Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?
I think that is also one of the major reason and factor why countries are getting a double take when acceting bitcoin on their border because they still do not know how to regulate or tax cryptocurrency. I agree with some of the post here that says that you cannot tax something that is still in the market or in the network but once you change it into cash then I would think that there is where the regulation would take place and the taxation would be applied to money changed from cryptocurrency