Who Will Tax Bitcoin And How?

Taxes16 Jan 2014 / Forbes – Will 2014 be the year we trade in our credit cards and abandon our wallets in favor of virtual currencies? If you follow the recent hype surrounding bitcoin, the trendiest of the new crop of digital currencies, you could be swayed into thinking that good, old-fashioned cash was going the way of the dinosaur.

According to The Wall Street Journal, over the course of 2013, the price of bitcoin rose from $13.50 to roughly $650, down from a high of $1,200 in November. By contrast, the U.S. dollar gained about 0.5% over the year, according to the ICE Dollar Index. Clearly, there is a growing interest in bitcoin. But it’s not just currency speculators, digital miners and early adopters driving the surge in interest. Regulators, banking institutions and tax authorities have also started paying attention to bitcoin and asking one big question: Who will regulate it?

This week, Wells Fargo called a “Bitcoin summit”, convening a group of finance executives, virtual currency experts and U.S. government officials to discuss the “rules of engagement” with bitcoin amid concerns that the currency could lead to money laundering and tax evasion. Wells Fargo chief executive John Stumpf was quoted:….. Read more

http://www.forbes.com/sites/joeharpaz/2014/01/16/who-will-tax-bitcoin-and-how/

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