“As more and more people use Bitcoin, U.S. politicians are growing nervous that their grip on public taxation and currency manipulation is loosening. Taxation is a solvable problem — you’re supposed to report your Bitcoin income like any monetary gains — but can prove tougher for the feds to track down given the encrypted nature of transactions.

On the other hand there’s no way that the U.S. or other nations can recoup their ability to manipulate currency (short of indirectly by participating in the economy) as Bitcoins are governed by mathematical formulas, not a private board of government-selected banking executives like the U.S. Federal Reserve System.

For these reasons Bitcoin is in danger of losing legality with federal regulators in Washington D.C. considering chopping the young currency’s legs out by considering efforts to outlaw Bitcoin trading in the U.S.”

http://www.dailytech.com/Bitcoin+Foundation+Meets+With+US+Feds+Over+Legality+of+Cryptocurrency/article33243.htm

Advertisements