IRS to Build Tax Evasion Cases

The U.S. Internal Revenue Service has begun preparations to bring down the hammer on Bitcoin tax cheats  
09 February 2018   1213

US residents have two more months to submit their annual federal tax returns. The Internal Revenue Service will treat very harshly Bitcoin tax cheats.

The agency has assigned a team of elite criminal agents to investigate whether Bitcoin and other cryptocurrencies are being used to cheat the taxman.

According to IRS chief Don Fort, it’s possible to use Bitcoin and other cryptocurrencies in the same way as foreign bank accounts to facilitate tax evasion. He also informed that the agency hasn’t charged anyone yet, but the cases will come. Under current US law, cryptocurrency owners are required to pay taxes on profits realized from any cryptocurrency transaction. It is clear that if you have realized profits from cryptocurrency investments, you will have to pay taxes.

This new technology is a big challenge for the IRS, they need to educate themselves on what is a blockchain. The agency lost its key staffers since 2011 on account of budget cuts. This team will help the agency to return its full strength, complete with its own crew of blockchain experts.

There are three so-called types of bitcoiner: 1) those intending to pay, 2) those hoping the IRS will not hunt them, because there are bigger “fish to fry”, 3) those willing not to pay. They even ready for moving to Puerto Rico. Of course, days of wide-scale cryptocurrency tax avoidance are almost in the past.

SEC to Start VanEck-SolidX BTC-ETF Consideration

Starting today, the 45-day countdown to the SEC initial decision was launched
20 February 2019   98

For the first time since August of last year, two proposals on the creation of a Bitcoin-ETF are under consideration by the US Securities and Exchange Commission (SEC).

The application of VanEck and SolidX, issued in cooperation with the Cboe BZX exchange, as expected, was included in the Federal Register issue this Wednesday, with which the 45-day countdown to the SEC initial decision was launched. The application of Bitwise Asset Management and NYSE Arca was published last week.

I … hope that our investment in regulatory and market education, hard work and commitment will be honored when the time comes.

Gabor Gurbacs

Director of digital asset strategy, VanEck

The head of Bitwise’s research department, Matt Hogan, believes that not only firms that have submitted bids to create Bitcoin-ETFs are looking for approvals, but and the entire “extremely fast-growing” crypto industry.

A year ago there was maybe one qualified crypto custodian … and now there are half-a-dozen, and that number will go up from here. A little more than year ago, we didn’t have futures. A year ago we didn’t have nearly as many firms making markets. A few months ago, you didn’t have folks like Fidelity announced in the space. It’s evolving really, really quickly.

Matt Hougan

Global head of research, Bitwise

 As reported, ultimately, however, a bitcoin ETF approval will depend on how companies approach their proposals.