Connect with us

Uncategorized

The Taxman Is Watching: Staying Ahead of the New Rules

Published

on

Tax. The word may make you cringe, but it’s also one you probably don’t want to ignore.

Bitcoin (BTC) hit $100,000 for the first time in December 2024, and while you’ve probably had your fair share of “I told you so” moments with the crypto skeptics over the holidays, now is the time to make sure you’re clued in on the tax side of things if you’re planning to cash in on profits.

It’s not just about keeping track of your own jurisdiction; you should stay aware of global rules as well, as your jurisdiction may adopt them in the future.

Long-term Bitcoin holders are profiting — and the taxman is watching

With the average long-term Bitcoin holder having paid around $24,543 for their Bitcoin, it’s clear that many hodlers are now sitting on profits nearly four times that amount.

For those who’ve hodled through the ups and downs, it’s been a rewarding payoff.

But let’s not kid ourselves — tax authorities worldwide are getting a lot better at tracking these gains. The days of thinking crypto profits fly under the radar are long gone.

Whether you like it or not, the taxman is catching up, and he’s getting more savvy by the day.

For instance, the United States Internal Revenue Service (IRS) recently introduced a new rule stating that investors must use wallet-based cost tracking for crypto assets from 2025 onward.

Crypto investors had to quickly adjust to IRS changes

Previously, crypto users could group all their assets together to calculate their cost-basis for taxes under the Universal tracking method. But now, the IRS requires each wallet or account to be treated as its own separate ledger.

This isn’t exactly great news for crypto investors, as it limits them on what counts as their cost-basis for sold assets — everything has to be tied to the same crypto wallet.

As a crypto tax software platform, Koinly has had to move quickly to keep up with the changes, just like the investors that use our platform.

One of the updates we’ve made is allowing users to adjust their cost-basis settings from a certain date, without affecting previous tax calculations.

Other countries may potentially follow the IRS’s lead in the future

I wouldn’t be surprised if this wallet-tracking rule starts spreading to other parts of the world in the coming years.

Australia, the United Kingdom, Ireland, and many other countries all apply a fairly similar tax treatment to cryptocurrencies as the United States. While they haven’t introduced anything like this yet, it shouldn’t be ruled out.

It was clear from the start that tougher crypto tax laws were on the way, and the IRS made no secret of it. Earlier in 2024, it ramped up their efforts by bringing in private-sector experts from the crypto world to help bolster their approach to taxing crypto.

It’s not unusual for countries to adopt tax rules that have already been implemented elsewhere, and this has happened with crypto in a few cases already.

Take the approach of taxing short-term crypto gains while leaving long-term gains tax-free — something countries like Germany and Malta have already adopted.

Portugal, for example, had no crypto taxes until 2023. Then, it added a 28% tax on short-term gains, while long-term holders still get a break.

As crypto continues to grow and gain traction worldwide, staying on top of tax laws around the world is becoming more and more important.

Over the next couple of years, I expect we’ll see a lot of changes in how governments handle crypto taxes.

Continue Reading
Click to comment

Leave a Reply

Ваш адрес email не будет опубликован. Обязательные поля помечены *

Uncategorized

Trump’s Memecoin Dinner Questioned by Top Democrat on House Judiciary Committee

Published

on

By

A senior Democrat in the House of Representatives, Jamie Raskin, joined his name to lawmakers seeking answers about President Donald Trump’s recent dinner for top investors in his memecoin, sending questions directly to Trump.

Raskin, the ranking Democrat on the House Judiciary Committee, has been a vocal critic of the president and becomes the latest of many from his party to probe details about the event, which they’ve called out as evidence of White House corruption. Because Raskin is in the minority party, his demands are unlikely to lead to further congressional action unless they regain the House or Senate in next year’s elections.

«I write today to demand that you release the names of all the attendees at this dinner and provide information about the source of the money they each used to buy $TRUMP coins, so that we can prevent illegal foreign government emoluments from being pocketed without congressional consent,» Raskin wrote this week to the president, joining many counterparts in the Senate in seeking the information, including Senators Elizabeth Warren, Chris Murphy and Richard Blumenthal.

