The rise of the cryptocurrency industry, alongside the high profits that people can earn through the purchase, trade, and investment of digital currencies have encouraged governments throughout the world to update their taxation policies, in order to take crypto-based profits into account.
However, cryptocurrencies are very dynamic, whereas keeping track of all transactions for taxation purposes is bound to be a difficult endeavour. Additionally, regulatory taxation frameworks lack standardization, thus leading to a status-quo that confuses most digital currency holders.
The appropriate philosophy behind taxes is that the process should be streamlined and easy to follow – however, we are in the presence of an emerging market, where financial institutions are still trying to figure out the best approaches towards cryptocurrency taxation. Thus, tax-paying citizens must learn the ropes on-the-go while adapting to potential policy…
