What Is Cryptocurrency and Crypto Law?
Cryptocurrency has become a buzzword among investing elites and amateurs alike in the last decade, beginning with the advent of Bitcoin, which ushered in a new era when it comes to untracked and untraceable currencies.
Today, there are thousands of different cryptocurrencies available on the market, and that number is growing fast with consumer demand.
Because this market has become so valuable, reaching upwards of $160 billion in Bitcoins alone and growing exponentially each day, it’s apparent that stricter laws and regulations will also come into play as this money changes hands–there is where crypto law comes in.
Before you go big on investing into cryptocurrency, it’s important to take into account your home country’s laws in relation to crypto in order to maximize your outcome and avoid breaking any laws accidentally.
Crypto law can be difficult to understand, even for those who are well-versed in investment and financial matters. One poll showed that even though knowledge of cryptocurrency is widespread, most people do not have much of an inkling of the workings behind it as well as its effect on the economy.
This is the reason why it’s important to hire a lawyer who is knowledgeable in this growing field of law–to protect yourself and your assets from being taken from you.
In the United States, the IRS levies steep fines against those who do not report their income, and it remains to be seen if they will do the same for crypto investment profits as well. Be on the right side of history and ensure your back is covered in the event of an issue with cryptocurrency.
What Penalties Come Along With Breaking Crypto Law?
While crypto law may be a relatively new field of law, lawmakers are scrambling to keep up with investors who want a piece of this cryptocurrency pie.
In March 2020, while the United States was in the thick of the COVID-19 quarantine, a bill was proposed to Congress that detailed plans to establish a regulatory group to oversee cryptocurrency and cryptosecurity. But as of yet, there has been little formal guidance on how exactly crypto law cases will be handled in the future, including laws that set down exactly what penalties are associated with each type of crypto crime.
However, like any investment opportunity, there will always be a chance of financial issues cropping up that may cause you legal trouble in the future, such as fraud, embezzlement, money laundering, and other illegal practices. These types of crimes carry severe federal penalties, including thousands of dollars in fines and time spent in federal prison.
To keep yourself safe, the best option is to talk to an experienced legal professional if you have any worries about cryptocurrency law undoing your financial progress in the future.
Protecting Yourself From Criminal Charges and From Becoming a Victim of Financial Crimes
Just because cryptocurrency may not be regulated on a mass scale in the United States at the moment, this does not mean you are safe from being accused of financial crimes or becoming a victim of one just because your money is invested in Bitcoin or one of the myriad other cryptocurrencies out there. Here are a few common things to watch out for when it comes to crypto law.
ICO (Initial Coin Offerings): While many cryptocurrency startups are legitimate, one thing to watch out for are ICOs, or Initial Coin Offerings. These occur during the first stages of setting up a cryptocurrency, but they may just end up being a cash grab by scammers who never intend to fulfill their end of the crypto bargain. Also, because ICOs may be considered securities offerings, they fall under the jurisdiction of the SEC and are not exempt from their rules and regulations. Be careful before buying into one of these, but if you already have, we can help.
Cryptocurrency Compliance: Because cryptocurrency is such a newcomer to the money-investing game, ensuring that you comply with all of the laws and regulations surrounding it can be incredibly difficult. In the United States, states like New York have restricted the trade of cryptocurrency, making it almost impossible to invest in this new technology. To ensure that you are complying with local laws and rules, contact an expert attorney who can help you sort it out.
Crypto Fraud: Because cryptocurrencies are untraceable, they have become the new best way for online scammers to commit fraud without leaving a paper trail for the authorities to follow. This means that scammers and criminals may use them to commit fraud–or that businesses may commit fraud without intending to just by dint of investing in these currencies.
To best take care of your future finances, contacting an attorney with a wide depth of knowledge in this subject will benefit you greatly.
Expert Attorneys With Experience in Crypto Law
Crypto law is a new field and many attorneys may claim to be experts, but it’s hard to gauge at this early stage in the game. What you need when you are dealing with crypto law problems is an attorney who is willing to dive deep into every aspect of your case to ensure that you receive the best outcome for your business and your finances.
Do not hesitate if you have any questions regarding crypto law or your specific case–we are here to answer all of your questions and guide you through this confusing process.
Give us a call today to get started with your crypto law case.