Bitcoin and other forms of cryptocurrency including Litecoin and Dogecoin are each a form of digital currency that uses cryptography for security and anti-counterfeiting measures. Different types of formulas, all of which are cryptographic in nature, are used to record the movement of cryptocurrency between persons, limiting the amount of currency in circulation, and identifying the individual accounts that control it. Some of the legal issues inherent in the cryptocurrency industry are extremely complex, and often misunderstood in this newly developed economy, and as such, require a skilled bitcoin attorney to interpret them
What are the laws concerning Bitcoin and other cryptocurrencies?
The IRS has recently issued guidance stating that cryptocurrency is considered property for U.S. Federal tax purposes. Additionally, general tax principles that apply to property transactions apply to transactions using virtual currency. This also means that certain instances in which these currencies are acquired will be considered taxable income.
As Bitcoin and other cryptocurrency soar in popularity, government and regulatory bodies such as the IRS or Securities and Exchange Commission have struggled to keep pace – creating a loose framework of rules and regulations governing the use of cryptocurrency. The lack of clarity by such entities requires that individuals and businesses operating with Bitcoin or other cryptocurrency align themselves with a knowledgeable and trusted legal advisor.
Increased regulation of cryptocurrency both here in the United States and abroad can be expected as the use of Bitcoin and other altcoins becomes prevalent. While many countries will most likely follow the lead of the U.S., the nuance found in each country’s tax and securities codes, to name just a few, will make compliance a daunting task in today’s global economy. The current regulations in place across the globe are as young as digital currency itself, and because of this, require an experienced cryptocurrency lawyer who is adept at interpreting and responding to ever changing regulations.
Adam S. Tracy, an Experienced Bitcoin Lawyer
Bitcoin attorney Adam S. Tracy has been at the leading edge of the cryptocurrency revolution. Located in Chicago, Adam has built his career in one of the world’s great financial hubs while helping clients locally and around the world managing the complex process of cryptocurrency compliance. If you are involved with Bitcoin and other cryptocurrency and have any questions with regard to how to comply with digital currency regulations, call the Securities Compliance Group at 888-978-9901.