The CFTC recently ruled that cryptocurrencies are commodities. While this seems more reasonable than classifying them as property as the IRS has, it does nothing to clear up the situation surrounding the proposed regulations of these new markets
Allegations of fraud run rampant among critics of crypto. The lack of regulation is often pointed to as a potential shortcoming of the sector. Yet why do so few point the finger at the real culprits creating such confusion? The regulators themselves have caused this uncertainty. Any fraud that does happen, which has been noted to be minor and rare, probably occurs as a result of confusion and inability to comply with ambiguous legal frameworks.
Crypto Confusion Creates Nothing but chaos
Commodities or property – which one is it? How can something classified as two different asset classes possibly hope to be dealt with correctly by those who participate in its marketplace?
While cryptocurrency was founded upon certain libertarian or anarcho-capitalist ideas, some regulatory clarity and consumer controls are not opposed by many within the crypto community. In fact, many seem to prefer this option to the current state of indecision and mass confusion. Yet so long as this scenario persists, people will continue to shun any proposed rules or regulations for the simple fact that they are too difficult to follow.
SEC Official Says 'Dozens' of Crypto Investigations Underway https://t.co/JJefXPCj3X pic.twitter.com/FpE5iVAWVO— CoinDesk (@coindesk) March 16, 2018
In 2016, 800 people reported income from crypto to the IRS. Millions of American accounts exist on Coinbase alone. That means that millions neglected to state their profits or losses. Did they do this in a deliberate effort to deceive authorities? Or did they simply have no clue as to how they would go about doing otherwise?
Fraud, or Failure to Comply with Unclear Guidance?
None of this seems to get taken into consideration when it comes to crypto. The average mainstream conversation revolves around allegations of fraud and tax evasion. Yet the massive fraud perpetrated by megabanks goes unmentioned. The tax evasion of multi-billion-dollar transnational corporations seems insignificant for some reason.
Today's News. 1. The U.S. Department of Treasury is ramping up its enforcement against the potential for money laundering and criminal financing through cryptocurrencies. 2. A new state bill introduced to the Colorado Senate is looking at using blockchain technology to secure private data from cyberattacks. 3. South Korea will make a decision on Thursday over its stance on cryptocurrency exchange regulation, according to a report by Reuters. 4. The Department of Veterans Affairs (VA) is still interested in using blockchain in the search for greater efficiencies, though it's not yet sure what it would use the tech for. 5. Ledger, the France-based maker of hardware cryptocurrency wallets, has raised $75 million in Series B funding. Link in bio for more info. • • • #bitcoinnews #bitcoins #blockchain #bitcoinprice #bitcoinmining #bitcoinexchange #bitcointrading #ethereum #mining #ripple #bitcoincash #crypto #cryptocurrency #cryptocurrencies #cryptonews #Blockchain #Coinmarketcap #Coinbase #token #investing #trading #HODL #INVESTING #coindesknews #coindesk
Such criticisms only seek to discredit cryptocurrency. These feeble attempts have been occurring since at least 2013. They never seem to change or go away.