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Is Cryptocurrency Legal

New Website Provides Guide To Us Cryptocurrency Law

New Website Provides Guide To Us Cryptocurrency Law

New Website Provides Guide to US Cryptocurrency Law Cryptocurrency law can be maddeningly vague. From taxation to commodities, the US constitution is characterized by ill-defined and occasionally contradictory statutes regarding digital currencies. Law reform moves at a glacial pace, leaving the status of cryptocurrencies often unlegislated. For cryptocurrency users trying to navigate murky legal waters, this ambiguity can be frustrating. A new website promises to add some much-needed clarity. Also read: Trumps New Tax Bill Means Changes Ahead for U.S. Bitcoiners Bitcoinlawhub.com is a newly launched site that lives up to its name. It provides a repository where US citizens can access a wealth of resources pertaining to digital currencies. If youve ever wondered how anti-money laundering laws affect bitcoin ATMS, or how bitcoin fits into estate planning, youll find the answer here. The site doesnt purport to offer ironclad legal advice, and its information should be taken as guidance rather than gospel. As an introduction to US law and how it affects you as a cryptocurrency user, however, its just the ticket. The site is the work of husband and wife team Dave and Susan Berson. Shes a tax attorney and hes a technology enthusiast who spent more than two decades as a business and banking attorney. The couple are no strangers to bitcoin; in 2013 Susan Berson authored the first article on the digital currency to be published in the American Bar Association Journal Magazine. She also participated in working on the American Bar Associations subcommittee on Virtual Currency for its official tax comments on the IRSs guidance about the taxation of virtual currencies. I thought that creating this website would be a way to clear up some of the confusion about the complex cryptocur Continue reading >>

A Complete Guide To Cyprocurrency Regulations Around The World

A Complete Guide To Cyprocurrency Regulations Around The World

View on bitcoin: Legal tender, depending on the country. Policy on exchanges: No global regulator exists at the moment. At a G-20 meeting this month, Argentina's central bank governor outlined a summer deadline for members to have "specific recommendations on what to do" and said task forces are working to submit proposals by July. Italy's central bank leader told reporters after the meeting in Buenos Aires, Argentina, that cryptocurrencies pose risks but should not be banned, according to Reuters . The Financial Stability Board, a global watchdog that runs financial regulation for G-20 economies, took a cautious tone in responding to calls from some countries to crack down on digital currencies. "The FSB's initial assessment is that crypto-assets do not pose risks to global financial stability at this time," board Chairman Mark Carney said in a letter on March 18. Carney, who is also governor of the Bank of England, pointed to the small size relative of the asset class compared with the entire financial syste. "Even at their recent peak, their combined global market value was less than 1 percent of global GDP," he said. The International Monetary Fund has also called for more cooperation. IMF Managing Director Christine Lagarde highlighted cryptocurrency's potential as a vehicle for money laundering and the financing of terrorism. In a March blog post , Lagarde called for policies that protect consumers in the same way as the traditional financial sector. Tomohiro Ohsumi | Bloomberg | Getty Images View on bitcoin: Legal tender as of last April. Policy on exchanges: Exchanges are legal if they are registered with the Japanese Financial Services Agency. Japan is the biggest market for bitcoin. Almost half of the digital currency's daily volume is traded in the country's Continue reading >>

The State Of Bitcoin Mining: Legal Regulations Around The World

The State Of Bitcoin Mining: Legal Regulations Around The World

The State of Bitcoin Mining: Legal Regulations Around the World While bitcoin mining can be a good way to earn cryptocurrency, there is currently a lot of concerns about the legality of both the ownership of cryptocurrency and mining operations around the world. Throughout this article, well try to clear up some concerns about mining regulations. Well also examine a few recent cases in cryptocurrency mining regulation and take a look at some of the questions surrounding the future of this industry. In January 2018, Malaysian officials raided two residences that had been conducting illegal bitcoin mining operations. While cryptocurrency itself had already been deemed illegal in Malaysia, this was not the official charge that the government used to shut down these particular mining operations. Instead, local officials justified the raid based on other charges. For example, they said that these miners did not have an official business permit and also cited a few other reasons (causing a potential fire hazard and consuming excessive amounts of energy). What makes the Malaysian case so difficult to understand is that, basically, any government in any other country could also cite similar reasons to shut down mining operations, even in places where bitcoin mining is supposed to be completely legal. Will this happen? Probably not, but it is something to consider as a possibility. The general rule of thumb regarding bitcoin mining remains relatively straightforward. If you are able to own and use cryptocurrency where you live, you should also be able to mine cryptocurrency in that location as well. If owning cryptocurrency is illegal where you live, mining is most likely also illegal. However, there are few exceptions to this rule and the legality of cryptocurrency is not that Continue reading >>

Is Bitcoin Legal In The Us?

