How can big data benefit cryptocurrency investments

Bitcoin and the New World Economy

ORIGINAL article

CHAGAS, Edgar Thiago de Oliveira [1]

CHAGAS, Edgar Thiago de Oliveira. Bitcoin and the new world economyt. Multidisciplinary journal Knowledge Nucleus. Volume 04, Ed. 01, Volume 05, pp. 137-168 January 2019. ISSN: 2448-0959



The present study has the proposal to explore the nuances of the Bitcoin market analysieren where it brought a broad view of cryptocurrencies or virtual currencies. The main concern of governments in transactions with Bitcoins ist the possibility of money laundering and tax evasion, this is because most countries have not regulated this modality of currency. There is a concrete case of the Pátrio state that can serve as an illustration for this hypothesis. A project is under way in the National Congress to regulate this modality of money, but our Magna Charta specifically states that it is the Union's competence to issue the currency. Since the project of regulating this, in its virtual modality, is processed on an ordinary character, it cannot be confirmed when, how and whether the bitcoins in Brasil regbe ulated.

Word (s) key (s): Bitcoin, cryptocurrencies, money laundering.


The present study has called an episode of the Foundation that offers a great look at the cryptocurrencies for the global economy as numerous commercial transactions make use of this process Bitcoins. If not all over the planet, at least most of the countries are known, especially those considered the first world, in that sense they will make some trade-offs about this currency in that sense.

In Brazil, although there is still no legislation that normalizes transactions in cryptocurrencies, many people and companies use this modality of the currency, except it is worth noting that in the National Congress there is Law No. 2303/2015 on The Regulation of Transactions in cryptocurrencies, according to the preamble of the draft law that is being compiled:

"It has to include virtual currencies and air mile programs in the definition of" payment arrangements "under the supervision of the central bank."

This intention is aimed at the implementation of the operationality regulation and reflects on how this process is monitored, as in this way fraud and money laundering can be avoided.

Access to purchase von Bitcoins is only possible via the technology that is called a blockchain gotnnt is, in this Toada, Destarte, it is necessary to weave some nuances over this technology.

Lots of people trade with Bitcoins or Cryptocurrencies, regardless of the fact that these transactions, although they are not yet regulated in the state of Pátrio, are taxable, so they must be reported with the tax authorities in the declaration of income.

Out of a desire to make money laundering impossible, the government has not measured efforts to avoid the processes run by virtual currencies. Although there is no regulation, the practice is transactional in bitcoins perennial as the Securities Commission issued opinions to the financial market for this type of move.

For the present study, a holistic view of what Bitcoin, Blockchain, Taxationg, Positioning of the Securities Commission and the taxation of these operations has been lost.

1st round Bitcoin

Agner (not dated, p. 5) designed die Bitcoins as:

"Bitcoin is the amalgamation of technologies and abstractions that make it possible to achieve consensus between not necessarily known actors in a decentralized manner, without having to store trust at a central control point or security. The network is subject to a single point of failure. These technologies form together the basis for the existence of a decentralized digital currency and for any other use case that we can abstract for a consensus-based model - such as contracts independent of central authorities such as banks or governments. And it is important to note that the same term "Bitcoin" with the uppercase "B" is often used to denote the technology as a whole, the P2P Bitcoin network or the Bitcoin protocol, while Bitcoin (s) with the lowercase "b" is used to denote the unit of account that are in the network ".

In the author's dictions is bitcoin a harmony between the operators of digital currencies, which separate from each other, so that they do not need central control in a single institution, because the technology of Bitcoin VeIn this case, Agner works (not dated, pp. 5-6).

“Bitcoin is a crypto coin; and that's because cryptography is an integral part of how it works. Cryptography is a branch of mathematics which, in its modern definition, welcomes all technology created and used to understand basic truths of the nature of information to achieve goals such as: hiding messages, proving the existence of a secret without having to divulge the secret, proving authenticity and data integrity, proving arithmetic, etc. First in Bitcoin, we are interested in using cryptographic algorithms to achieve the following goals: integrity security and data consistency in the network and proof of computational work with hashes and authenticity of transactions with public key cryptography digital signatures. "

Encryption is what makes the entire transactional process fully and unstableses from Bitcoin guarantees, in this sense, according to the Atlas Quantum website (Annex I), the Pursuitng on Bitcoins their respective meaning.

From the above diction it becomes clear that virtual currency or cryptocurrency is a global trend and has gradually gained in style at the expense of currency with the advent of credit and debit cards.

As a trend, there is an increase in cryptocurrency brokers, but the largest financial institutions in the country have closed their doors to these brokers since investing in Biticoins can the profit of commercial banks or even the distrust of the legitimacy that comes from the resource that is raised via digital currency, according to Folha de São Paulo (2018, unmatched).

The face value of Bitcoin is determined by the market as it is the safest payment method, mainly because of its property of being a digital materialization of money, but is not issued by the government. In this sense, he praises Ulrich (2014, p. 15).

