A carbon tax should be levied on the miners too.
U.S. Treasury calls for stricter cryptocurrency compliance with IRS
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Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS
#32The powers that be will not give up their monopoly not he issuance of currency lightly. Classifying crypto as an asset rather than a currency was the first step. The hand will squeeze tighter and tighter.
Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS
#33Earlier quoted context omitted.
No one offers swapping x shares for y shares, you have to sell and buy. You can swap currency and some people believe crypto is currency, so it is different.
the common analogy would be an FX pair (like GBPUSD)
And how are forex transactions taxed? Why don't we just apply that policy to crypto?
Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS
#34The powers that be will not give up their monopoly not he issuance of currency lightly. Classifying crypto as an asset rather than a currency was the first step. The hand will squeeze tighter and tighter.
They won't give it up at all, because there's absolutely no reason for them to. The reason they have this power is because they wield force legitimately, not because fiat is special.
Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS
#35Earlier quoted context omitted.
If I were to swap some Apple shares for Microsoft shares , without selling one for cash first, that would still be a taxable event. I know this because we did such a trade with another fund. Swapping one crypto for another is the same thing, the fact that fiat isn't involved doesn't change much in this scenario.
No one offers swapping x shares for y shares, you have to sell and buy. You can swap currency and some people believe crypto is currency, so it is different.
Then there's a loophole right?
Create a stable coin, and never have to cashout.
Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS
#36A carbon tax should be levied on the miners too.
A carbon tax should be levied on everything that emits carbon
Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS
#37A carbon tax should be levied on the miners too.
The simplest is your electric bill should fully encompass the externalities of the electricity you use. No one is going to self report crypto mining.
Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS
#38Earlier quoted context omitted.
If I were to swap some Apple shares for Microsoft shares , without selling one for cash first, that would still be a taxable event. I know this because we did such a trade with another fund. Swapping one crypto for another is the same thing, the fact that fiat isn't involved doesn't change much in this scenario.
No one offers swapping x shares for y shares, you have to sell and buy. You can swap currency and some people believe crypto is currency, so it is different.
It doesn't really matter if you make the analogy of asset or FX; you owe tax on gains in either case.
Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS
#39It's completely reasonable to tax investment earnings. That said, these regulations are concerning to me as a developer interested in actually building on blockchain technology. At least from what I understand, just doing what's rapidly becoming run of the mill Web3 development is becoming extremely fraught territory for US citizens who want to comply with accounting and tax rules. It's an even bigger deterrent for s…
It seems to me that the US government is doing this at the right time. We're not in the early stages of cryptocurrency. We've had 10 years for lots of new ideas to mature, and we're on the verge of the most promising of all - Etherium transitioning from PoW to PoS. I'd say this is somewhat late given the Bitcoin/Etherium's popularity among small investors with much to lose, immense greenhouse gas emissions, and facilitation of ransomware and dark markets.
Any crytocurrency good enough to be useful will be large enough to have an ecosystem that complies with these rules.
Our society regulates money exchange for a reason. It can be put to tremendous negative use - funding criminal activities, siphoning money from public investment, etc.
Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS
#40The burden seems to be on the business side here. So I'm not sure what changes tax wise for end users who were using centralized exchanges to monetize their holdings. If they weren't assuming the IRS was monitoring everything they were doing to begin with they were fooling themselves.
It'd be interesting to see though if you opened a lightning channel with an exchange and transferred funds back and forth to yourself millions of times. Seems like that would create infinite spam and flood these reporting requirements.