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Nevada Issues Bitcoin Consumer Alert

Avatar Jayanand Sagar 5 years ago

Remember just a few days ago when we filed a post noting that Missouri officials had issued an advisory on the topic of bitcoin and cryptocurrencies?

I closed that post by saying that “…there’s likely more [of these warnings] to come”, and that is exactly what has happened.

The next state to throw up their warning flags is Nevada.

In conjunction with a group of national state organizations (specifically, the Conference of State Bank Supervisors and the North American Securities Administrators Association), the Nevada Financial Institutions Division has reportedly begun warning citizens of the risks associated with digital currency.

The warning also names litecoin as a risk (but we can assume it encompasses all digital currencies), and warns of volatility, the lack of FDIC-like insurance, and lack of regulation.

The advisory also warns of potential tax issues that could arise from the use of bitcoin.

As many in the community are already aware, the taxation talking point when it comes to bitcoin is still murky, though the Internal Revenue Service recently released guidance for taxpayers on the matter.

Therein, the IRS said that bitcoin should be treated as property, and taxpayers were responsible for calculating gains/losses on each transaction.

Nevada’s warning also mentions possible links between digital currency use and crimes like terror financing and money laundering.

The advisory echoes things we’ve heard before, not only from other U.S. States, but from governments around the world.

But of course, this likely won’t be the last state to be warning citizens of digital currency pitfalls.

[textmarker color=”C24000″]Source[/textmarker] Reno Gazette-Journal

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