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IMF Warns Cryptocurrency Threatens Taxation
Summary: The International Monetary Fund (IMF) researchers have published a working paper describing the challenges involved in taxing cryptocurrencies. The report emphasizes that due to cryptocurrencies' dual nature as both an investment and a currency, the taxation of cryptocurrencies has become more complex. It also highlights the complications arising from the pseudonymous nature of cryptocurrency systems, making tax ...
The International Monetary Fund (IMF) researchers have published a working paper describing the challenges involved in taxing cryptocurrencies. The report emphasizes that due to cryptocurrencies' dual nature as both an investment and a currency, the taxation of cryptocurrencies has become more complex. It also highlights the complications arising from the pseudonymous nature of cryptocurrency systems, making tax collection and enforcement of tax laws more challenging.
Additionally, the report emphasizes that cryptocurrencies are treated as properties in most cases, which subjects them to capital gains taxes. This places a significant administrative burden on individuals using cryptocurrencies for transactions, as they are required to calculate taxes for each transaction.
Author: Katie Lin
Tags: Cryptocurrency,IMF,International Monetary Fund,Taxation
Link: IMF Warns Cryptocurrency Threatens Taxation [Copy]
