Bitcoin

A Coinbase manager warns of a “flight of capital” from the United States due to tax laws for cryptocurrencies

Lawrence Zlatkin, Coinbase tax directorshared the exchange’s findings on taxes and the global cryptocurrency market during a unitize panel on July 7th. He was accompanied by the main tax advisor there loyalty, Jessica Reif-Caplanand the global tax leader of Deloitte, Rob Massey.

Unclear about cryptocurrency taxes

During the debate Speakers stressed the lack of clarity about the U.S. cryptocurrency tax system. According to tax experts from Coinbase and Fidelity Uncertainty is a result of the complexity of digital assetsas well as the enormous variety of types and characteristics of the different currencies.

Mark out – the practice of locking crypts for rewards – It is just one aspect that is a major tax challenge. “There are so many differences between the various digital assets, and staking out alone is very difficult to understand if you are not that close to crypto assets,” said Reif-Caplan.

Other countries have a more mature vision

A Coinbase manager warns of a “flight of capital” from the United States due to tax laws for cryptocurrencies
A Coinbase manager warns of a “flight of capital” from the United States due to tax laws for cryptocurrencies

Although the Internal Revenue Service (IRS) has been campaigning for US citizens for years Include your cryptocurrencies in tax returnsThe agency does not yet offer comprehensive guidelines. Zlatkin said there was a lot of uncertainty about the taxes applied to the stakeout practice, but believed that the IRS would likely qualify rewards as taxable transactions.

Zlatkin said that fiscal uncertainty it is fundamental in this regard “Outflow of capital into those jurisdictions that have a more mature view of digital technology and digital assets in general.”

“Staking is a good example,” said Zlatkin. In this way, Coinbase also plans to expand its activities beyond the US market.

According to Zlatkin The company sees international customers as the future because U.S. jurisdictions are not “open”.

“It is a growth model for us to be able to access more customers and trade more assets exactly where we operate […] In general, the majority of customers in this area would come from major countries such as Canada, the UK, the EU and Asia. “

Coinbase has long watched the development of its foreign markets. In January 2020, the exchange launched a second Irish company to expand its cryptocurrency custody services to European institutions. Coinbase custody It has been serving European customers in the UK, Switzerland, Germany, Finland and the Netherlands since 2018.

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