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Is Bitcoin Legal In Texas

Texas Security Regulators Clamp Down On Bitcoin Mining Scheme

Texas Security Regulators Clamp Down On Bitcoin Mining Scheme

Texas security regulators clamp down on Bitcoin mining scheme Published 12:06pm, Thursday, December 21, 2017 The shift toward cryptocurrencies in Venezuela is taking place as the price of bitcoin has climbed to a peak of more than $17,000 this month. The shift toward cryptocurrencies in Venezuela is taking place as the price of bitcoin has climbed to a peak of more than $17,000 this month. Texas security regulators clamp down on Bitcoin mining scheme Texas security regulators warned consumers about investing in USI-Tech Limited, a Dubai-based firm promoting low-risk, high-return investments tied to Bitcoin, an unregulated form of virtual currency. The Texas State Securities Board issued a cease and desist order this week against the overseas company for selling investment contracts to mine Bitcoin, referring to the significant computer power and energy consumption it takes to track Bitcoin trading activity. The agency said that USI-Tech and two U.S.-based sales agents are soliciting investors in Texas through Craigslist advertisements, YouTube videos and websites. France among six EU countries agreeing to take passengers from migrant ship Euronews Why Tech Giants Are Getting Into Finance Cheddar TV Hilarious Woman Freaks Out After Wisdom Teeth Removal Storyful Cooking with FOX 7: Frito Pie Meatloaf Fox7 Harlem Globetrotters in Central Texas Fox7 Best Buy Soccer and Lacrosse Fox 13 Tampa Orlando's craft beer scene shows no signs of going flat Orlando Sentinel Is This the End of the FAANG Rally? Cheddar TV Donation bin to support schools stolen from Burger King WCVB FAANG Stocks Up, But Could Be Impacted By Growing Trade Tensions Cheddar TV Neither the company or its sales agents could be immediately reached for comment. State regulators allege that USI-Tech claims its B Continue reading >>

Everything You Wanted To Know About Bitcoin

Everything You Wanted To Know About Bitcoin

Everything You Wanted to Know About Bitcoin What are Bitcoins and how can you get some? Heres an introductory guide to Bitcoins to help answer these questions and more! It is a form of money that is entirely digital. In other words, if the U.S. has dollars, and Europe has Euros, the internet has Bitcoins. But the fact that Bitcoin is digital isnt the most interesting thing about this type of currency. In fact, economists estimate that 92% of all money is digital, no matter what currency were talking about. Its interesting because its decentralized. No single nation, bank or institution controls Bitcoin. Developer Satoshi Nakamoto invented it, but users administer and propagate the currency. Bitcoin works a lot like a regular currency. You can buy and sell digitally, of course, but you can also use it to make real life purchases if the vendor accepts it. The first such real life purchase using Bitcoin was in 2010, when a man bought two pizzas for a whopping 10,000 BTC (Bitcoins). You can invest with it, exchange your Bitcoins for other forms of currency, transfer it, etc. But people can also create new Bitcoins through a process called mining. This is where Bitcoins decentralized system becomes super interesting. Rather than a large bank or financial institution printing more money, anyone can mine new Bitcoins. Mining involves using computational power to solve complex mathematical problems in order to validate other Bitcoin transactions that have occurred within the network of users. This system of peer validation is the bedrock of the revolutionary blockchain technology that makes Bitcoin so secure and allows for direct peer-to-peer value transferring. It is also the linchpin of the system from the perspective of Bitcoin creation. Miners receive new Bitcoins for ever Continue reading >>

