Apple begins allowing Bitcoin currency apps back into the App Store

Posted:
in iPhone edited June 2014
At its annual Worldwide Developers Conference, Apple quietly revised its App Store rules to allow "approved" digital currencies, which has paved the way for Bitcoin-related apps to return.




Apple began pulling Bitcoin apps from the App Store in February, most notably the popular title "Blockchain" utilized by some 120,000 users. As it is a peer-to-peer digital, virtual currency, Bitcoin has been met with some resistance in establishing itself as an accepted form of money.

But Apple clarified its stance on virtual currencies earlier this month with revised App Store rules issued at WWDC. Under the new rules, apps that allow transmission of virtual currencies like Bitcoin must do so "in compliance with all state and federal laws for the territories in which the app functions."

After clarifying its stance, Apple approved a new Bitcoin app on Sunday?--?Coin Pocket -- which can now be downloaded from the Finance category of the App Store. Its availability was first noted by CoinDesk.

With the newly released app, users can send and receive Bitcoin from their iPhone or iPad. It includes Sweep Private Keys in HEX, WIF, or BIP38 format, a QR code scanner, multiple sources to Bitcoin to U.S. Dollar conersion, and export BIP38 private key for backup.

The application's description also comes with a disclaimer: "Check your state and federal laws on the transmission of Bitcoin or virtual currencies before using the send feature of this app. You are liable for the use of Bitcoin in your jurisdiction."

Comments

  • Reply 1 of 16
    SpamSandwichSpamSandwich Posts: 33,407member
    Regrettably, people are also liable for recording and reporting to the IRS all cost basis and profit information as well as pay taxes of 20% for capital gains every time Bitcoins are "sold" during a transaction...even if one is simply buying a coffee! These onerous reporting requirements ensure BTC will never become a competitive currency in the US, however Uruguay reportedly is interested in allowing BTC to be used in the same manner as cash without the insane reporting requirements and with far more banking privacy. I'm starting to look around at places to retire outside the US since the great downward slide is only accelerating.
  • Reply 2 of 16
    blastdoorblastdoor Posts: 3,278member

    I think it would have been better if Apple had not allowed these things in the app store. Let Android be the platform for organized crime and wing-nut libertarian ideologues. 

  • Reply 3 of 16
    SpamSandwichSpamSandwich Posts: 33,407member
    blastdoor wrote: »
    I think it would have been better if Apple had not allowed these things in the app store. Let Android be the platform for organized crime and wing-nut libertarian ideologues. 

    Ignorance is bliss. Enjoy your happiness.
  • Reply 4 of 16
    iaeeniaeen Posts: 588member
    Regrettably, people are also liable for recording and reporting to the IRS all cost basis and profit information as well as pay taxes of 20% for capital gains every time Bitcoins are "sold" during a transaction...even if one is simply buying a coffee! These onerous reporting requirements ensure BTC will never become a competitive currency in the US, however Uruguay reportedly is interested in allowing BTC to be used in the same manner as cash without the insane reporting requirements and with far more banking privacy. I'm starting to look around at places to retire outside the US since the great downward slide is only accelerating.

    Or you could do what most people are probably already doing and ignore the requirements.
  • Reply 5 of 16
    SpamSandwichSpamSandwich Posts: 33,407member
    iaeen wrote: »
    Or you could do what most people are probably already doing and ignore the requirements.

    You could, but that opens you up to virtually unlimited penalties if the IRS sniffs you out. Better to comply with regulations and reporting or get out of the US and find a country that wants you as a citizen.
  • Reply 6 of 16
    e1618978e1618978 Posts: 6,075member
    Quote:

    Originally Posted by SpamSandwich View Post





    You could, but that opens you up to virtually unlimited penalties if the IRS sniffs you out. Better to comply with regulations and reporting or get out of the US and find a country that wants you as a citizen.



    I'm sure that somebody will come up with a wallet that auto downloads the transaction data to TurboTax.   Once that happens it is more of a headache for the IRS than us.

  • Reply 7 of 16
    iaeeniaeen Posts: 588member
    You could, but that opens you up to virtually unlimited penalties if the IRS sniffs you out. Better to comply with regulations and reporting.

    Isn't anonymity one of the claimed benefits of bitcoin? If it's difficult for an individual to keep track of these numbers, how hard would it be for the government to track millions of people's transactions?

    I guess I probably shouldn't underestimate the IRS's willingness to spend thousands of dollars just to make sure you paid the $0.50 capital gains on that coffee. Even so I'm not sure I can see what mechanism they could use even if they wanted to.
  • Reply 8 of 16
    iaeeniaeen Posts: 588member
    blastdoor wrote: »
    I think it would have been better if Apple had not allowed these things in the app store. Let Android be the platform for organized crime and wing-nut libertarian ideologues. 

    Yea, I sure am upset that Apple isn't telling me what to do¡
  • Reply 9 of 16
    beltsbearbeltsbear Posts: 314member
    Quote:

    Originally Posted by Blastdoor View Post

     

    I think it would have been better if Apple had not allowed these things in the app store. Let Android be the platform for organized crime and wing-nut libertarian ideologues. 


    I am an Apple shareholder and have bought every generation of iPhone since day 1.  I bought my first Android product solely to have a Bitcoin wallet app due to Apples earlier ban.  I was (not happily) considering buying an Android as my next main phone just for this functionality.  Now I don't have to.  I am glad Apple wised up and sees they were on the wrong side of this issue. 

