South Africa’s Financial Sector Conduct Authority is sounding the cryptocurrency scam alarm once again. In a press release issued on Thursday, the FSCA enjoined the public to do their own due diligence before investing in any crypto-related project. According to the FSCA the high-risk nature of the crypto investment space is being further exacerbated by the multitude of elaborate cryptocurrency scams in the country. Indeed, as previously reported by Cointelegraph, the spate of crypto scams in South Africa is pushing the authorities towards stricter regulatory control over the industry. Back in January, interim liquidators of an alleged South African Bitcoin …

With just three months until the deadline for United States citizens to declare their crypto gains and losses to the Internal Revenue Service, Coinbase is partnering with portfolio tracking and tax calculating platform CoinTracker to make the process simpler. According to CoinTracker, it's an easy way for Coinbase users to report their crypto transactions and sales. Targeted at U.S. users, CoinTracker will calculate and fill out the specific forms — for example, Form 8949 and Schedule D — to declare capital gains, losses and assets on income tax returns. It can be used by individuals and accountants or as part …

Kenya’s planned Digital Service Tax, or DST, came into effect at the start of 2021. The DST is part of the country’s 2020 revamped Finance Act that focuses on the digital services market among other sectors. Based on the provisions of the new tax regime, e-market transactions including cryptocurrency payments now attract a 1.5% levy. Reginald Alango, a Kenya country representative at noncustodial peer-to-peer crypto exchange Bitzlato, told Cointelegraph that the new tax policy prescribes a 1.5% tax on the gross transaction value of every crypto sale. Commenting on the potential impact of the policy on crypto adoption in the …

The South Korean government issued an amendment on Wednesday to introduce a tax on profits from cryptocurrency trading. Following a legislative notice lasting until Jan. 21, the amendment is likely to be enacted in February, Asia Today reported. It would only start levying taxes on cryptocurrencies in 2023, however. The proposal would introduce a variety of additional taxes on capital gains, with a progressive taxation schedule for gains in stocks. For cryptocurrency holders, anyone making an annual income of more than 2.5 million won ($2,300) from cryptocurrency profits will be taxed at 20%. The threshold is much lower than for …

United States regulators are continuing to fine-tune their tax reporting requirements for cryptocurrency users. A second draft of Form 1040 from the Internal Revenue Service for the 2020 tax season published online suggests that the agency will now require anyone who was engaged in any transaction involving cryptocurrency in 2020 will need to declare it: "If, in 2020, you engaged in any transaction involving virtual currency, check the ‘Yes’ box next to the question on virtual currency on page 1 of Form 1040 or 1040-SR." The draft guidance clarifies that transactions encompass "the receipt or transfer of virtual currency for …

A former top investigator is warning that “a high-stakes game of chicken” between the Internal Revenue Service (IRS) and cryptocurrency holders who fail to properly report their earnings will be entering a new phase in 2021 as the tax collection agency begins to focus on pursuing “civil and, potentially, criminal penalties.” In an article co-authored by Don Fort today, the former chief of the Internal Revenue Service’s (IRS) criminal investigation division said that while the agency until now has focused its resources on informing the public of proper reporting guidelines, it will now be turning to more stringent “enforcement.” “The …

India’s finance ministry has called for the enactment of Bitcoin (BTC) tax laws in the country. According to the Times of India, the ministry’s Central Economic Intelligence Bureau, or CEIB, recently submitted a draft document that proposes levying an 18% goods and services tax on Bitcoin trading. CEIB figures put the estimated Bitcoin transaction volume in India at over $5.4 billion. Thus, the proposed 18% tax could see the government earning about $970 million from crypto taxation. As part of the proposed plan, the CEIB is pushing for virtual currencies to be classified as “intangible assets” to fall under the …

This year was like no other. Now that it has limped to a close and we look at the promise of a better 2021, it is time to think about taxes. Although there were many other notable things about 2020, there were some tax points to savor — and some to fear. Gains and losses It is hard to look at crypto and 2020 without commenting on gains and losses. Bitcoin (BTC) ballooned in price, making a lot of investors happy. Of course, if you had taken short positions, you are less content. And if you were invested in XRP, …

The mainstream has taken a growing interest in cryptocurrency as the price of Bitcoin (BTC) continues to reach all-time highs. To put this interest into perspective, researchers at the Cambridge Centre for Alternative Finance recently found that 101 million people across the globe currently hold Bitcoin and other digital assets. The report states that in 2018, findings estimated the number of identity-verified digital asset users to be about 35 million globally. With such growth underway, it shouldn’t come as a surprise that crypto holders would get the idea of gifting cryptocurrency this holiday season. Social distancing requirements amid the pandemic …

Crypto users in the U.S. have taken to Twitter to express their confusion and frustration over the wording of a question about virtual currencies on this year’s tax return form. On Dec. 11, the IRS published a new Form 1040 return for the 2020 tax year which needs to be filed by all U.S. taxpayers. It contains the following question: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” The virtual currency question is similar to one that first appeared on the 2019 form, but has this year …

Thailand's tax collection agency will use blockchain technology to streamline tax payments next year. The Excise Department will use blockchain to improve its revenue collection in lieu of actually raising taxes as the Thai economy still makes a gradual recovery. According to a report by the Bangkok Post, director-general Lavaron Sangsnit underscored that new policies should not affect the domestic economic recovery and that raising taxes could stunt the still fragile situation. The government aims to collect 530 billion baht ($17.5 billion) for the fiscal year 2020, 3.3% less than the 548 billion baht ($18 billion) collected in 2019. In …

The South Korean government has officially postponed a new tax regime on cryptocurrency gains until 2022. According to Yonhap on Dec. 1, the planning and finance committee of South Korea’s national assembly passed amendments to the country’s tax laws wherein a new cryptocurrency tax regime will come into effect in January 2022. On Nov. 25, the legislature suggested delaying the adoption of a cryptocurrency income tax rule to Jan. 1, 2022 instead of October 2021. The decision will provide local crypto businesses with more time to adapt to new tax laws. The newly passed amendments stipulate that investors in South …