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IRS Guidance Reveals Federal Bitcoins Strategy

By James Ching
May 02, 2014

The IRS's March 25, 2014 declaration that bitcoins are property, not currency, is the final piece of the carefully-crafted Federal approach to bitcoin regulation which greatly differs from the approach of other sovereign nations.

On March 25, 2014, the IRS issued Notice 2014-21, its guidance on the tax consequences of bitcoin dealings. The Notice is the last shoe to drop regarding the federal approach to bitcoin regulation following new guidance from the Financial Crimes Enforcement Network of the Treasury Department (FinCEN) and a round of bitcoin prosecutions by the Justice Department.

The Bitcoin System

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