Partner Spotlight: Coin Center


 

Each week we will be spotlighting our partners on the blog to help you better understand what they do and how they can help you activate your cryptocurrencies.

 

Coin Center is one of the few organizations that understands how public policy works and what impact it has on the cryptocurrency world. They’ve been producing quality research and educating policymakers and the media about cryptocurrencies and the emerging decentralization movement for years now, and the industry and community is much better off because of their work.

 

Meet Coin Center

 

Coin Center was founded in 2014 to be a voice for cryptocurrencies in the policy discussions that were beginning to happen in D.C. and around the country. Its mission is to ensure that any policymaking is based on a sound understanding of the technology, and they fight to preserve your freedom to innovate with open blockchain networks.

 

Cryptocurrencies do not fit neatly into many existing regulatory baskets. This can create complex, costly, legal gray areas for businesses and developers. Coin Center identifies those gray areas and develops sound policy solutions for them. It then advocates for the adoption of those solutions, leaving cryptocurrency users with that much less burden to bear.

 

One example of a policy problem that must be addressed is the patchwork of 53 unique state-by-state money transmission licensing regimes — the navigation of which is a major cost center for cryptocurrency businesses and their users. Coin Center has worked with the Uniform Law Commission to create a model money transmission act that would address these issues, and that states can adopt to make themselves more attractive to digital currency businesses.

 

Another area of law which needs to be modernized to accommodate cryptocurrencies is taxation. Under current rules, a user needs to calculate capital gains tax or losses every time they transact with cryptocurrency. Coin Center worked with the Congressional Blockchain Caucus to develop the Cryptocurrency Tax Fairness Act. Introduced in Congress today, this bill would exempt small cryptocurrency transactions used for buying goods and services — so, as currency — from tax reporting requirements, reducing friction on those transactions and leveling the playing field compared to other forms of digital payment.

 

These are only two examples of the many ways Coin Center fights every day to protect your right to use and build businesses with cryptocurrencies. Learn more about their work at coincenter.org