461-145-0583    Effective 07/01/18
Virtual Currency or Cryptocurrency

  1. As used in this rule:

    1. “Cryptocurrency” is a type of currency available in virtual or digital form that functions as a medium of exchange with no central banking or regulating authority.

    2. “Day trading’ is the buying and selling of cryptocurrency within the virtual market. The cryptocurrency market continuously runs because it is a worldwide market.

    3. “Mining” is a way to receive cryptocurrency (see subsection (a) of this section) through solving a series of mathematical problems. “Mining” requires a computer, an external hardware setup, and a special computer software program. To receive cryptocurrency through “mining”, multiple people worldwide are attempting to solve a series of complicated mathematical problems via the “mining” software, and each receipt of cryptocurrency could require millions or billions of guesses at mathematical problems. The person to solve the final mathematical problem is the one to receive the cryptocurrency.

    4. “Wallet” is a way to store records of cryptocurrency transactions. Each cryptocurrency is assigned a public address, and when stored in a “wallet” the cryptocurrency is assigned a private key for protection. The cryptocurrency public address and private key are stored on a computer, mobile device, internal or external computer hardware, or a piece of paper and protected by private keys.

  2. In all programs, cryptocurrency is treated as follows:

    1. Cryptocurrency received as a payment from an employer is considered earned income (see OAR 461-145-0130).
    2. Cryptocurrency received in exchange for services or products provided may be either considered income from self-employment if the individual meets the self-employed criteria in OAR 461-145-0910(2) or OAR 461-145-0915, or considered earned income.
    3. Cryptocurrency received as a gift is treated in the same manner as a gift in the form of money (see OAR 461-145-0210).
    4. Cryptocurrency received through mining (see section (1) of this rule) is considered unearned income.
    5. Cryptocurrency received through an online casino is considered winnings (see OAR 461-145-0210).
    6. In all programs except the QMB-BAS, QMB-SMB, and QMB-SMF programs, the day trading (see section (1) of this rule) value of cryptocurrency is counted as a resource.

      1. After the month of receipt, cryptocurrency stored in a wallet (see section (1) of this rule) is counted as a resource.
      2. Cryptocurrency stored in a wallet can be converted to liquid assets and follows the availability of resources rule (see OAR 461-140-0020).

Statutory/Other Authority: ORS 329A.500, 409.050, 411.060, 411.070, 411.404, 411.816, 412.014, 412.049, 413.085, 414.685
Statutes/Other Implemented: ORS 329A.500, 409.010, 411.060, 411.070, 411.404, 411.816, 412.014, 412.049

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