Wednesday, June 26, 2019
Margaret Ryznar (Indiana-Indianapolis), Regulating Bitcoin: A Tax Case Study, in Handbook: Cryptofinance and Mechanism of Exchange (2019)):
This book chapter adapts the Coffee bonding theory [John C. Coffee, Jr. (Columbia), Racing Towards the Top?: The Impact of Cross-Listings and Stock Market Competition on International Corporate Governance, 102 Colum. L. Rev. 1757 (2002)] to the modern context of bitcoin, using tax as a case study. As the theory predicts, tax authorities may be able to increase the legitimacy of bitcoin by improving tax compliance and reducing tax evasion.
Thus, while the Coffee theory arose two decades ago to explain the cross-listing of international company shares, it has implications for the modern context of bitcoin.