For example, the Bitcoin exchange Coinbase charges only 1% on all Bitcoin exchanges to legal tender. However, traditional electronic payment networks, even with transnational networks and satellite communications, differ from a virtual currency. Alternatively, 'unlike electronic money, a VC, particularly in its decentralised variant, does not represent a claim on the issuer.' Įlectronic payment networks, such as the ACH, have decreased the costs and time required to transfer value and increased reliability and transparency. These electronic transfers of money through the ACH Network represent a claim to physical legal tender. The National Automated Clearing House Association (NACHA), through the Automated Clearing House (ACH) moves almost $39 trillion and 22 billion electronic financial transactions each year. The Internal Revenue Service (IRS) describes Virtual Currencies (VCs) as 'a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value does not have legal tender status in any jurisdiction.' Although, electronic payment systems have been part of American life since at least 1871 when Western Union 'introduced money transfer' through the telegraph and in 1914 'introduced the first consumer charge-card', virtual currencies differ from these digital payment structures because unlike traditional digital transfers of value, virtual currencies do not represent a claim on value rather the virtual currency are the value.

The regulatory structure also includes tax regulations and FINCEN transparency regulations between financial exchanges and the individuals and corporations with whom they conduct business. if it is classified as a security and of any trading platform that meets its definition of an exchange. The Securities and Exchange Commission also requires registration of any virtual currency traded in the U.S. The Commodity Futures Trading Commission has regulated and may continue to regulate virtual currencies as commodities.

United States virtual currency law is financial regulation as applied to transactions in virtual currency in the U.S.

Online gaming laws united states