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US Court: Bitcoin falls under rules for currency
A United States Federal Court in a case about a Bitcoin-Ponzi scheme held that Bitcoins a currency. The marking of Bitcoins as currency causes the crypto-currency under American laws and regulations for means of payment.
The statement was made in a lawsuit against Trendon Shavers, owner of the company Bitcoin Savings and Trust. Shavers is suspected of Ponzi scheme using Bitcoins. Shavers promised interest rates of 7 percent on weekly basis and used the Coins of a growing number of investors to those interests. Shavers claimed in defence that Bitcoins no form of money and therefore not legally regulated.
The judge ruled , however, that Bitcoins can be used as money. “There might be purchased goods and services, and it can be used to pay for the lifetime maintenance,” said the Court. “The only limitation of Bitcoins is the number of places where it is accepted as currency. The Bitcoin can, however, be exchanged for conventional currency. ” Therefore, the Bitcoin a currency or form of money, claims the Court.
Crypto-currency, such as Coins, are designed to be regulated locally via cryptographic encryption and peer-to-peer systems. The coin is a thorn in the side, thereby for Governments because the Act in the crypto-currency falls under existing laws and not so hard to regulate. In Thailand is declared illegal therefore paying with Coins.
In Netherlands are Bitcoins not recognized as money, because they have not been issued in Exchange for receiving cash and because they representno claim against the Publisher. That does not mean that Bitcoins tax free. Dela Cruz of Finance Minister ruled in June 2013 that taxable persons who have income with activities there have to pay tax in the course of trade. Income from Bitcoins are so also under.Viewing:-117
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