11 Nov
0
Canada has decided to reveal some of its plans for virtual currencies
(BitcoinExaminer) Canada has decided to reveal some of its plans for the future of Bitcoin and other virtual currencies: the country’s Revenue Agency (CRA) recently released a statement regarding the taxation of cryptocurrency, which had been promised in May.
The document, entitled “What you should know about Digital Currency”,provides guidance to tax advisors working with Bitcoin companies in the country, reinforcing the CRA’s former opinions on the subject.
Basically, the tax rules apply when Bitcoin is used to pay for goods and services, exactly like the rules for barter transactions apply. The fact sheet also includes links to the CRA’s rules on Barter Transactions, equally pointing out that “digital currency can also be bought or sold like a commodity”, so “any resulting gains or losses could be taxable income or capital for the taxpayer”. However, as Coindesk highlights, the guidelines don’t address the possible taxation of Bitcoin mining.
Finally, the document encourages the Bitcoin users and entrepreneurs to follow the law: “not reporting income from domestic or foreign sources is illegal. Canadians should know that the Canada Revenue Agency is very active in pursuing cases of non-compliance, in order to ensure that the tax system remains fair for everyone”.
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10 Nov
0
US federal election commission to allow Bitcoin donations to political campaigns
(BitcoinExaminer) It’s official: after two months considering the proposal, the Federal Election Commission (FEC) has proposed a new rule that will allow political campaigns in the United States to accept Bitcoin. However, the candidates getting cryptocurrency donations won’t be able to spend the virtual coins, according to a draft made public this week. The document states that the campaigns will have to convert the received Bitcoins before actually using them, with the digital coins being considered an “in-kind” form of contribution, like a stock or bond, the site Politico reports. Basically, this means the FEC doesn’t consider Bitcoin as currency.
Because Bitcoins are neither the currency of any country nor negotiable instruments, Bitcoins are not ‘money’ under commission regulations. Therefore, a political committee that receives Bitcoin contributions may not treat them as monetary contributions.
The decision is finally here after the Conservative Action Fund PAC requested the Federal Election Commission an official position, in September, regarding Bitcoin donations to political campaigns. With this new ruling, cryptocurrency joins other types of non-monetary contributions like private stocks, commodities and equipment, which must all have their value listed in US dollars on the campaign finance reports. When converting the cryptocurrency to US dollars, the exchange will probably charge a fee that will have to be considered part of the initial donation. Also, with the value of the currency floating on a daily basis, the campaign managers will have to be careful not to accept donations above the federal limits. In the meantime, members of the public can submit comments on the draft until November 13. After that, the commission will officially decide if the proposal deserves to be formally adopted.
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8 Nov
2
Federal Reserve economist says bitcoin is a remarkable technical achievement
(CoinDesk) A member of the United States Federal Reserve banking system has written an analysis of bitcoin, stating that there are many positive aspects to it.
François R. Velde, senior economist of the Federal Reserve in Chicago, writes in his paper “Bitcoin: A primer” that bitcoin is a “remarkable conceptual and technical achievement, which may well be used by existing financial institutions.”
“The bitcoin protocol provides an elegant solution to the problem of creating a digital currency—i.e., how to regulate its issue, defeat counterfeiting and double-spending, and ensure that it can be conveyed safely—without relying on a single authority,” Velde writes.
The news of these remarks coming from the US central banking authority come on the heels of bitcoin’s price hitting a record high since it was first created back in 2009.
Andrew Beal, corporate attorney at Los Angeles-based firm Crowley Strategy, works primarily with startup technology companies. He thinks that this is a sign that the banking industry is taking bitcoin seriously, which is good for businesses that want to accept of otherwise build a company around BTC.
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