The first quarter (Q1) of 2019 introduced several key legal updates concerning cryptocurrency taxation. Q1 has seen various countries such as Italy, United States (U.S), Japan, Denmark, Poland, Romania, Venezuela, Indonesia, South Africa, India, Chile and others, define tax treatment for cryptocurrencies including Bitcoin (BTC), the top virtual asset by market cap (MC), Ethereum (ETH) and Ripple (XRP).
Blockchain technology has the capability to offer steadfast, dependable and reliable information in real time to a massive Italian population, creating a system where both taxpayers and tax collectors have equal assurance in the candor of the data gathered. It can be used to combat tax evasion in Italy and other parts of the world.
The management of digital identity on the blockchain through smart contracts must essentially split the difference with full decentralization - the requirement for sufficient legal assurances of transactions achieved via smart contract doesn’t appear to be able to work without steadfast third parties, particularly when there are tax effects.
Cryptocurrency operations have caught the eye of the Canadian Revenue Agency (CRA), Canada’s primary tax-collecting institution. It has been concerned about risks associated with cryptocurrencies and lawful regulation of taxes in the digital asset field.
The State Revenue Service of Latvia calls for the use of Blockchain technology to control tax flow and combat the shadow economy. As one of the possible solution, Blockchain-based systems can be used in the cash registers reform.
The Token Taxonomy Act (TTA) is currently regarded as the heftiest pro-crypto bill of all the bills that have hitherto been debated. This is due to the fact that the bill will once again provide US citizens with the exemption to maximumly engage in digital currency markets by giving cryptos legal classifications.
In a struggle that will change the face of blockchain development in the nation and the continent at large, the South African Reserve Bank (SARB) has softly left out digital currency developers from a tax incentive that is particularly aimed at technological innovation, according to a report by BusinessLive.
Law 30/2019 amending the Fiscal Code became active on Sunday January 20, 2019 and introduces freshness to the system of Romania, viz. classifying the profits accumulated from Bitcoin (BTC), the flagship crypto and other cryptoassets as financial gain accruing over a given period of time from other sources.
Digital currency trading volumes have substantially decreased following the drop in Bitcoin price. Given such a situation on the market, a Japanese lawmaker has suggested adding several amendments to the country’s policy related to crypto activity.