According to the Organization for Economic Cooperation and Development (OECD), crypto assets and virtual currencies develop fast so they want to create a proposal in the tax information framework that involves any investment or transaction made through Bitcoin.
The organization notes that in the vast majority of G20 countries, cryptocurrencies are legal since the purchase and sale of any crypto asset is not prohibited nor is its use prevented for make purchases.
This is why they have achieved a large market capitalization in such a short time. “Overall market capitalization for virtual currencies reached $ 354 billion in September 2020”
OCTOBER 12 the OECD published a report called “Taxes on virtual currencies: An overview of tax treatments and new tax regulations”, in which through an exhaustive analysis they addressed issues of political and legal importance about cryptocurrencies and their advances in general worldwide, as well as reported on the need to establish an appropriate legal framework for them.
In the absence of laws on the usability of cryptocurrencies, many people will take advantage of that to Evade taxes.
With these new legal regulations, it will be almost impossible to use them without notifying the State, paying high sums of taxes and losing the essence of privacy they offer. Something totally contradictory to the principles by which they were created.
“Their interchangeability with fiat (ie sovereign) currencies and their similarities with other forms of financial products or intangible assets make it necessary to have a sound fiscal policy framework to ensure the consistent treatment of similar types of assets, facilitate the compliance, provide tax certainty and prevent tax evasion and fraud. “
Cryptocurrencies – albeit legal – facilitate tax evasion
This trend seems to be being replicated by other countries. This very week, Spain finally approved a draft law that could tighten the belt to all those who in some way integrate the crypto ecosystem in the country; forcing service providers, investors, traders and any citizen who operates within or outside the country, to share information about their operations, paying taxes on them.