"..." Bitcoin is a form of money, just like the real, the dollar or the euro, the difference being that it is purely digital and is not issued by any government. Its value is freely determined by individuals in the market. For online transactions it is the ideal form of payment as it is fast, cheap and secure ... With Bitcoin you can transfer money from one to B anywhere in the world without ever having to trust a third party for this simple task. It's a really innovative technology. "

Control of the Bitcoin-transaktion takes over the edition of a book called "Ledger". This contains the reports on all transactions, called blockchain, als seat Ulrich (2014, p. 18) transcribed:

"The invention of Bitcoin is revolutionary because, for the first time, the problem of double spending can be solved without the need for a third party; Bitcoin makes the distribution of the indispensable historical record to all users of the system through a peer-to-peer process-Peer network. All transactions that occur in the Bitcoin economy are recorded in a kind of public and distributed ledger, which is called blockchain bmarked werden (blockchain, or just a public record of transactions) which is nothing more than a large database. Public, which contains the history of all transactions carried out. New transactions are against the blockchain checked, um ensure that the same bitcoins have not been issued before, eliminating the double spend problem. The global peer-to-peer networkErk, which is made up of thousands of users, becomes the mediator itself. "

By the harbinger of the author, it can be said that, the virtual currency, is coming to stay and revolutionize the market in a unique way since the economy of transactions is perennial. As the bitcoin currency popularized, it tends to force the conventional financial institutions to review their service collection policies through search strategies aimed at getting customers so they don't en masse into the cryptocurrencies. In addition, the digital currencies do not have their nomenclature in dollars, euros or any other denomination because they are not tied to the government, in this Mister Prewdet Ulrich (20014, p. 18).

"It is important to note that transactions in the Bitcoin network are not denoted in Dollars, Euros or Reais as they are in PayPal or Mastercard; instead they are called Bitcoins. This means that the Bitcoin system is not just a decentralized payment network, it is also a virtual currency. The value of the currency does not result from gold or any government decree, but from the value that people attribute to it. The real value of a Bitcoin is determined in an open market, just like the exchange rates between the various world currencies become. "

Bitcoin is determined by its market determination to oneUlrich understands r public currency, the user of which has access keys for the transfer of ownership, in this way (2014, pp. 18-19).

"Transactions are verified and duplicate spending is prevented through the use of intelligent public-key cryptography. Such a mechanism requires that each user be assigned two" keys ", one private, which is kept secret, as a password, and another public that can be shared with everyone ... The transaction - and with it a transfer of ownership of bitcoins - is recorded, stamped with the date and time and in a "block" of the blockcgrove (the gro the database or ledger of the Bitcoin network). Public key cryptography ensures that all computers on the network have a constantly updated and verified recorddrawing allhe transactions within the Bitcoin network, which prevents double spending and any kind of fraud ... because Bitcoin is a network peerto peer: It gthere is no central authority responsible for creating monetary units or checking transactions. This network depends on users providing the computing power to keep the records and reconciliations of transactions. These users are known as "miners" because they are rewarded for their work with newly created bitcoins. Bitcoins are created or "mined" as thousands of scattered computers solve complex math problems that make transactions on the blockchainrify ".

According to the author, cryptocurrencies are in blockchain or Blocks itsummarizes, which because of their importance within the Bitcoin accompaniment grind beginn.

2. Round blockchain or blocks

In accordance with the article on the Atlas Quantum website (Appendix II) Some nuances regarding the Blockchain as their functionality should be considered.

As mentioned earlier, the system is made up of a technology developed by Bitcoins aguided known by some scholars as the new generation of the Internet, on this threshold on Tapscott (2017, p. 20):

"It's not about social networks, artificial intelligence, big data, robotics or autonomous cars. It's about the blockchain, the technology behind digital currencies like Bitcoin. This technology represents nothing less than the second generation of the Internet and has the potential to Reshaping money, the economy, government and society. "

In the Delinde the collated to complete the transaction through the use of Bitcoin to eit is not allowed to use intermediaries as the operations are open, in this Toada Tapscott understands (2017, p. 21):

"Walkt the Blockchain is a huge global ledger that runs on millions of devices and is open to everyone where not just information but anything of value - money, stocks, fixed income and other financial assets, writings and other legal instruments, music, art, Scientific discoveries, intellectual property, even voting - can be moved and stored securely and with privacy, and in which trust is not provided by powerful intermediaries, but by massive collaboration and cleverly designed software.

If the Internet was the first native digital format of information, then the blockchain is the first native digital format of value - the new medium for money. It acts as a ledger, database, notary, security guard and clearing, always in consensus. While the technology is still nascent, it has already detonated a Cambrian explosion of innovation in the financial services sector. For example, "smart contracts" are essentially lines of code that mimick the logic of paper contracts, with guarantees of execution, fulfillment, and payment - and where trust can be established by consensus, not through banks, agents, depots, lawyers, and courts.

