The cryptographically made currencies like Butcoin, is developed in other to bring new possibilities in payment system. This digitally advanced money is designed for fast and secure payment processing across the boundaries without any central control or middlemen.
This brings new kind of experience to its connected users, today everyone can see how this new kind of Internet money is getting hugely adopted by many individual users and businesses worldwide for their fast and secure financial transactions.
But, due to its huge popularity, the big question arises is, can Bitcoin be regulated under taxes and laws? Because, the present financial system around the world is regulated through different monetary laws and taxes! Learn it here.
# Can Bitcoin Currency be Regulated by Laws?
The Bitcoin’s network protocol itself cannot be modified by anyone without the cooperation of all of its users, who are free to choose what software they use. Attempting to assign different rights to any local authority in the rules of the Bitcoin network is not practically possible.
Any financially strong organization could easily choose to invest their capital in bitcoin mining hardwares to control half of the computing power of the network, and can also become able to block or reverse recent transactions.
However, there is no serious guarantee that they could retain this computing power, since this requires to invest as much as possible than all other miners in the world.
It is however quite possible to regulate the use of Bitcoin system in a similar way to any other instrument regulated by different laws.
Just like the U.S. Dollar, Bitcoin can also be used for a wide variety of purposes, some of which can be considered legitimate or not as per different jurisdiction’s laws.
In this regard, the Bitcoin is no different than any other present tool or resource and can be easily subjected to various rules and regulations in each country.
Bitcoin use could be made difficult by restrictive regulations, in that case, it would also be hard to determine what percentage of users would be using the technology.
A government which chooses to ban Bitcoin would prevent their domestic businesses and markets from developing, and shifting innovation to other countries.
The challenge for regulators, as always be, is to develop efficient solutions while not impairing the growth of new emerging markets and business sectors.
# What about Bitcoin and Financial Taxes?
The Bitcoin is not a fiat currency with any legal tender status in any jurisdiction, but often the tax liability accrues regardless of the medium being used. Every jurisdiction around the world is free to regulate it!
There is a wide variety of legislation available in many different jurisdictions which could cause many sales, income, payroll, capital gains, or some other form of tax liability to arise with it.
Bitcoin digital money is designed to be the future of money and presently in most part of the world it is getting adopted by many individuals and businesses as a new payment system.
What do you think about this money for Internet! Can it be possible and beneficial to regulate Bitcoin with different kinds of monetary laws and taxes?
Now, you let us know! What do you think about current growing stage of bitcoin and different jurisdiction’s laws? Via your comment.