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even at this point the attacker is limited to what he can do. the attacker could reverse his own transactions or block other transactions. cryptocurrencies are also less susceptible to seizure by law enforcement or having transaction holds placed on them from acquirers such as paypal. all cryptocurrencies are pseudo-anonymous, and some coins have added features to create true anonymity. cryptocurrency legality & taxes. while cryptocurrencies are legal in most countries, iceland and vietnam being an exception – iceland mainly due to their freeze on foreign exchange, they are not free from regulations and restrictions. increase income china has banned financial institutions from handling bitcoins and russia, while saying cryptocurrency is legal, has made it illegal to purchase goods with any currency other than russian rubles. in the u.s., the irs has ruled that bitcoin is to be treated as property for tax purposes, making bitcoin subject to capital gains tax. the issued guidelines contain an important caveat for bitcoin miners: it warns that anyone creating bitcoins and exchanging them for fiat currency are not necessarily beyond the reach of the law. it states: miners seem to fall into this category, which could theoretically make them liable for mtb classification. this is a bone of contention for bitcoin miners, who have asked for clarification. this issue has not been publicly addressed in a court of law to date. cryptocurrency services.

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