Cryptocurrency surged this year as bitcoin enthusiasts struck it rich. Bryan C. Skarlatos lends his expertise to the matter in the article "Washington is Trying to Regulate Bitcoin. These People Are Trying to Stop It." With bitcoin skyrocketing past $17,000 this year there are rising concerns that there is not enough regulation surrounding cryptocurrency. In an excerpt from the article:
"The IRS classified digital currency as property in 2014, meaning transactions are subject to capital gains tax. Using bitcoin or other virtual currency to purchase goods and services is considered exchanging property, and all the transactions must be tracked for gains and losses, said Bryan Skarlatos, a tax attorney at Kostelanetz & Fink LLP who has lectured and written about bitcoin."
Mr. Skarlatos continues by saying,
Setting a $600 exemption would not affect people buying or selling digital currency for investment purposes, which accounts for the overwhelming majority of bitcoin traffic, Skarlatos said. But it’s needed to avoid having reporting requirements be a regulatory drag, he said.
“You’re basically inviting people to become out of compliance with the law, and that’s never a good place to be,” he said.
Read the full article for more details on the regulations and the rising tax concerns surrounding bitcoin.