sustained a security breach “which resulted in significant losses,” the exchange wrote on Twitter. The company has contacted local police to investigate the issue. No other information on the attack was available.

Security breaches are one of the biggest challenges facing digital currency exchanges.