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.

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