Rental is the foundation of the financial services industry. In a sense, any financial asset is a contract that secures the holder of a certain business right, such as shares in a company or income from a debt security. The same principle applies to many other types of assets and transactions, from insurance contracts to home purchases, IPOs, and everything in between. The financial sector can use this technology to make financial markets radically more efficient, secure, inclusive and transparent. "

Tuesdaye Blockketten have an open coding and thus enable a cooperative restoration, because this open source is one of its main features, because the increased transparency is the transaction (Mougayar, 2016).

On the same threshold in Tapscott (2017, pp. 23-24):

"Today practically everyone is investing actors In the financial services sector, from banks to insurers and accounting firms to professional services, significant resources are pouring into the Blockchain. Almost $ 1.4 billion was estimated to be in the block as recently as 2016chain technology invested.

In the past, those who ran the Start-ups fifinanceden that venture capitaldonors, but now we're seeing companies like Goldman Sachs, Alibaba, Barclays, and Tencent doing this type of venture investment alongside them.

This explains why more than 45 primary banks, including Credit Suisse, JP Morgan, and UBS, chose to join the R3CEV consortium to develop a distributed banking infrastructure, and why Linux launched the Hyperledger project, the associated with IBM, Deutsche Bank, DTCC, London Stock Exchange Group, Wells Fargo and State Street. Recently we saw the joint initiative of Munich Re, Swiss Re, Aegon, Allianz and Zurich to create the Blockchain Insurance Industry Initiative (B3I), the first of its kind in the insurance sector. Also in the game NASDAQ, NYSE, LSE and other grants.

Of course, this flood of money into the ecosystem is driven by fear as well as by gluttony. Tuesdaye blockchain it can be traditional gameenableto do more with less, expand services, lower risks and lower costs. But it also radically reduces the entry barriers for new actors to agingatives zto create conventional banking, challenging incumbents in virtually every market they operate in. "

From the author's mind, it is believed that the technology der Blockchain isn't new because it has been used by the world's largest financial institutions for years. When using this feature, it is important to use the same blockchain technologyology for Bitcoin transactionswho den investor theoretically freed from the clutches of the large institutions because the Blockchain poses no threat to large corporations. In this sense the understanding of Tapscott (2017, p. 24):

“Perhaps the greatest opportunity this technology offers is to free us from the clutches of a troubling paradox of prosperity. The economy is growing, but fewer people are benefiting from it.

Instead of trying to solve the problem of growth in social inequality just through redistribution, we can change the way in which wealth - and opportunity - is pre-distributed first, since all people, everywhere, from farmers themselves musicians can use this technology use to better share the wealth they generate.

Smart companies will take full advantage of the Blockchain-Weconomy participate instead of being a victim. In developing countries, the distribution of value creation (through entrepreneurship and talent reserves) and value unity (through distributed property) can help to reconcile this paradox.

Tuesdaye blockchain will not be an existential threat to companies adopting this new technological paradigm because it will take their destructive power into their own. "

According to the author, it is noteworthy that the blockchain technologye, come, um to assist the investor and / or entrepreneur in their commercial and financial transactions in a way contrary to the mentality that the system poses as a threat to the company. This technology sees itself as a carrier of innovative properties that confirm the expansion of systems, according to Greve et al (2018, pp. 3-4).

Decentralization: Applications and systems are implemented in distributed, trust-building applications and systems without the need for a reliable intermediary. That is the main motivator for the growing interest in the blockchain.

Availability and Integrity: The entire data set and the total amount of data transactions are securely copied to different nodes to keep the system available and consistent.

Transparency and profitability: All transactions recorded in the lexicon are public and can be checked and checked. In addition, the technology codes are usually open and verifiable.

Immutability and irrefutability: Transactions recorded in the lexicon are immutable. Once registered, they cannot be refuted. Updates are possible from the generation of new transactions and the realization of a new consensus.

Data protection and anonymity: It is possible to grant users privacy without the parties involved having access to their data and controlling it. In the technology, each user manages their own keys, and each server node only stores encrypted fragments of user data. Transactions are partly anonymous, based on the address of those involved in the blockchain.

Deintermediation: The blockchain enables the direct and efficient integration of multiple systems. It is considered to be a connector for complex systems (system systems), which enables the elimination of middlemen in order to simplify the design of systems and processes [Xu et al. 2016].

Cooperation and Incentives: Offering an incentive-based business model in the light of game theory. Consensus-on-Demand is now offered as a service at various levels and areas.

There are innumerable advantages of the blockchain-Platform, but this technology "not" received popular approval because the resistance is very high and, the research in this field is many new, and the market is not prepared for the effects Von the blockchain, because contrary to what the financial market operators think, this new era will be revolutionized and transactions will be made easier. With this in mind, Tapscott (Appendix III) which is compiled:

Through teaching, we observe the numerous benefits of Blockchain fFor financial operations, including fraud containment, given that financial oversight is more effective.

