Ensuring Responsible Innovation in Digital Assets calls for TEAMWORK
The Executive Order signed by President Biden lays out a national policy for digital assets across six key priorities: consumer and investor protection, financial stability, illicit finance, U.S. leadership in the global financial system and economic competitiveness, financial inclusion, and responsible innovation. An Innovative Digital Asset approach is a priority for the U.S. The Executive […]
FED OPENS DEBATE ON U.S. DIGITAL CURRENCY
Report Examines Pros and Cons of CBDC The Federal Reserve is considering issuing a Central Bank Digital Coin (CBDC), according to a new report considering the pros and cons of such a move. Issuing this digital currency would be the first type of new money issued by the Fed since the first $10 bill was […]
How the IRS Uses Social Media to Find Crypto Tax Cheats
Does your Twitter, Reddit, Facebook, Instagram or other social media feed feature photos of your new sports car, boat, fabulous vacation or the beach house that you bought with your crypto gains? Do you also report a low income on your taxes? You wouldn’t be alone if you were bragging about your crypto riches on […]
The Tangled Web of Proposed Crypto Regulation
Don’t Expect Coherent Rules to Align Any Time Soon Multiple enforcement agencies within the US government agree that the $2.5 trillion crypto industry needs regulation. And heads of the largest crypto companies have told Congress that they agree. But therein lies the rub: the government has yet to define what crypto is, let alone how […]
OFAC Warns FFIs And Crypto Sector On Ransomware Attacks
Prevention is Key, Sanctions Are Possible for Ransomware Attack During the first half of 2021, 68 different ransomware attacks extracted approximately $600 million from victims across the United States. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) says that the attacks have become more focused, sophisticated, and costly. It’s not hard to imagine the public […]
Bitcoin’s Limited Supply Increases Its Value. Should You Invest in Cryptocurrency?
Macroeconomic concepts tell us that when supply of a valuable commodity is limited, demand for it will rise, and so will its price. Fiat currencies are backed by governments and central banks and more can be printed at will. Bitcoin, on the other hand, doesn’t have traditional backing and has a fixed supply. This may […]
Why Are Crypto Investors Still Buying?
Danger signs abound Despite its volatile and speculative nature, a single bitcoin is trading at around $61,134 (11/5/21.) Demand is growing exponentially, despite multiple danger signs. For example: The SEC, the U.S. Treasury, the DOJ, OFAC and the Financial Action Task Force (FATF) are all getting ready to tighten and restrict the cryptocurrency industry There […]
How Will Virtual Currency Be Taxed?
Non-compliance with virtual currency (crypto) tax rules can cost taxpayers dearly It Depends Who You Ask! Despite the confusing interpretations by US regulators, non-compliance with crypto tax rules can cost taxpayers dearly. Unfortunately, the answer to “how is virtual currency taxed” depends on who you ask. The IRS, The Financial Crimes Enforcement Network (FinCEN), the […]
Subprime Market Redux: Will Leverage Be Crypto’s Downfall?
I Predicted the Subprime Lending Bubble’s Collapse. The Signs Are The Same For Cryptocurrency. When I predicted the bursting of the housing market’s subprime lending bubble in 2006, a lot of people called me crazy. And some of the people getting rich in cryptocurrency will say the same when I tell you that the Bitcoin […]
IRS Puts Brokers On The Hot Seat for Crypto Tax Reporting
Definition of a broker is debated The Biden Administration’s 2021–2022 Priority Guidance Plan (the Plan) supports a push from the IRS and the US Treasury to more closely scrutinize the virtual currency industry. Missing from the Plan? Specifics. Of note among the 193 guidance projects in the Plan is the“Brokers dealing with virtual assets” section. […]
OFAC Puts Virtual Currency Industry on Notice
New Guide Includes Reporting Requirements and Potential Penalties In a new Sanctions Compliance Guide, The Office of Foreign Assets Control (OFAC) of the U.S. Treasury reiterates that obligations apply equally to transactions involving virtual currencies and those involving traditional fiat currencies. With a broad stroke, OFAC defines the Virtual Currency Industry as technology companies, exchanges, […]
Debunking Five Myths About Cryptocurrency
A surge in cryptocurrency prices this year created many crypto paper millionaires and brought millions into the game. But the digital currency market is a rollercoaster ride. As a result, many of those fortunes have already evaporated as crypto prices fell precipitously. Whether or not crypto will transform the nature of money remains to be […]
