In the United States, the IRS views cryptocurrency as a property (for businesses) . This means all cryptocurrency related transactions must be tracked and the capital gain/loss accounted for. To ensure compliance and to prepare for any potential audits, transaction records should be kept for 7 years as recommended by the IRS, this means safeguarding 7 years worth of cryptocurrency transaction records for operators .
Below are some common taxable events operators may encounter:
Article is provided by Jennifer L. Moffitt, a privately practicing attorney. Contacts can be found at the end of the post.
In the United States, virtual currency, such as Bitcoin and other similar coins, and virtual currency exchanges have been subject to federal regulations, with taxation and financial crimes the most prominent regulatory issues. However, it is at the state level that regulation of virtual currency has been most contradictory. The U.S. states have mixed responses to the emergence of cryptocurrency. Some of the states have ignored cryptocurrency by not implementing or amending any laws that address virtual currency. However, other states have taken action with some states somewhat hostile towards virtual currency while other states are more welcoming. In a number of states, the response towards cryptocurrency is currently ambiguous with no actual position taken. This discussion will attempt to categorize regulations by restrictions placed on virtual currency and identify states by category of regulation. In addition, the implications and effects of widely divergent state level legislation and regulations will be examined.
State Level Cryptocurrency Regulatory Tools
There are several regulatory tools used by states to regulate and control virtual currency. These include money transmission laws, licensing requirements and regulatory guidance. A brief summary of these tools is provided below.
Since launch of Bitcoin in 2009 cryptocurrencies gain more and more traction every year. Many people hear and research cryptocurrencies when next boom happens and price grows rapidly. Significant number of people already hold cryptocurrencies, even more plan to hold in the future.
Disclaimer: This article is not a financial advice to invest in cryptocurrencies. Reader needs to conduct own research before purchasing any amount of cryptocurrencies and understand the risks associated with it.
Bitcoin ATM industry grew over 2017 year with accelerating speed. Back in 2014 we did a forecast of how many installations of machines there will be in several years. You can find the table at the end of the post on comparison of traditional bank ATM growth vs. bitcoin ATM growth. The forecast was done based on bank ATM installations back in 1970-s. After 7 years we assumed there will be 2900 ATMs installed worldwide. Today (~4.5 years since first bitcoin ATM installation) there are already more than 3000 ATMs installed worldwide. And the speed if installations is only accelerating over previous years:
This March Bitcoin price experienced a steady downfall. After reaching the highest price since the end of January at $11,565, at the beginning of the month, the price of Bitcoin started its decline. If you exclude a couple of bumps in the middle of March, the price faced a constant decrease and finished the month with $6,935, a 40% decrease in comparison to the beginning of the month.
Unlike the price downward trajectory, the number of new machines continues to grow.
Period Start: 2401, Period End: 2649
Opened: 289, Closed: 41, Net Growth: +248 (+10.3%)
In this article we look at one of the most important problems bitcoin ATM operators have — finding bank relationships and opening a bank account.
At the end of the post there is a company mentioned that provides services as intermediary and connects bitcoin ATM operators directly with bitcoin friendly banks also providing additional services on the way.
Disclaimer: We are not affiliated with this company, please do your own due diligence before entering in relations. The material is posted and contacts are provided because in our opinion it brings a value for many operators who potentially need banking relationships, but struggle to find it.Continue reading →
One of the main topics to research is regulation and what is needed to be done to properly register such a business. This is very important to do in right way from the beginning if you plan to do it professionally long-term and with potential to grow your bitcoin ATM network in the future.
Disclaimer: Information provided in this article is a general overview of current regulation found in public sources. It should not be taken as a legal advice. It is recommended to contact local lawyer in the area where you plan to operate machines. You can find several contacts at the end of this post.
Previous similar review was about August. Filling the gap of 3 months in this post we cover what are the main changes in bitcoin ATM statistics over last 3 months: September — November.
There was a drastic change of bitcoin price over this time, it grew from $4912 in beginning of September to $10884 at the beginning of December (more than 2x growth).
Demand for buying cryptocurrency supported the installations of new machines and new operators entering the market. Here are general figures for 3 months:
Period Start: 1514, Period End: 1890
Opened: 519, Closed: 143, Net Growth: +376 (+24.8% or 7.6% per month)
This article is for all newcomers to cryptocurrency field. At Coin ATM Radar we receive many requests to register account in order to start using bitcoins and bitcoin ATMs in particular. In order to buy and start using bitcoins, you don’t need to register with any service provider. We will cover the main options how to start using cryptocurrencies, and especially Bitcoin — the most popular cryptocoin as of today.
The first thing you need to do is choosing where to store your bitcoins, when you buy or receive them. There are two main options:
Store with third-party service provider
Store on your own in local wallet
You can store them with any of online wallets or exchanges (e.g. Coinbase, Kraken etc), in this case you trust these services, while they fully control access to your bitcoins, so generally you trust them that they will send bitcoins to you or to someone you will want to pay in the future, if you ask them to do so. This is no different from traditional banking, when you don’t control your money, rather banks do and promise you that they will execute your order to pay in the future.
However, the great thing about Bitcoin is that it allows you to fully control your funds without any intermediary and this is done with wallets installed locally on your device, be it mobile phone or computer.