The regulatory and tax nets are starting to close on the $US1.9 trillion cryptocurrencies market.
The weekend negotiations were over which participants in the cryptocurrencies sector should be exempt from the bill’s tax-reporting requirements, which impose an obligation on cryptocurrency brokers, and potentially others, to report transactions to the Internal Revenue Service. The IRS taxes profits on trading of crypto assets as capital gains.
The compromise thrashed out at the weekend would have clarified the definition of a broker and ensured that software developers, transaction validators and other non-brokers weren’t included but it still could have captured a broader range of activities.Treasury Secretary Janet Yellen had endorsed the compromise, saying it would make meaningful progress on tackling tax evasion in the cryptocurrency market.
The biggest threat to crypto assets, their appeal and their value is a loss of anonymity. Taxation of transactions is one key aspect of the fallout from that loss. At the moment the SEC and the Commodity Futures Trading Commission can’t even agree whether crypto assets are securities or commodities and therefore whose jurisdiction is responsible for them.
In Europe, there is a push to create a pan-European regulator of crypto assets within the European Securities and Markets Authority amid concerns about their growing role in illegal activity, the lack of consumer protections and the lack of regulation of crypto exchanges, clearing houses and brokers.
1. There is crypto 2. There is bitcoin Governments or banks do not regulate bitcoin. Bitcoin regulates them. 😉
If you’re not buying crypto in 2021 youre not thinking big enough. Before the internet there was fax. Before paper money there was gold. This is the next iteration of value. Whether you believe in it or not is irrelevant. Currently people are paying $62k for 1 bitcoin. Step up🥂