Is Bitcoin Legal In The Us?

By Mara Lesemann | December 15, 2015 12:46 PM EST The digital currency known as bitcoin was created in 2009 by a person called Satoshi Nakamoto, but whose true identity has never been established. It is legal to use bitcoin in the United States, and payments are subject to the same taxes and reporting requirements as any other currency. There is no physical bitcoin currency the way there is a dollar, euro or pound. It exists only on the Internet, usually in a digital wallet , which is software that stores relevant information such as the private security key that enables transactions. Ledgers known as blockchains are used to keep track of the existence of bitcoin. It can be given directly to or received from anyone who has a bitcoin address via so-called peer-to-peer transactions. It is also traded on various exchanges around the world, which is how its value is established. Bitcoin exists in a deregulated marketplace ; there is no centralized issuing authority and no way to track back to the company or individual who created the bitcoin. There is no personal information required to open a bitcoin account or to make a payment from an account as there is with a bank account. There is no oversight designed to ensure the information on the ledger is true and correct. The Mt. Gox bankruptcy in July 2014 brought to the forefront the risk inherent in the system. Roughly $500 million worth of bitcoin listed on the company's ledgers did not exist. In addition to the money that account holders lost, the blow to confidence in the currency drove its global valuation down by $3 billion in a matter of weeks. The system had been established to eliminate the risk of involving third parties in transactions, but the bankruptcy highlighted the risks that exist in peer-to-peer transactio Continue reading >>

Is Bitcoin Legal?

Is Bitcoin Legal?

Bitcoin is of interest to law enforcement agencies, tax authorities, and legal regulators, all of which are trying to understand how the cryptocurrency fits into existing frameworks. The legality of your bitcoin activities will depend on who you are, where you live, and what you are doing with it. Bitcoin has proven to be a contentious issue for regulators and law enforcers, both of which have targeted the digital currency in an attempt to control its use. We are still early on in the game, and many legal authorities are still struggling to understand the cryptocurrency, let alone make laws around it. Amid all this uncertainty, one question stands out: is bitcoin legal? The answer is, yes, depending on what youre doing with it. Read on for our guide to the complex legal landscape surrounding bitcoin. Most of the discussion concerns the US, where many of the legal dramas are currently playing out. Alternatively, you can accessour comprehensive Regulation Report for worldwide expert commentary here . Government agencies are increasingly worried about the implications of bitcoin, as it has the ability to be used anonymously, and is therefore a potential instrument for money laundering. In particular, law enforcers seem to be concerned about the decentralized nature of the currency. As early as April 2012, the FBI published a document highlighting its fears around bitcoin specifically, drawing a distinction between it and centralized digital currencies such as eGold and WebMoney. It voiced concerns that while US-based exchanges are regulated, offshore services may not be, and could be a haven for criminals to use bitcoin for illicit activities without being traced. Bitcoin was the only form of currency accepted on Silk Road, an anonymous marketplace that was only accessibl Continue reading >>

Heres How The U.s. And The World Regulate Bitcoin And Other Cryptocurrencies

Heres How The U.s. And The World Regulate Bitcoin And Other Cryptocurrencies

Heres how the U.S. and the world regulate bitcoin and other cryptocurrencies Regulators all over the world have begun to address the challenges presented by virtual currencies that mostly bypass regulated banks, financial firms, exchanges and central clearinghouses. Digital currencies, token sales and blockchain initiatives of all types have ignited a global phenomenon unlike anything I have ever seen, said J. Dax Hansen, a partner at law firm Perkins Coie who leads its Blockchain Technology & Digital Currency industry group. As the technology underpinning these developments disrupts products and services in nearly every industry, law makers, regulators and law enforcement are scrambling to keep up. Because the current players in virtual currencies including the most popular bitcoin BTCUSD, -1.97% US:BTCF8 largely operate outside of the conventional financial system, regulators are concerned about money laundering, terrorist financing, tax evasion and fraud. And: Bitcoin tumbles 10% as South Korea moves to curb crypto trade In the U.S., the Securities and Exchange Commission and the Commodity Futures Trading Commission have sent out a flurry of announcements in the last few months on the subject, including some strong statements by Jay Clayton, the SEC chairman. Where we see fraud, and where we see people engaging in offerings that are not registered, we are going to pursue them because these types of things have a destabilizing effect on the market, said Clayton at a meeting at the Federal Reserve Bank of New York at the end of November. Heres what U.S. regulators are currently doing: SEC has not approved any exchange-traded products (such as ETFs) holding cryptocurrencies or other assets related to cryptocurrencies for listing or trading. SEC has not registered any i Continue reading >>

