Cryptocurrencies are Taxable and Not Free from Fraud

Posted: 8 Aug 2018

See all articles by D. Larry Crumbley

D. Larry Crumbley

Louisiana State University, Baton Rouge - Department of Accounting

Joseph Wall

Marquette University

Lewis Kilbourne

Louisiana State University, Baton Rouge

Caleb Blair

Independent

Date Written: January 8, 2018

Abstract

Cryptocurrencies are digital assets used as a medium of exchange, but they are not really coins. They can be sent electronically from one entity to another almost anywhere in the world with an internet connection. There are many cryptocurrencies in the market, including bitcoin, ethereum, ethereum classic, litecoin, nem, dash, iota, bitshares, monero, neo, and ripple. Many of the cryptocurrency networks are not controlled by a single entity or company; instead, a decentralized network of computers keeps track of the currency using a token ID. A ledger maintains a continuously growing list of date stamped transactions in real time called “blocks.” This technology is known as blockchain, which records, verifies, and stores transactions without a trusted central authority. The network instead relies on decentralized autonomous organizations (DAOs) with uncertain legal standing.

Keywords: fraud, blockchain, distributed ledger technology, bitcoin

Suggested Citation

Crumbley, D. Larry and Wall, Joseph and Kilbourne, Lewis and Blair, Caleb, Cryptocurrencies are Taxable and Not Free from Fraud (January 8, 2018). Crumbley, L., Wall, J., Kilbourne, L., Blair, C. (2018). Cryptocurrencies are Taxable and Not Free from Fraud. Tax Notes. January 8: 161-169., Tax Notes, Vol. 158, No. 2, 2018, Available at SSRN: https://ssrn.com/abstract=3217350

D. Larry Crumbley (Contact Author)

Louisiana State University, Baton Rouge - Department of Accounting ( email )

E.J. Ourso College of Business Administration
2800 Business Education Complex
Baton Rouge, LA 70803
United States

Joseph Wall

Marquette University ( email )

P.O. Box 1881
Milwaukee, WI 53201-1881
United States
4142887245 (Phone)

HOME PAGE: http://www.marquette.edu/business/directory/joseph-wall.php

Lewis Kilbourne

Louisiana State University, Baton Rouge ( email )

Baton Rouge, LA 70803
United States

Caleb Blair

Independent ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
835
PlumX Metrics