As with the introduction of this question, the state of Pátrio has not yet regulated cryptocurrencies, with only one draft law, which will weave some nuances due to its relevance.

3rd round Bill 2303/2015

In Brazil there is the draft law 2303/2015, in a procedure in the National Congress, it has the aim of regulating Bitcoins, but this changes Law 12.865/2013 and Law 9613/1998. One of the main points of the project can be visualized in the wording as indicated:

Art. 1. Modification of the feat I.9 of Law 12.865, of June 9th, 2013:

Art. 9.…

I-disciplinary payment modalities; Including currencies based on virtual currencies and airline mile programs; "

Art. 2. The following section 4 should be added to Art. 11 of Law 9.613 of March 3, 1998:

Art. 11 ...

§ 4 of the operations mentioned in point I are those with virtual currencies and air mile programs "

Art. 3 º "Application to the transactions carried out on the virtual market of currencies, in what way, the provisions of Law No. 8078 of September 11, 1990, and its amendments".

The author of the bill, referring to his planning that the highlight of virtual currencies will be used in financial transactions, the following are the words of the promoter of the bill that is being compiled:

"The so-called" virtual currencies "are becoming more and more important in current financial transactions.

Although there is not even a national or international regulation on the subject, there is growing concern about the impact of transactions carried out with these instruments.

The topic earned a special report from the European Central Bank (ECB) in October 2012, which was updated in February 2015.

Despite the lack of a need for more active regulation of virtual currencies to be introduced immediately, this report highlights a number of risks that need to be adequately monitored.

We will then take a picture with each of the main conclusions of the report and a comment. "

As should be verified, the forthcoming proposer of Bill 2303/2015 is taking the Central Bank of Europe report as a prop. It contains a number of recommendations for structuring the risks of virtual currencies, the significance of which these recommendations are summarized below:

Risks highlighted in the report

To the virtual currencies of the ECB

It does not pose a risk to price stability while the creation of currencies remains at a low level. "The effects of virtual currencies on price stability are still of no concern as long as these mechanisms do not grow in relation to the economy. Assuming that it is inevitable that they will really continue to grow as Internet usage increases, the task at hand is to observe at what point this premise will no longer be true.
They tend to be inherently unstable, but they don't have the magic wand to jeopardize the country's financial stability given its limited connection to the real economy, low volume traded, and lack of user acceptance. "Once again, the ECB report takes into account that the lack of immediate regulation depends on the (still) limited connectivity options for these virtual currencies. With the growth of the Internet, which boosts virtual currencies, there will be a natural increase in connection points with the real economy and may further threaten financial stability. In any event, the report indicates that such systems are inherently unstable and have high volatility in their interrelationships with the local currency.
It is not currently regulated and is not closely monitored or monitored by any public authority, although participation in these systems exposes users to credit, liquidity, operational and legal risks. "This is less about systemic and more consumer law. Users of these mechanisms are inadvertently exposed to significant financial risks and no legal protection.
They can pose a challenge to public authorities given the legal uncertainty behind these systems that can be used by criminals, scammers and people who launder money to carry out their illegal operations. "Virtual currencies facilitate criminal activities, especially money laundering.
They can negatively affect the reputation of central banks provided that the use of such systems increases significantly and that in the event of an incident resulting in press coverage, the public is deemed to have caused the incident in part by The Central Bank's doing their work not right "A scheme that can be understood as a "pyramid" that ultimately collapses can be interpreted as "baring" the central bank, which undermines its credibility.
They are the responsibility of the central banks as their operations have features that are shared with the payment systems, implying the need to examine and evaluate at least some of their developments. FirstIt is a realization that virtual currencies are payment systems and should therefore be closely monitored.

Source: Bill 2303/2015

In the consequence of the collated is the imminent danger pointed out in the report of the European Central Bank, mainly by the diction extracted from the draft law:

"Bitcoin is from time to time surrounded by controversy. Sometimes its potential is emphasized to become a monetary alternative to drug trafficking and money laundering due to its high anonymity. On other occasions, users have claimed that a" Trojan horse "has access to The Electronic Frontier Foundation, an organization that wants to defend freedom in the digital world, has decided to stop accepting donations in bitcoins, among the reasons given, they were Believes "Bitcoin has legal concerns related to the laws of financial investments, the" Stamp Payment Act "(law prohibiting any payment below $ 1 in currency, note or check), tax evasion, consumer protection and money laundering among others. "

So much the bitcoins aAlso the high triumph, it has its global operation, as the constant base, the Bill 2303/2015, which is based on:

"The program was designed and implemented in 2009 by the Japanese programmer Satoshi Nakamoto and is based on a peer-to-peer network similar to Bit Torrent, the famous file-sharing protocol such as movies, games and music on the Internet. Bitcoin is global operates and can be used as a currency for all types of transactions (both for goods and for virtual and real services), making it compete with the official currencies such as the euro and the dollar ... Although bitcoin is a virtual currency system, it has some innovations that make it more similar to traditional currency. "

In this way, the bidder ascertains that the responsible bodies have control mechanisms for the transactions of cryptocurrencies, as it says:

"To some extent, we believe that both the Central Bank, the Financial Activities Control Board (COAF) and consumer bodies already have the authority to monitor and regulate virtual currencies. However, we understand that the legislation containing such attributions can be more transparent with respect to such attributions, avoiding unnecessary judicial questions.

