Crypto Now Accepted For Paying Taxes In Ohio, USA. Does This Mean Crypto Is Now Classed as Currency And Not an Asset?
So Ohio has become the first state of the USA to accept payment for taxes using cryptocurrency. This is a big deal - but I think it might be even bigger.. here's why..
For reasons which the conspiratorially minded might put down to being deliberately malicious - cryptocurrencies have tended to be classified as 'assets' in government policies around the world and not as actual currencies. This has meant that using cryptocurrency legally has been very complicated and all transactions have to be calculated in order to record capital gains tax profit/losses in addition to any income tax involved. This can be hugely complicated, especially when lots of small transactions have been involved for a given individual throughout the year.
The issues relating to this have definitely limited the adoption of cryptocurrency in daily life.
As I understand, correct me if I am wrong, but once a method of payment is accepted for tax in the USA it is classed as a currency and not an asset. I recall reading this over a year ago in some fairly decent publications.. But I am not seeing anyone mention it now.
The justification given by the Bank of International Settlements for classing cryptocurrencies as an asset is that they are too volatile to be used reliably on a daily basis - yet as far as I am concerned, a currency does not stop being a currency just because of volatility. The currency may be one that people prefer not to use for that reason, but it is still a currency.
I am happy with this dictionary definition for 'currency':
Transmission from person to person as a medium of exchange; circulation: coins now in currency.
Regardless of volatility, cryptocurrencies DO fit this definition.
So does anyone have more input into this situation with Ohio? Does it mean that there is now more grounds for pushing for crypto to be properly designated as currency?
Wishing you well,
Ura Soul
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The US regulation is a total mess. Every department defines crypto differently...I don't know if this law passes if the departments like SEC and CFTC really would re-consider their definition of crypto as a currency.
The only thing I know is that the space needs regulatory clearity and rules that are practical to handle for average joe.
When that happens than this could trugger the next bull run for cryptos.
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Seems to me "regulations" are very messy territory, here in the US of A. The Feds say one thing, then the states will say something completely different and ultimately local government will have a completely different third interpretation. It all feels like a very gray area that seldom has any sort of consistency till someone's decision is challenged as "unconctitutional" through the court systems. And even that doesn't really help much...
Bright Blessings!
Interesting, and also interestingly enough my home state lol can’t wait for my crypto assets— I mean currency—to moon bounce!!
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the imf and the bis is going to be using cryptos for the new world reset that is coming and it looks like the bleeding of the cryptos is over
i posted an article with christine lagarde from the imf admitting cryptos are the future hold on to your seats people
next year should be very very profitable
be safe and be prosperous
cheers
people of that nature will go wherever the people they want to dominate / control go.. let's keep decentralising ;)
go one step further and get rid of the govt and the bankers
you have great articles and keep up with the good info and i think i finally voted for you properly let me know if i actually voted for you
if you can do that have a great day
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