Representatives of major crypto exchanges today told the United States Internal Revenue Service that they want to see clear regulations rather than vague suspicion from the tax authority. In a March 3 panel that is a continuation of a broader crypto summit at the IRS building in Washington, D.C., representatives from Coinbase, Kraken, and major accounting firm RSM US LLP argued that the crypto world had experienced outsized scrutiny from regulators compared to its size and darkness. U.S. crypto exchanges say they aren’t that scary The representatives from Coinbase — head of global tax information reporting Sulolit Mukherjee — and …

It is no secret that the United States Internal Revenue Service is working to cope with the unique challenges of taxing cryptocurrencies. In the first of a series of panels today, March 3, four experts spoke about recent advancements in cryptocurrency technology and the challenges and opportunities they present for regulators. Public ledgers offer more transparency to regulators Jesse Spiro, global head of policy & regulatory affairs at crypto analysis firm Chainalysis, was especially optimistic about the promise that public ledgers hold for regulators — unsurprising, given Chainalysis’s work tracking transactions on such ledgers. “As technology continues to develop, I …

Each crypto token commands a small army of fierce supporters. For many, the sole cryptocurrency that is worthy of such staunch support is Bitcoin (BTC). But what truly is Bitcoin, what is its purpose, and how can it be fully optimized? The division among those trying to answer these questions led to the creation of Bitcoin Cash (BCH), Bitcoin’s most successful offshoot. While for some, BCH has been the answer to crypto’s woes, but the coin has had some significant issues of its own over the past few months. From a multimillion-dollar hack to a new mining tax, BCH is …

South Korea’s largest cryptocurrency exchange, Bithumb, has announced it will take another step towards global expansion by strengthening integration with its international arm. On Feb. 26, Bithumb launched a new digital asset transfer service between the South Korean exchange and Bithumb Global, an new international digital asset exchange released by Bithumb in October 2019. Meanwhile, South Korean authorities are considering imposing a 20% tax on income from cryptocurrency, evidently pushing the biggest local exchanges to reinforce their foreign operations. KYC tier 2 verification is required to use the new service In order to use the new asset transfer service, Bithumb …

South Korean tax experts have advised the Korean government to apply a low-level trading tax on cryptocurrency profits before subjecting citizens to a transfer income tax, according to a Business Korea report. The Korean government is expected to announce its tax reform plan in late 2020. The low-level trading tax was recommended because there is a lack of legal infrastructure to enact transfer taxation. During a seminar on Feb. 21, members of the Korean Tax Policy Association advised the South Korean government to enact this two-step plan, arguing that taking a deliberative approach to implementing a cryptocurrency income tax will …

New Zealand’s tax authority has issued new proposals on the Goods and Services tax (GST)-related policy in regard to cryptocurrencies and is seeking public feedback on the issue. On Feb. 24, New Zealand’s Inland Revenue Department (IRD) released a paper, which includes proposals on the improvement and simplification of tax invoice requirements and exclusion of cryptocurrencies from specific GST provisions. To minimize a distortion in the crypto market The document admits that New Zealand has a fast-growing crypto assets market and expects that most stakeholders will welcome the proposed regulations, or suggest wider tax and regulatory reforms. The country’s tax …

When you file your taxes this year, the Internal Revenue Service will ask you a simple question: “At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?” It’s pretty simple, just yes or no, right? What could go wrong? It’s not really asking for numbers or any detail, though if you sold some it should go elsewhere on your tax return. After all, since the IRS classifies crypto as property, any sale is going to produce either a gain or loss. Perhaps the IRS is just surveying who is …

You need nothing short of “a miracle” to succeed with an initial coin offering (ICO) in Australia, a local industry leader told the government this week. At a Select Committee on Financial Technology and Regulatory Technology hearing on Feb. 20, Dr. Jemma Green said her blockchain firm had succeeded despite, not thanks to, government policy. Dr. Green is the executive chairman and co-founder of Australian blockchain energy firm Power Ledger, which develops blockchain-based software for decentralized energy trading. ZDnet reported her remarks on the day of the hearing. Tax system not “fit for purpose” Dr. Green appeared before the committee …

Steve Chen, the mastermind behind the $147 million Gemcoin cryptocurrency scheme, has admitted to wire fraud and tax evasion in a plea agreement. The 62-year-old Southern California resident agreed that he and other co-conspirators fraudulently promoted a cryptocurrency called Gemcoin (or Gem Coins) that helped fleece $147 million from 70,000 victims. Chen, also known as “Boss,” reported an income of $138,000 in 2014 which is a far cry from the $4.8 million he now admits to pocketing that year. Chen used the proceeds to buy homes and pay for a gambling habit, authorities said. Virtual Coins Backed By Nothing Between …

With the 2019 tax season upon us, the IRS is leaving nothing off the table. Cryptocurrency holders are looking for ways to avoid reporting failures on their returns, and the agency has noticed. According to a Feb. 19 report by Bloomberg Tax, the IRS has invited cryptocurrency companies and advocates to appear for a March 3rd summit in Washington DC. Among the aims of the summit are determining how to “balance taxpayer service with regulatory enforcement.” Topics under discussion at the summit include regulatory guidance and compliance, preparing tax returns, issues for cryptocurrency exchanges, and technology updates. Each panel will …

Russian President Vladimir Putin is the most influential person in the blockchain industry, according to Changpeng Zhao, the CEO of major cryptocurrency exchange Binance, which added five trading pairs: Binance Coin (BNB), Bitcoin (BTC), Ether (ETH) and XRP at the beginning of December, as well as adding Tether (USDT) later the same month against the Russian ruble. Putin was the first to propose a multinational cryptocurrency along with the Eurasian Economic Union, or EAEU, and BRICS countries after being advised by Vitalik Buterin in the wake of the 2017 cryptocurrency bubble. Related: Pax Crypto: Russia Proposes First Multinational Cryptocurrency, Expert …

The deadline for filing 2019 taxes in the United States is quickly approaching. Even for those declaring traditional income, the process can be lengthy to say the least. One of the biggest challenges for crypto holders in the US and beyond is how to declare their crypto assets and not run afoul of the IRS. Tax Season for Cryptocurrency Holders Made Simpler Blockfolio and Token Tax are trying to make this process easier for US residents. TokenTax is a platform for crypto investors which can analyze data from crypto transactions and generate the appropriate tax forms, while Blockfolio is a …