Thus, in the proposed law, we address three issues related to virtual currencies, one in each article: i) prudential regulation by the central bank, ii) money laundering and other illegal activities, and iii) consumer protection. We have made that clear in art. 1 º that the "payment arrangements" cited in point I of Art. 9. Law 12.865 of 09.10.2013 includes "thoses based on virtual currencies and air milesOgram based". We have also made it clear in art. 2 ° that transactions with virtual currencies are included in the monitoring of the COAF: Finally, we do not leave any doubt that consumer protection legislation applies to the world of virtual currencies in art. 3. ".

Since it is plausible to monitor the transactions in Bitcoinn, übergibt the applicant the project to regulate cryptocurrencies to the main regulatory authorities in the state of Pátrio.

The rapporteur of the committee established to analyze the draft law, the rapporteur in charge of constitutionality, the legal activity of the same, but expresses a substitute that reinforces the regulatory proposal that is being taken:

Art. 1. This law provides for the issuance of digital currencies, virtual currencies and cryptocurrencies; Digital brands that represent goods and rights; Increased penalty for pyramid crime; And regulating loyalty or reward programs for consumers.

Art. 2 º For the purpose of this law and those modified by it, it is understood:

I - digital currency, virtual currency or crypto currency - digital representation of value that functions as a means of payment, account unit or value reserve and has no legal exchange rate at home or abroad;

II - digital form - digital representation of a good or right that is not considered digital currency, virtual currency or cryptocurrency ".

By the diction of the substitute of the draft law 2303/2015, the criminalization of digital currencies is obvious, and others, since this has not been approved, but can manifest it any other congressman against or for the report, remembering that not has an urgent Character that the project proceeds in an orderly rite and thus has no deadline for approval.

Since it depends on a regulatory process, there is a difficulty in knowing how Bitcoins Should be taxed, or shown in the income tax return, this way falls within the general rule of taxation, which has some nuances due to its relevance.

4th place taxation of bitcoins

In the legal system of the State of Pátrio, any form of income that is legitimately earned will levy the appropriate taxes in accordance with Article 153 of the Magna Charta, as well as Article 43 of the National Tax Code, in Verbis:

"Federal Constitution

Art. 153. The Union's task is to regulate taxes on:


III - income and proceeds of any kind;


National Tax Code

Art. 43-The tax, the competence of the Union, on income and proceeds of any kind has as a generator the acquisition of the economic or legal availability:

I-income, understood as the product of capital, labor, or a combination of both;

II-The proceeds of any kind, understood as the immigration not included in the previous paragraph.

§ 1The incidence of the tax is independent of the mention of revenue or income, location, legal status or nationality of the source, origin and form of perception.

§ 2 In the case of receipts or receipts from abroad, the law establishes the conditions and the time at which it will be available for the purpose of the tax index referred to in this article ".

Through the collected laws, transactions in cryptocurrencies are taxed by general legislation. With that in mind, she praises Lopes (2016, non-paged)r.

"In Brazil, according to Art. 153, Paragraph III of the Federal Constitution and Art. 43 of the National Tax Code, it focuses on income tax on the acquisition of income, in a simplified way as a patrimonial increase as the product of capital, of labor or the combination of both, or any proceeds of either nature. Hence, it is easy to observe that transactions in bitcoins, if they involve fees, can offset income tax.

With that in mind, the IRS stipulated that possession and transactions made in bitcoins could be declared and taxed as "other assets" by the value of their acquisition in the Goods and Rights tab. The reason for this is that while Bitcoin is not a currency, it has financial implications and therefore it can mean a manifestation of wealth that is apt to collect tribute.

As clearly stated on the website of the IRS, "the profits from the sale of virtual currencies (for example bitcoins), the total sales of which are taxed more R $ 35,000.00 per month, as capital gains, at the rate of 15%, and the die Income tax will be collected until the last working day of the month following the transaction.The page also advises that "operations should be demonstrated with skillful and appropriate documentation."

