As a Money Services Business offering check cashing, foreign currency exchange services; we sometimes transact at amounts greater than $1,000 per person, per day, in one or more transactions. We engage as a money transmitter, allowing the transfer of funds regardless of the amount of money transmission activity, as a MSB.
The Bank Secrecy Act (BSA) requires many financial institutions, including money services businesses (MSB), to keep records and file reports on certain transactions to the U.S. Department of Treasury - Financial Crimes Enforcement Network (FinCEN).
As a MSB, we must electronically file offial documentation when we have a cash-in, or cash-out, currency transaction; or multiple transactions, totaling more than $10,000 during one business day for any one person, or on behalf of any one person.
Generally, MSBs that know, suspect or have reason to suspect that the transaction or pattern of transactions is suspicious and involves $2,000 or more, must electronically file with offial authorities on the suspicious activity.
The Internal Revenue Service (IRS) is aware that "virtual currency" may be used to pay for goods or services, or held for investment. Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. It operates like "real" currency -- i.e., the coin and paper money of the United States, or of any other country that designates legal tender, it circulates, and is customarily used and accepted as a medium of exchange in the country of issuance. Although, virtual currency does not have legal tender status in this jurisdiction.
Virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to as "convertible" virtual currency. Bitcoin is one example of a convertible virtual currency. Bitcoin can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars and other real, or virtual, currencies.
The taxpayer's functional currency is assumed to be the U.S. dollar, the taxpayer is assumed to use the cash receipts and disbursements method of accounting and the taxpayer is assumed not to be under common control with any other party to a transaction.
For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.
Exchanging in digital assets can be considered dangerous. Digital assets, such as bitcoin, and the risk of loss in trading or holding digital assets can be major. One should consider whether interacting, holding, or trading digital assets is for you in regards to your own finances.
At Softcore Systems, otherwise known as "SOFT" or "softcoin", we sell tokens per unit at a cost of $10.00USD. We hold the funds in our US Bank Business Accounts. We allow reserving any amount of funds before the actual purchase of actual tokens. Trading of these tokens will be backed by USD-Coin, and we do allow real-time transactions off, on, or near actual market price rates of the coins we have to offer.
If you have any questions, or need immediate support with our protocols, please call our 24 hour operator by phone, chat or email financier@softcore.systems.
