The Washington Post reported that the “Securities and Exchange Commission recently began cracking down on initial coin offerings, a new type of blockchain-based fundraising mechanism, under its existing authority to regulate securities.” The December 15, 2017 story entitled “Five myths about bitcoin” which included these comments about the law:
All mainstream bitcoin exchanges at least attempt to comply with “know your customer” laws to prevent money laundering.
The IRS regards bitcoin as taxable property.
Here are all 5 Myths:
Myth No. 1 – There is a finite supply of bitcoin.
Myth No. 2 – Bitcoin’s users are anonymous.
Myth No. 3 – Bitcoin is beyond the reach of the law.
Myth No. 4 – Bitcoin wastes energy.
Myth No. 5 – Bitcoin will replace credit cards and/or cash.
Keep an eye on the legal risks on Blockchain which are critical.