What you’ll learn
- Different tax classifications of crypto
- Capital Gains vs Income Tax
- Taxable crypto events
- What you should do now
Please note that this article is not tax advice. Consult a qualified tax accountant/professional or contact your local tax authority for clarification of how rules on crypto taxation may apply to you.
At times the crazy world of crypto seems to be completely disconnected from reality, with prices defying gravity by forever going up. Unfortunately, your crypto experience is subject to the rules of everyday life with two famous certainties – death and taxes. This article won’t comment on your life expectancy but if you haven’t considered that you might need to pay tax on your crypto activities, you might want to sit down while reading this.
The news isn’t all bad, as some countries have taken a very progressive approach to crypto taxation, but given the industry is so new, the process is far from simple. However, if you have significant sums invested in crypto or are trading regularly, accounting for taxes should be on your to-do list.
Tax obligations related to crypto will vary in detail from country to country – which we address below – but before we delve into the detail, we’ll try and address the main distinctions in how cryptocurrency is regarded (from a tax perspective) which make a big difference to any obligations you may have.
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