All the fiat currencies that have been created across the world are being released as well as controlled by some of the other entity which is usually the central bank of any country. Ordinary citizens can legally use that money in order to purchase or sell or keep the currency to themselves. If any other person tries to create that money, they would probably be behind bars for doing so.
The invention of Bitcoin has set a new and utterly diverse standard. This is the world’s first currency that is decentralized and digital in nature, and any single authority does not control it. On the other hand, it has also implied that anybody can create coins for themselves by using the computer and being a part of this community.
As Bitcoin is becoming conventional across the globe, all the law enforcing agencies and the legal, regulatory bodies as well as the tax authorities are trying their best to wrap the cryptocurrency concept with their hands and where to fit this cryptocurrency into their legal regulations and frameworks that are pre-existing. Here at bitqs.
What are the concerns relating to cryptocurrencies?
Many authorities across many jurisdictions have not yet understood Bitcoin; therefore, defining Bitcoin in the legal term is not even begun. There are a lot of concerns regarding the decentralized nature of the currency. It is very natural that all the governing authorities are concerned about the nature of this financial currency that is not under control by a specific central authority. There are also concerned with the protection of the exchanges and the funds of the citizens of their country. Although there are a few US-based exchanges that have been regulated already, there are still a lot of other platforms that are offshore and are not regulated. There has already been a history created by a lot of cryptocurrency exchanges that got shut down overnight and ran away with the money of the citizens.
As this currency is being semi-anonymously used, this is another concern with regard to its safety. Although the records of all the transactions that are made are maintained in the blockchain, still the users can keep themselves anonymous. This is because only the public keys and the transaction amounts are being recorded by the blockchain; no other identity details are to be provided. The dark web markets are amongst the top concerns, and such markets gain a lot of media attention as they accept payment only in the form of Bitcoin. Although the FBI has shut down such markets, they are still concerned about the other illegal traders that deal in goods and services and are accepting payments in Bitcoins.
Accepting Bitcoin as a Payment mode
It has become legal for big and small businesses to accept payments in Bitcoins. The primary and obvious condition is that it is a legal business that is well-natured and uses Bitcoin as another standard mode to accept payment for buying and selling goods and services. The business houses that accept Bitcoin as their payments are required to pay tax on such income in the form of Bitcoin. Bitcoin is being considered as a virtual currency that is convertible, which makes it another normal mode of payment similar to gold, cash and gift cards, etc.
Using Bitcoin to buy goods and services that are well-natured is being accepted as a legal practice now. You can also use Bitcoin across the shops and restaurants of the US to make your payments. It is accepted as a mode of payment by a lot of online market places.
Investment in Bitcoin has also come under its legal territory. The US-based exchanges are required to comply with the guidelines under anti-money laundering and such other policies. They are also needed to get all the details of the client under Know Your Customer Guidelines. Due to this reason, the users who wish to invest are required to provide their identity details, and the users have to connect their bank account details as well in order to carry out the transactions. The authorities have still warned the investors that these investments are of high risks and prone to the target of fraudsters.