Crypto roundup: Basis stablecoin closes down, Japan mulls crypto taxes, Bitmain scales back

In Insight

A roundup of interesting news items from across the crypto space.

Basis to close its doors

Basis, a large US-based stablecoin project, is closing down and refunding investors most of the USD133 million that was raised.

Basis was going to be a stablecoin that maintained price by utilizing complex algorithms controlling the supply in response to demand for the token.

The model used three different tokens to ensure stability: the Basis token, a bond token and a share token. The bond token was to pay dividends, but this in itself proved problematic.

Cryptocurrency regulations are tightening and there was no way the token would not be classified as a security by the SEC, which would limit the potential of the Basis token and detract from the decentralized aspirations of the project.

Japan mulls crypto taxes

In October the Japanese Government hinted that it would make it easier to pay taxes on cryptocurrency investments. Now, lawmaker Takeshi Fujimaki has proposed four policy changes involving digital assets markets:

  • Reduce the taxes paid on crypto gains from the maximum amount of 55% to 20%;
  • Introduce the ability to carry forward losses on cryptocurrencies to be deducted from future profits in following years;
  • Make any profits made trading between two virtual tokens tax exempt; and
  • Exempt cryptocurrency payments from sales tax.

Should they be approved, these change could make a huge impact on the cryptocurrency market in Japan.

Bitmain shuts down development center

Bitmain, one of the largest players in Bitcoin mining, has closed its blockchain development center in Israel.

The development center was initially set up in 2016, but has fallen victim to the bear market.

As a result of the current market conditions, Bitmain has had to restructure priorities to remain profitable. 

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