Direct Bitcoin Trading Is Not Money Transmission In Texas And Illinois

Direct Bitcoin Trading Is Not Money Transmission In Texas And Illinois

Marco Santori (@msantoriESQ) November 30, 2016 Since money transmission regulations are only applicable to organizations that hold custody of user funds, bitcoin or fiat, decentralized exchanges like Bitsquare will not be considered for KYC policies nor money transmission. Earlier this year, peer to peer exchange Bitsquare introduced bitcoin-to-fiat trading , which can be used as an alternative to conventional bitcoin exchanges for users that are hesitant towards KYC policies and strict regulations. Under the regulations of Illinois and Texas, the widely-used Local Bitcoins, a peer to peer bitcoin exchange platform, will not be regulated under money transmission regulations as well, allowing users to trade bitcoin to fiat freely without being overseen by the authorities. However, Santori noted that buying and selling of bitcoin via bitcoin kiosks or BTMs is still regulated as they connect to an exchange on the backend. Also, because kiosks and BTMs hold custody of fiat money that is provided to the sellers, they still fall under money transmission regulations. 2 According to the proposed guidance, matching engine exchanges are money transmitters if they custody fiat and pass it along to the seller Marco Santori (@msantoriESQ) November 30, 2016 At the moment, bitcoin and cryptocurrency trading is still considered by Washington as money transmission in the Uniform Money Services Act (UMSA), regardless if a mediator or a third party transmitter exists or not. Thus, following the basic regulatory frameworks established by the State of Washington, the majority of states in the US still consider direct trading of bitcoin to fiat a money transmission act. As bitcoin continues to grow in market capitalization, develops an international user base, establishes itself as a global Continue reading >>

Texas Regulator Orders Bitconnect To Cease And Desist Marketing Securities

Texas Regulator Orders Bitconnect To Cease And Desist Marketing Securities

Texas Regulator Orders Bitconnect to Cease and Desist Marketing Securities Texas Securities Commissioner condemns Bitconnect for promoting what it considers unregistered securities, promising outsized returns. The Texas Securities Commissioner issued an Emergency Cease and Desist Order on Jan. 4 against Bitconnect for the selling of unlicensed securities. According to the Texas State Securities Board news release : The Securities Commissioner found that the BitConnect investments are securities, but were not registered as required by the Texas Securities Act and State Securities Board Rules and Regulations. In addition, the company is not registered to sell securities in Texas. Bitconnect markets itself as an open-source crypto community platform that offers multiple ways to invest and transact in its native cryptocurrency, BCC . According to the Order, Bitconnect offers users investments in programs that the company claims will deliver annualized returns of 100% or more. As the release clearly states, Bitconnect is based in England and this order does not affect the company directly. However, the regulator does have the authority to ban Bitconnect from dealing with Texas residents. Of course, it is likely to be quite challenging for the company to separate users of Bitconnect tokens in Texas from those in the rest of the world. While cryptocurrency enthusiasts have been largely focusing on regulation at the national level, Texas ruling shows that sub-national regulators can easily affect the regulatory landscape. This adds an extraordinary level of complexity to regulatory compliance . Cryptocurrency users and businesses may find themselves dealing with countless state and provincial regulators, in addition to national authorities, if other jurisdictions follow Texas Continue reading >>

Texas Slaps Bitcoin Investment Firm With Cease-and-desist

Texas Slaps Bitcoin Investment Firm With Cease-and-desist

Texas Slaps Bitcoin Investment Firm With Cease-and-Desist Dec 21, 2017 at 16:20 UTC|UpdatedDec 21, 2017 at 20:18 UTC Regulators in Texas have obtained an emergency cease-and-desist order against a company they say is unlawfully pitching bitcoin mining investment products in the state. In a statement yesterday, the Texas State Securities Board revealed that it had taken action againstUSI-Tech Limited, a firm based in Dubai. The firm has allegedly been trying to sell investment contracts in "dozens of Texas cities" by way of social media videos, dedicated websites, and advertisements on sites like Craigslist. It names two U.S.-based agents, Clifford Thomas of Maryland and Michael Rivera of California. According to a presentation dated April of this year and posted to LinkedIn, USI is centered around the sale of software for bitcoin mining and trading. The presentation includes claimed breakdowns of how much money in commissions would-be participants can make based on the number of referrals they generate. The Securities Board said that the company claimed to offer steady, daily returns - a structure reminiscent of high-yield investment plans that boast steady gains. Further, the solicitations reportedly encourage prospective investors to find others to buy in so that they can make money from "referrals." "The agents' websites claim the mining investment 'derives its value from [USI-Tech's] non-exclusive interest in a series of bitcoin mining contracts.' They promise a daily return of 1%. The USI-Tech website says its bitcoin platform "consistently provides returns of up to 150% per year." The returns do not depend on the value of bitcoin, according to the company." According to the statement, those named in the cease-and-desist order were accused of violating Texas secur Continue reading >>

