Articles Posted in Cryptocurrency

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Cryptocurrency and blockchain technology are transforming the way many people do business, and that has provoked a response from governments around the globe. In some cases, this response has been negative, with national governments either placing restrictions designed to limit crypto trading or else banning it outright.

However, other countries have embraced it by passing legislation that’s designed to foster its continued development. In this article, we’ll discuss the most crypto-friendly countries in the world as well as the advantages of investing in these nations.

Some of the Most Pro-Crypto Countries

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Crypto investors are taking their operations overseas, and it’s easy to see why—many foreign countries have far more favorable laws when it comes to taxes, reporting, and cryptocurrency in general. These structures should be set up in a way that is consistent with both foreign and domestic laws, and that takes planning.

In this article, we’ll look at some of the advantages and requirements of offshore crypto-asset protection structures along with some general tips for success.

Offshore Entities – Some Basics

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The future of cryptocurrency and blockchain technology could well be decided by a lawsuit filed at the end of 2020.

On December 22, 2020, the SEC filed a lawsuit against Ripple Labs and two of its executives. The claim is that they traded $1.3 billion in their cryptocurrency XRP as a security without registering it with the SEC. Ripple and other parties have since countered with claims that the SEC is biased in its assessment.

As of right now, here is the current status of this lawsuit as well as a breakdown of each side of the argument.

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Artists have found a great deal of value in marketing their work on NFT markets owing to the ease of receiving royalties generated through their creations. That said, there are a number of intellectual property implications that have come forth as NFTs have climbed in popularity. We’ll discuss a few of those implications here.

Transfer of IP Rights – A Common Misconception

If you’re familiar with NFTs, you are likely already aware of how IP rights are handled. For everyone else, a common misconception is that an NFT represents the copyright to its underlying asset, be it artwork, music, videography, etc.

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A new form of blockchain-based virtual token has taken the world by storm in the form of non-fungible tokens, or NFTs for short. NFT trading has reached billions of dollars in the last quarter alone, making them an attractive opportunity for many.

But what exactly are NFTs? How does one get started in NFT investing? And what are the legal implications of NFT trading? We’ll explore these questions in this article.

Description of Non-Fungible Tokens (NFTs)

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As the field of digital currency evolves, numerous issues and conflicts are bound to arise. With that, the ways those issues are resolved are likely to morph over time as well. This includes issues related to intellectual property.

While long-standing policies and practices have been applied to various IP-related matters that have sprung up over the last few years, there isn’t much in the way of either case law or rigid policy when it comes to cryptocurrency itself. These areas are likely to evolve as time progresses. In this article, we’ll discuss some of the ways IP law has been applied to virtual currency.

Secure IP Early On – If Possible

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As cryptocurrency evolves and comes into more common usage, so too do the regulations put in place to manage it. Upcoming laws and legal actions are likely to place more governmental controls over how virtual currencies are handled, and that means investors, firms, miners, and so forth need to be aware of the potential legal ramifications they may face in the near future.

The laws that currently (or may eventually) apply to virtual currencies like Bitcoin or Ethereum include those described in this article.

SEC Guidelines Over Cryptocurrency

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Given how cryptocurrency is not backed by any central authority, there is relatively little regulation governing it. That said, it is still taxable, particularly when it’s exchanged as payment or held as a capital asset. Because of that, Bitcoin, Ethereum, and other virtual currencies often need to be reported on your income tax return.

When Cryptocurrencies Are Not Taxed

But first, there are situations where cryptocurrency isn’t taxed. If you have purchased virtual tokens with your own money, it is not considered income. As such, until you sell it for a profit or loss, you won’t have to report it.

The recent bill H.R. 3684, also known as the infrastructure bill, has been hotly debated in the Senate. The bill requires massive amounts of funding, and one of the ways lawmakers are trying to secure those funds is through cryptocurrency brokers. Specifically, the bill would require brokers who deal in digital assets to report customer information, though many have argued that the way it defines “broker” in this sense is too broad.

As it makes its way into the House of Representatives, many people in the crypto-trading space are uncertain about what the bill means for their industry.

Return Requirements for Brokers

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