Nothing prevents government agencies from going after digital currency traders and their income.
In Australia, the Australian Tax Office (ATO) has issued a warning that profits in digital currency are not exempt from tax. According to ATO data analysis, more than 600,000 Australians have invested in digital currency in recent years. The ATO expects nearly 300,000 taxpayers to report their capital gains or losses in digital currency on their 2021 tax return.
“This year, we will write to approximately 100,000 taxpayers with cryptocurrency assets to explain their tax obligations and urge them to review their previously filed returns,” Deputy Commissioner Tim Loh said.
Loh said a big myth is that people think so-called “crypto” is a currency rather than an asset, which is how it is classified by the tax office. He was “alarmed” that people might think digital currency works in an anonymous digital world that gives them a license to ignore their tax obligations.
Meanwhile in the United States, a similar effort is underway. The Biden administration plans to toughen the tone against tax fraud, and digital currency is a concern.
Recently, the US Treasury proposed a plan that would require companies and stock exchanges to report to the IRS any digital currency transaction with a market value of $ 10,000 or more. This is a step towards better rules and regulatory policies in the United States that will help the country determine the value and use cases of digital currencies in the real economy.
In addition, according to the Treasury Department, the digital currency economy contributes to the American “fiscal gap” which is the difference between tax paid and tax due. The White House estimates a gap of $ 7 trillion over the next decade and would like to close it by going after digital currency traders who avoid paying their taxes.
Meanwhile, in Southeast Asia, governments are also stepping up their efforts in space.
Thailand, the land of smiles, plans to please few people in the DeFi space. The country is now looking into decentralized finance (DeFi) as part of its latest push to regulate the digital currency industry.
The country’s Securities and Exchange Commission (SEC) has announced that any activity related to DeFi may require a license from the financial regulator in the near future. The commission specifically said it would target DeFi protocols that issue tokens.
In Indonesia, plans for a CBDC are underway. The Bank of Indonesia’s announcement comes amid the growing adoption of digital payments in the country. The country is the latest global central bank to indicate a move towards a state-backed digital currency.
And in Singapore, DBS Bank, a multinational banking company, launched its very first security token offering (STO) by issuing a digital bond. Institutional or accredited investors registered with the DBS Digital Exchange (DDex) will be able to access the secondary markets for DBS digital bonds. The bank hopes its offer will pave the way for other issuers to launch STOs through the DDEx platform.
In the BSV ecosystem, the Handcash Hackathon for Non-Bitcoin Developers is finally taking place online June 14-28 with a current prize pool of $ 5,000.
Presentation of our first #hackathon never!
To integrate #nanopayments in any new or existing application. The most disruptive monetization ideas can win up to $ 2,000 in prizes.
Visit https://t.co/VovSuzafgq to learn more and register today. I can’t wait to see what you have to offer! pic.twitter.com/kYPM7iFL2U
– HandCash (@handcashapp) May 26, 2021
Visit hackathon.handcash.dev to learn more and to register.
Next week, the 7th CoinGeek conference kicks off in Zurich, Switzerland. Expect big announcements, giveaways, and opportunities to earn BSVs from June 8-10. You can watch and participate online and interact with other participants by registering at Coingeekconference.com.
New to Bitcoin? Discover CoinGeek Bitcoin for beginners section, the ultimate resource guide to learning more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.