Is Bitcoin Illegal? The Criminal Consequences Of Using Cryptocurrency

Is Bitcoin Illegal? The Criminal Consequences Of Using Cryptocurrency

Is Bitcoin Illegal? The Criminal Consequences of Using Cryptocurrency Is Bitcoin Illegal? The Criminal Consequences of Using Cryptocurrency While most people dont know how to purchase bitcoin, theyve definitely heard about it. News stories abound about how the cryptocurrencys value recently surged above the $17,000 mark, creating a feeding frenzy by investors. Before this, conversations about bitcoin usually centered around how its anonymous nature makes it perfect for illegal activities . Cybercriminals who perpetrate large-scale ransomware attacks, like WannaCry and Petya , often demand that their victims pay using bitcoins, for example. Bitcoin is a form of cryptocurrency a digital asset that can act as money. To understand bitcoin and cryptocurrencies, you have to know a little bit about why it exists in the first place. With traditional currency transactions, there is a cost to conduct a transaction. In other words, there is a middle man be it a bank processing a check or a credit card company that takes a fee to process payments. Digital currencies like bitcoin seek to remove that middleman. Bitcoin also reduces the risk of identity theft because it is not tied to a persons identity. The only way to take the middleman out of transactions was to develop an alternative way to keep up with the ledgers that banks would generally keep. In normal banking, a ledger tells where money is, where it came from, and where it has gone. This ensures people can only spend what they have assets they own or have borrowed. Cryptocurrencies like bitcoin take the middleman out by using a digital ledger known as a blockchain . All users record all transactions at the same time in what is called the blockchain. This means that every transaction is verified without a middleman and there Continue reading >>

Is Bitcoin Mining Illegal

Is Bitcoin Mining Illegal

Last updated on August 5th, 2016 at 04:04 pm The short answer: In most cases, bitcoin mining is perfectly legal. In a few countries, however, bitcoin mining, as well as the possession and use of bitcoin is illegal. If you live in North America and most of Western Europe, bitcoin mining, as well as possession, is not only legal, but local regulatory frameworks actually provide certain protections and basic oversight. In many cases, bitcoin is not treated as a currency by governments , but instead as an asset or property. As such, bitcoin is afforded some legal protection, just like any other type of property. In most cases, national governments that have not outlawed bitcoin, have not passed laws regarding bitcoin mining. Globally, with only a few exceptions, bitcoin mining is generally considered to be legal. Before digging into the legal issues, Im going to offer a brief overview of bitcoin mining. If youre already familiar with the mining process, feel free to skip ahead. Bitcoin mining refers to the process of adding transaction records to the public ledger. Basically, every bitcoin transaction ever conducted is recorded in the public ledger, although actual users can remain hidden behind anonymous names. This ledger is called the blockchain, and transactions are organized into blocks. The mining process refers to the creation of new blocks of transactions . Once a new block is created, it is added to the blockchain, AKA public ledger. This block is created through solving algorithms with computer processors. Over time, the algorithms have grown progressively more difficult, meaning more computing power and time is now needed to create a block. Further, approximately every four years, the number of bitcoins rewarded for creating a new block is cut in half. Originall Continue reading >>

What Happens To Bitcoin In A Divorce In Texas?

What Happens To Bitcoin In A Divorce In Texas?

If I am getting divorced in Texas, do I have to split my Bitcoin or Cryptocurrency? 2018 may very well turn out to be the year of the Bitcoin. What started a few years ago as a geek-only hobby has now avalanched into not only an acceptable form of currency and asset protection but also a media and social frenzy. With the rise in acceptance of cryptocurrency by banks and businesses and the publics acceptance of cryptocurrency as a form of short and long-term investment, people going through divorce must now be up-to-date on what could happen to their cryptocurrency in the event of a divorce. Cryptocurrency is a means of secured value exchange. Cryptocurrency is not currency in the traditional form but in fact is the manner in which value is exchanged between two people. The currency part of cryptocurrency comes in when the exchange of value results in one or both people receiving something tangible. These results could include paper money and tangible items. Bitcoin, Bitcoin Cash, Ethereum and Ripple are all examples or types of cryptocurrency. What happens to my money if I get divorced? In Texas, the general presumption is that everything a married couple takes in during the marriage, whether that be salary, money, assets, debts and liabilities should be split 50/50 upon dissolution of the marriage. There are of course some exceptions to this, such as money that is gifted to one of the parties, inheritances and personal injury settlements. These exceptions will not be discussed at length here. So, for example, lets say a couple is married for 10 years. During the marriage, the couple brings in assets, salary and other compensation worth $250,000.00. Lets also say that they have $50,000.00 worth of debt when they decide to divorce. That means that presumptively the esta Continue reading >>