Because it is a good with economic value, it is also possible to levy other taxes on the transfer of Bitcoins, such as Itcmd, on the free transfer (donations) or on the transfer to heirs (cause Mortis). There are also some companies that provide bitcoin-related services, in which case the incidence of the ISS on providing this service is reasonable. "

As the author calms down, bits will becoin-traActions taxed by law. This, in turn, regulates investment income, because the person who practices the transaction of cryptocurrencies must be accountable to the lion at the time of the income tax return, but by the diction of Article 21, Paragraph VII of the Federal Constitution, in Verbis, only wenn considers currency issued by the Union:

Art. November 21 The Union is responsible for:


VII issue currency;


With this in mind, the website of Ibet - Brazilian Institute of Tax Studies, which collects:

"Despite the terminology" virtual currency "it is the fact that Bitcoins cannot be legally treated as currencies, at least up to now. The reason for this is that the Union is responsible for the issue of currencies according to Article 21 Paragraph VII of our Federal Constitution, and it is certain that the authority for the issuance of this currency is exclusively exercised by the Brazilian Central Bank (Bacen) in accordance with article 164 of the same.

Soon we can conclude that coins will be issued by state authorities.

Bitcoins are not issued or controlled by any government agency, so they come from private relationships.

The draft law 2.303 / 2015 provides for the regulation of bitcoins in the procedures in the House of Representatives and treats them as payment modalities under the supervision of the central bank. But precisely because they are not yet recognized or regulated by the monetary authorities in Brazil, it is customary for many people not to worry about explaining them to the IRS, which puts them in a situation of irregularities. "

Since they are not issued by the competent authority, many coin dealers do not worry about listing income tax returns, but not declaring these cryptocurrency transactions is an affront to tax laws and can even be Negotiated for tax evasion. To avoid such embarrassment, it is necessary that the buyer / sellerbuyer of Bitcoins is notified with the IRS to proceed with the income tax return.

On this threshold, it follows the understanding of the Brazilian Institute for Tax Studies, which is owed to its importance:

"… A legal obligation which, if not met, can result in the application of fines and taxes when due.

Since it is legally not referred to as a "currency" but as a good, a financial investment from private relationships, the person who has acquired bitcoins must declare it through the annual adjustment invoice for the Brazilian federal income. Also in 2017, the federal revenue itself revealed guidelines on how to testify bitcoins.

The guideline suggested by the Brazilian federal revenue is that the bitcoins in the form "goods and rights" are declared as "other assets" for their purchase value.

Despite the pricing of this asset in the virtual market, as there is no official offer, there is no obligation to declare it by the value of the offer on December 31st of each year, simply by informing the purchase value and the documentation proving that order the goods.

Also, like any asset, Bitcoin is taxable at the time it is sold. For total values ​​that are sold over R $ 35,000 per month, the taxpayer must submit the tax on investment income for aliquots from 15% to 22.5%, depending on the profit margin and the statement of the calculation of investment income to the IRS.

Note that the lack of Bitcoin's declaration may lead the contributor to a future problem in the thin mesh mount. That is, let's assume that a person purchases Bitcoins for R $ 10,000 and Aliena for R $ 60,000 at a later date after receiving them in cash or some other kind of good.

The entry of this amount or the acquired goods must not be made in the annual adjustment calculation and be the subject of questioning and autuation by the IRS ".

So, once the taxpayer has acquired bitcoins, it is good to be informed of the need to declare and tax profits he earns in order to avoid future tax problems.

As one can say, it is not a regulation for cryptocurrencies either, but it is the obligation of those who trade this type of currency and inform the relevant authorities, hence the cryptocurrencies, are not given by the Union as a priority in this outline.

However, it is worth noting that several economies in the world have already regulated cryptocurrencies and have spoken out in favor of this tendency, in this sense Martins (2016, p. 158) brings to light the fact that the issuance of virtual currencies is planned and intrinsic because it is the hyperinflation that is causing a growing demand for this modality of currency, mainly because it is not part of a centralized control that allows those who adhere to it to escape the high rates of inflation in some countries.

In this Toada seat Fobe (2016, pp. 72-73):

"The European Central Bank has already expressed itself in terms of the regulation of virtual payment instruments, and the laws of the member states will be the subject. The main tasks of the regulation of Bitcoin to this day are the finance ministries, financial regulators, trade laws and consumer protection laws. This allocation indirectly represents a positioning of the Countries represent to categorize Bitcoin according to a certain legal field, since it is the most widely used tax law ".

Through the teaching of Fobe (2016), it is verified that in the world economy and in countries that already regulated transactions in virtual currencies, these activities are the competencies of the Treasury because the most concerned is governments how to tax these operations.

The Brazilian Securities and Exchange Commission (CVM) has issued Round Body Craft No. 0 and a half2018 to position itself in relation to this type of transactional as it coltrigates:

"Circular Craft No. hal8 / CVM / SIN

Rio de Janeiro, January 12, 2018

To the directors responsible for the administration and administration of mutual funds

Subject: Investment funds regulated by CVM instruction No. 555/14 in cryptocurrencies.

Dear Sir or Madam, We refer to the announcements made by the CVM of 11/10/2017 and 16/11/2017 relating to the operations of the Initial Coin Offerings ("ICO") and to consultations made by several Market participants have been informed about the possibility of mutual funds, which through CVM-Instruction No. 555/14 are currently being regulated in "cryptocurrencies".

