Legal regulations of cryptocurrency in USA
Legal regulation of a cryptocurrency in USA
With no doubt crowdsale is one of the most discussed topics in the world today. Of course, this is a great alternative to venture funds. Therefore, this way of investing will necessarily be considered at the legislative level.
In order to register crypto exchange in America, it is necessary to comply with a number of conditions, where the released token can be considered as a security or currency. Legal regulation of the cryptocurrency in the US depends on both federal legislation and the laws of each state separately.
Registration of crypto exchange at the federal level implies a certain order. One of these stages is to register as an operator for the transfer of funds to FinCEN (Financial Crimes Network). This requirement is common in many states and applies not only to exchanges and companies that provide services for exchanging fiat money and cryptocurrency, but also to those organizations whose activities involve providing cryptocurrency wallets to their investors, which subsequently entails, transfer, exchange or sale of digital currency. Also, at the level of a state, a license for cryptocurrency may be required for further activities.
The USA SEC (Securities and Exchange Commission) may approve crowdsdale, but it must be regulated by the Securities Exchange Act of 1934. Their powers are already known far beyond the United States.
Those organizations that are engaged in the mining of cryptocurrency, and also participate in the development of this software, are not subject to registration.
Taxation of operations with cryptocurrency
Any operations with the cryptocurrency, as a property, will be taxed from the beginning of 2018. The objects of taxation may include:
- wages paid in the cryptocurrency;
- payments for services of a counterparty under a civil law contract in the cryptocurrency;
- any information on payments in the cryptocurrency must be submitted to the appropriate authorities. A revenue or other taxable objects that were received in the cryptocurrency, should be declared.
The relation of USA to cryptocurrency
Discussions on cryptocurrencies (Bitcoin) at the state’s highest level began in 2012, due to the FBI’s concern to use bitcoin for illegal activities. Later, in 2013, the FRS (Federal Reserve System) made two research reports on the topic of Bitcoin.
In America, California was one of the first states, that allowed operations with a cryptocurrency on a legal level.