Bitcoin Regulation By State (updated 2017)

Bitcoin Regulation By State (updated 2017)

Bitcoin Regulation by State (Updated 2017) by Frederick Reese 4,632 Investors read this Bitcoin has changed the world. Prior to its invention, wealth was largely dependent on the economic health of a nation or the backing of physical assets. With bitcoin, a wealth can be expressed and transferred digitally. All the same, the United States has struggled with the question of the legality of bitcoin. Politician Ron Paul highlighted the controversy of the government legislating a decentralized currency when he said: I understand the political ramifications of [bitcoin], and I think that government should stay out of them and they should be perfectly legal. Not every legislator agrees with that assessment, however. Investors will do well to understand bitcoin legality and the state of bitcoin regulation in the United States in order to stay in compliance, to prevent forfeiture of their investment, and to avoid costly legal fees and penalties. On a national level, the Federal Reserve and the Internal Revenue Service have taken the following positions: Bitcoin and all altcoins, for that matter are not currency, but a taxable commodity akin to stocks . While individuals and businesses are free to use any private currency they wish to conduct business, bitcoin and altcoins are not recognized as legal tender. Similar to property, bitcoin earned for services rendered are taxed as income. Bitcoin paid for services rendered or to independent contractors must be reported on IRS Form 1099, with self-employment tax possibly being applicable. Finally, capital gain on altcoins is taxable, as gains would be in stocks and bonds. The government has taken a cautious position toward bitcoin money transmitters. Despite court decisions stating that bitcoin can be used as money, the Security an Continue reading >>

Texas Bans Alleged Bitcoin Fraudster, Revealing Risks

Texas Bans Alleged Bitcoin Fraudster, Revealing Risks

Texas bans alleged bitcoin fraudster, revealing risks January 9, 2018 Updated: January 9, 2018 9:50am An employee checks power supply units and cooling fans used in cryptocurrency mining systems in Moscow. An employee checks power supply units and cooling fans used in cryptocurrency mining systems in Moscow. A trader wears a bitcoin shirt while working in the S&P 500 options pit last week at Cboe Global Markets in Chicago. Bitcoin's underlying technology can work against its use by criminals. A trader wears a bitcoin shirt while working in the S&P 500 options pit last week at Cboe Global Markets in Chicago. Bitcoin's underlying technology can work against its use by criminals. Bitcoin logos are displayed at a trade show in New York. Bitcoin slumped 9.5 percent to $14,042 Friday. Bitcoin logos are displayed at a trade show in New York. Bitcoin slumped 9.5 percent to $14,042 Friday. "Bitcoin is just the latest in a history of speculative bubbles that most often burst," a Massachusetts regulator says. "Bitcoin is just the latest in a history of speculative bubbles that most often burst," a Massachusetts regulator says. Sheldon Weisfeld purchases $20 worth of Bitcoin from one of the CoinVault ATM machines he operates in the Houston area, this one at Smartphone Repair on Harwin Drive, Wednesday, Dec. 13, 2017, in Houston. Weisfeld operates three ATMs in the area that allow users to buy and sell Bitcoin. ( Mark Mulligan / Houston Chronicle ) less Sheldon Weisfeld purchases $20 worth of Bitcoin from one of the CoinVault ATM machines he operates in the Houston area, this one at Smartphone Repair on Harwin Drive, Wednesday, Dec. 13, 2017, in Houston. ... more Sheldon Weisfeld purchases $20 worth of Bitcoin from one of the CoinVault ATM machines he operates in the Houston area, Continue reading >>

