Eternity Law International News Legal regulations of operations with cryptocurrencies in the USA

Legal regulations of operations with cryptocurrencies in the USA

Published:
May 29, 2018

The US is the best option for working with cryptocurrency if you are planning to license your business. The mass of various companies, exchanges and funds is focused on this type of activity.

Moreover, in this country you can calculate the digital currency for goods and services. Special ATMs have been developed, which contain the functions of exchanging fiat funds and digital money.

Nevertheless, in the USA there are difficulties in legal regulation. For the most part, this is due to the peculiarities of the state – in fact, each state has its own laws. Another aspect is the lack of a unified regulation of the status of the cryptocurrency – it can be regarded as an exchange commodity, property or even an analogue of money.

FIRST ATTENTION TO CRYPTOCURRENCIES

The FBI was interested in cryptocurrencies back in 2012, when the Bitcoins report was written. It expressed fears that such an anonymous payment system could become an instrument of illegal activity. The FBI also became interested in this and in 2013 released two research papers on the topic.

Then, in April 2014, a hearing was held on the Small Business Committee, which examined the strengths and weaknesses of the cryptocurrency, as well as the risks associated with it in the context of small businesses. And in May 2014 a meeting of the Federal Advisory Council and the Federal Reserve was held, where it was decided to classify Bitcoin as a threat.

LEGAL REGULATION

In the United States, all relations are regulated not only by federal law, but also by the laws of individual states. This creates its own nuances in working with the crypto currency. A number of states require compulsory licensing when dealing with such money.

Therefore, California became the first state to legislatively regulate the use of electronic means. However, there are no tools for business yet.

If we talk about New York, then on the contrary – in August 2015, the mechanisms of action were worked out. State Department of Financial Services of New York introduced the concept BitLicense – a special license to conduct business cryptocurrency. However, this entailed the outflow of crypto-cash companies from the state.

A slightly different attitude in the state of Washington. Here electronic means are the object of money transfers, i.e. the company can only charge digital money to a resident of that state only after the appropriate license is issued.

However, this applies only to companies. Individuals do not need this to transfer funds among themselves.

Considering New Hampshire, you can see a similar situation. All exchanges and companies performing work with cryptocurrency equal to the operators of remittance. Therefore, in this state there is also a need to issue a license.

TAXATION IN THE USA

All tax issues are within the competence of the US Internal Revenue Service. In 2014, a special management was issued, in which the cryptocurrency was equated to the property.

This meant that the possession of the digital currency, including the occupation by mining, should have been taxed.

Based on the guidelines based on the cryptocurrency:

  • wages must be subject to income tax and a wage tax;
  • payments for services of counterparties under a civil law contract are taxed;
  • Information on payments should be reported to the relevant institutions;
  • income must be declared in dollars.

However, the citizens were not satisfied with this statement. Soon, on the official website of the government, a petition was published, in which the protest against the created leadership was expressed. This petition was signed by 864 people.

To resolve all the difficulties in carrying out the procedure for regulating cryptocurrency in the USA, it is worth contacting the managers of Eternity Law International. Thus, you can protect yourself from the legal difficulties associated with the settlement of the issue.

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