Ethereum
$146.42 -0.83%
ETH · 17w

Bitcoin Users Beware: The Crypto Tax Crackdown Has Arrived

Traders Beware: The Crypto Tax Compliance Crackdown Has Arrived

 

US cryptocurrency traders, investors, and other market participants may think that assets like Bitcoin and Ethereum are so anonymous as to be untaxable, and some are about to get a painful lesson on how the technology really works. There is no identifying information in transaction or token data inscribed onto the ledger, sure, but you’re only truly anonymous if you’ve mined your cryptocurrency, bought it with cash, and transacted through dApps exclusively. This describes only the smallest fraction of crypto enthusiasts.

 

For the rest of us who have (for good reason) traded on larger and more centralized exchanges which also allow fiat depositing, it’s a sobering reminder that these friendlier platforms only exist because financial watchdogs allow them to. One condition of this tentative approval is that your crypto wallet must be associated with your real identity, due to KYC (Know Your Customer) and AML (Anti-Money Laundering) laws. For many traders, centralized exchanges reside at the root level of their crypto portfolio, and now that this nut has been cracked global tax authorities are completely plugged into the sector.

 

This is why so many in the US—over 10,000 in fact—are recent recipients of a letter from the IRS which says in so many words, “We see you, now pay up.”. Fresh on the heels of the recent G20 summit, where major global markets all agreed to follow the same set of FATF (Financial Action Task Force) rules, the IRS is now beginning a campaign to clamp down on US residents who have transferred or transacted cryptocurrency in virtually any way, shape, or form.

 

An Early Look at the IRS Letter

 

Those who already received the letter are familiar with its contents, but for those who will soon find it in their mail as the IRS digs its heels in, it’s good to get a preview of Letter 6174 and Letter 6173—both entit...

Continue on zerohedge.com
Recent news
ETH -0.83% · twitter.com · 4h

ChainLink (LINK) was just listed on Bittrex

We've detected that ChainLink $LINK was just listed on Bittrex! View on Bittrex: https://t.co/Ksmpgmrsz2 https://t.co/EcooA4WgWd #crypto #Bitcoin $BTC— Cryptocurrency Alerting (@crypto_alerting) Decem...
ETH -0.83% · tokentuesdays.substack.com · 4h

The Rise of DAOs

Over the past year, we’ve begun to see increased traction surrounding distributed autonomous organizations - better known as DAOs. You can think of DAOs as a collective of like-minded individuals focu...
ETH -0.83% · theblockcrypto.com · 6h

Nike receives patent to tokenize shoes on Ethereum

Shoe manufacturer Nike just received a patent to tokenize shoes on the Ethereum blockchain.  In a document posted on the U.S. Patent and Trademark Office and dated Dec. 10, Nike stated that it intends...
ETH -0.83% · cryptotrader.tax · 8h

New IRS 1040 Schedule 1 has cryptocurrency question

Two days after the IRS released their updated and highly anticipated new cryptocurrency tax guidance in October of 2019, the agency circulated a draft of the new 1040 Schedule 1 for the upcoming 2019 ...
ETH -0.83% · twitter.com · 10h

Bitpay adds ERC20 Stable Coins

BitPay merchants around the world can now accept #stablecoin payments in PAX, USDC, and GUSD. Meet payments with the speed of blockchain and the stability of dollars 💸: https://t.co/F6R02uvANU #Block...
ETH -0.83% · blog.district0x.io · 10h

district0x Dev Update - December 10th, 2019

The Istanbul hard fork went live on the Ethereum Network over the weekend, and along with its successful deployment the district0x service providers capped off several major milestones for our…