Upon its inception, Bitcoin was envisioned as a borderless currency that could be used by its owners without being affected by the regulatory impositions of any centralized agency or government body. And while this idea in itself is quite grand, the fact of the matter is that today’s crypto owners (across the globe) are subject to varying tax restrictions on their digital holdings by local regulatory bodies.
Also, over the course of the past few months, a number of tax agencies around the globe, (such as the United States Internal Revenue Service) have been in the process of creating new guidance frameworks for overseeing their respective crypto industries. For example, Japanese tax authorities have been sifting through data obtained from various local exchanges so as to nab evaders and cheats, while the Australian Taxation Office (ATO) is currently operating a number of investigations regarding tax-avoidance ploys that involve large volumes of digital currencies. These developments clearly point to the fact that crypto is a matter of concern for a number of tax departments around the world — primarily because they provide people with an avenue for commerce that expands beyond today’s existing financial systems. So, here are some crypto-centric economic frameworks that are being used by countries across the globe.
Source: Sleekarena