As is known, both in Brazil and in other countries the legal and economic character of these investment modalities was still discussed without a conclusion about such a conceptualization being drawn, especially in the domestic market and in the regulation.

Based on this indefinition, the interpretation of this technical area is therefore that cryptocurrencies cannot be qualified as financial assets for the purposes of Article 2, V, CVM Instruction No. 555/14, and for this reason, their direct adoption by Regulated investment funds are not allowed.

Other consultations have also reached the CVM by investigating the possibility of mutual funds in Brazil for the specific purpose of investing in other vehicles, consisting of jurisdictions in which they are licensed and regulated, which in turn have the strategy of investing in cryptocurrencies invest.

Or derivatives that are approved for trading in regulated environments in other countries.

However, it doesn't cost to reconsider that the existing discussions about investing in cryptocurrencies, whether directly through the funds or otherwise, are still at a very high level and also coexist with the ongoing bill. , no 2.303 / 2015, which can prevent, restrict or even criminalize the negotiation of such investment modalities.

Hence, in understanding the technical field, it is indisputable that in relation to such investments there are many other risks associated with its own character (such as cyber security and private custody risks), or even with the future legality of acquisition or negotiation .

In this way, this superintendent informs that all of these variables have been taken into account when assessing the possibility of constituting and structuring indirect investments in cryptocurrencies without having yet come to a conclusion. Respect for this possibility (...) ".

The bureau, submitted by the Securities and Exchange Commission (Appendix IV), makes the risks inherent in cryptocurrency transactions indubitable, without proper regulation. In addition, this commission issued letter No. 11/2018 in mid-2018, dealing with the form of the acquisition of derivatives with cryptocurrencies. These should be acquired through exchange talks become.

Incidentally, it is obvious that the government is not measuring efforts to pave the way for virtual currency regulation, but the main concern is the money laundering of financial resources that can occur through virtual currencies, as well as fears of tax evasion by the operators of these numbers.

5th place graduation

This essay tried to take a comprehensive look at the transactions with the virtual currencies or Bitcoins to bringen, for this purpose, the main nuances of this modality have been exceeded.

Although there are countries that have regulation for such transactions, most of these nations are still reluctant to apply themeit, whitel Bitcoins are not considered the official currency of the places where the government is not considered. Custody, as in Brazil, prohibits any type of currency that is not of the Union, but in everyday life many people use this modality.

The greater fear of the relevant bodies is money laundering, which is aided by cryptocurrencies as well as tax evasion, as it is the government that has control over the issuance of virtual currencies.

In addition, it should be noted that this scope was not aimed at solving the problem of use or disuseg from Bitcoins to clarify, but rather to bring a vision on the matter to the academic community and the general population.


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Appendix I Specification of Bitcoins

Bitcoin: Everything You Need To Know!

What is bitcoin

It is a digital currency or unit of currency, also called cryptocurrency. It works with encryption, that is, a set of techniques that protect information to ensure that only those who know the code decide and guarantee its security.

However, the digital currency has the code open. This means that access is free for everyone as it is a currency that is managed by the users themselves and without the need for an intermediary such as the central bank or even the card companies.

To simplify the concept, we can say what Bitcoin is: a new means of payment used in online transactions. This technology enables the realization of electronic payments with the same efficiency as that with the banknotes used in the physical world.

Payments with Bitcoins are fast, inexpensive and have no minimum limit or maximum value. Because transactions are carried out between users themselves, one person can pass Bitcoin directly to the other without the need for a bank - as with normal money.

Their cost is lower and you can use them in any country without any prerequisites. These are undoubtedly the greatest advantages of Bitcoin.

How does this work?

In practice, Bitcoin is a communication system, i.e. a protocol that works over the Internet. This protocol is decentralized from point to point without the need for a central server. It can be accessed from any device - phone, computer or tablet - and from anywhere, regardless of the country you are in.

The protocols act as a universal language that enables different devices to communicate over the Internet to perform various specific tasks.

Since it is a peer-to-peer protocol or P2P protocol, it cannot be closed by the authorities - just as there is no company responsible for your e-mail, for example, there is also no one who is responsible for Bitcoin. Therefore, it is practically impossible to interrupt operations as there is no central server to deactivate it.

The protocols used to access web pages or to send e-mail work by exchanging information between the client and the server.For example, when you access a website, you communicate with a server that stores the data and sends it to your computer via the protocol.

In the case of P2P, however, there is no difference between the client and the server. This is an interesting aspect, because the users of this system are simultaneously the clients and the servers themselves, with no other intermediaries.

A good example of the P2P protocol is the Bittorrent, a program primarily used for exchanging movies, series, and music files.

The idea is that the file that is stored on your computer can be downloaded by any user by downloading a log, just like you can download the files they provide.

The rights holders of the songs and films have no way of preventing this protocol from working, no matter how much they report it to the authorities.

