Fidelity Investments announced a new policy Friday, one that would make its mutual funds more tax-efficient by allowing the purchase of bitcoin for tax purposes.
The announcement comes just weeks after Coinbase, another leading bitcoin exchange, added the option of purchasing bitcoin as a taxable investment to its platform.
While the new policy is a major step forward for the bitcoin market, it comes just days after the Treasury Department announced that it would begin cracking down on companies that offer services that facilitate tax evasion.
According to the Treasury, bitcoin is a virtual currency that is not backed by a government.
It has the potential to be used as a medium of exchange or a store of value.
In its announcement, Fidelity noted that bitcoin is not subject to capital gains tax, meaning that the transaction would not be subject to the tax code’s capital gains and dividends rules.
In the past, the Treasury has been criticized for not following the same policy for bitcoin that it does for other types of investments, such as stocks and bonds.
The Treasury has not yet indicated whether it will take action on bitcoin businesses.
Bitcoin has been in the news a lot lately.
Earlier this week, the IRS launched a crackdown on companies and individuals that operate businesses that sell bitcoins, and more recently, a judge ruled that a man who used bitcoin to pay for a personal injury lawyer’s fees is not a felon.