Government Reports, Advisories, Hearings, Etc.


State Information

  • State-by-State Regulation map and information from CoinCenter (8/24/17)
  • Arizona HB 2417 (Chapter 97; 3/29/17) - Per the Senate Fact Sheet, "establishes guidelines for blockchain technology regarding electronic signatures and records." Also allows for "smart contracts."  Defines "blockchain technology" as "distributed ledger technology that uses a distributed, decentralized, sharee and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledge is prtected with cryptography, is immutable and auditable and provides an uncensored truth." Defines "smart contract" as "an event-driven program, with state, that runs on a distributed, decentralized, shared and replicated ledger and that can take custody over and instruct transfer of assets on that ledger."
  • California BOE Special Notice L-382 (June 2014) - If use virtual currency to buy a taxable item, sales tax owed based on the sales price of the item purchased.
  • California Dept of Business Oversight, Advisory on virtual currencies, 4/30/14 - press release + text
  • Colorado SB 18-086 (5/30/18) - Dept. of State must consider blockchain tech when accepting business licensing records and in distributing state data to other agencies.
  • Delaware Blockchain Initiative launched in May 2016 by Governor Markell to attract this technology to the state and explore "distributed ledger shares" to be authorized by Delaware corporations.
  • Florida court rules Bitcoin is not money - The State of Florida v Espinoza, F14-2923 (11th Judicial Circuit, 7/22/16) - see ruling in this 7/25/16 Miami Herald article. This is a money services business ruling, not a tax one. The court explained Bitcoin and stated: "This Court is not an expert in economics, however, it is very clear, even to someone with limited knowledge in the area, that Bitcoin has a long way to go before it is the equivalent of money. ... Bitcoins ... are not monetary instruments." Thus, the court found that rather than exchanging money, the person sold property.
  • Illinois Blockchain Initiative.
  • Kansas Office of the State Bank Commissioner Guidance Document MT 2014-01 (6/6/14) - in some cases, exchange might be considered money transmission
  • Michigan - Sales tax information in Treasury Dept's Nov. 2015 newsletter
  • Missouri LR 7411 (9/12/14) - no sales tax imposed when customers obtain bitcoin from ATM because the bitcoin is intangible.
  • Nevada - SB 398 (Chapter 391; 6/5/17) allow blockchain tech as electronic record of Uniform Electronic Transactions Act, prohibit local gov't from taxing or restricting use of blockchain.
  • New Jersey - TAM 2015-1 (4/2/15)
  • New York - sales and income tax treatment of virtual currency - TSB-M-14(5)C, (7)(I, (17)S (12/5/14)
  • New York Attorney General launches Virtual Markets Integrity Initiative (April 2018) described as "a fact-finding inquiry into the policies and practices of platforms used by consumers to trade virtual or “crypto” currencies like bitcoin and ether" to provide "the accountability and transparency in the virtual currency marketplace that investors and consumers deserve.”  Press release + survey sent to 13 platforms + final reportBitcoin.com's 9/19/18 article on 8 surprising findings from the initiative.
  • New York Public Service Commission news release 7/12/18 - higher utility rate allowed for those involved with cryptocurrency mining or providing the computer capacity for it.
  • New York State, Dept of Financial Services
  • Ohio starts taking bitcoin for tax payments (Nov. 2018)
  • Texas Dept of Banking, Supervisory Memorandum 1037 (4/3/14) - generally finds that exchanging virtual currency for sovereign currency is not a currency exchange under Texas law.
  • Vermont - several new laws and activities:
    • S 269 (Act. No. 205; 5/30/18) on blockchain business development, including creation of blockchain-based LLCs and a study on possible use of blockchain for government records.
    • Center for Legal Innovation at Vermont Law School, Financial Tech Report for legislature, 12/7/17
    • H. 182 (Act 22; 5/4/17) on rules for money transmitters including virtual currency.
  • Washington Department of Revenue - basic info
  • Wyoming, SF 111, Chapter 45 (3/10/18) - virtual currency is not subject to personal property tax.


Virtual Currency & Blockchain Technology

U.S. Treasury FinCEN and Related Information


Treasury's Bureau of Fiscal Service, "Five Quick Takeaways on Blockchain," April 2018 + Information on their Distributed Ledger pilot project.

The Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department has issued guidance on banking and other aspects of virtual currency.

  • 7/27/17 - FinCEN Fines BTC-e $110 Million - press release + CRS report
  • 5/5/15 - First FinCEN fine against a Virtual Currency Exchanger - Ripple Labs, Inc.
  • 10/27/14 release of two administrative rulings:
    • FIN-2014-R011, Request for Administrative Ruling on the Application fo FinCEN's Regulations to a Virtual Currency Trading Platform (Company with a trading system to match buyers and sellers of convertible virtual currency and real currency found to be a money transmitter.)
    • FIN-2014-R012, Request for Administrative Ruling on the Application of FinCEN's Regulations to a Virtual Currency Payment System (Company that will provide a system to enable merchants to receive payments in bitcoin, found to be a money transmitter. Company's main objective is to serve hotels in four Latin American countries where currency controls and inflation pose foreign exchange risks when the hotels serve foreign customers.)
  • 1/30/14 release about two pieces of guidance
    • FIN-2014-R001 - Application of FinCEN's Regulations to Virtual Currency Mining Operations
    • FIN-2014-R002 - Application of FinCen's Regulations to Virtual Currency Software Development and Certain Investment Activity
  • 3/18/13 release about new guidance
    • FIN-2013-G001 - Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies


CFTC holds that bitcoins are a commodity (9/17/15 ruling)

Remarks From Under Secretary of Terrorism and Financial Intelligence David S. Cohen on "Addressing the Illicit Finance Risks of Virtual Currency" 3/18/14


21st Century Taxation

Tax Reform - Modernizing Tax Systems,      Following Principles of Good Tax Policy ​

This webpage is intended to provide information and links about taxation of virtual currencies (aka cryptocurrency) in the U.S. and elsewhere, and related information, including about blockchain (aka distributed ledger technology). Please scroll through to see topics and links.


U.S. Income Taxation


In March 2014, the IRS issued Notice 2014-21 and Information Release IR-2014-36, on the income tax treatment of virtual, convertible currency, such as bitcoin. The IRS has ruled that virtual currency is treated as property, rather than currency for tax purposes. That means it needs to be valued when used (such as to buy goods or to compensate an employee) to determine tax consequences. For example, assume Jane purchased X bitcoins last year for $100. Today, she uses that X bitcoin amount to buy clothes worth $120. Jane has a $20 gain on this transaction. Assuming she is an investor or trader in bitcoin (rather than a dealer), this is a capital gain which is taxed at a lower rate for federal income tax purposes than other income such as wages (assuming it is a long-term gain). Jane must keep records to track the basis of all virtual currencies she purchases and identify which ones she uses when she buys something. Basically, Jane is bartering.  For more on the tax rules and issues, exchange rates, and other information, see the links below.

Exchange Rate Information 

These are samples, not an exhaustive list.

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21st Century Taxation blog posts and presentations with links to information about taxation of virtual currencies 


Taxation and Regulation in Other Countries - Virtual Currencies, ICOs
Please note - this is not a complete list

IRS Guidance and Government Reports on Taxation 



Additional Resources on Tax Considerations

Articles and Information about Virtual Currencies & Blockchain Technology