State Of Texas Planning To Allow Bitcoins As Legal Tender Along With Preciousmetals

State Of Texas Planning To Allow Bitcoins As Legal Tender Along With Preciousmetals

Christian missions heterogeneous effects on development in sub-SaharanAfrica State of Texas planning to allow bitcoins as legal tender along with preciousmetals I just blogged about State of Idaho and Arizona are planning to allow precious metals like gold and silver to become legal tender. State of Texas (which has the veto to move out of US) is going further by even proposing to allow digital currencies like bitcoin to become legal tender: A joint resolution introduced in the Texas House proposes a state constitutional amendment to guarantee the right to own, hold and use any mutually agreed upon medium of exchange. Passage of the bill would take another step toward undermining the Federal Reserves monopoly on money. Rep. Matt Schaefer (R-Tyler) introduced House Join Resolution 89 ( HJR89 ) on March 2. If passed, the resolution would place a constitutional amendment on the ballot recognizing the right of the people to own, hold, and use a mutually agreed upon medium of exchange, including cash, coin, bullion, digital currency, or privately issued scrip. The proposal would add the following language to the Texas state constitution. The right of the people to own, hold, and use a mutually agreed upon medium of exchange, including cash, coin, bullion, digital currency, or scrip, when trading and contracting for goods and services shall not be infringed. No government shall prohibit or encumber the ownership or holding of any form or amount of money or other currency. In effect, passage of the bill would, as Ron Paul has often said, legalize the Constitution by treating gold and silver specie as money. Professor William Greene, an expert on constitutional tender, noted that the proposal would introduce competition with the Federal Reserve. By introducing competition in c Continue reading >>

Bitconnect Slapped With Securities Emergency Cease And Desist Order

Bitconnect Slapped With Securities Emergency Cease And Desist Order

Bitconnect Slapped with Securities Emergency Cease and Desist Order On Thursday the Texas Securities Commissioner (TSC) signed an Emergency Cease and Desist Order to stop Bitconnect from operating. The mysterious company is a popular bitcoin lending platform with a 4.1 billion USD market capitalization, and is long accused of being a scam. Also read: African Central Banks Told to Ditch Dollar and Buy Bitcoin Bitconnect Ordered Not to Mess with Texas The Texas Securities Commissioner has entered an Emergency Cease and Desist Order to halt the multiple investment programs operated by Bitconnect, the press release reads, an overseas company that claims a market share of $4.1 billion for its cryptocurrency coins. News.Bitcoin.com profiled growing concern within the ecosystem about Bitconnects doings back in November as well as through an opinion piece. Then, as now it appears officially, the worry was mostly due to promises made by the English company that seemed impossibly Ponzi. Bitconnect is soliciting investors for cryptocurrency-based programs that the company claims will deliver annualized returns of 100% or more, the TSC outlines. After detailing how they issue their own coins (a fact curiously denied by advocates) with a cap of 28 million, the TSC continues , The company requires individuals to use Bitcoin, a more established cryptocurrency, to invest in various Bitconnect programs. In one investment called the Bitconnect Lending Program, investors purchase Bitconnect Coins, which are provided to a Bitconnect Trading Bot to generate returns as high as 40% a month. Prominent ecosystem lights from Andreas Antonopoulos to Erik Voorhees have also made it clear to move away from the scheme. Mr. Antonopoulos was plagued with advertisements on his Youtube channel, and ple Continue reading >>

