bitFlyer, moving toward SFD system revision! Rule changes can also become a risk!
Hello everyone, this is SFD! This week as well, no trades, just watching.@xi10jun1.
Last week, an announcement was made about revisions to SFD in bitFlyer Lightning FX, but it appears not implemented yet.
We’ll keep watching, but we’re not sure when it will be implemented.
※This column is designed so that half of it is free to read, a collection of good-willed content. Of course, it would be very encouraging if you read the paid portion (updated weekly at 400 yen per month, so about 80–100 yen per column), and I’d be happy if you subscribe as a tipping-like support!
This week’s performance (February 23, 2018 to March 1, 2018)
First, as usual, the performance. I’ll announce the gains and losses first.
- Last week (through February 22, 2018) assets: 62,218 yen
- This week (through March 1, 2018) assets: 62,218 yen
- Change: +0 yen
This week also no trades continued. Because we didn’t know when or at what timing the SFD revision would be implemented.
Avoid unnecessary risk above all, but at least we would like information like the planned implementation date, even if just a number of days.
So this time, I will clearly state the risks of such changes in exchange rules.
Risks of Rule Changes
Cryptocurrencies involve not only price movement risk but also exchange risk, such as rule changes.
When you hear exchange risk, you might think of bankruptcies like Mt. Gox, but there are other risks too, such as changes in terms of use (some companies also have system risks).
Changes to rules like SFD, stop-loss rules, leverage increases/decreases, etc., will be made as needed for using the exchange.
How the market perceives those changes can cause large price increases or decreases.
For example, when an announcement about SFD revision was made on bitFlyer, prices on Lightning FX dropped sharply. It seems selling pressure spread to Zaif as well.
There are probably people who profit from arbitrage, but it’s also quite possible to incur losses due to such rule changes, so beware.
Free summary: Rule changes will continue
Recently, GMO Coin’s rule changes were a hot topic. Multiple changes within a short period hurt traders’ reputations.
We’d like to use a calm exchange, but on the other hand, tools can be hard to use or there may be no currencies to trade, making things not go smoothly.
I found bitFlyer’s Lightning FX easy to use, so I hope the SFD revision can be implemented soon.
So, this paid column will discuss the future prospects.
End-of-section 1: Latest tax information! Updated February 9, 2018!
The National Tax Agency’s site has updated its latest legal opinions regarding Bitcoin.
That one is here →No.1524 Taxation on profits from using Bitcoin | Income Tax | National Tax Agency
December 1, 2017 Update: A document about how to calculate income was posted on the NTA site.
That one is here →Calculating income from virtual currencies, etc. (pdf) | National Tax Agency
※Please note that changes in laws or tax interpretations may alter how you file tax returns or pay taxes. Before filing, be sure to confirm with your local tax office or a tax professional.
February 9, 2018 Update: In addition, services that can help calculate cryptocurrency taxes are appearing here and there. BitFlyer released a service called CRYPTACT that can compute profits from trading histories.
BitFlyer release →“Renewal of Transaction Report” and notice about taxes on Bitcoin and other cryptocurrencies (pdf)
CRYPTACT here →https://tax.cryptact.com/
CRYPTACT is free to use and supports 15 exchanges (domestic: bitFlyer, Zaif, bitbank, coincheck, GMO Coin; overseas: binance, bitfinex, bittrex, changelly, CoinExchange, cryptopia, HitBTC, kraken, poloniex, Quoine) and 1,680 cryptocurrencies, allowing cross-exchange cryptocurrency income calculations.
However, as noted in BitFlyer’s release, the results of using the service for tax filing are not the responsibility of any exchange operator, Cryptact, EY Tax Corp, or me. Please file your taxes at your own risk.
End-of-section 2: In planning
I’m thinking of writing about new cryptocurrency news and information, but I haven’t come up with anything yet. I’ll post it here as soon as a plan is decided!
※Free content ends here. From here on it’s detailed analysis and future prospects, so it’s paid. If you want to read more, or even as a tip, I’d greatly appreciate your continued support!
