Category Archives: Virtual Currency

Subscribe to Virtual Currency RSS Feed

Another Gambling Class Action Fails – Court Finds Social Casino Games Not Gambling

A Federal Court in Washington state dismissed a Plaintiff’s class action claims that social casino games using purchasable virtual casino chips  constitute gambling under Washington state law. The Court found that the virtual chips have no “value” and therefore the game did not constitute gambling because Plaintiff was not “staking or risking something of value.”… Continue Reading

Court Rules Virtual Currency Casino Not Illegal Gambling Despite Secondary Market

A Maryland Court recently dismissed a case in which Plaintiff alleged that a virtual currency casino within a social game constituted illegal gambling, despite the existence of a secondary market for the player accounts. For purposes of assessing whether the game was skill or chance-based game, the Court found that the social game, as a … Continue Reading

California Repeals Prohibition on Use of Alternative Currencies

From pet grooming services paid with currencies backed by aggregated gift cards to coffee shops in Palo Alto and San Francisco that accept digital currencies for a latte, many Californians are completing everyday transactions with digital currencies.  Community currencies (such as currencies “created by members of a community in conjunction with merchants who agree to … Continue Reading

IRS Says Bitcoin Isn’t Money

On March 25, 2014 the IRS issued Notice 2014-21, which describes how the IRS will interpret existing general tax principles to apply to transactions using “virtual currencies” such as Bitcoin. This Notice is the most recent in a line of similar regulatory pronouncements issued by several governmental actors such as the Government Accountability Office’s report … Continue Reading

Bitcoins and Liability in the Wake of Recent Silk Road Arrests

Last week’s arrests[1] of Robert Faiella, an alleged seller on online marketplace Silk Road, and Charlie Shrem, the CEO of the startup BitInstant, marked a recent round in a series of law enforcement actions against what the government characterizes as a “rise in criminal activity”[2] by people using the cryptographically-controlled digital currency, Bitcoin.[3]  The arrests of … Continue Reading

Making Sense of Virtual Dollars

Financial institutions and currency transactions are highly regulated in the United States. That much is common knowledge. However, game developers may not realize that by creating a system of virtual currency within a game that can be purchased with or redeemed for real currency, they could be opening themselves up to legal issues arising from this morass … Continue Reading
LexBlog

By scrolling this page, clicking a link or continuing to browse our website, you consent to our use of cookies as described in our Cookie and Advertising Policy. If you do not wish to accept cookies from our website, or would like to stop cookies being stored on your device in the future, you can find out more and adjust your preferences here.

Agree