A lot of Shifts are expected in Cryptocurrency LawMay 5, 2019
While there is so much public attention and expectation attached to cryptocurrency, it is just a small part in the financial world. With improved regulation and better technology in place, this might expand into a major part of the economy.
Investors are to be protected from scammers and companies without true financial ethics. The gains from these investments are to be taxed and regulated. A lot of shifts are expected in cryptocurrency law.
Countries from across the world not limited to the US and Europe are focused on protecting the interest of investors from bad actors. This is in order to prevent the currency from being used for illegal reasons.
In several legal cases filed in the US concerning trials related to cryptocurrencies like Bitcoin, the courts of law held that these investments have similar legal standing like any other kind of investment. In a Ponzi scheme case, it was held that since Bitcoin could be exchanged for money, it is subject to trial under the Ponzi schemes.
The CFTC looks at Bitcoin and other cryptocurrencies as a form of the futures contract. Considering it as a commodity, it regulates interstate transactions related to cryptocurrency, thereby regulating fraudulent usage.
Money laundering is a process where ill-gotten funds are converted into legal funds. These transactions happen in an anonymous way. There are several cryptocurrencies like Dash, Zcash, and Monero, which can be transacted in complete anonymity. The Bank Secrecy Act in the US is focused on combating this issue.
When it comes to taxation, the decentralized nature of cryptocurrency cannot be provided as a reason for the tax exclusion. The losses and gains in cryptocurrency investments are recognized by the IRS. And all the tax regulations related to property apply to cryptocurrency. Investors are expected to report their profits and losses just like they would in stocks.
It is likely for the cryptocurrency market to venture into a bunch of crypto regulations from different nations. A recent report remarked thus: “A tsunami tough new global anti-money laundering (AML) and Counter Terror Financing (CTF) regulations will roll over the crypto landscape in the coming year.”
Privacy coins are likely to escalate and trigger the activities of regulators even further. The cryptocurrency market situation is evolving.
Tom Pageler, the Chief Security Officer at BitGo, stated, “We think that regulation is good, and it makes it, so the players who are trying to do this right and actually want to mirror the banking world, just to make it quicker and faster and more disruptive do succeed, and we don’t have consumers with issues.”