Back to Bitcoin, every cryptocurrency has a market value per transaction. There are virtual brokers who create accounts to store bitcoins, and some work in a similar way to the stock market. I mean, it's like you're investing in the stock market. These accounts - also known as wallets or portfolios - allow you to store bitcoins on your own computer or cell phone.

To enable the use of your digital currencies, a digital signature is generated, or a specific code that is verified by a mining company. We will talk in detail about the mining companies later, but for now it is enough to know that it is a process of settlement of transaction documents made with bitcoins.

After a few minutes, the transaction is approved and placed on the blockchain call, which consists of a database that stores the record of all operations performed. Ultimately, the blockchain proves that the transaction was carried out.

This is the fundamental technology of digital currencies that is responsible for making financial transactions tangible and reliable. Therefore there is no need for an institution to mediate.

When did the bitcoins come about?

Bitcoin came into being in 2008 when Satoshi Nakamoto, a pseudonym of its creator - or creator - published a PDF explaining the concept of digital currency.

Their goal was to create an alternative currency that was not dependent on the regulation of financial institutions and could be operated by the users themselves. What nobody knows, however, is the true identity of who is behind Bitcoin.

The Bitcoin network is based on mathematical principles and cryptography, which ensures total security of the system. It was a project that reversed the form of resource management and became a landmark computer science for the modern economy.

In a summarized way, Bitcoin is a virtual ballot made up of codes. It can be exchanged for virtually any product or service in negotiations over the Internet.

It is the same principle of the physical world in which we trade work for money and money for products and services. On the Internet, however, you can do small tasks on websites and add currency fragments that can be stored in a virtual wallet.

How are they saved?

As you have seen, Bitcoins are not physical currencies, so they cannot be stored in a bank, for example. The cryptocurrency only exists because the network agrees it exists, and you can only own it if you register property in the blockchain database.

The database contains the information about all addresses that have bitcoins, which are identified and maintained by all computers on the network.

The only evidence of your property is therefore the records made and the only way to access them is with an access key. It is worth remembering that if you forget it for any reason, you will never be able to get your coins back.

Once your trade is verified by the miners, you can access the information and check its validity. This process takes place transparently because, as I said, it's free code that anyone can access.

Undoubtedly, the most complex part of bitcoins is finding a safe way to store your coins. Trading sites like MtGox and Bitfinex have already been hacked, causing harm to their customers and destabilizing the virtual market.

Therefore, in order to save and control your investments, it is ideal to create a Bitcoin portfolio. This wallet is generated via an application stored on your computer or mobile phone, but there are also websites that provide virtual wallets. Your currencies will be saved in the wallet of your choice and files will be generated with the records.

It is not recommended to leave your coins on the platform for buying and selling (exchanging). You will be vulnerable to the actions of hackers and you risk losing them.

Opt to transfer your bitcoins to a private wallet as it is the safest way to store your coins. Private wallets are downloaded by software that runs right on your computer that allows you to use bitcoins on as many websites as you want.

The bitcoins stored in the portfolio are subject to daily changes in the listing, which work like the stock market. This means that when the market value increases, your currencies are worth more; If it slows down, they will be worth less.

How is Bitcoin Mined?

We call Bitcoins Mining the process of creating new cryptocurrencies. New bitcoins are being issued through mining, which works as a solution to a math problem.

Miners are computers that rely on specialized software that is capable of generating new currencies as they solve math problems.

Mining bitcoins is nothing more than providing computers to control the digital currency and these computers are rewarded for the operations they perform. The mechanism ensures the maintenance and operation of the decentralized structure of Bitcoin.

It is also the miners' responsibility to review pending transactions on the network minute by minute and group them into a blockchain block, which in turn is turned into a mathematical algorithm. This generated algorithm is the problem to be solved, which is usually dealt with by high-performance computers.

There is a convention for solving the algorithms that the first transaction of each new block special takes into account, and should be performed by the miner whose computer can first solve the above algorithm.

This miner receives payment in bitcoins for his service, plus a fee for every transaction that takes place within the algorithm he has solved.

It is as if the miner digitally signs a series of transactions referenced by the algorithm solution, being received for each transaction contained therein.

This is the main incentive for multiple users to mine bitcoins. Every time these miners receive a lot of cryptocurrency, they allow new bitcoins to be issued without the intervention of a monetary authority.

It works like the central bank in Brazil for example. At the same time, the fact that transactions are processed during cryptocurrency mining gives the system more security.

Anyone can mine

Once you get here the big question to ask yourself is, can I install a program on my computer and start mining?

Theoretically yes. In practice, however, the newly created algorithms are becoming more and more difficult, which requires very powerful and specific computers and a lot of electricity.

Hence, it is entirely possible that you will be spending a lot more than your profits as a miner could offset. In addition, the system was created to increase the difficulty of mining in a manner that is proportional to the increase in the number of computers performing the task.

On the other hand, some mining companies pay small daily values ​​for the activities made available to them. This means that you can complete certain tasks and be rewarded with points that can be converted into bitcoins in the future.

How do you buy and sell bitcoins?