European experts in cryptocurrency tax reporting are joining forces to enter markets in the United States and Canada. Blockpit, an Austria-based crypto compliance expert, has completed a merger with its German competitor CryptoTax, the firm announced on Sept. 8. Both focused on providing crypto tax reporting tools, Blockpit and CryptoTax will now be working together to expand to global jurisdictions like the U.S., Canada, Australia and the United Kingdom in 2021. Currently operating in Germany, Austria and Switzerland, Blockpit and CryptoTax are also planning to extend their European presence with the merger, Blockpit’s representatives said. Klaus Himmer, co-founder and managing …

The Swiss canton of Zug is making it easier to imagine a world in which cryptocurrency users are resolutely in the mainstream. The canton — which has earned itself the moniker of "Crypto Valley" for its positive stance towards cryptocurrencies — will begin allowing citizens to pay taxes in Bitcoin (BTC) and Ether (ETH). According to Bloomberg on Sept. 3, “tax settlement by means of crypto currency will be available to both companies and private individuals up to an amount of 100,000 Swiss francs ($109,670).” Roughly 127,000 people live in the region, which has previously taken steps to accept Bitcoin …

A recent memorandum from the U.S.' tax authority, the Internal Revenue Service, or IRS, attempted to clarify taxation rules around receiving crypto assets as payment. "Is convertible virtual currency received by an individual for performing a microtask through a crowdsourcing or similar platform taxable income?" said a document released on Aug. 28, adding: "Yes, a taxpayer who receives convertible virtual currency in exchange for performing a microtask through a crowdsourcing platform has received consideration in exchange for performing a service, and the convertible virtual currency received is taxable as ordinary income." Crowdsourcing — calling on a number of participants to …

The nation of Qatar is a World Bank “high-income economy,” backed by the world's third-largest natural gas and oil reserves. It has the third-highest GDP per capita in the world (by purchasing power parity), with very high human development. Similar to other Gulf Cooperation Council states — which also include the United Arab Emirates, Saudi Arabia, Oman, Kuwait and Bahrain — Qatar has had to deal with the decline in global oil and gas prices after they first collapsed in 2014, and the situation has been made even more difficult by a Saudi-led embargo of the nation that started in …

On Aug. 19, the IRS released drafts of its income tax forms for 2020, which will ask every American filing income for the year whether or not they used crypto. Early into its very first page, the latest 1040 form asks: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” Chandan Lodha, founder of crypto tax software firm Cointracker, told Cointelegraph: “The cryptocurrency question is now front and center on the IRS Form 1040 for next year. Pretty clearly shows that the IRS is taking cryptocurrency taxes even …

While being a relatively young correction to energy-intensive proof-of-work (PoW) network validation, proof-of-stake has existed in theory since 2012. However, rising market cap of PoS tokens like Cardano (ADA) and Tezos (XTZ) over the past two years and Ethereum’s much-hyped but much-delayed shift from PoW to PoS have brought the subject to the forefront. Alongside an overall increase in regulatory attention on crypto generally, PoS protocols are an area of much debate. One question highlighted by a recent letter from several Congresspeople to the IRS is taxes. Specifically, the letter voiced worries about overtaxing staking rewards. Unfortunately, the IRS is …

Galaxy Digital CEO and known Bitcoin (BTC) proponent, Mike Novogratz, said he sees upcoming financial market difficulties if Democrats take the U.S. presidential bid in November. "Electing Biden and Harris, as much as it's going to be great for the country, it's not going to be great for the market," Novogratz told Bloomberg in an Aug. 14 interview. Following his comments on Biden's vice president, Kamala Harris, being "fair" to Wall Street if elected, Novogratz mentioned heightened taxes from a Democratic presidential win. "The Democrats are going to be tougher on Wall Street in terms of the tax plan," he …

A proposed tax cut by U.S. President Donald Trump could be a big win — or a relatively insignificant win — for the crypto industry if it is passed. In a news conference at the White House earlier this week, President Trump said that his administration was “very seriously” considering a capital gains tax cut. “We’re looking at also considering a capital gains tax cut, which would create a lot more jobs.” There is a debate over the extent of President Trump’s ability to deliver tax cuts. The long term capital gains rate of 20% is primarily governed by Congress, …

This week’s headlines from Japan included Coincheck readying its digital shareholder meeting solution, GMO Coin announcing negative leverage trading fees, Decurret testing transactions with a power company, Japanese authorities proposing tax changes, and Japanese finance company FISCO developing apps for shareholder voting and staking. Check out some of this week’s crypto and blockchain headlines, originally reported by Cointelegraph Japan. Coincheck setting up for digital shareholder service As Tokyo-based crypto exchange Coincheck readies its new digital meeting avenue, the exchange's co-founder expressed confidence in the project. Known as Sharely, unveiled in June 2020, the digital shareholder gathering solution allows for participant …

A proposal made by the government of Kazakhstan aims to impose a 15% flat-rate tax on crypto mining. The plan would use any funds accumulated through the tax to deal with the COVID-19 crisis in the country. According to Forbes, the Ministry of the Economy hopes to combat COVID-19 by funding countermeasures through the collection of such taxes. This represents a departure from the nation’s previous statements, which indicated a different stance from the country. Officials stated that approximately 6% of the world’s Bitcoin (BTC) hash rate comes from Kazakhstan. New electricity tariffs The report adds that the government is …

As important as Ethereum has become, even eclipsing Bitcoin (BTC) in some circles, it is no wonder that its fifth birthday has prompted comments — some prophetic, others nostalgic. Few, however, will mark the occasion by thinking about taxes, but that could be shortsighted. The last five years have seen near-tectonic shifts in how investors, exchanges and government agencies see cryptocurrencies. The Internal Revenue Service, or IRS, is at the top of the heap when it comes to tax enforcement. This is plainly true in the United States, and it is increasingly true worldwide, too. In 2008, the IRS and …

On Aug. 4, four U.S. congressional representatives wrote to the Internal Revenue Service (IRS) asking the tax authority not to overtax rewards from Proof-of-Stake blockchains. Explaining the difference in energy consumption between PoS and Proof-of-Work blockchains like Bitcoin’s, Representatives Tom Emmer (R-MN), Darren Soto (D-FL), David Schweikert (R-AZ) and Bill Foster (D-IL) wrote that the IRS may be overestimating gains: “We believe that taxpayers' true gains from these tokens should indeed be taxed. However, it is possible the taxation of 'staking' rewards as income may overstate taxpayers' actual gains from participating in this new technology.” Industry response and clarity on …