In March 2014, the federal agency mentioned that, for tax purposes, it would treat Bitcoin as property instead of currency because no government recognizes the virtual currency as legal tender.
While Texas does not have a state income tax, the state’s Department of Banking does regulate certain financial transactions and license financial institutions. An exchange of Bitcoin for USD between two parties would not draw the agency’s interest. Under the state finance code, a Bitcoin business conducting the type of money exchanges subject to state regulations could be required to meet a minimum net worth requirement of USD 500 000.
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