Interpretation of the market | Exemption from goods and services tax, is the encryption pass officially recognized?

Interpretation today

The Singapore Revenue Agency (IRAS) proposes to exempt the Goods and Services Tax (GST) from cryptographic transactions that are designed to provide transactional media functions.

Last Friday, the Singapore Revenue Agency issued a draft e-tax guide that dealt with what it called a “digital payment pass” in an attempt to exempt goods and services taxes from such digital asset entities.

If the draft can be passed, it means that from January 1, 2020, in order to "better reflect the characteristics of digital payment certificates", the following changes will occur:

1) The use of digital payment certificates to pay for goods and services will not cause the supply of certificates (issued);

2) The transaction between the legal currency and the digital payment certificate, or the digital payment certificate and other digital payment certificates will be exempted from the Goods and Services Tax.

IRAS said that the draft e-tax guide is still only a draft, and the Ministry of Finance will publicize the “Digital Payment Pass Legislative Amendment” from now until July 26.

The draft e-Tax Guide defines the digital payment pass as follows:

1) There is a minimum payment unit;

2) interchangeable;

3) Not linked to any legal currency;

4) may be transferred, stored or traded electronically;

5) It is (or is intended to be) an exchange medium accepted by the public or the public sector.

IRAS added to the proposal that examples of compliance with the definition of digital payment pass are: BTC, ETH, LTC, Dash, Monero, Ripple, and Zcash.

On the other hand, stable currencies, including USDT, and Libra, which is about to be released by Facebook, are not included, because such a pass is attempted to be linked to the legal currency and may not meet the exemption of goods and services tax.

IRAS said that such efforts have been made to follow the position of global regulators triggered by the rapid development of the certification market.

The Singapore government has always had a relatively friendly attitude towards the encryption industry and is the main reason for the prosperity of the country. According to the South China Morning Post, it is claimed that the world's largest Ethereum wallet imToken is planning to move its headquarters to Singapore to expand its influence.

Market research

Overall view

Today, the main circulation certificate continues to oscillate and sort out the market. From the perspective of the daily level, the BTC has a yin-yang. From this technical point, it can be seen that the market is in a volatile range, and it is necessary to pay attention to the market changes that may come at any time. In the short-term, the sideways market will continue for a while. In the long run, our overall view remains: the bull market has plummeted, and the callback is a good opportunity for jiacang.

From the daily chart, today's BTC price rises above the 5th and 10th moving averages, and the Bollinger Bands contract inwardly, forming a range of volatility. The 5-day moving average began to level off, the 10-day moving average dropped, and the MACD continued to move downwards on the 0-axis, reflecting the recent capital flight. In the short term, the price fluctuated greatly. In the long run, the rising trend of the daily line level remained unbroken, and the bull market continued. The support level is 10800 and the pressure level is 11600.

ETH and BTC are weakly linked, and have the leading potential, with support at 285 and pressure at 310.

EOS and ETH linkage, support level 5.7, pressure level 6.0.

risk warning

The price of digital pass is fluctuating violently. Investment digital pass is a high-risk investment behavior. Investors should reasonably assess their investment ability and risk tolerance, use leverage carefully, strictly control risks, and invest carefully. Investors are advised to keep in mind that investments are risky and require caution when entering the market.


Personal opinions are for reference only. The analysis in the text does not constitute a recommendation for trading, and the profit and loss is self-sufficient. Welcome to reprint, but need to indicate the source.


Source: Coin full market analysis team

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