Can the Fed Kill Bitcoin? Navigating the Chokepoints of Tax Law and KYC

Taxes. The one word that can kill any buzz in seconds flat. Whether you’re a libertarian ranting about how taxation is theft or one of those fabled creatures who is actually happy to file them as their so-called civic duty, one fact remains: those who don’t give the government a bite — or make mistakes in attempting to do so — can get chomped, and hard. Ominous tax laws and ever-increasing state requirements for exchanges have some wondering if these maladies could stall the Bitcoin revolution.

Also Read: From Spartacus to Satoshi: A Brief History of Economic Rebellion

Crypto Enthusiasts Anxious About Taxes

It’s often scary enough filing basic fiat returns, but crypto taxes are proving to be a whole new animal. First, the IRS seems almost intentionally vague on policy. This in combination with ever-constricting KYC and AML regulations on crypto exchanges, and one begins to wonder what bitcoin is even useful for. The whole P2P trustless money thing…