On 12th October Gibraltar became the first jurisdiction to introduce laws to regulate firms carrying on business, from Gibraltar, using Distributed Ledger Technology (“DLT”). Limited regulation of certain DLT use cases exists in a handful of places but no other country has introduced the comprehensive regulatory framework we have set up in Gibraltar. The laws come into effect on 1st January 2018.

The Gibraltar Government and our regulator, the Gibraltar Financial Services Commission (“GFSC”), recognise that DLT is delivering innovative and transformational changes in the way the world conducts business. Those familiar with DLT will know that without the blockchain, a type of distributed ledger, Bitcoin and other crypto currencies could never exist. Gibraltar has moved quickly to embrace this technology and provide the framework for a well-regulated and safe environment for DLT business to flourish.

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Contact: Saul Brenner; Berdon LLP (New York, New York, USA - TIAG)

The IRS recently ruled that transactions involving bitcoin and other virtual currencies may create a tax liability since digital currencies, like stocks, are treated as property for all U.S. tax purposes1. Generally, this means that capital gains rates, as opposed to higher regular tax rates, would apply as well as capital loss limitations. This has implications for transactions such as employee wages, payments to independent contractors, and reporting gain or loss on a sale or exchange.

Read more: IRS Says Bitcoin Is Property, Not Currency

Contact: Matt Burgoyne; McLeod Law (Alberta, Canada)

Matt Burgoyne is an associate at Canadian legal firm McLeod Law. He is involved with Canadian and international counsel in the developing area of virtual currency law, specifically including bitcoin currency.

One of the most frustrating things I encounter when being retained by a new client or working with an existing client operating in the bitcoin space is that without exception, I have the unfortunate task of advising them that as it stands now in Canada, the chances of them obtaining a regular commercial services based bank account are 0%.

Read more: Bitcoin Businesses and Canadian Banks: The 'Catch 22' Dilemma

My name is Matt Burgoyne and I’m an associate at Canadian legal firm McLeod Law (Alberta, Canada). I’m involved with Canadian and international counsel in the developing area of virtual currency law, specifically including bitcoin currency. In this two-part series, I will give a basic primer on the state of Canadian law as it applies to digital currency entrepreneurs.

In the first article I published on Canadian bitcoin law we discussed legislation as it applies at the federal level, where I made the comment that it is at the federal level where most of the ‘action’ lies in respect to Canadian law as it pertains to bitcoin businesses.

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