Bitcoin Was Just Used To Pay For A New Home In Texas

Bitcoin Was Just Used To Pay For A New Home In Texas

Bitcoin Was Just Used to Pay for a New Home in Texas A buyer in Austin, Texas, just purchased a house using only bitcoin for payment. This real estate deal is the first to use solely cryptocurrency, and it illustrates crypto's potential to transform how financial transactions are conducted. Texas-based real estate brokerage firm Kuper Sothebys International Realty has completed the first-ever sale of a real estate property using just bitcoin. The worlds most popular cryptocurrency has long moved on from its shadowy past to become a legitimate currency used to purchase Starbucks coffee , Xbox games , and now, a newly built custom home with grand entertaining areas, a master suite, and a chef-worthy kitchen. The price of the home hasnt been disclosed, but more important than that is the ease of the overall transaction. The buyer simply transferred the bitcoin to the seller, who then converted it into U.S. dollars. In all of my 33 years of closing transactions, I honestly couldnt have expected something so unique to go so smoothly, Kuper Sothebys Sheryl Lowe, the buyers agent, said in a press release . In a matter of 10 minutes, the bitcoin was changed to U.S. dollars and the deal was done! This real estate transaction is further proof that bitcoin isnt a fraud , as some have claimed. Its also another example of the increasing acceptance of cryptocurrencies, whichare poised torevolutionizea variety of industries beyond finance , from transportation to entertainment to politics . Disclosure: Several members of the Futurism team, including the editors of this piece, are personal investors in a number of cryptocurrency markets. Their personal investment perspectives have no impact on editorial content. Continue reading >>

Texas Is The Ideal State To Work With Bitcoin And Blockchain

Texas Is The Ideal State To Work With Bitcoin And Blockchain

Texas Is The Ideal State To Work With Bitcoin And Blockchain Several factors makes Texas an ideal state for Bitcoin mining and Blockchain. But how ideal is the Bitcoin environment for the residents of Texas? What factors make Texas an ideal state for Bitcoin mining and Blockchain marketing, despite the reluctant attitude among governments and central banks around the globe towards the Cryptocurrency phenomenon? How ideal is the Bitcoin environment for the residents of the state? Are there any new frontiers for the oil and gas industry that are being created by Bitcoin in Texas? Cointelegraph decided to ask Robert Gonzalez about the problems of Bitcoin and the Blockchain in Texas. Mr. Gonzalez, the founder of UTXO , a Bitcoin mining company based in Houston Texas, says the goal of his company is in creating a way to provide clean bitcoins frictionlessly to people by linking miners to traders. Cointelegraph: How would you rate the development of the Bitcoin and Blockchain market in Texas? Robert Gonzalez: Texas is still in a prosperous growth with Bitcoin, and an ideal state in which to work with Bitcoin. The regulations for Bitcoin in Texas make it great for any future and existing Bitcoin enterprise in which to work. The blockchain market with the help of Bitcoin is creating a new frontier for different industries (oil and gas), that will provide significant avenues of financial ease in those industries business operations. CT: Are there any peculiar problems encountered by Bitcoiners in Texas, and what could these problems be? RG: As of now I have not encountered any hardships with businesses exploring Bitcoin business in Texas. Like I mentioned before, Texas is a prime state to work with in the Bitcoin/blockchain technology . CT: Do you have any laws or license requi Continue reading >>

Texas Banking Chief Issues Rules For Bitcoin

Texas Banking Chief Issues Rules For Bitcoin

Texas Banking Chief Issues Rules for Bitcoin A new memo from the Texas Department of Banking says that the state will not treat Bitcoin as money but that some companies dealing in Bitcoin transactions will fall under the state's banking regulations. Find out how you can put this story on your website . Texas will not treat Bitcoin and other virtual currencies as legal money, according to a new memo from the Texas Department of Banking.Yet some companies that deal in Bitcoin transactions could draw state oversight, even if they are based outside of Texas. Texas Banking Commissioner Charles Cooper issued a memo this month outlining the agencys policies involving virtual currencies like Bitcoin. At this point a cryptocurrency like Bitcoin is best viewed like a speculative investment, not as money, Cooper said in a statement. In his memo, Cooper provided reasoningthat echoedthe IRS. Last month, the federal agency announced that, for tax purposes, it would treat Bitcoin as property instead of currency because nogovernment recognizes the virtual currency as legal tender. The Texas Tribune thanks its sponsors. Become one . Because neither centralized virtual currencies nor cryptocurrencies are coin and paper money issued by the government of a country, they cannot be considered currencies under the statute, Coopers memo reads. While Texas does not have a state income tax, the state's Department of Banking does regulate certain financial transactions and license financial institutions.An exchange of Bitcoin for U.S. dollars between two parties would not draw the agency's interest, according to the memo. Butsome third-party Bitcoin exchanges are already drawing state scrutiny because of the way they handle transactions involving U.S. currency and Bitcoin, according toDaniel Woo Continue reading >>

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