Bitcoin Watch

By JD Supra Business Advisor | JD Supra's magazine covering all aspects of Bitcoin and issues surrounding virtual currency. Updated daily.

Quantum Computers for Mining Bitcoins

Today’s computers encode data into bits – binary digits in one of two definite states, 0 or 1. Any calculation that needs to be performed with the …

Quantum Computing

State Bank Regulators Request Feedback On Model Framework for Virtual Currency Activities

On December 16, the Conference of State Bank Supervisors (CSBS) announced its draft regulatory framework and requested public comment on specific …

Bitcoin Reportability and Taxation

June 30 is the deadline for taxpayers with a connection to foreign financial accounts to file FinCEN Form 114, Report of Foreign Bank and Financial …

SEC, Bitcoin and Unregistered Offerings

Bitcoin has been a much discussed item recently. The virtual currency is a digital representation of value that is traded and can serve as a medium …

Deal Carefully With Bitcoins Until Legislation Catches Up

Interest in cryptocurrencies is growing, even after Mt. Gox, formerly the largest international bitcoin exchange, filed for bankruptcy in Japan …

Senate Banking Committee Leaders Seek Regulators’ Views On Virtual Currencies

On May 19, the Senate Banking Committee’s chairman and ranking member, Senators Tim Johnson (D-SD) and Mike Crapo (R-ID), sent a letter to the …

SEC Alerts Investors: Of Bitcoin Risks

<b>For the second time in less than one year, the Securities and Exchange Commission (SEC) has issued an alert to investors about the risks of investing</b> …

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Technology, Innovation, and the Law: The Wacky World of Bitcoin

<i>While the IRS’ recent ruling comes as a certain relief to Bitcoin enthusiasts who feared it would be deemed completely illegal and/or entirely shut</i> …

Bitcoin

Last Week At The FEC: Continued Delay On Bitcoins

Last week the Federal Election Commission met in executive session and held an open audit hearing on the Democratic Party of Illinois as well as an …

Bitcoin

DBO Issues Guidance Regarding Virtual Currencies And Asks For Comments On Proposed Money Transmission Rules

Yesterday, the Department of Business Oversight issued this cautionary guidance for consumers regarding virtual currencies. However, amidst the …

Money

Bitcoin – real, virtual or illegal currency?

The news about the indictment of Charlie Shrem, the former vice president of Bitcoin Foundation, and Robert Faiella in the US because of their …

Bitcoin: Regulators and States Out Ahead—Will Congress Follow?

Bitcoin, a decentralized digital currency that facilitates quick exchanges of value, has received steady attention from the media and industry …

New IRS rules make using Bitcoins a fiasco - Mar. 31, 2014

The United States' new Bitcoin tax rules just made casual, everyday use a complicated bookkeeping headache.<p>The Internal Revenue Service's notice last week will force the average Bitcoin user to keep a strict record of every purchase made all year long -- then perform difficult calculations to …

Bitcoin

Mining Bitcoins After the IRS 'Property' Ruling – Nothing New Under The Sun

<i>...well settled rules that govern the taxation of transactions involving the sale or exchange of property, or the issuance of property in exchange</i> …

Why Bitcoin Can No Longer Work as a Virtual Currency, in 1 Paragraph

A single bitcoin no longer functions like a $20 bill.<p>On Tuesday, the Internal Revenue Service ruled that it would tax Bitcoin as a property, not a currency.<p>Some see the move as helping to bring the medium into the mainstream. Now that bitcoins can be taxed, they’re reportable, and the legal …

Bitcoin

IRS Makes Bitcoins A Tax Headache

The IRS just published Notice 2014-21 which explains the IRS’ vision on how general tax principals apply to “virtual currency” transactions like …

Banks won't do business with legal marijuana sellers. Enter PotCoin.

In October 2012, four assailants allegedly kidnapped a California pot dispensary owner and drove him out to the desert, where they believed he was …

Watch Bitcoin Become a Financial Battlefield in These Amazing Charts

When hackers posted 750 megabytes of data pilfered from the bankrupt bitcoin exchange Mt. Gox, many people seized on it as a kind of treasure map, …

Bitcoin: A Tale of Digital Trails

Once thought of as an anonymous method of buying and selling goods and services, Bitcoin users and researchers are increasingly aware of the inherent …

A Better Way to Buy Bitcoin?

When Zach and Josh Harvey opened a guitar store in Tel Aviv, in 2006, they only sold instruments made by musicians who viewed the pieces as works of art. To the brothers, who were twenty-six and thirty-two at the time, the idea of plugging in a mass-produced electric guitar wasn’t in keeping with …

Bitcoin

If Bitcoin Isn’t a Currency, Can You Use It Like One?

IRS: Bitcoin Is Not Currency<p>The Internal Revenue Service’s decision to treat bitcoin like property rather than currency clears up a few questions, and certainly will help some investors who need to finish their taxes by the April 15 deadline. But it leaves other questions up in the air, none bigger …

Bitcoin

New York Department of Financial Services Will Consider Proposals for Virtual Currency Exchange

The New York Department of Financial Services issued a public order indicating that it will begin to consider proposals and applications for the …

Bitcoin And Internet Payment Systems: Regulatory And Commercial Law Concerns

<b>I. Introduction</b><br>Recently there has been widespread interest in the propagation of virtual currency based payment systems, including most notably, …

FINRA Alerts Investors to Bitcoin Risks

Bitcoin remains fixed on the front pages of the business and technology news for both the salacious and the positive. Much attention has been paid to …

Here's How To File Bitcoin Income On Your Tax Return

The IRS has yet to rule on how to report income from Bitcoin.<p>That has left Bitcoin enthusiasts - assuming they are interested in passing an IRS audit - in a legal no man's land.<p>So we spoke with Tyson Cross, an attorney in San Diego specializing in IRS compliance who has extensively researched …

Bitcoin

Xapo Raises $20 Million To Bury Your Bitcoin Underground

With the implosion of Mt.Gox and the rising popularity of cryptocurrency, it makes sense that someone would want to build an FDIC for BTC. Xapo thinks it may have figured out how.<p>The company, founded by Wences Casares, raised $20 million from Benchmark Capital and Fortress Investment Group LLC, …

Bitcoin