Tax-Free Bitcoin-To-Ether Trading in US to End Under GOP Plan

Re:Tax-Free Bitcoin-To-Ether Trading in US to End Under GOP ... by nemild on Thursday December 21, 2017 @12:33PM (#15980813)

There's lot here, but I'll make it short:

- The fed does not exercise control over Bitcoin directly, so Bitcoin is still fundamentally different than fiat currencies

- All fiat onramps into crypto are controlled by governments, which is one way to regulate it (KYC, AML)

- You still have to follow the rules for your country, and if the government finds out you haven't, it can censure you; with crypto, it can be harder to see if someone followed the rules, but it's not impossible with the pseudonymous approaches used by most cryptocurrencies today

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Re:Tax-Free Bitcoin-To-Ether Trading in US to End Under GOP ... by sixdimensional on Thursday December 21, 2017 @12:44PM (#15980925)

Fair enough, maybe this falls apart when we started talking about fiat currencies being exchanged directly for Bitcoin (i.e. when "real" money got involved). Prior to that really happening, it seemed like one could create new Bitcoin through mining, which was a conversion of computing power/electricity/time directly into crypto-currency value - not a direct conversion of fiat currency into crypto-currency value.

With mining now being cost prohibitive, it's not as reasonable of an avenue of gaining Bitcoin.. and "real" money has entered the game - and with that, comes regulation.

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Re:Tax-Free Bitcoin-To-Ether Trading in US to End Under GOP ... by zxcmx on Friday December 22, 2017 @04:24AM (#15986261)

Nearly all fiat onramps have AML/KYC. There's also localbitcoins.com, one way to meet parties who are interested in transacting person to person.

Naturally you are still supposed to pay your taxes if you do this.

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