- In many countries across the globe, cryptocurrency has been somewhat of a grey area with regulation being at the forefront.
- But now we have another log to put on that calmly stoked fire, and that is the taxation of crypto.
In many countries across the globe, cryptocurrency has been somewhat of a grey area with regulation being at the forefront. But now we have another log to put on that calmly stoked fire, and that is the taxation of crypto. The reason for this being such a grey area is that most people who make the laws don’t even know what cryptocurrency is! So how are they meant to regulate it?
South Korea and United States are just two countries that have already tried to regulate the nascent asset class but many nations across the globe haven’t even made a start on it yet. The US issued further tax guidance near the end of last year but a lot of questions were raised in regards to the matter.
As per AMB Crypto:
“The IRS’ new guidance was the main topic discussed by Austin Woodward, CEO of Taxbit, in an interview for Off the Chain podcast with Anthony Pompliano. Woodward spoke about the major changes that were introduced in the October 2019 IRS guidance compared to its stance on crypto-tax in 2014.”
Woodward went onto say that the initial guidance was just a few sentences with the agency calling crypto ‘property’.
“And so you really had to analogize to the guidance of those other areas. And what we did is we analogize most similarly to equities. And then, this last October of 2018 or 2019 the IRS finally released a much more beefy, detailed set of guidance.”
It will be interesting to see how crypto regulation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!