Bitcoin has proved to be a pain for legislators across the world. Initially, the chose to ignore it. The ignorance was followed by skepticism. Banks and other financial institutes became vary of Bitcoin. The negative image of Bitcoin is not helped by it being the currency of choice in the dark web where people buy banned substances and drugs as well as banned services. Within no time it became clear that Bitcoin is something that can no longer be ignored by legislators and tax regulators alike.

US shows the way early on

The USA was the country to take the lead in the direction of Bitcoin legislation. It was the first country where a government agency published its stand on Bitcoin and advised people on what can and what cannot be done using Bitcoin without venturing into the realms of the illegal. The IRS was also the first tax regulator in the world which made its stand on Bitcoin known to the tax payers.

The rest of the world wakes up

Other economies in the world followed suit and now most countries have some kind of legislation in place for virtual currency transactions. However, because of the unique and unprecedented nature and scale of the issue, almost everyone seems to be struggling in understanding the impact of Bitcoin on their economy and hence the laws are definitely transient and need refinement. Some countries have shown more acceptance to Bitcoin then others though. A case in point in the UK where the result of the government’s encouragement to Bitcoin transactions has resulted in the foundation of a lot of Bitcoin related startups.

Future of Bitcoin Legislation in USA

The USA’s progress on this front has stagnated a bit in the recent pass and they stand to be almost where they were in 2013. They can pull up their socks a bit and make the country more Bitcoin friendly because some of the most important men in the world think that Bitcoin is here to stay.

Firstly, the inclusion of Bitcoin with other financial institution should be made a high priority. Not so long ago, a US bank refused to do business with a company that used digital currency. The government needs to take affirmative action to and ensure that the banks are well aware of the legalities of digital currency and it isn’t viewed as a rival or a fraud.

There is always the additional complexity of having 50 little legislations within USA which will invariably have some disagreements on almost all the laws. This problem, though a big one, might be a little tricky to solve at least in the near future. But most states can take a cue from New York and take a step forward towards making a bitcoin rule.