Bitcoin

Alto Global Processing: Canadian Bitcoin Processor Nets $8.5 Million Round

alto global processing-Canadian-Bitcoin-Processor-Nets-8pt5-Million-RoundVogogo, a Canadian e-commerce processor based in Calgary, said last week it has secured an $8.5 million round of financing that will enable it to expand its recent success in processing bitcoin and other cryptocurrencies in Canada to the U.S. and other countries around the world. The 13-year old company said it handles $6 to $10 million in cryptocurrency-based transactions monthly and that its dedication to “[meeting] strict compliance and risk mitigation requirements of conventional banks and regulators” will help bitcoin shed any negative perception that remains.

“We had been watching Bitcoin and crypto currencies closely. As a payments company we were very intrigued by the potential of Bitcoin,” said Vogogo Co-Founder Geoff Gordon. “We watched several crypto groups enter the Canadian market, have a lot of success only to then be shut down by their bankers due to payment-related fraud and/or no compliance structure. We put the Vogogo platform in front of a few crypto groups to resounding success in Canada. We are now adjusting our platform to scale these services and we will be replicating the service in the U.S., EU and other target markets.”

Cormark Securities led the funding round with participation from Salman Partners Inc., Clarus Securities Inc., Beacon Securities Limited and Canaccord Genuity Corp.

Source: http://cardnotpresent.com/news/default.aspc?id=6234

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For more information on this please feel free to contact Luca Bizzotto, CEO of Alto Global Processing

Please visit Alto Global Processing

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Alto Global Processing: IRS DEEMS BITCOINS TAXABLE PROPERTY

Senior Analyst at PYMNTS.com
Bitcoin collecting and use just got a lot more complicated, thanks to a March 25 IRS notice classifying bitcoins as property and not currency. As such, it imposes a huge record-keeping burden on anyone who is dealing in bitcoins.

According to the IRS, general tax principles that apply to property transactions apply to transactions using virtual currency. Among other things, the notice imposes a huge record-keeping cost on anyone dealing with bitcoins.

“Anytime you buy or sell you have an IRS record-keeping obligation,” David Evans, chairman of Global Economics Group, tells PYMNTS.com in commenting on the IRS notice. “Obviously, they are only going to enforce that selectively, but people that are heavily into this will have issues.”

The IRS decision also provides what Evans believes is a real impetus to using bitcoins only for things that are only denominated in bitcoins. If a website offers “stuff” that is only priced in bitcoins, then it would be hard to argue that there’s been appreciation, he said.

Still, the IRS created some major headaches for many bitcoin users. “It imposes huge paperwork requirements; every time you pay with an appreciated bitcoin, you face a tax liability,” he said. “And it means you have to pay your personal income tax rate of about 10 percent to 40 percent (more if state taxes apply) if you’ve held the appreciated bitcoin for a year or less.”

Most people, Evans suggested, will ignore the IRS rule, and merchants don’t have to worry about taxes if they are using a bitcoin wallet provider that pays them in real currencies. Still, this provides a strong incentive to hold on to one’s bitcoins if the belief is they will appreciate. That way, the holder is liable only for long-term capital gains instead of using them for transactions, he said.

“For people in the with paper losses, it might provide an incentive to dump them and get the tax write-off,” Evans added.

To read the full IRS notice, click here.

Source: http://www.pymnts.com/in-depth/2014/irs-deems-bitcoins-taxable-property/#.UzMlNa1dWSo

For more information on this please feel free to contact Luca Bizzotto, CEO of Alto Global Processing Please visit Alto Global Processing

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Alto Global Processing: Zynga Piloting Bitcoin Payments

While the value of Bitcoin has taken a hit recently as a result of action by the Chinese government to restrict its use, gamers who use the virtual-currency got a boost on Friday when it was revealed that Zynga would begin piloting Bitcoin payments. The online game developer said in a Reddit post that it is partnering with virtual currency processor BitPay to make Bitcoin payments available for some of its most popular games.

Zynga Piloting Bitcoin Payments

“In response to Bitcoin’s rise in popularity around the world, Zynga, with help from BitPay, is testing expanded payment options for players to make in-game purchases using Bitcoin,” the game publisher wrote in its post. “The Bitcoin test is only available to Zynga.com players playing FarmVille 2, CastleVille, ChefVille, CoasterVille, Hidden Chronicles, Hidden Shadows and CityVille.”

In BitPay, Zynga has partnered with a growing virtual-currency processor that reported its busiest month ever in November.

 

 
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