While India’s central bank warns citizens against investing in bitcoin, the country’s central tax agency is keen on taxing transactions and investments.
Investors in India are finding that they may be subject to paying tax after selling their bitcoin following the Reserve Bank of India’s (RBI) warning against trading in them.
South Korea’s National Tax Service (NTS) is pressing ahead with a framework to enforce taxes on cryptocurrencies including bitcoin.
If you’re a long-time Coinbase user and have neglected to pay taxes on your bitcoin profits, you may soon find yourself in legal hot water, because a U.S. district court is likely to force the bitcoin exchange to hand over records from thousands of U.S. customers to the Internal Revenue Service (IRS).
As CCN has reported extensively in the past, the IRS has taken Coinbase to court in an attempt to force it to relinquish customer financial records to the tax-collecting agency.
U.S. Secretary of the Treasury Steven Mnuchin says that the federal government is concerned about the use of bitcoin in illicit dark web markets.
In an interview with Yahoo Finance, Mnuchin stated that bitcoin is on the Treasury Department’s radar and that he is in conversations with regulators across the world about the correct approach to ensure that it is not used to make “illicit transfers of funds.
Come July 2018, Australia will (finally) remove the double taxation of transactions involving cryptocurrencies like bitcoin.
Under current law mandated in December 2014, Australians are taxed twice for digital currency transactions – once for the goods and services (GST) tax on the purchase and again for the digital currency used in the transaction. Bitcoin and other digital currencies are seen as an ‘intangible’ property under rules mandated by the Australian Tax Office.
As bitcoin’s valued soared to record heights over the weekend, the Australian government heard evidence on digital currencies and its tax implications.
On Saturday, bitcoin’s value saw its value rise to $6,200 for the first time, pushing its market cap to $102.8 billion. With investor interest increasing in the cryptocurrency market, governments are turning their attention to the impact it presents.
Tax authorities in India have expressed money laundering concerns with investments and trading of cryptocurrencies like bitcoin.
As awareness and adoption of bitcoin grow in India, there are concerns among authorities about the potential for abuse by tax evaders and money launderers. According to the Economic Times, Indian tax authorities fear that trading of cryptocurrencies ‘could become conduits for illicit flows and the movement of black money.