«We deserve to know who is paying for access to our president, and what steps you took to ensure that the funds you receive are legitimate and legal, rather than the proceeds from foreign states or monarchs or illegal activities,» Rasking said, specifically highlighting Tron founder Justin Sun, a guest who was a major early investor in Trump’s family crypto operations.

Read More: Democrats Threaten Lawsuits, Join Protests Ahead of Trump Memecoin Dinner

Continue Reading

Uncategorized

FTX Repayments May Have Positive Market Impact: Coinbase

Published

on

By

The FTX Recovery Trust will begin distributing over $5 billion in cash and stablecoins to creditors starting on Friday, with funds expected to land in accounts within the next three business days via BitGo and Kraken.

And there’s a chance this wave of repayments will help lift the crypto market, analysts at Coinbase wrote in a report on Friday.

It’s the second major round of repayments following the exchange’s collapse. The first, which began on Feb. 18, returned roughly $7 billion to creditors with claims under $50,000. That did little to lift broader crypto markets at the time, which remained under pressure from macro headwinds.

This latest wave of distributions comes as investor sentiment has shifted, the analysts said. Payments will arrive in stablecoins, offering recipients immediate on-chain liquidity, instead of cash and crypto. That could influence whether the funds are reinvested.

There’s also a broader sense of optimism in crypto markets, thanks in part to a rally in major assets and increased political clarity around regulation. Institutional players, in particular, may feel more comfortable acting on incoming funds, especially as Congress moves closer to passing legislation that would define the roles of U.S. regulators overseeing digital assets.

Continue Reading

Uncategorized

Judge Declines to Order DOJ to Review Records in Roman Storm Case

Published

on

By

The federal judge overseeing Roman Storm’s prosecution declined to order the Department of Justice to review its records for any materials it might have missed that would help the Tornado Cash developer at the end of a 30-minute hearing Friday morning, though she told the government it should not have any disclosure issues.

Judge Katherine Polk Failla also ruled that there were no Brady violation concerns with the Department of Justice’s conversations with the Financial Crimes Enforcement Network (FinCEN) about whether mixers needed to register as money transmitters — the conversation that prosecutors pursuing Samourai Wallet developers had with FinCEN officials, but not the prosecutors on Storm’s case — one of the DOJ representatives said in the phone conference on Friday.

If the judge had found that prosecutors had withheld information, it could affect the case moving forward.

«I’m not going to require a further review based on the representations made that there’s no additional material of this type, and based on my views that I don’t believe the material was exculpatory,» she said.

«There’s a difference between ‘this is something I’d like to know’ and ‘this is a Brady violation,'» the judge said, referring to a Supreme Court precedent that requires prosecutors to share any and all information that might help a defendant with the defendant’s team.

Storm’s defense attorneys argued during the hearing that they needed to know when the prosecutors in their case learned about the FinCEN conversation.

«They do plan to say they’re charging a conspiracy to operate an unlicensed money transmitter,» said defense attorney Brian Klein. «My question is who are they supposed to be licensed with? … this is all in the same issue. They’ve only dropped one subpart … but they’re still going to say they’re charging an unlicensed money business.»

Thane Rehn, a prosecutor who worked on the DOJ case against Sam Bankman-Fried, said that his team wouldn’t argue that Tornado Cash needed to secure a license.

«The word ‘license’ doesn’t apply here and the jury won’t be instructed on licensing issues … what we intend to prove at trial is the defendant knew they were transmitting funds derived from criminals,» he said.

The judge did at multiple points ask the prosecutors if they planned to change any other theories or charges in the weeks leading up to the trial, saying doing so might be unfair to the defense. The trial is supposed to kick off in less than two months.

Read more: DOJ Will Still Pursue Roman Storm Case Despite Blanche Memo, Prosecutors Say

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.