     

    If you don't like Bitcoin, don't use it. 

  • Reply 10 of 16
    mpantonempantone Posts: 2,040member
    Quote:
    Originally Posted by iaeen View Post



    Isn't anonymity one of the claimed benefits of bitcoin? If it's difficult for an individual to keep track of these numbers, how hard would it be for the government to track millions of people's transactions?



    I guess I probably shouldn't underestimate the IRS's willingness to spend thousands of dollars just to make sure you paid the $0.50 capital gains on that coffee. Even so I'm not sure I can see what mechanism they could use even if they wanted to.

    If you go to bitcoin.org, the website specifically states that bitcoin does not provide anonymity. Some bitcoin enthusiasts may be making such claims, however they are likely wrong.

     

    At some point in the not-too-distant future, it is likely that the IRS or a similar agency elsewhere will require bitcoin exchanges to report trades, just like your stock broker already communicates your transaction activity directly to the IRS. When that occurs, the end user will either need to decide lot specification or first-in/first-out in terms of capital gain/loss calculation.

     

    It is probable that when the first big tax agency creates this requirement for exchange trade reporting, tax agencies in many other countries will follow suit, as bitcoin capital tax will be considered a source of revenue for those governments.

     

    At that point, bitcoin's popularity may wane.

  • Reply 11 of 16
    iaeeniaeen Posts: 588member
    mpantone wrote: »
    If you go to bitcoin.org, the website specifically states that bitcoin does not provide anonymity. Some bitcoin enthusiasts may be making such claims, however they are likely wrong.

    At some point in the not-too-distant future, it is likely that the IRS or a similar agency elsewhere will require bitcoin exchanges to report trades, just like your stock broker already communicates your transaction activity directly to the IRS. When that occurs, the end user will either need to decide lot specification or first-in/first-out in terms of capital gain/loss calculation.

    It is probable that when the first big tax agency creates this requirement for exchange trade reporting, tax agencies in many other countries will follow suit, as bitcoin capital tax will be considered a source of revenue for those governments.

    At that point, bitcoin's popularity may wane.

    It's true that transactions are public in the sense that you have to broadcast "transfer so much from address A to address B," but if you don't know the owners of A or B then the transaction was effectively anonymous.

    You can require exchanges to report, but it would still be nearly impossible to tell what happens in between. Suppose the IRS is able to track a coin's path as A->B->C->D->E->F->G->H. The exchanges can say "we own accounts A and H, we transferred the coin to Joe Blow's account B and received from John Smith's account G," but how can the IRS establish who owns C through F? How can any outside onlooker calculate the capital gains of Joe or John (nevermind any potential middlemen in between them)?

    Edit: spelling
  • Reply 12 of 16
    nanoakronnanoakron Posts: 126member
    Only one extreme naysayer in this mention of bitcoin on Appleinsider. The environment is certainly changing. Who knows what's next? Maybe the ignorant blowhards might actually do some research into this thing they're up in arms against?
  • Reply 13 of 16
    tallest skiltallest skil Posts: 43,388member

    It's nonfiat-fiat currency. What's next is global bankruptcy.



    Hey, wait, that's an actual idea. If the ENTIRE planet goes bankrupt at the same time, all debts are annulled and no one has to pay anyone! It's the perfect answer! :p

  • Reply 14 of 16
    mpantonempantone Posts: 2,040member
    Quote:
    Originally Posted by iaeen View Post



    It's true that transactions are public in the sense that you have to broadcast "transfer so much from address A to address B," but if you don't know the owners of A or B then the transaction was effectively anonymous.



    You can require exchanges to report, but it would still be nearly impossible to tell what happens in between. Suppose the IRS is able to track a coin's path as A->B->C->D->E->F->G->H. The exchanges can say "we own accounts A and H, we transferred the coin to Joe Blow's account B and received from John Smith's account G," but how can the IRS establish who owns C through F? How can any outside onlooker calculate the capital gains of Joe or John (nevermind any potential middlemen in between them)?

    My guess is that the IRS (or other tax agency) will consider the origin point of the transaction to be the capital gains taxable location.

     

    The IRS considers bitcoin to be property. Thus, movement of a bitcoin would be considered a sale (just like stock), converted into local currency at the point of origin, resulting funds transferred to the destination, then converted from local currency back into bitcoin. The IRS could also require all merchants to report bitcoin activity.

     

    Now, I admit that I am no expert in financial matters, but I am willing to bet all the bitcoin in the world that the tax agencies of this government's planet will find a way to collect taxes off of bitcoin transactions if they are determined to chase that revenue source.

  • Reply 15 of 16
    iaeeniaeen Posts: 588member
    mpantone wrote: »
    My guess is that the IRS (or other tax agency) will consider the origin point of the transaction to be the capital gains taxable location.

    You need both a purchase price and a sale price to calculate capital gains.
    ...The IRS could also require all merchants to report bitcoin activity.

    I can't even begin to imagine how much of a logistical nightmare that would be. Also, what do you do about private transactions?
    Now, I admit that I am no expert in financial matters, but I am willing to bet all the bitcoin in the world that the tax agencies of this government's planet will find a way to collect taxes off of bitcoin transactions if they are determined to chase that revenue source.

    Maybe, maybe not. There are some laws that are unenforceable even for the most totalitarian police state.
  • Reply 16 of 16
    I think Scamcoin should not be allowed on Apple devices.
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