Insufficient Clarity for Regulations And Taxes May Force US Investors Move On: Coinbase Tax VP

Coinbase's remarks highlight a serious challenge that Americas IRS have to address to prevent an outward diaspora of crypto capital.

The Chief Tax Officer of Coinbase, Lawrence Zlatkin, believes that lack of clarity in the US' crypto taxes could alienate prospective investors. He shared these sentiments during a Unitized panel held on July 7, where he joined Rob Massey and Jessica Reif-Caplan, who are also tax leaders at Deloitte and Fidelity, respectively.

According to the point of view of this panel, plenty of countries are advanced when it comes to crypto taxation, compared to the U.S. Therefore, a move to such jurisdictions will soon be a no-brainer if the Internal Revenue Service (IRS) does not match the global pace.

Most of the challenges in tax definition are a result of the complex underpinnings of crypto ecosystems. At the moment, digital assets are still in the grey zone with much ambiguity on operations, including tax issues. For instance, staking rewards that have gained popularity with the DeFi frenzy are still complex assets for a good number of crypto market stakeholders. Fidelity's Reif-Caplan reiterated that:

“There are so many differences between various digital assets, and staking alone is such a complicated thing to understand if you are not that close to digital assets.”

A Motive for Overseas Expansion

As the IRS continues to forge clarity in reporting crypto taxes, firms like Coinbase, which already operate in the U.S, are already considering a shift to countries with more solid frameworks. Currently, U.S citizens are required to report crypto in their tax filings despite the lack of proper guidelines.

Zlatkin noted that this uncertainty would eventually cause an outflow of capital towards countries with a more mature view on the digital currencies. Coinbase has already considered expanding its footprint beyond the U.S market. Zlatkin said,

“It's a growth model for us, just where we operate, accessing more customers, being able to trade more assets […]. Generally speaking, most customers in the space particularly would be from major jurisdictions like Canada, the U.K., the EU, and within Asia.”

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Edwin Munyui
Edwin Munyui
Edwin is a FinTech enthusiast with a particular interest in blockchain technology and cryptocurrencies. He has worked as an author in the blockchain space since 2017 and enjoys creating content that both crypto veterans and newbies can understand. His simple writing style and financial market knowledge have made him a reputable fundamental and technical analyst with the ability to handle any topic around blockchain and crypto over the years.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,470FansLike
2,795FollowersFollow
4,233FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Second Half of 3-Yr Bull Market: Ether’s Crazy Run has 90% of its Supply in Profit

This past weekend, the price of Ether went past $400 to as high as about $420, a level last seen in July 2018. This...

Teenage Mastermind Behind the Twitter Hack Owns $3.39 Million in Bitcoin (300 BTC); Bail Set At $725k

The 17-year old Twitter-hack mastermind holds over $3 million in BTC value with only $725,000 set for bail. In a bizarre moment last month, Twitter...

Bitcoin (BTC) Jumped to $100,000 on Binance Futures

There have been several predictions that see Bitcoin hitting a six-digit figure. On Sunday, this became a reality, very briefly, thanks to an algorithm. Bitcoin...

Flash Crash Caused Serious Network Congestion for ETH, ETC, And ERC 20 Tokens on Coinbase

On August 1, the Ethereum's blockchain faced a spike in network transaction fees, causing a backlog in transfers across several exchanges. Coinbase and Binance,...

Bitcoin’s Wild Weekend Reminiscent of 2017 Bull Rally, ‘Higher Highs Ahead in 2020'

This past weekend, bitcoin had a rough time as the largest cryptocurrency made its way past $12,000 to $12,112 in trading just after midnight...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today