Crypto Taxation Without Representation
By ICO Alert
- Bitcoin accounts worth $20,000 or more are regulated
- Coinbase received $75 million in investments from the NYSE and USAA
Trading cryptocurrencies is not considered a transaction, instead it’s viewed as property according to the IRS. Last year decentralized currencies were labeled a black market for money laundering. Now, in 2018 the prospect of having a tax payout from these cryptocurrencies is a reality. Why is the U.S. government cool with Bitcoin now?
Why This Matters: The government is starting to regulate Bitcoin and popular trading platform Coinbase because the transactions are worth more in taxes. As more platforms support Bitcoin trading, the government stands to benefit. Using the clout of Bitcoin to convince new subscribers, Robinhood and Cash App have announced their crossover into crypto trading.
Advancements for the government correlates with recent interventions in the space. Back in November 2017 the IRS won a legal case with Bitcoin and obtained access to 14,000 Coinbase accounts. Due to this victory, accounts worth $20,000 or more are regulated.
In January of this year Coinbase announced it will operate the first government regulated Bitcoin exchange in the U.S. Interestingly enough this statement came after Coinbase received $75 million in investments from the New York Stock Exchange and military bank USAA.
Situational Awareness: The attitude around decentralized currency has changed from it’s illegal, to don’t forget to pay your taxes. Currently the tax campaign favors traders holding their crypto for over a year, making minimum transactions and never cashing out. It suggests the U.S government is doing everything to capitalize off of citizens using crypto, without allowing decentralized currencies to compete with the U.S. dollar.
CBx Vibe: “Bad Company” ASAP Rocky