A Federal judge in new York has not recognized bitcoin as money

[Forester618]

A Federal judge in new York has recommended to cancel the charges of money laundering on local business based on the definition that Bitcoin does not fall under the definition of money. Instead, the judge Hugh B. Scott ruled that Bitcoin is more like a commodity. While he noted that Bitcoin might one day become so reasonable that it can be considered as money, Scott suggested that he currently has more in common with collectibles such as trading cards and other novelty items.
The case involved a 31-year-old man who allegedly sold Bitcoins for $13 000 to the agent in an attempt to launder money and distribute drugs. However, the interpretation of Scott was adopted by the district judge of the United States Charles Siragusa, who expressed skepticism about the possible consequences.
This is a controversial issue, so lawyers for the defendants said that they will try to withdraw the petition. In this situation, the protection refers to the scepticism of Siragusa as a defining factor in their current strategy. Lawyers of the defendant also stressed that their client is in no way connected with the so-called darknet market and just traded Bitcoins, like other trading "baseball cards, stamps or coins."

[BiTZeD]

That is great news ! I want it to not be recognised as money, because we will have to pay taxes for it, but as a commodity, just as the judge told it ! There will be a lesser hype, but who cares, if it permits us to do not give a penny out of our sales !

[beerlover]

That is great news ! I want it to not be recognised as money, because we will have to pay taxes for it, but as a commodity, just as the judge told it ! There will be a lesser hype, but who cares, if it permits us to do not give a penny out of our sales !

Yes, really good news. I don’t care of what if someone is recognizing it as money or not. In fact the person is actually helping you to get rid of the additional taxes that you will have to pay. I am okay with it if someone doesn’t call it or recognize it as a currency. I need it to be useful and it is for now.

There were innocent people who got punished just for running exchanges for the reason of helping money laundry. This is judgement was made late till good one.

[pinkflower]

It depends on what position youre in. Some want BTC to be defined as a currency so that it will become a legitimate and a valid form of money.

The courts at present arent ready to handle cases that involves BTC because the definition itself is so open to interpretation.

[n2004al]

A Federal judge in new York has recommended to cancel the charges of money laundering on local business based on the definition that Bitcoin does not fall under the definition of money. Instead, the judge Hugh B. Scott ruled that Bitcoin is more like a commodity. While he noted that Bitcoin might one day become so reasonable that it can be considered as money, Scott suggested that he currently has more in common with collectibles such as trading cards and other novelty items.
The case involved a 31-year-old man who allegedly sold Bitcoins for $13 000 to the agent in an attempt to launder money and distribute drugs. However, the interpretation of Scott was adopted by the district judge of the United States Charles Siragusa, who expressed skepticism about the possible consequences.
This is a controversial issue, so lawyers for the defendants said that they will try to withdraw the petition. In this situation, the protection refers to the scepticism of Siragusa as a defining factor in their current strategy. Lawyers of the defendant also stressed that their client is in no way connected with the so-called darknet market and just traded Bitcoins, like other trading "baseball cards, stamps or coins."

Bitcoin is not known as money at USA so is normal such action. If I am not wrong, according to USA regulators bitcoin is a digital commodity and as for me in such way must be interpreted everything connected with it in order that be conform the regulations.

[mimini0147]

A Federal judge in new York has recommended to cancel the charges of money laundering on local business based on the definition that Bitcoin does not fall under the definition of money. Instead, the judge Hugh B. Scott ruled that Bitcoin is more like a commodity. While he noted that Bitcoin might one day become so reasonable that it can be considered as money, Scott suggested that he currently has more in common with collectibles such as trading cards and other novelty items.
The case involved a 31-year-old man who allegedly sold Bitcoins for $13 000 to the agent in an attempt to launder money and distribute drugs. However, the interpretation of Scott was adopted by the district judge of the United States Charles Siragusa, who expressed skepticism about the possible consequences.
This is a controversial issue, so lawyers for the defendants said that they will try to withdraw the petition. In this situation, the protection refers to the scepticism of Siragusa as a defining factor in their current strategy. Lawyers of the defendant also stressed that their client is in no way connected with the so-called darknet market and just traded Bitcoins, like other trading "baseball cards, stamps or coins."

