Abstract:
The purpose of this study is to look at some of the emerging cryptocurrencies and the various risks they come with such as tax evasion. The advent of cryptocurrencies into the global market is as a result of the blockchain technology. 34 case studies involving risks involving emerging cryptocurrencies were taken into account One of the case studies in this study is that of 50 Cent's (Curtis James Jackson III) Bankruptcy Trial in which he owed $30,000,000 to creditors but was able to protect his wealth from creditors and the tax authority because the court could not prove that 50 Cent was in possession of bitcoins worth $8,000,000 collected from Animal Ambition album sales in 2014, and such this case study proves how easy it is to dodge financial obligations with cryptocurrencies from bankruptcy dues to taxes. The study focused more on decentralised cryptocurrencies such as bitcoin under a free market theoretical framework that are harder to regulate due to their nature than centralized cryptocurrencies owned by corporations such as Ripple's XRP cryptocoin or Facebook's soon to launch Libra cryptocoin that can come under target by governments as witnessed by the G20's hard stance on Libra. This research draws primarily from secondary sources of data such as journals, eBooks, peer reviewed articles, and websites. The works found in this research will be important to world governments and gives recommendations that will help maintain monetary sovereignty in an era of digital currencies.
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