Satoshi told us in the White Paper that Bitcoin was created to free us from the bonds of financial slavery that the governments and banks had held us in for 1000s of years; keeping the rich in their lofty position; while the rest of us struggled to survive. Of course, governments and banks can't deal very well with that sort of freedom. Since there are BILLIONS of dollars in cryptos at this point; outlawing the system just isn't an option. So, there are laws being put into place as the government catches up to give us, in the cryptosphere, protection and clarification; while they claim "Caesar's Share".
To date the US SEC has not yet approved or registered any exchange-traded products holding cryptocurrencies or other assets related to cryptocurrencies for listing or trading. However, that department has not been silent on the matter of cryptos. In July 2017, the SEC issued an investor bulletin about ICOs, saying they can be “fair and lawful investment opportunities; but, can be used improperly." Since then the SEC has issued three Cease and Desist in the exposure of three alleged frauds; as well as a initiating legal actions against the sponsors of two different ICOs. SEC Chairman Clayton has also expressed concern about market participants who extend to customers credit in the U.S., promising upcoming regulation in this area as well.
The Commodity Futures Trading Commission (CFTC) has declared bitcoin to be a commodity and announced that fraud and manipulation involving bitcoin traded in interstate commerce and the regulation of commodity futures tied directly to bitcoin is under its authority. The CFTC allowed the CME and CBOE to launch bitcoin futures. CFTC also approved a platform for the trading and clearing of virtual currency derivatives for LedgerX, LLC, a swap execution facility and derivatives clearing organization.
The Internal Revenue Service (IRS) says bitcoin must be treated as property for tax purposes. That means a capital gain or loss should be recorded as if it were an exchange involving property. It should be treated like inventory if it is held for resale, and therefore an ordinary gain or loss recorded. If it is used as payment, it should be treated like currency, but must be converted, and its fair market value checked on an exchange.
At the State level, several U.S. states plan to approve the acceptance or promotion of the use of bitcoin and blockchain technology, while some have already passed them into law according to Bitcoin magazine. These include Arizona (which has formally recognized of smart contracts), Vermont (which has declared the blockchain may be used as evidence in legal proceedings), and Delaware (which has a pending initiative authorizing registration of shares of Delaware companies in blockchain form). As a group the National Conference of Commissioners on Uniform State Laws voted in July to approve a model act providing for the regulation of digital currency businesses at the state level.
Around the globe
So, the governments of the US have most definitely taken notice of our little crypto revolution with a variety of responses. Around the world there have been similar government investigations and regulations. Some countries have stated that issuers and intermediaries of virtual currencies and “security” tokens may be subject to regulation, depending upon the nature of the product and service. Others have flatly declared that virtual currencies are not legal tender, keeping their Central Banks as the only authority that may issue legal tender. Some countries have regulated (though not many as harshly as the US to date) companies offering financial services involving virtual currencies. While others have not even spoken on the matter. Many countries have created laws in which digital currency exchanges will be subject to registration and regulation in accordance with existing, and upcoming Anti-Terrorism laws. Some countries have outlawed trading, others encourage it.
There are many laws around the globe currently in effect; and many more in the planning stage, in response to this new technology. The one universal thought in most places is a sort of governmental panic as the laws are brought into line with the new world we have created out of Satoshi's gift of Bitcoin. Individuals, businesses, groups and governments have all created their own cryptos since Bitcoin. Laws have been made in response to many. Those laws may get tougher in some jurisdictions; many will also fall away, being amended and/or revoked entirely over the coming years. These are all growing pains of our cryptosphere.
While it isn't likely that any government will allow Bitcoin and its brethren to overtake a national currency; it is absolutely certain that, one day in the near future, BTC, ETH, LTC, XMR, BCH, Doge and others will be accepted as payment methods; just as PayPal is now. That platform went through its growing pains and legal issues; as did credit / debit cards before it. Bitcoin and the cryptos will also survive this process; with our help.
Remember, although the spirit of freedom was the gift of Satoshi; rebellion and lawlessness is not a part of that freedom. So, when in doubt, consult a lawyer in your area, pay your taxes as dictated by your country's laws, and Happy HODLing our friends!
Who is Satoshi Nakamoto and Suspected People?
Posted in General Crypto on Mar 10, 2018In 2008 the name Satoshi Nakamoto was introduced to the world when the Bitcoin Whitepaper was published and distributed through the Cryptography Mailing List in November of that year.
Bitcoin & Blockchain: should we trust them?
Posted in General Crypto on Mar 20, 2018We are living in the digital era. Our lives, work and play are all online in some form or another. Likewise, our money is also online. Every bank, credit card and fiat payment platform is out there, connected to the internet, allowing us to buy and sell goods and services at any time of the day or night.
How to Convert Bitcoin to Other Cryptocurrencies?
Posted in General Crypto on May 01, 2018If you are new to cryptocurrencies or have owned Bitcoin for a while, there may come a time when you want to convert between different coins.
Lightning Network as a Way to Reduce Blockchain Fees
Posted in Reviews on May 12, 2018In 2008 the world was given the gift of Bitcoin. Along with this revolutionary money and payment platform came Blockchain technology; the world's first fully transparent banking system. Thus we gained our freedom from the financial fraud and slavery of the past.