17.04.201808:43 Forex Analysis & Reviews: Bitcoin analysis for 17/04/2018

The Russian government reportedly prepared a review of the bill "On digital financial assets", specifying that the exchange of cryptocurrencies for fiat currency for more than 600,000 rubles (or about $9,600) or its foreign counterpart is subject to mandatory exchange regulation.

According to Anatoly Aksakov, head of the Financial Market Committee, this review has not yet been presented to the State Duma. Forklog notes that Russian banks are already monitoring transactions worth more than 600,000 rubles to prevent money laundering and terrorist financing. The latest version of the bill on digital financial assets, submitted to the State Duma on March 20, 2018, defines cryptographic tokens as digital financial assets that can be traded only on authorized cryptocurrency exchanges and defines the details of KYC regulations for initial coin offers (ICO). The version of the law of March 20 would also require verification of user accounts on AML cryptographic exchanges and financing of terrorism (CTF). Stock market operators should be subject to art. 5 of the Federal Law 115-FZ (against AML and CTF), otherwise it will threaten to lose the license - in accordance with the Russian Federal Financial Monitoring Service.

Yuri Pripachkin, president of the Russian Cryptocurrency and Blockchain Association (RACIB), said the latest version of the law, which requires that cryptographic transactions be subject to banking control and Federal Financial Control, may cause Russian investors and cryptocurrency developers to leave the country to work in a more friendly way places. Moreover, the latest bill does not mention taxes on profits from cryptocurrencies. However, due to the fact that it classifies cryptocurrencies as a property - it is not a sanctioned payment system in Russia - the government also wants to tax transactions involving digital assets.

According to Teimuraz Waszakmadze, an associate professor at the Russian Presidential Academy of National Economy and Public Administration, a 13% personal income tax could be imposed on cryptocurrency traders, although the anonymity of transactions may make it difficult to do: "If they do not report that they have bought and sold Bitcoins, no one will know about it, so many people will not voluntarily declare such income".

According to RACIB, "CryptoRuble" - the state cryptocurrency of Russia, will most likely be launched in mid-2019.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The impulsive cycle has completed at the level of $8,355 and now the market is in the internal corrective cycle. So far the weekly pivot at the level of $7,819 is providing enough support for the price, but it is likely the level of $7,442 to be tested soon. The next target for bulls is seen at the level of $9,134.The current impulsive scenario is valid as long as the level of $6,402 is not clearly violated.