Ripple has two things, The Ripple Network & XRP.

XRP is a cryptocurrency, and NO one uses it.

Ripple network is what is being massively adopted, and is simply the removal of oversight for money laundering and such.

Ripple is not a coin. And XRP isn't used by anyone. They are two separate networks.

NO ONE seems to understand this... I've written two articles that will help people understand. Part 1 is here.

I blame Ripple the company itself for all the misunderstandings.

Glad you see the end game. They basically are phishing for voluntary surrender of assets.

The IRS is just afraid because they don't understand. If you read my tax article I write this in it, which nullifies most of the fears if you think about it.

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We all knew it was coming. Different agencies have already been doing just that.

Luckily they don't really have a way to tie you to it. And furthermore they have no purview to tax you. The problem is how much is understood by the IRS. The problem is if politicians let the IRS destroy cryptocurrencies in the US. At least for legal citizens.

Honestly here's the real issue... People not reporting income in fiat, and converting it all to Bitcoin. The people ALREADY EVADING TAXES are the problem they are after more than anything, surely. At least that should be the case. It's very important that the crypto-community makes this distinction.

As you may have noticed they can only bugger people on exchanges, so it's not like everyone has to be running in fear that is hodling in cold wallets.

Ya... we are probably a century away at least from seeing an actual Blockchain "hack" on any decentralized network.

It sounds to me like a crappy wallet interface, fake wallet site, virus & key-logger, or something.

If you are hodling and have zero intension of selling, trading, etc... you should only use a cold wallet. That or trust that Coinbase will continue. If you run Windows/Mac OS it's especially true that you should take some serious steps in security.

I am sorry this happened to your friend, my sympathies to anyone that gets hacked. 

HOLD ON HOLD ON

What kind of crypto crime?

First off, the police cannot help you with most things at all. They can only help with things in the purview of the state, really, and anything that offers extradition. For example the Bitcoin network doesn't and cannot offer extradition. There are no provisions for that.

If you report a crime, are you sure you won't be the one confessing a crime to the police? The answer could very likely be yes, whether it's true or not.

This is the biggest downfall of cryptos in general, the fact that they basically exist in another "country" almost. The gateway has a slightly fickle nature to it. But luckily it's still miles and miles better than regular fiat etc.

I feel bad for you CS:GO players... Doesn't hold a candle to CS:S.

You can't "win" when you accept defeat, like you two are interested in.

You make it sound like they are entitled to it. Like there is something lawful about taxes on cryptos before conversion to fiat. There is not. The reason it hasn't been in court yet is because best case scenario FUD like you two want wins general perception so no one challenges something unlawful.

Coinbase is the one that might be skipping out on taxes. If they sell Bitcoin and gain income, they must pay tax. It's simple... If Coinbase acquires a bunch of wealth in the purview of the state, the stake of obligation of protection & service to Coinbase increases for the state. Hence they have a reason to tax Coinbase. That's precisely why taxes exist.

"In the United States, to be considered an accredited investor, one must have a net worth of at least $1,000,000, excluding the value of one's primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year."

If you don't have a lot of money, you can't be liable for not applying to be an accredited investor. Just don't lie and say you are.

This is a major problem in the USA. The laws for accredited investing are there to protect people that previously couldn't even look into investments. It's all pre-information age. It's archaic, old, bullshit. The problem came from supposedly "creditable" people claiming it was safe to give them money, not the other way around. This is an ancient statute that needs to be turned to rubble. One of the biggest values in cryptos today is that the average person can choose to have some autonomy with it.

But please, continue to roll over and keep the status quo. We all know that's why everyone became interested in Bitcoin to begin with.

During a discussion about trying to have favorable tax situations with cryptos a friend once said, "Don't do it, that's like inviting the Devil into your home, there's no good reason to do it if it's not already happening"

I highly recommend against filing capitol gains tax. For what reason is it wise to inject crypto mining with the state? They shouldn't be allowed in it, but if everyone lets them in then they'll think it's all ok until a Supreme Court case goes to show they have no right (it's only a matter of time).

Coinbase needs to be paying corporate taxes. Not the users.

