Cryptocurrency and Taxation Problems

  In 2008 following economic situation, a document called “Bitcoin: A Peer-to-Peer Electronic Cash System” was published, detailing the ideas of a cost system. Bitcoin was born. Bitcoin obtained the interest of the world because of its utilization of blockchain engineering and as an alternative to fiat currencies and commodities. Dubbed another best technology after the web, blockchain provided answers to dilemmas we have unsuccessful to handle, or dismissed in the last few decades. cryptocurrency I will not search to the technical part of it but below are a few articles and videos that I suggest:

Fast ahead to nowadays, 5th Feb to be precise, authorities in China have just unveiled a brand new group of regulations to bar cryptocurrency. The Asian government have already done so this past year, but several have circumvented through international exchanges. It has now enlisted the almighty ‘Good Firewall of China’ to stop use of foreign transactions in a quote to prevent their people from carrying out any cryptocurrency transactions.

To learn more about the Asian government position, let’s backtrack a couple decades back to 2013 when Bitcoin was getting recognition among the Asian citizens and prices were soaring. Focused on the price volatility and speculations, the People’s Bank of China and five different government ministries published the official discover on December 2013 named “Notice on Avoiding Economic Risk of Bitcoin” (Link is in Mandarin). Several points were outlined:

 As a result of different facets such as limited present, anonymity and lack of a centralized issuer, Bitcoin is not just a formal currency but an electronic thing that can not be used in the start market. All banks and financial agencies are banned to supply Bitcoin-related financial companies or take part in trading task related to Bitcoin.

 Due to the anonymity and cross-border options that come with Bitcoin, companies providing Bitcoin-related services need to implement preventive methods such as for example KYC to avoid money laundering. Any suspicious activity including fraud, gambling and money laundering must to be noted to the authorities.

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