Bitcoin prices are trading close to the important $500 support level
this weekend. Earlier in the day, BTC/USD hit a high of $506.91 on BTC-E before
pulling back. The lowest low this Saturday stands at $492.52. The fledging
virtual currency is currently trading at $499.80 on BTC-E, compared to $498 on
BitStamp.
There is still no official reaction from the People’s Bank of China on
the deposit ban rumors posted two days ago. Charlie Lee, CEO of BtcChina was
quoted as saying that, if the initial notice by the PBOC was meant to be kept
private, we may never get an official confirmation of its validity by the Bank.
However not all jurisdictions are hostile to bitcoin. The Financial
Supervision Commission of the Isle of Man, a self-governing British Crown
dependency, just issued a favorable ruling on cryptocurrency regulation. According to the new rules, a bitcoin
exchange that holds client funds with a licensed overseas payment service
provider is not required to obtain a license in the country. The commission
however warns potential investors that: ‘’it is possible legislation could
be amended in the future to bring the proposed activities within regulated
activity and/or to make the activity subject to the AML Code and thus subject
to the draft Designated Businesses (Registration and Oversight) Bill 2014’’.
The Isle of Man boasts a low tax burden compared to its neighbors.
Individuals are taxed at 20% to a maximum of £115,000 per year, £230,000 for
couples if they choose to have their incomes jointly assessed. Most businesses pay no corporate
tax, banks pay 10%.
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