Well, that was some luck their for the defendant.

IF i was the judge and i just bothered to read over what the hell is bitcoin about for 1 minute before I made the decision, i would have stayed with the money laundering charges. Perhaps the government just wants to keep bitcoin not legally defined as currency, i don't know.

Bitcoin is a commodity, sure. But it's definitely not trading cards. It has much more potential than trading cards, and it's not a collectible. It's much more liquid and easy to trade across the globe. No way a trading card can serve what bitcoin is doing right now.

Japan already said that bitcoin is a legal currency, when will USA say that?

[icecube45]

Very good news, friends. Distinguishing bitcoin as money or commodity is very complicated, it really depends on how we look because bitcoin can be used for both. Bitcoin can be called as money because it can be used for transactions and even some shops start using it, but also can be called a commodity because it has a fluctuating value that is suitable for trading.

Actually I prefer if bitcoin is used as a commodity because of its fluctuating value. Also if used as money I think there must be legality from the government and have a form, so bitcoin still not fully qualified to use as money. That is a good case for learning bitcoin.

[deisik]

That is great news ! I want it to not be recognised as money, because we will have to pay taxes for it, but as a commodity, just as the judge told it ! There will be a lesser hype, but who cares, if it permits us to do not give a penny out of our sales !

I'm curious if that could actually help you with taxes

I don't know much about the US tax system (so bear with me), but as I understand it, taxing money is a meaningless idea as such (unless we speak about the inflation tax otherwise known as seigniorage, of course), i.e. if Bitcoin is recognized as a currency you can both hold and sell (as well as buy) your coins indefinitely without paying anything (would that count as capital gain?), while if Bitcoin is considered as a commodity (property), this may no longer be the case

[pinkflower]

Another thing to discuss is its also good if the government or whoever starts accepting BTC as a currency. It would mean we could also pay our taxes with it. One of fiat's important function is to pay what we owe the government with it. Its one property that makes fiat valuable.

[deisik]

Another thing to discuss is its also good if the government or whoever starts accepting BTC as a currency. It would mean we could also pay our taxes with it. One of fiat's important function is to pay what we owe the government with it. Its one property that makes fiat valuable

It is highly unlikely that any major government will ever go that route

Since that would effectively mean creating competition for the local currency which these governments print. Why would they want that? By going that way, they will be shooting themselves in the foot. Though some minor governments (and especially those which are already using some foreign currency as a legal tender) may in fact accept Bitcoin as a legitimate payment for taxes provided its price stabilizes over long enough term (but no sooner than that)

[el kaka22]

Another thing to discuss is its also good if the government or whoever starts accepting BTC as a currency. It would mean we could also pay our taxes with it.

I do not think that we bitcoiners need government to recognize bitcoin as a currency. Just regulating bitcoin as digital property will be more than enough, I believe. No government will not prefer to have a system which is beyond their control.

The only option in front of government is taxing on cash-out of bitcoins. But people will prefer going for "using-bitcoin" for their need. Then I guess using-bitcoin will be exempted similar to PayPal's personal payments. So, it would be great for bitcoin not to consider it as money.

Maybe government will start thinking money is what they are printing and all others are just tokens, people do create for their conveniences. I guess there will be no other options left for them.

[yoseph]

Gradually Bitcoins is getting the recognition that it deserves, even the SEC are thinking about reviewing a bitcoin ETF it rejected a month ago, The decision to review it is due to bitcoins recent price rise. If the ETF is approved it will be a huge victory for bitcoins.

[BillyBobZorton]

The good part about bitcoin is that it is it's own thing, it doesn't need any authority to determine if it's money or not. In any case, I think it's funny that lawyers and in general the law struggle so much trying to determine if bitcoin is money, an asset, or the equivalent of pokemon trading cards.

[mindrust]

USD is money, EUR is money, JPY is money, GBP is money, CNY is money, Bitcoin is not.

