5 ms·

I'm sort of surprised there's going to be a regulated secondary market for this, where the newest version of the GOP Tax plan will place a fee on this form of a

I'm sort of surprised there's going to be a regulated secondary market for this, where the newest version of the GOP Tax plan will place a fee on this form of arbitrage[1]. Then again, I did learn today that a hot wallet I had on a crypto-trading website had folded and didn't send me any notice of shutdown; along with the time period of filing a claim having been long passed. Since there's a lot of theft and lack of accountability with these closures, maybe regulation could incentivize better data protection practices and pro-consumer behavior. [1] https://www.bloomberg.com/news/articles/2017-12-21/tax-free-bitcoin-to-ether-trading-in-u-s-to-end-under-gop-plan https://www.bloomberg.com/news/articles/2017-12-21/tax-free-...

Chardok 9y ago
> maybe regulation could incentivize better data protection practices and pro-consumer behavior. Perhaps I am too cynical but given Equifax is still fresh on my mind I really have doubts the US government will do anything but pass laws to make sure they are getting taxes from cryptocurrencies.
- kregasaurusrex 9y ago
  While Equifax is a quasi-governmental company that's privately traded; fully private companies that are regulated in the space are required under the umbrella watch of FINRA/SEC regulations. In the past[1], they have not had any problem with levying 7 figure fines against organizations that are outside of data compliance. Taxing cryptocurrencies will likely push traders who want a greater margin to foreign countries' exchanges; but I see it as a step in the right direction for institutionalizing the practice. I've seen a posts across multiple subreddits where people want to start trading these purely as investment vehicles rather than use the underlying technology. With an influx of ideologies working both with and against one another, a lot of ordinary people can get harmed from the wild-west environment and volatility associated with it. [1]https://www.sec.gov/news/pressrelease/2016-112.html https://www.sec.gov/news/pressrelease/2016-112.html
dahdum 9y ago
It's not a new fee, IRS gave guidance on this already in 2014. The bill just updates the language more specifically. Believing crypto-crypto trades would be like-kind was always pretty fanciful thinking.

Chardok 9y ago

> maybe regulation could incentivize better data protection practices and pro-consumer behavior. Perhaps I am too cynical but given Equifax is still fresh on my mind I really have doubts the US government will do anything but pass laws to make sure they are getting taxes from cryptocurrencies.

kregasaurusrex 9y ago
While Equifax is a quasi-governmental company that's privately traded; fully private companies that are regulated in the space are required under the umbrella watch of FINRA/SEC regulations. In the past[1], they have not had any problem with levying 7 figure fines against organizations that are outside of data compliance. Taxing cryptocurrencies will likely push traders who want a greater margin to foreign countries' exchanges; but I see it as a step in the right direction for institutionalizing the practice. I've seen a posts across multiple subreddits where people want to start trading these purely as investment vehicles rather than use the underlying technology. With an influx of ideologies working both with and against one another, a lot of ordinary people can get harmed from the wild-west environment and volatility associated with it. [1]https://www.sec.gov/news/pressrelease/2016-112.html https://www.sec.gov/news/pressrelease/2016-112.html

dahdum 9y ago

It's not a new fee, IRS gave guidance on this already in 2014. The bill just updates the language more specifically. Believing crypto-crypto trades would be like-kind was always pretty fanciful thinking.