Articles Tagged with cryptocurrency

cp22-300x167
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

GettyImages-919078630-2-300x200
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

Mergers and acquisitions are terms often used in the same breath, even to the point where we abbreviate them as M&A. However, while they both refer to the joining of two companies together, they are very different concepts.

Here, we’ll go over the differences between mergers and acquisitions and why you might opt for one or the other.

The Main Difference Between Mergers and Acquisitions

Cryptocurrency and the IRS

As Bitcoin, Ethereum, Zcash, and other forms of virtual currencies become more and more prevalent, many people have begun facing the tax implications of their trading, buying, and selling activities on the blockchain. Numerous individuals have accumulated a great deal of wealth thanks to this new technology, and the IRS has taken notice.

As the technology and the usage thereof develop, so too will the codes and rules set forth by the IRS over how this type of income should be reported and taxed. When it comes to planning for the tax implications of buying and selling cryptocurrencies, making an ICO, or engaging in other business transactions involving blockchain technology, you need an attorney who is both experienced in tax law as well as up-to-date on the latest developments.

Contact Information