If Coinbase sells you Bitcoin from their own accounts that is income they have.

If you sell Bitcoin to Coinbase that is income you have.

There is no reason for the IRS to be beyond the gateway world since taxes cannot go to protecting any basic rights within the crypto realm. They hold no purpose besides people foolishly asking the IRS to take their money.

Only if people like you faithfully accept it.

No government has purview with cryptocurrencies. The harder they try, the more their country loses valuable resources.

Bitcoin is very trackable. But the thing is how do you decide whom to track? There is no good automated way to do it. Bitcoin is out of the purview of any country really, and should be treated that way. I wrote some about it here.

If you convert Bitcoin to fiat, pay income tax on it if your country has income tax. Simple.

Bitcoin ATM's bring up some legality concerns. Technically you are selling them for fiat, so you should also pay taxes like it's income instead of like it's a bank.

I'm in the United States. That's how it is here, as well as pretty much anywhere. It's just a question, is there income tax?

It's somewhat simple. They are not going after citizens because security laws are not for citizens in that the punitive measure are for those offering unregistered securities. It's way too costly to seek out people that buy non-securities, and there's no purpose as the law exists to stop them from wasting money. Why fine people that you made a law around preventing them from being ripped off?

The ICO's that don't allow US participation are not protecting you, they are protecting themselves from the long arm of the SEC. If you have to VPN and all of that to participate it shows a record that they clearly didn't allow it, but you cheated their protection so they aren't particularly liable so long as they obviously try to be compliant and protective.

You can't "cash out" an ICO anyways, you have to convert it to a more legal crypto first.

Don't play the capitol gain games. It's all senseless IMO since decentralized things are out of the states purview. Just pay income tax when you convert to fiat and withdraw from the custodian.

It was only US citizens with over $20k worth. And it never happened.

It's total BS anyways. The IRS has no right to any of it until the convert to fiat. It's out of the purview of the state until it's fiat so they are not providing any facilitation of it's use that isn't already taxed.

I wouldn't call it anything but a pathetic attempt to see if people would willingly hand over funds for no reason.

Withdraw enough to pay income tax on & buy property in a chosen country with low/no income tax, one which gives residency once property of a certain dollar amount has been purchased. Move there, be a resident. Now you can cash out all you want without pay much/any on it.

That's all there is... if you want to stay in the state which you live now pay income tax on it, that simple. Don't try to launder it or whatever, the stress will ruin your retirement.

Conceptually you "gained property" as far as the USA is concerned. You pay tax when your property gains value. They're asking you to pay value on nothing becoming something. 

IMO I think it's entirely wrong to pay taxes on that. I wouldn't. Bitcoins are out of the purview of the state no matter what they like to claim. Fact is you paid tax on everything that allowed you to mine that Bitcoin.

If a furniture maker pays taxes on his woodshop, wood, brushes, oils, etc... and makes a chair, does he pay taxes on the value of that chair coming into existence? No. Lawfully he "would pay tax" but he doesn't. No one does that. They pay sales tax when they sell it, or pay higher property taxes to compensate. If they are listed as a commercial entity they pay extra taxes like for electricity etc.

Think of it like this, they're acting as if Bitcoins fell into your lap like your pop passed away and left them to you. They want to tax on that. What they're ignoring is POW (proof of work) in which you paid plenty of tax already and have "labored" it into existence. So their argument is really faulty.

How and why are they able to say this crap? Because no one has challenged them yet. Why haven't they enforced it? Because then they wouldn't have any volunteers since it has some shit chances of holding up in court.

IF you can keep track of it all, you could pay capitol gain tax. That's hardly possible. Plus I don't think capitol gain tax is a good idea for cryptos because it implies that there is some sort of jurisdiction on them. I recommend just paying income tax. Fact is that you left the purview of the state, and re-entered it. The first time, Coinbase or whatever paid the tax. The second time you converted you now own a big asset in the purview of the state that facilitates the fiat, so it's your responsibility.

There is nothing but laughter to stop you from being http://therealbitcoin.bitcoin well and money for servers and stuff like that...

Anywhere that won't give the USA extradition or extension, and won't classify it as a security.