Cryptocurrency regulation in the USAJudy Rubio
The popularity of digital money is booming right now and it shows no signs of stopping, the number of people who register e-wallets is growing. Investors spend millions of dollars on cryptocurrencies. This area could not escape the attention of the US authorities. In our country, there is legal regulation of the use of cryptographic currencies.
Regulation at the national level
The U.S. Commodity Futures Trading Commission (CFTC) attributed BTC to commodities in September 2015.State law has different approach towards cryptocurrencies. Thus, in 2013, in the Eastern District of Texas, the judicial authority recognized bitcoin as a currency and used financial legislation for transactions with it.
Alison Nathan, a New York judge, confirmed that bitcoin acts as money. However, the Miami district court ruled that digital money cannot be considered as a currency. As a result, charges of laundering proceeds of crime were dropped.
Legal regulation of ICO and tokens
In the summer of 2017, the SEC notified about the possibility of recognizing tokens as a security. This allows the owner of the asset to have a stake in the business, get a vote and a share of the profits.
Some tests allow you to determine whether a token acts as security:
- Family Resemblance Test
- Howey Test
- Capital Risk Test
The SEC has also issued warnings about the likely risks of ICO and advice on how to reduce them:
- Statement about the possibility of using digital money for fraudulent purposes.
- Explaining to potential investors the risks and features of investments in ICO.
- A statement about the possibility of a violation of the law by celebrities who promote the initial coin offering.
- Warning companies that participate in the ICO about the need to maintain financial statements and disclose details of activities in it.
Taxation of transactions with digital money
The USА internal revenue service is responsible for cryptocurrency taxation. In March 2014, it issued a guide. The document defines digital money as property. Therefore, transactions with them, including production, are subject to taxation.
The guide establishes the following:
- Salaries paid in cryptocurrencies are subject to payroll tax and income tax.
- The nature of the financial result of the exchange or sale of digital money is determined by whether the coin is the main asset of the payer.
- Payments in cryptocurrencies for services provided under the contract are subject to taxation.
- Information on payments in cryptographic currencies should be sent to the appropriate authorities, individuals are required to declare income received in digital money in dollars.
The American authorities are serious about the regulation of cryptocurrencies. This indicates their interest in the area. Undoubtedly, this attitude gives investors more confidence. But, regulation is only the foundation of stable investment, the rest of the materials for the responsible investment you can get here.
Blockchain Platform to Digitize Metal Trades12 Aug, 2020 Judy Rubio
Business Intelligence Brand Purchases Crypto11 Aug, 2020 Endy Callahan
Re-Election in Belarus Impacts Crypto11 Aug, 2020 Colin Baseman
Keiser’s Predictions and BTC Perspectives11 Aug, 2020 Annabella Cornelly
NY Regulatory System Allows Ten Tokens11 Aug, 2020 David Kemp
BTC Promises Bulls to Canadians10 Aug, 2020 Judy Rubio