Marshall Islands To Make Cryptocurrency Legal Tender In 2018, Optimistic Outlook

Marshall Islands To Make Cryptocurrency Legal Tender In 2018, Optimistic Outlook

Marshall Islands to Make Cryptocurrency Legal Tender in 2018, Optimistic Outlook Marshall Islands to Make Cryptocurrency Legal Tender in 2018, Optimistic Outlook Marshall Islands, a small country of 53,000 people in the middle of the Pacific Ocean, may become the first sovereign state to make a cryptocurrency its legal tender, which means that its official digital currency must be accepted as a means of payment. Marshall Islands to Launch Legal Tender Cryptocurrency in Q3 2018 Whereas Bitcoin, for example, is a legal currency in the United States, Japan, and South Korea, it has not gained legal tender status anywhere in the world yet. If that were to happen, it would be illegal not to accept Bitcoin in exchange for goods and services within a jurisdiction. That is the bold step that the government of the Marshall Islands is taking with its official cryptocurrency named Sovereign (SOV). Many people seem to not understand the difference between legal tender and legal currency. Bitcoin is a legal currency in Japan, South Korea, and Philippines, its legal to use it as a currency. Legal tender means its illegal not to accept it as money, it must be accepted. Joseph Young (@iamjosephyoung) May 11, 2018 SOV will have its token sale starting in the third quarter of 2018 and coins will be capped at 24 million SOV, according toMinister-in-Assistance to the President & EnvironmentMinisterof the Republic of theMarshall Islands. The government has no plans to end fiat money in the near future. SOV will be complementary to the US dollar, the countrys only legal tender since 1982. While there is understandable concern by policymakers and regulators worldwide of the misuse of cryptocurrencies for tax evasion, money laundering, and terrorist financing, the SOV is designed on purpose to Continue reading >>

Is Bitcoin Legal?

Is Bitcoin Legal?

Its understandable to have questions about the legality of using Bitcoin. The platform introduced a brand new paradigm away from the traditional regulators and regulations that govern fiat currency. Unlike illegal, counterfeit money, which is a blatant example of a currency that misrepresents itself as legal tender, Bitcoin is entirely different. Nevertheless, it operates in a seemingly gray area when it comes to regulation. However, many of these concerns boil down to misunderstandings or a lack of concrete rules that govern Bitcoin, rather than overt violations of the law. The question surrounding the relationship between Bitcoin and the law really depends on how the digital currency is being used. Ever since the now-defunct Silk Road gained notoriety, regulators have been concerned about Bitcoins semi-anonymity and decentralized nature. In the U.S., as well as in other countries, authorities fear that the platform could be used for money laundering and the purchase of illicit goods without being traced. Not helping Bitcoins reputation with authorities was its prevalence as a payment service for the Silk Road, a digital marketplace where users could purchase illegal goods. Whether or not people use Bitcoin as a way to participate in expressly illegal activities doesnt make the digital currency itself illegal. The illegality of the activity is the issue, whether its paid for in bitcoin, cash or gold. However, even when bitcoin is used for legitimate purposes, rules are a little more complex. According to the U.S. Treasury Departments Financial Crimes Enforcement Network , as of 2013, using bitcoin to purchase well-natured goods and services is not illegal. However, those who mine bitcoins and trade them for traditional currency or operate exchanges on which bitcoins a Continue reading >>

Cryptocurrency Regulation In 2018: Where The World Stands Right Now

Cryptocurrency Regulation In 2018: Where The World Stands Right Now

Cryptocurrency Regulation in 2018: Where the World Stands Right Now If 2017 was the year of the ICO, it seems as if 2018 is destined to become the year of regulatory reckoning. Things have already begun to heat up as countries around the world grapple with cryptocurrencies and try to determine how they are going to treat them. Some are welcoming, others are cautious. And some countries are downright antagonistic. Here is a brief overview of how 15 countries/unions from various regions are treating cryptocurrency regulations. The United States, at the time of this writing, has no coherent direction on its cryptocurrency regulation other than that there will be some soon . The Securities and Exchange Commission (SEC) has warned investors of cryptocurrency investing risks, halted several ICOs and hinted at the need for greater cryptocurrency regulation. The Commodity Futures Trading Commission (CFTC) became the first U.S. regulator to allow for cryptocurrency derivatives to trade publicly, then organized meetings to talk about possibly changing the rules for cryptocurrency derivatives clearing (one of the meetings was postponed due to the federal government shutdown). Secretary of the Treasury Steve Mnuchin has indicated a preference for minted fiat currency over cryptocurrency. Speaking on January 12, 2018, at the Economic Club in Washington, D.C., Secretary Mnuchin warned those in attendance that he and other regulators were looking into the possibility that cryptocurrency could be used in money-laundering activities. The secretary then announced to the group that the Financial Stability Oversight Council (FSOC) had formed a working group to explore the cryptocurrency marketplace and that he hoped to work with the G20 to prevent bitcoin from becoming a digital equivalen Continue reading >>

