Political look at cryptocurrency world
Regulators all over the world have begun to address the challenges presented by virtual currencies that mostly bypass regulated banks, financial firms, exchanges and central clearinghouses. Digital currencies, token sales and blockchain initiatives of all types have ignited a global phenomenon, unlike anything. As the technology underpinning these developments disrupts products and services in nearly every industry, lawmakers, regulators and law enforcement are scrambling to keep up.
Because the current players in virtual currencies including the most popular bitcoin largely operate outside of the conventional financial system, regulators are concerned about money laundering, terrorist financing, tax evasion and fraud. Treasury Secretary Steven Munchin is taking the lead on bringing together federal government agencies to coordinate regulation of cryptocurrencies.
He has formed a virtual currency working group of the SEC, the FED, and the Financial Crimes Enforcement Network. Critics say many of the projects in cryptocurrency world barely exist beyond whitepapers or are outright scams. Jay Clayton, the SEC chairman said he is not satisfied when people think cryptocurrency trading platforms have the same protections as a stock exchange.
Cryptocurrency is an investment property and the tax rules for cryptocurrencies in the United States are that a person who sell, trade or use it owes taxes. For tax purposes in the U.S., cryptocurrency is treated as property (a capital asset as stocks, bonds, and other investment properties). It is not treated as a currency but as a real estate or gold. Trading cryptocurrency to another cryptocurrency or a fiat currency as the dollar is a taxable event. Tax applies also to mined coins, but it does not apply when giving cryptocurrency as a gift.
sources:
https://www.marketwatch.com/story/heres-how-the-us-and-the-world-are-regulating-bitcoin-and-cryptocurrency-2017-12-18
https://www.cnbc.com/2018/02/06/us-government-is-trying-to-get-coordinated-in-its-efforts-to-regulate-bitcoin.html
https://cryptocurrencyfacts.com/2017/12/30/the-tax-rules-for-crypto-in-the-u-s-simplified/