The Resource Are cryptocurrencies 'super' tax havens?

Are cryptocurrencies 'super' tax havens?

Are cryptocurrencies 'super' tax havens?
Are cryptocurrencies 'super' tax havens?
Virtual currencies are online payment systems that may function as real currencies but are not issued or backed by central governments. As demonstrated by recent events, virtual currencies present regulators with significant challenges. On 23 May 2013, the U.S. federal government brought an indictment against the operators of Liberty Reserve, a popular virtual currency, charging the operators with money laundering and operating an unlicensed money-transmitting business. The same month, the Government Accountability Office made public a report exploring the potential tax-compliance risks associated with virtual currencies and economies. Legislators have also taken particular interest in one type of virtual currency - Bitcoin. On 13 August 2013, the U.S. Senate Committee on Homeland Security announced plans to start an inquiry aimed at establishing a regulatory framework for Bitcoin. This short essay describes the mechanisms by which "cryptocurrencies" - a subcategory of virtual currencies - could replace tax havens as the weapon-of-choice for tax-evaders. The author argues that it is reasonable to expect this shift to occur in the foreseeable future due to the contemporary convergence of two unrelated, yet parallel, processes: first, the increasing popularity of cryptocurrencies, and second, financial institutions face increased governmental pressure to deliver information about account holders, to withhold taxes from earnings accumulating in financial accounts, and to remit such taxes to taxing authorities around the world. The operation of cryptocurrencies is not dependent on the existence of financial institutions
Citation source
Michigan Law Review First Impressions. - Ann Arbor. - Vol. 112 (2013), p. 38-48
Marian, O
Geographic coverage
North America
Language note
  • digital economy
  • tax haven
  • tax evasion
Are cryptocurrencies 'super' tax havens?
Are cryptocurrencies 'super' tax havens?

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