Big Coin Case Is Big Problem For Cryptocurrency

We are in the middle of a cryptocurrency revolution. With over 7,000 digital currencies established in a short period of time, there are innovators, investors and fraudsters. However, defining which is which has been left mostly to the courts rather than legislation or regulation.

The Internal Revenue Service has stated that the sale or exchange of virtual currencies, or the use of virtual currencies to pay for goods or services, or holding virtual currencies as an investment, generally has tax consequences that could result in tax liability. With regard to regulation, the US Commodity Futures Futures Trading Commission (CFTC) has jurisdiction over cryptocurrency under the Commodity Exchange Act. On September 26, 2018, Senior Judge Rya W. Zobel of the U.S. District Court for the District of Massachusetts, entered an order holding that the CFTC has the power to prosecute fraud involving virtual currency as a result.

There have been no real efforts to establish laws, rules or…