Non-fungible tokens (NFTs) continue to boom. However, with record sales and brand new investors in the space, what does this mean come tax season?
The post NFTs and Taxes — Creators and Investors Need to Pay Attention appeared first on BeInCrypto.
The bitcoin price fell slightly after an amendment clarifying cryptocurrency tax rules in the proposed U.S. infrastructure bill was rejected.Read More
The IRS is again playing a good and a bad cope with Americans as ambiguous tax bills proposed by Senators have been met with mixed feelings in the cryptocurrency community.
The post Latest Cryptocurrency Tax Moves in the U.S. Explained appeared first on BeInCrypto.
There’s seemingly a constant conversation, particularly with those involved in legacy financial institutions, about how cryptocurrency can be – to a certain degree – “de-risked.” Can government mining, or merely taxation structure, address this? While many traditional financial players that are not crypto-first, but are crypto-adjacent (take Visa as a prime example) are relying on the use of stablecoins like USDC as their main pillar of transactions, there are other conversations happening about how crypto risk can be managed. Government bodies are always looking to get a piece of the pie; a large pitch of the state-by-state legalization of marijuana or sports gambling throughout the U.S. was the substantial tax revenue that states wouldn’t be seeing otherwise. In fact, just last month the Wall Street Journal published a piece outlining how governments across the globe are getting more involved in mining royalties and taxation, including a new silver and gold tax for mines in Nevada that went into effect last month. Taxation is the root of the domestic discussion around crypto for U.S. policy as we speak. Government Mining: Is It Feasible? Feasibility is of course, the first question to come to mind. Would governmental bodies have the capacity and know-how to truly execute crypto mining? The red tape is flowing. However, some argue that in fact, Bitcoin (and broader crypto) mining is becoming more and more adjacent to the likes of utilities and traditional mineral mining. Independent investment writer Natasha Che argued that indeed, crypto mining could be “the easiest way to de-risk Bitcoin.” Che makes some apt comparisons between the industries at that, noting that all of the aforementioned categories: need heavy capex investments have large economies of scale and have strategic geographic importance Che goes on to show that Bitcoin mining and gold mining actually have very similar geographical distributions. Furthermore, state involvement actually ends up getting deeper than sheer taxation. Che notes that because governments often own underlying natural resources and land, government bodies can directly control substantial portions of mineral mining resources. The same applies for utilities like gas, water, and electric as well. For many regions across the globe, there are more publicly-owned utilities than privately-owned ones, Che shows. The final point Che presents is that arguably the most intensive resource needed to mine Bitcoin, or any crypto really, is capital. “From both revenue and public-good motives, there are strong reasons for governments to get into the game, by either increasing taxes and royalties on miners, or by owning mining facilities directly,” says Che. Feasibility aside, the biggest pushback here from long-time crypto advocates has been that this arguably runs against Bitcoin’s very decentralized nature. However, with increased exposure and adoption over time, some degree of the discussion here is inevitable. As the old adage goes, “life, death and taxes.” Bitcoin and crypto taxation has been a focal point in domestic legislative discussions in the United States recently. | Source: BTC-USD on TradingView.com Related Reading | Bitcoin Nears $43K, Indicators Suggest Bull Market Ahead Government Shifts: Looking Forward At the core of the broader mining and geographic discussion is of course, the long-time dependence of miners existing across China. However, the tides seem to be turning given China’s policy shifts towards mining, as our team covered just last week. Before China’s substantial crackdown, however, the share of miners throughout the country was already on the decline. Shouldn’t governments be looking to take advantage of what is seemingly an open door for a strong geographic distribution of crypto miners? Despite no substantial discussions domestically about crypto mining on a government level, there has been an increase in U.S. miners during the departure of miners from China. Arcane Research found that from September 2020 to April 2021, U.S. Bitcoin hashrate increased roughly four-fold, from 4.1% to 16.8%. Many would argue that government involvement in mining could allow for better usage of clear energy to mine, better processes and opportunities, and more – at the expense of taxation to government bodies. Despite the apparent radio silence from most federal and state legislatures, government controlled funds could be holding an open door to crypto: earlier last month, our team also wrote about the New Jersey Pension Fund investing in two Bitcoin mining behemoths – Riot Blockchain and Marathon Digital Holdings. Furthermore, Wyoming state representatives have been vocal about being as crypto-friendly as possible. State senator Cynthia Lummis has been one of the loudest pro-crypto political figures recently, tweeting last month that “if you are in the #bitcoin mining space, please reach out. We WANT you in Wyoming.” Of course, we can’t forget about the tech and crypto hub that is constantly in the conversation too – Miami, FL. Could state-managed pension funds in the U.S., and broader political advocates, be the first entry for more formal governmental integration with crypto mining? Possibly, but we’ll need to hold our horses until at least more mainstream crypto ETFs find their way to mainstream markets (which are currently in the works). Even then, we’ll likely still have more miles to cover down this path. Related Reading | New SEC Regulations Add Cryptocurrency Under Security-Based Swap Rules Featured image from Pixabay, Charts from TradingView.comRead More
Antivirus software mogul John McAfee has been found dead in his cell within the Brians 2 prison near Barcelona, Spain.
The post John McAfee Found Dead in Spanish Prison Ahead of Extradition to US, Report appeared first on BeInCrypto.
Beginning in the 2022 tax year, stock and bond investors will be taxed on capital gains that are over 50 million won, or $45,000.
The post South Korea to Impose 20% Income Tax on Crypto Transactions appeared first on BeInCrypto.
Anthony Scaramucci has doubled down on his push for Americans to invest sooner rather than later in the world’s most popular digital currency.
The post Bitcoin Should be Part of Your Retirement Plan, Says Scaramucci appeared first on BeInCrypto.
The U.S. Treasury Department plans to raise an additional $700 billion through the new tax compliance measures.
The post US Treasury Plans to Raise Additional $700B Through New Tax Compliance Measures appeared first on BeInCrypto.
Continued political buzz is abundant lately around crypto, and today is no exception. In a initial report from Bloomberg this morning, the U.S. Treasury has shared intent to require businesses, and likely individuals as well, that transfer $10,000 USD and above in crypto to report the transactions to the IRS. The move is part of […]Read More
A tax enforcement proposal from the Biden administration may compel businesses to report bitcoin transactions exceeding $10,000 to the IRS.Read More
The United States recently passed Tax Day. While always a daunting deadline for crypto traders, the recent changes in tax requirements for cryptocurrencies made it even harder.
The post Crypto Tax USA — How the IRS, Exchanges and Services Work Together appeared first on BeInCrypto.
Minnesota congressman Tom Emmer has introduced the Safe Harbor bill to protect taxpayers with Forked Assets Act from Internal Revenue Service (IRS) penalties.
The post US Congressman Creates Tax ‘Safe Harbor’ for Crypto Users appeared first on BeInCrypto.
Government authorities in Argentina are requiring cryptocurrency exchanges in the country to provide monthly data on users and transactions.Read More
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