Chain Analysis is working with the IRS to target BTC Purchases above $20,000 and ID Tax Cheats

in cryptocurrency •  7 years ago 

Chain Analysis is working with US authorities and the IRS to track BTC purchases. In a landmark case against Coinbase, purchases above $20,000 of BTC between 2013 and 2015 will be handed over to the IRS for data-matching.

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What does this mean for Bitcoin in the US? Will it drive Bitcoin holders and users to more private methods of storing their cryptocurrency? I think it will. And where will it go - Dash/PIVX/Verge?

See article:

http://fortune.com/2017/08/22/irs-tax-cheats-bitcoin-chainalysis/

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Time to invest in some privacy coins. Monero is my favourite.

Yes, I didn't mention Monero. I noticed a huge jump overnight in PIVX, then it settled down. I hold PIVX and Dash. I think this is bullish for Dash, because it has more privacy than BTC, and has forged links with industry. But if Dash is a currency, enabled by mass adoption, wouldn't people be more likely to spend it than hold? I would :) My brain works like this: I hold coins that are good projects, like platforms, or excellent business ideas... I hold coins that are shares in exchanges, I see constant transactions as a means ot earn. I like the ICOs that are about ideas that can create value, like the new Australian ICO currently running, HUT34 Entropy. It's built on the Ethereum blockchain, and its aim is to monetise the data industry, by monetising chatbots :) I bought in because it's a great idea. It returns money back to the user.

Agreed DASH is solid. I am like you, I invest in concepts that have a solid foundation not fly-by-nighters looking for pump and dumps. However I do stay away from ICO's until the smoke clears and they are no longer classified as an ICO. Never heard of HUT34 Entropy, i'll check it out.

It's a great idea (the Hut34 Entropy Project) - and I'm happy to invest in it based on that :) But totally get what you say about the tried and tested, too. I bought into Electroneum - and that's just a currency - so I'm covered for my spending in the new world order....

What is it in the banking industry? Any deposits or transactions over 10k?

Yes, there are regulations and checks in place for deposits and transactions over 10k in the banking industry in Australia, at any rate. But people who are transacting in fiat are already aware of this. The fact they are pursuing BTC transactions means that the IRS is cracking down on what it perceives as a vehicle for money-laundering, potentially hiding capital gains tax, and perhaps as a means of intercepting the black economy.

Very interesting post @katyclark this could tie into all the conspiracy talk about fed coin crypto and that bitcoin was drummed up to make it harder to tax dodge? I am not on that bandwagon. though I do think there is still a huge war between gov currencies the banks and cryptocurancies in general

It seems as though official adoption can ring the death knell of a cryptocurrency (i.e. Ripple). Being in BTC is fine, but I posted the article because I guess there are some people who use BTC to evade detection, and for them, this would be an issue. And I was doing a beat-up on my own bandwagon, I like the idea of crypto for shopping :) crossing borders, etc. The insane rise of BTC makes it unusable for its purpose. Whatever you're buying or selling is dwarfed in value by the meteoric rise of the currency you're using to conduct the transaction. :) To me, this does not make any sense.