Digital currency sales face rocky path with further regulatory focus. Referring to REUTERS/Marco Bello more than 500 digital technology startups around the world have raised funds with selling their own cryptocurrencies, or tokens, that sidestep banks or venture capital firms as intermediaries. Blockhain, that underpins bitcoin and generality cryptocurrencies, is a digital database with data that could be publicly shared within a big decentralized network. Some companies are delaying offerings because of tightening regulations. Steven McClurg, chief investment officer at asset management company Blockchain Momentum, says stricter enforcement would ultimately elevate digital assets and attract new investors who are awaiting regulatory guidance.“Quality is going to matter.”More high-quality ICOs ought attract further institutional investors in the long run, analysts said.
Digital currency ‘inevitable’ – Bank of China
Digital currency ‘inevitable’ – Bank of ChinaThe introduction of digital currency is “inevitable”, according to the outgoing governor of the People’s Bank of China, who nevertheless stresses which any go ahead on the issue going to be carried out in a “steady and orderly fashion”.
Last September China introduced a blanket block on cryptocurrency trading, however the country has too been busy investigating the possibility of tapping into distributed ledger technology for a state-backed alternative. Speaking at a press conference earlier this month, Zhou Xiaochua – who has this time left his role as PBC governor – said: “It is safe to saw which the digital currency is inevitable because of technology development. The PBC going to still its study work on digital currency and electronic payments, entering the testing phase “when ready”, with Zhou stressing which digital currency ought promote convenience, efficiency, cost effectiveness, security and privacy prevention in the retail payment system. However, some Bitcoin enthusiasts are hopeful which new central bank governor Yi Gang can initiate a shift on the virtual coin, noting positive comments he has made in the past, calling the cryptocurrency “inspiring” and “enlightening”.
Digital currency is taxable, IRS reminds taxpayers
According to The unite states Internal income Service (IRS) has warned taxpayers about incurring sansictions ought they fail to report their cryptocurrency-related incomes. According to the tax agency, digital currencies are treated as property, that means they are taxable.
In relation to payments, any digital currency payments made to independent contractors and service providers have to be announced to the agency out of Form 1099. Also, wages paid to employees have to be announced to the IRS out of the W-2 form.
According to IRS 2014 guidance, virtual currency is treated as property, hence the tax levies.
collected by :John Locas