Investing.com – Cryptocurrency prices inched up and Bitcoin rallied past the $3,500 mark on Tuesday, despite news that Bulgaria’s tax regulator plans to investigate digital currency companies.

Bulgaria is the latest to join a host of countries making sure virtual currency companies are paying taxes, as countries struggle to regulate the alternative asset.

Bitcoin rallied 3.58% to $3,641.00 on the Investing.com Index, as of 8:47 AM ET (13:47 GMT).

Cryptocurrencies overall were higher, with the total coin market capitalization at $123 billion at the time of writing, compared to $118 billion on Monday.

Ethereum,or Ether, rose 9.5% to $128.56 and Litecoin was at $32.12, up 6%, while XRP increased 4% to $0.33051.

Bulgaria’s National Revenue Agency plans to investigate companies in the country that sell crypto, the agency announced on Monday. The agency will look at the companies taxes, as well as platform users. Any profit from the sale of digital currencies is considered income under Bulgarian law.

Other tax agencies have also considered taxing digital coins, including countries at the G20 meeting in Buenos Aires. On Monday Denmark’s tax agency announced it would collect information on digital currency trades from exchanges, including names, addresses and personal tax numbers. Japan has also put in measures to track cryptocurrency earnings.

In other news, New Zealand-based exchange Cryptopia is in maintenance mode after it sustained a security breach “which resulted in significant losses,” the exchange wrote on Twitter. The company has contacted local police to investigate the issue. No other information on the attack was available.

Security breaches are one of the biggest challenges facing digital currency exchanges.

Like this: Like Loading...