Cryptocurrency Regulation Archives - Page 3 of 3

Cracking Down

Specifically, the Swedish tax agency shared that 2,700 traders are involved, that purchased $5.8 million in Bitcoin in total, and sold it back for $6.1 million in local currency. The agency is apparently reviewing $12 million of Bitcoin trading. In addition, it appears as though SKAT will be cracking down on cryptocurrency trading specifically.

Karin Bergen is the directorate at SKAT, and elaborated: “If you have traded with bitcoins on the specific Finnish bitcoin exchange and have not specified any winnings, then you can hear from us so we can get your taxes in place.”

Different Targets

It appears as though SKAT does understand that there are different levels of Bitcoin traders, but it doesn’t seem as though anyone is exempt from the agency. The chairman of the personal data department of SKAT, Ole B. Sorensen, states: “There are two types of trades. One is what I want to call a curious trade, which is about a few thousand dollars, and there are those who have been trading for some enormous amounts.”

Bergen said: “It’s probably the tip of the iceberg”, with regards to the cryptocurrency tax crackdown. She added: “Although the Finnish company is a relatively small bitcoin exchange, the information they have revealed is a precious source, which clearly shows trends and patterns in the area.”

It appears as though the agency will be interested in cryptocurrency for some time now. Either way, Denmark appears to be more open to Bitcoin than many other countries, considering that over 1500 restaurants accept the digital asset as form of payment.

All over the world, there are influential politicians that are arguing about cryptocurrency regulation and how it should be executed. There are those that praise blockchain technology and believe that regulation should spur innovation, and there are other politicians that believe that the sector is rampant with fraud, and that regulation should be postponed until the sector is more understood.

The U.K. is no exception, and for some time now, there are lawmakers that have argued that some kind of cryptocurrency regulation is necessary, because the sector is a “Wild West”. Nicky Morgan, a British conservative and current member of Parliament (MP), stated: “Bitcoin and other crypto-assets exist in the Wild West industry of crypto-assets. This unregulated industry leaves investors facing numerous risks.”

It appears as though another MP has an opinion regarding Bitcoin, but it doesn’t have to do with regulation; it has to do with taxes. Eddie Hughes has described himself as a “crypto enthusiast with amateur knowledge”, and believes that members of the UK government have a “duty” to learn about and understand blockchain. He stated about Bitcoin: “It feels like it gets talked about a lot, where you go in the UK.”

He also pointed out that he had just met with an organization with the RNLI, which accepts Bitcoin. He is referring to the Royal National Lifeboat Institution, which began accepting Bitcoin in donation form in 2014, before many other organizations were even considering Bitcoin as an option.

The charity is a rescue service that is dedicating to saving the lives of those at sea. The organization has actually saved over 140,000 lives since it was founded in 1824. It has the distinction of being the first major charity that accepted Bitcoin as a donation, and still does, at rnli.org/bitcoin.

He stated: “Only recently I met with the RNLI which is now accepting charitable donations through cryptocurrency – if we can do that, what’s to stop us being able to pay council tax and other bills with bitcoin?”

Ohio recently made waves around the world with regards to cryptocurrency, as it now officially allows Bitcoin to be used to pay for tax bills.

Hughes elaborated that the UK’s decision to innovate has to be made soon: “You’re either ahead of the curve or you’re behind the curve, and our country is in an interesting position right now – we need to be seen as a progressive country.

“We are at a crossroads and we’re about to determine our future – one in which taking the lead in this field could prove very beneficial.”