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Guidance And Regulation Coming From U.S. And Other Countries
Guidance for valuing and treating cryptocurrencies varies. For example, a 2014 IRS Guidance characterized cryptocurrency as “a digital representation of value.” Today, the only certainty is that regulation of the Blockchain based currency is coming from the IRS, SEC and other foreign regulatory bodies.
Look to the Swiss Bank Program For Tax Guidance
The IRS fears that widespread tax noncompliance may exist among cryptocurrency users — and these fears are echoed in other countries with large cryptocurrency markets. Indeed, the U.S. secretary of the Treasury recently stated that — without proper regulation — bitcoin could become the next “Swiss numbered bank accounts.” Thus, lessons from the IRS’ Swiss Bank Program that was used to mitigate problems in those accounts may provide guidance to actors in this space. How Tax Authorities Are Responding To Cryptocurrencies, Law360, May 2, 2018.
Read what cryptocurrency experts think about valuation and regulation: