Editors Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina), Author: HELEN PARTZ, reprinted with authorization by Odaily.
Editors Note: This article comes from
Cointelegraph Chinese (ID: CointelegraphChina)
, Author: HELEN PARTZ, reprinted with authorization by Odaily.
Coinbase, the largest cryptocurrency exchange in the United States, believes that other countries are more open than the United States when it comes to cryptocurrency regulation and taxation.
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Crypto taxation lacks clarity
During the discussion, the speaker highlighted the lack of clarity on the taxation of cryptocurrencies in the United States. According to tax experts at Coinbase and Fidelity, this uncertainty is caused by the complexity of digital assets and the variety of different tokens of different types and characteristics.
Staking is all about locking up cryptocurrencies for rewards. Staking is one aspect that poses a huge challenge from a tax perspective. Reif-Caplan noted: “There are a lot of differences between various digital assets, and if you are not close to digital assets, it is difficult to understand these differences from staking alone.”
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Countries outside the U.S. have a more mature view
While the Internal Revenue Service (IRS) has been pushing U.S. citizens to include cryptocurrencies in their tax returns for years, the authority has yet to provide comprehensive guidelines. Zlatkin said theres a lot of uncertainty about taxing staking, but he thinks the IRS will likely classify staking rewards as a taxable transaction.
According to Zlatkin, uncertainty over U.S. crypto taxes has essentially led to “capital outflows to jurisdictions that have a more mature view of digital technology and digital assets.”
