Like the old saying goes one thing is certain “taxes and death”. The IRS definitely hasn’t disappointed even cryptocurrency owners by clearly stating cryptocurrency is taxable.
Hopefully the rules will be fair. I feel it should only be taxable like any stock, so when there is a capital gain through resale.
The same rules of the IRS apply for tax evasion if you’re a US citizen and don’t report your crypto earnings. One other interesting thing is how the IRS has got their hands on Coinbase data for some users. This will certainly be used to go after users who’ve made profits.
First of all bravo for Coinbase, with a lot at stake itself, for getting this issue right in the following quote:
There is so much uncertainty about the definition of a security and the scope of regulatory control that the market is being chilled. This is bad for everyone because the technology won’t stop — it will simply move overseas and we will miss out on the opportunity to cultivate the benefits in the U.S.
Much like I’ve been saying is that governments who are overly aggressive, ambiguous and don’t create a fair playing field for cryptocurrency and related companies will be sidelined. Cryptocurrency cannot be contained by borders anymore than the web could be. Naturally, I do agree certain practical laws and regulations should apply but the laws should be clear and easy to follow. If companies are essentially being threatened, raided and faced with uncertainty it hurts both the company and investors. Ultimately as I’ve said before it will drive these huge sums of money away to countries that treat cryptocurrency users, traders and companies well.
There are so many conflicting statements from governments around the world and multiple bodies in the US. It sometimes seems as if government officials and bankers who have a lot of input in these matters diverge on the matter. This is OK but it should not be reflected by creating an atmosphere of fear and confusion whether by design or by fluke.
We all see the market has been impacted significantly with nothing but negative press for cryptocurrency but I believe it will resolve on the upside as investors realize it isn’t going anywhere and no single government or bank can ever stop it. In fact I predict that the market may just start using more privacy and security based coins and trade them exclusively and directly for goods, bypassing fiat altogether. Ironically this is probably the last thing governments and banks want but this is where all of this action is heading towards in my opinion.