Saturday, March 29, 2014

Bitcoin Prices Hug $500 in Rangebound Weekend Trading



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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