VeriFund is simply a fund that swings back and forth from VRC to BTC. It does not fall under US tax code as there is never any conversion to FIAT and thus is just one property trading for another.
If that's true, then Bittrex wouldn't have to pay any taxes under the US tax code either. Until they convert to fiat you mean. But something still seems to be missing as that would mean you could operate a non-fiat exchange and never report a profit until you exchange to fiat.
Hence the word "unregulated". That is one of the main reasons crypto currencies were created. You guys are talking about the IRS and FED like they are U.S. Governmental Entities. You do realize that the IRS, like the FED is not a part of the US Government? Right?
Are you paying taxes on all of your crypto trades? Is anyone?
Americans were 100% against the Central Banks and Income taxes. Now, after a century of brainwashing, you do not know how to live without them. You think being taxed is normal.
Nutts...