Bitcoin is online gold. You don't price stuff with gold/bitcoin. Instead you price those with FIAT (USD, EUR, JPY, GBP etc) Bitcoin is a commodity which you can trade online. When you buy something with bitcoin, you actually buy it with FIAT. Bitcoin is only carrying your FIAT through.

[shinratensei_]

It depends on what position youre in. Some want BTC to be defined as a currency so that it will become a legitimate and a valid form of money.

It will be entirely true. If bitcoin will be defined as a currency, That means bitcoin has filled the legal aspect. There is no doubt for everyone to adopt bitcoin as a currency.

The courts at present arent ready to handle cases that involves BTC because the definition itself is so open to interpretation.

Especially there is no regulation about bitcoin, The courts will take a single perspective about the definition of bitcoin itself. In this side, Crypto is needed a regulation (to secure the users).

[Sniper44]

the definition that Bitcoin does not fall under the definition of money. Instead, the judge Hugh B. Scott ruled that Bitcoin is more like a commodity.

is this news?!
i am not living in US but last time i was checking different laws in different countries i remember that i saw bitcoin is listed in US as a commodity already. and this happened back in 2010 or maybe even older. that is why i am surprised you are representing this as a news today!

-snip-
Especially there is no regulation about bitcoin, The courts will take a single perspective about the definition of bitcoin itself. In this side, Crypto is needed a regulation (to secure the users).

it is not exactly regulation, but it is already decided years ago that bitcoin is a commodity according to laws of US.

[deisik]

USD is money, EUR is money, JPY is money, GBP is money, CNY is money, Bitcoin is not.

Bitcoin is online gold. You don't price stuff with gold/bitcoin. Instead you price those with FIAT (USD, EUR, JPY, GBP etc) Bitcoin is a commodity which you can trade online. When you buy something with bitcoin, you actually buy it with FIAT. Bitcoin is only carrying your FIAT through

If Bitcoin is not money, why do you accept payment for your posts in it?

If you think of it, you will have to admit that you are a bit hypocritical here. You offer a service and got paid for it, and you don't get paid in dollars, you get paid in bitcoins which you don't consider as money. How come? I understand that you can't buy much stuff with it, but you still get paid and can pay for services you provide and which could be provided to you. Economically, there is no particular difference between goods and services. Anyway, in today's world services are already overtaking goods in terms of money spent and earned. You pay your hefty monthly bills (or your parents pay) and you (they) pay for services, not goods, after all

[User365]

Not bad at all, if it was money you would have to pay taxes 

[HabBear]

That is great news ! I want it to not be recognised as money, because we will have to pay taxes for it, but as a commodity, just as the judge told it ! There will be a lesser hype, but who cares, if it permits us to do not give a penny out of our sales !

Not bad at all, if it was money you would have to pay taxes 

Bringing bad news to you here, bitcoin being recognized as "not money" doesn't remove the obligation to pay taxes on your ownership of it. Bitcoin is considered an investment too, like stocks. And when ever you sell it for Fiat you'll be obligated to pay taxes on the value of the appreciation in it's price.

[deisik]

That is great news ! I want it to not be recognised as money, because we will have to pay taxes for it, but as a commodity, just as the judge told it ! There will be a lesser hype, but who cares, if it permits us to do not give a penny out of our sales !

Not bad at all, if it was money you would have to pay taxes 

Bringing bad news to you here, bitcoin being recognized as "not money" doesn't remove the obligation to pay taxes on your ownership of it. Bitcoin is considered an investment too, like stocks. And when ever you sell it for Fiat you'll be obligated to pay taxes on the value of the appreciation in it's price

While you should, you may still choose not to

When you are small fish, I guess no one will give a fuck about you, if you don't shout it loud at every corner about your success with Bitcoin, indeed. If you have literally millions of dollars in Bitcoin (and are looking to cash out), you may want to buy citizenship of some country with loyal and Bitcoin-friendly tax system, where proceeds from Bitcoin operations are not taxable at all. And if that country entered an agreement with the country of your residence about avoidance of double taxation, you may legally not pay any taxes on your Bitcoin earnings. I guess there are a lot of other "legitimate" ways if not totally avoid taxation then at least substantially "optimize" your tax burden