Death, Taxes and Crypto Regulation
What does Facebook have to do with cryptocurrency? The company and its platform are often cited as the types of centralized authorities that the blockchain can disrupt.
But you may not know that Mark Zuckerberg recently committed to taking a closer look at digital currencies. Following December’s SEC warning about the lack of regulation Zuckerberg remained positive about the space, posting to Facebook in January: “... encryption and cryptocurrency – (that) take power from centralized systems and put it back into people’s hands,” highlighting crypto’s DNA and destiny.That said, the company just banned advertising of crypto-related offerings on the platform. The move stemmed from the growing number of ICO scams that are being promoted. In light of the lack of regulation and growing number of victims, there are rumors that the SEC and the IRS are going to crack down. We already know that the IRS has come knocking on some doors. As the 2018 tax season begins, rules are sure to follow, affecting investors, ICO offerings, and coin holders alike.
Many cryptocurrency advocates abhor regulation, which seems to conflict with the subversive cryptocurrency ethos. While alarming to some, it shouldn’t be too surprising. Regulation is inevitable if cryptocurrencies are to be accepted by the mainstream. Without it, a certain few fraudulent ICOs and cryptocurrency scams can threaten what is largely a progressive and honest industry. If regulation is what it takes to weed these players out, then we should celebrate it.
HashChain saw the writing on the wall and recently acquired NODE40, a blockchain vendor of cryptocurrency reporting software. NODE40 integrates directly with major exchanges and offers solutions for accounting and tax issues. The acquisition helps us diversify our company’s cryptocurrency mining strategy with blockchain-based solutions.
With regulation on the horizon, any company in this space must take necessary steps to successfully prepare for the changing environment. We predict that the next few months will be heavily focused on the issues surrounding cryptocurrency accounting and tax reporting. Thus, companies who are riding the cryptocurrency wave should start investing in the appropriate solutions.