Cryptocurrency taxation has long been a topic for discussion across the world. There has been a lot of trouble around the topic as well, as the problem of taxing cryptocurrency income, that can be pretty hard to track for a government, is becoming more pressing for them. But, as important cryptocurrency events become more and more widespread and more people pay attention to them, governments are finding it easy to track potential income instances. Combine this with the fact that a number of governments are finding it easier to keep track of cryptocurrency holders and traders within the country and all of a sudden you realize why the issue is becoming a little more pressed at the moment. There is also, of course, the issue of cryptocurrency becoming an alternative currency and payment system for many. The country that saw this the most was Australia, with many an Australian VIP casino online starting to offer crypto payment options to their users. So now, Australia and the US are trying to become more stringent with the cryptocurrency taxation that they impose. This way, they hope, to be able to regulate the industry, at least a little, which they haven’t had much of an opportunity to do up to now.
US IRS getting more involved
The US has had an issue introducing any kind of comprehensive regulation on a Federal level, as it would relate to cryptocurrencies. But this has not stopped individual states from doing so. Individual states have been coming up with a regulation to deal with cryptos on their own, some allowing tax payments with it while others restrict their use altogether. But, to the IRS, it does not matter whether cryptocurrency regulation exists on a federal level or not.
The IRS, in order to drive the point home for all cryptocurrency traders across the United States, has started sending out warning letters to all known cryptocurrency holders, while also making an official announcement on their website that would concern all those traders who are not known. According to the letter, cryptocurrency fork income, as well as any other cryptocurrency income is taxable and needs to be reported. Otherwise, it would be considered fraud and tax evasion, possibly even money laundering, and all those found to be in violation of the law would be culpable. This means that they would be likely to be arrested and charged, which is not a fun time for any cryptocurrency owner.
This means a new beginning for cryptocurrencies in the US, as they become more ingrained into the financial culture of the country. While IRS taxing is against everything that cryptos are against, it also means that the government is growing to be more accepting of cryptos, which means that cryptos might bee seeing a bigger role in the everyday lives of people in the US.
The letter resulted in a number of traders getting quite a bit freaked out. They were afraid that something big was coming, or that they were in one way or another committing fraud. Which is what the
IRS wanted to achieve – attracting the attention of traders is the first step in getting them to remember to pay when the time comes. What comes next is yet to see.
Australia drafts a bill
Australia saw a lot of trouble come from cryptocurrencies the year before. But, Australia is also one of the countries that have been extremely accepting of cryptocurrencies over the years. Trade of crypto in the country has remained at a high level, while the investment into ICOs has always been quite a popular thing to do. But the Australian government has decided to draft a bill that would change the attitude a little. It would not be restricting the cryptocurrencies in any way, but cryptocurrency taxation and more control are part of the bill, as well as the potential for a great bull run if the bill passes. Cryptos have been attracting a lot of attention in the past few years. Australians saw a rise in crypto scams in 2017-2018, which is why the government is trying to create a more comprehensive framework for tracking cryptocurrencies and taxing them. Although, this bill might be a little controversial among the cryptocurrency community within the country. What happens next is up to the MPs in the parliament.
Featured image: Cryptalker