Virtual Currency Law In The United States

Virtual Currency Law In The United States

Virtual currency law in the United States This article has multiple issues. Please help improve it or discuss these issues on the talk page . This article relies too much on references to primary sources . Please improve this by adding secondary or tertiary sources . This article is an orphan , as no other articles link to it . Please introduce links to this page from related articles ; try the Find link tool for suggestions. ( Learn how and when to remove this template message ) United States virtual currency law is the area of financial regulation that applies to the buyers, sellers, and users of virtual currency . This regulatory structure consist of tax regulations and FINCEN transparency regulations between financial exchanges and the individuals and corporations with whom they conduct business. The regulatory and market environment[ edit ] The Internal Revenue Service (I.R.S) describes Virtual Currencies (VC)s as a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value [and] does not have legal tender status in any jurisdiction. [1] Although, electronic payment systems have been part of American life since at least 1871 when Western Union introduced money transfer through the telegraph [2] and in 1914 introduced the first consumer charge-card," virtual currencies differ from these digital payment structures because unlike traditional digital transfers of value, virtual currencies do not represent a claim on value; rather the virtual currency are the value. The National Automated Clearing House Association (NACHA), through the Automated Clearing House (ACH) moves almost $39 trillion and 22 billion electronic financial transactions each year. [3] These electronic transfers of money through the ACH Network Continue reading >>

Us Regulators Are Struggling To Rein In Illegal Cryptocurrency Offerings

Us Regulators Are Struggling To Rein In Illegal Cryptocurrency Offerings

US regulators are struggling to rein in illegal cryptocurrency offerings Regulators are in uncharted territory trying to regulate illegal cryptocurrency public coin offerings, US officials told Congress today. Securities and Exchange Commission (SEC) chairman Jay Clayton had harsh words for those dodging SEC regulations today at a Senate banking committee hearing: Many ICOs [initial coin offerings] are being conducted illegally. Their promoters and other participants are not following our security laws, Clayton said. Some people say thats because the law isnt clear. I do not buy that for a moment. Clayton and J. Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC), testified today in front of members of the US Senate banking committee and answered their questions on virtual currencies. Spelling it out, Clayton said that his team was watching those who are raising ICOs: Those who engage in semantic gymnastics or elaborate structuring exercises in an effort to avoid having a coin be a security, are squarely in the crosshairs of our enforcement provision. When pushed to elaborate by Senator Elizabeth Warren (D-MA), Clayton admitted that zero ICOs have registered with the SEC as of yet. Some sites estimate that ICOs raised nearly $4 billion last year . Folks somehow got comfortable that this was new and it was okay and it was not a security, it was just some other way to raise money, he said. I dont think the gatekeepers that we rely on to assist us in making sure our securities laws are followed have done their job. We owe it to this new generation to respect their enthusiasm about virtual currencies. While agreeing that more regulation on cryptocurrencies was needed to crack down on fraud, Chairman Giancarlo had kinder words to say about bit Continue reading >>

Is Bitcoin Legal? - Nasdaq.com

Is Bitcoin Legal? - Nasdaq.com

May 05, 2017, 03:25:16 PM EDT By Bitcoin Magazine, Bitcoin Magazine It's understandable to have questions about the legality of using Bitcoin. The platform introduced a brand new paradigm away from the traditional regulators and regulations that govern fiat currency. Unlike illegal, counterfeit money, which is a blatant example of a "currency" that misrepresents itself as legal tender, Bitcoin is entirely different. Nevertheless, it operates in a seemingly gray area when it comes to regulation. However, many of these concerns boil down to misunderstandings or a lack of concrete rules that govern Bitcoin, rather than overt violations of the law. The question surrounding the relationship between Bitcoin and the law really depends on how the digital currency is being used. Ever since the now-defunct Silk Road gained notoriety, regulators have been concerned about Bitcoin's semi-anonymity and decentralized nature. In the U.S., as well as in other countries, authorities fear that the platform could be used for money laundering and the purchase of illicit goods without being traced. Not helping Bitcoin's reputation with authorities was its prevalence as a payment service for the Silk Road, a digital marketplace where users could purchase illegal goods. Whether or not people use Bitcoin as a way to participate in expressly illegal activities doesn't make the digital currency itself illegal. The illegality of the activity is the issue, whether it's paid for in bitcoin, cash or gold. However, even when bitcoin is used for legitimate purposes, rules are a little more complex. According to the U.S. Treasury Department's Financial Crimes Enforcement Network , as of 2013, using bitcoin to purchase well-natured goods and services is not illegal. However, those who mine bitcoins and Continue reading >>

