Various cryptocurrency fiscal policies cause confusion around the world

The fiscal policies of governments around the world are a hodgepodge of ideas, some good and some bad, that leave cryptocurrency users confused.

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Recently, France changed its classification of cryptography to "mobile property" and, therefore, the tax rate for many cryptocurrencies decreased from 45% to 19%.

Previously, the profits of cryptocurrencies were considered as "industrial and commercial profits or non-commercial profits" and still are for many miners. However, after the reclassification, a tax lawyer said that the French authorities "can not really justify the principle of taxation resulting from their exchange with another cryptocurrency".

The tax attorney justifies the claim arguing that many people change currencies through a third party when they travel and do not pay capital gain / loss taxes cites the 2015 statement of the Court of Justice of the European Union that "Bitcoin does not have other purpose than the means of payment ".

In the United States, the Internal Revenue Service also declares crypto assets as property, so that each exchange of gain or loss is technically a taxable event, but has issued very little guidance on the subject. Canada and Mexico have their own laws together with the countries of South America, the EU, Africa and Asia.

The confusion of the government has led to market solutions

The confusion surrounding taxes on cryptocurrencies has led entrepreneurs to fill the knowledge gap for consumers. Dash Force News spoke with Perry Woodin of Node40, which deals with the tax compliance of the cryptocurrency along with the extraction of Dash and BTC and the operation of the main Dash nodes.

The Node40 team went into compliance with the tax crypto involuntarily after realizing the financial and time burden of "making sure everything was auditable."

Then they wanted to help other companies and consumers to keep the tax and regulatory complaint with the attention to detail that the Node40 team assigned for a fraction of the cost. When asked what is the hardest part of the regulations for consumers, Perry said it is "probably compliance with the property law in the US. UU., Because it is very dense. "

Perry mentioned that the biggest problem with crypto taxes is only the educational gap between regulators and politicians. He said that "regulators are generally well versed in cryptocurrencies" and know the small differences, but "politicians who make the laws are not as knowledgeable."

Perry said that "mass education is probably the biggest problem to focus on in the future, since many in the public simply do not know much about cryptocurrencies."

He made reference to the recent offensive of the Japanese FSA, which grouped Dash with more money-centric coins like Monero and Zcash, which makes little sense since the Dash blockchain is public and anyone can see all the transactions, while that is not the case of Monroe and Zcash.

However, Perry is optimistic as he is beginning to see that regulators and cryptocurrency companies educate politicians.

He was encouraged by New York regulators who contacted local cryptographic companies to ask questions about cryptocurrencies and their businesses. He said that "serious lawmakers out there are those who recognize that these cryptographic businesses are only trying to serve consumers and are asking serious questions."

However, he did not rule out the fact that there are still many legislators who only want to decipher without learning more about the industry.

He was also enthusiastic about the fact that "there has been a great development that is just starting to be launched," and he said that "it's going to be a great year." He cited Node40's work with the cryptocurrency payment solution provider, Alt Treinta y Seis, and the need not only to comply with Alt Thirty-six, but also to meet the commercial customers of Alt Thirty-Six.

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Dash tries to make everyday use, including tax compliance, as easy as possible

A main goal of Dash has been to satisfy as many consumer wishes as possible. Many consumer wishes include tax compliance within countries that have such standards.

Through Dash's governance and treasury system, the Dash community has an active interest in projects that provide services to facilitate tax compliance, as it will increase the use of Dash in countries where consumers want to comply with tax requirements and regulatory

The medley of tax laws around the world and even within the states of a single nation is causing great confusion among consumers that even tax lawyers are debating interpretations. These cryptocurrency tax policies have changed over time and will most likely continue to evolve.

In response, the decentralized treasury teams and Dash projects allow for rapid adaptation to the evolving cryptocurrency fiscal policies throughout the world.

Companies like Node40 and Alt Thirty-six can arise alone or with the help of Dash funds to ease the tax burden and regulatory compliance of individuals or small businesses that do not have the legal knowledge or full financial capacity.