Apple begins allowing Bitcoin currency apps back into the App Store
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."
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
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.
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.
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.
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.
Yea, I sure am upset that Apple isn't telling me what to do¡
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.
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.
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
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!
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.
You need both a purchase price and a sale price to calculate capital gains.
I can't even begin to imagine how much of a logistical nightmare that would be. Also, what do you do about private transactions?
Maybe, maybe not. There are some laws that are unenforceable even for the most totalitarian police state.