Legality Of Bitcoin By Country Or Territory

Legality Of Bitcoin By Country Or Territory

Legality of bitcoin by country or territory For a broader coverage related to this topic, see Bitcoin . The legal status of bitcoin varies substantially from country to country and is still undefined or changing in many of them. [1] Whilst the majority of countries do not make the usage of bitcoin itself illegal (with the exceptions of: Bangladesh, Bolivia, Ecuador & Kyrgyzstan), its status as money (or a commodity) varies, with differing regulatory implications. While some countries have explicitly allowed its use and trade, others have banned or restricted it. Likewise, various government agencies, departments, and courts have classified bitcoins differently. While this article provides the legal status of bitcoin, regulations and bans that apply to this cryptocurrency likely extend to similar systems as well. The European Union has passed no specific legislation relative to the status of the bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin. VAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services. [2] :European Union In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the bitcoin virtual currency is exempt from VAT" and that "Member States must exempt, inter alia, transactions relating to currency, bank notes and coins used as legal tender", making bitcoin a currency as opposed to being a commodity. [3] [4] According to judges, the tax shouldnt be charged because bitcoins should be treated as a means of payment. [5] According to the European Central Bank , traditional financial sector regulation is not applicable to bitcoin because it does not involve t Continue reading >>

How Legal Is Bitcoin And Crypto Currencies?

How Legal Is Bitcoin And Crypto Currencies?

How legal is Bitcoin and Crypto Currencies? The legality on Bitcoin and other crypto currencies depends on where you are and what you wish to do with it. Governments the world over are trying to get to grips with its risks and rewards, playing the game between consumer protection, anti-criminal activity and encouraging innovation. The risks for Governments can vary, most emerging markets are either heavily anti or pro the use of digital currencies such as Bitcoin but in general western economies are using soft touch principle based regulation to encourage innovation. Regulation is a patchwork of different opinions the world over but see below to get the latest on which governments are thinking what. Holland In June 2013 the Dutch Finance Minister released a report that gave Bitcoin the status of an item of barter meaning it needed no specific licensing or compliance requirements. He described Bitcoin as Bitcoin is not a financial product as defined by law, purchase or sale of bitcoins is not a financial service either, so the financial services act does not apply. The Dutch Ministry of Economic Affairs has taken a dimmer view through its think tanks and sponsored articles attempting to encourage its regulation. Norway The general of taxation declared at the end of 2013 that Bticoins dont fall under the usual definition of money or currency and therefore making them subject to the usual capital gains tax laws. Germany The German Government released a report in August 2013 saying that Bitcoins should be treated as a trading activity and therefore be subject to capital gains taxes unless they were held for a year or more. The German Federal Ministry of Finance further clarified their position by saying that Bitcoin should be treated as a unit of account and private money Continue reading >>

Making Sense Of The World's Cryptocurrency Rules

Making Sense Of The World's Cryptocurrency Rules

Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Making Sense of the World's Cryptocurrency Rules Regulations for exchanges, ICOs vary wildly across countries Much of the crypto industry operates in a legal gray area Getting your head around cryptocurrencies was hard enough before governments got involved. But now that policy makers around the world are drawing up fresh regulations on everything from exchanges to initial coin offerings, keeping track of whats legal has become just as daunting as figuring out which newfangled token might turn into the next Bitcoin. The rules can vary wildly by country, given a lack of global coordination among authorities. And while that may change after finance chiefs discuss digital assets at the Group of 20 meeting in Buenos Aires this week, for the time being theres a wide range of opinions on how best to regulate the space. Below is a rundown of what major countries are doing now. Most of the worlds cryptocurrency trading takes place in this tech-savvy region, with Japan playing a dominant role after it introduced a licensing system for digital-asset exchanges last year. In Hong Kong, regulators have adopted a more hands-off approach while at the same time warning crypto platforms to refrain from trading anything that qualifies as a security without permission. Singapores de Continue reading >>

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