On behalf of Pakis, Giotes, Page & Burleson, P.C.
What Should I Know About Cryptocurrency?
There is a lot of talk about cryptocurrency in the business world these days. As a business owner in Texas, you may want to at least brush up on the basics so that you understand what it is and how it works. Some say it is the currency of the future, and if that is true, then you will have to deal with it at some point.
CNN explains cryptocurrency is not legal tender like a dollar bill or a quarter. Legal tender is only money a government issues. The problem with it not being legal tender is that it offers no loss protection. There is nothing to back it up if it suddenly loses value. In addition, the government does not have clear regulations for it and no clear definition.
The IRS treats it as property, though. Many see it as a commodity and trade it as a commodity. The Securities and Exchange Commission, therefore, defines it as securities. So, it has several different identities, which also makes regulation difficult. There is a real need for better laws pertaining to it to allow it to enter the market and for businesses, like yours, to use it.
Since nobody regulates it clearly and it is not legal tender, there are some problems with it. Thus far, its associations have been with illegal activities. People have used it for laundering money, funding terrorism and selling drugs.
It will take time for cryptocurrency to develop into something usable by businesses and the general public. Until then, you can continue to watch over the industry and see how it develops. This information is for education and is not legal advice.