Not Legal Advice: According to the U.S. Treasury Department’s Financial Crimes Enforcement Network, as of 2013, using bitcoin to purchase well-natured goods and services is not illegal.
However, those who mine bitcoins and trade them for traditional currency or operate exchanges on which bitcoins are bought and sold are labeled “money transmitters” and could be subject to special laws that govern that type of activity. To date, those laws have rarely, if ever, been enforced to crackdown against bitcoin use.
When it comes to taxation, the IRS views bitcoin and other virtual currencies as property for federal tax purposes, similar to stocks and bonds, and federal tax law dictates that purchasers and/or sellers must treat it as such.
Learn more about bitcoin, including how to get it and how to keep it safe at Bitcoinmagazine.com.
In latest buzz, a new version of Bitcoin has been mined for the first time in the crypto-currency's history. Find out more at BBC.