[Newsflash]: Congress Ready to Launch Bills And Improve Crypto Tax Guidelines
Congress Set to Launch Blockchain Bills And Improve Crypto Tax Guidelines
Cryptocurrencies have been expanding in many different countries and regulatory agencies are working in order to provide comprehensive regulatory environments. This time, new legislation is being introduced in Congress with the intention to update guidelines about how taxpayers should pay their profits associated with virtual currencies.
The Congressman Tom Emmer (R-MN), said that the US should be able to create an environment that allows private companies to grow and innovate. He has a very positive plan for cryptocurrencies and how taxation should be implemented.
The first thing he proposes is the ‘Resolution Supporting Digital Currencies and Blockchain Technology’ which aims to support the industry in the country. For him, the federal government should allow firms in the field to grow within a simple and legal environment.
Mr. Emmer continues with a ‘Blockchain Regulatory Certainty Act’ which aims at clarifying how companies should register themselves. He explains that entities that do not take control of consumer funds shouldn’t have the obligation to register as a money transmitter. For example, miners wouldn’t have to be registered.
Another proposal is related to recognizing that taxpayers are able to comply with the law when it is clear. The proposal is known as ‘Safe Harbor For Taxpayers With Forked Assets Act.’ This would provide a safe harbor for payers that have ‘forked’ assets.
Additionally, there is an intention to improve the taxation scheme on virtual currencies. He explains that the last guidance on cryptocurrency taxes has been issued by the IRS in 2014.
Taxable events are related with trading virtual currencies, exchanging tokens for other tokens; receive payments, spend and convert virtual currencies; mine cryptos or purchase tokens during an initial coin offering (ICO). These are all taxable activities that should properly be reported to the IRS.