1) There's a bill in the Senate right now about tax reporting and crypto.
What does it say, and what impact would it have?
Conversation
Replying to
Great thread Sam - totally agree with your take on the direction of the bill/amendments. Are you familiar w/ solutions that can capture transactions cross-exchange in an aggregated way?
4
27
Replying to
nope it's a mess right now
there are various products that try but also it's only helpful if they have sufficiently broad adoption
If the government cared about tax revenue they’d just make every exchange withhold 20-40% of user funds on cash out. It’s all about control, period.
2
1
That’s fair but aml/kyc remain top policy objectives which make broad withholding requirements moot. About control? Sure. But control for what purpose? Revenue is only one piece of the pie, imo.
2
I dint mind build a feature that handles this situation if you promise offering this go all your customers
The irony is that a blockchain ledger is designed to do this… the challenge arises only because most centralized exchanges rely on off-chain txs / batched on-chain txs.
If CeFi ensured all txs were on-chain (feasible if a blockchain is truly scalable), this would be solved.
5
Sweden got a nice system for stocks that makes taxes super easy and I think would be beneficial for crypto. Taxed 4 times a year on your total account size (right now about 0.1%), deposits also taxed same rate. Free withdrawals. No need for transact history
1
2
Show replies
How will crypto be taxed if it becomes main stream and people use it for transactions? Amazon for example...
1
part of the issue with #bitcoin right? there is a transaction that triggers a potential tax obligation. for the use cases you’re alluding too, I think you’ll see digital dollar, USDC, and the like, used.