Much has been discussed around the world with respect to classifying and, ultimately, taxing digital assets. For example, in the US, the IRS, SEC and other regulatory bodies have long debated how to classify and treat digital currency holdings and mining for taxation purposes.
A recently published report in Russia’s Izvestia suggests that digital assets and their mining can actually be classified as property, rather than a currency instrument, thereby allowing it to be subject to taxation.
For those mining cryptocurrencies and tokens the creation of the asset itself can be construed as creation of property, which again, can be taxed under existing tax laws.
While the US may be ahead of the curve in already demanding tax collection from American digital asset investors, it looks like other countries may find other solutions within existing law to accomplish the task of holding investors accountable for any profits or gains from digital assets. To find educational information and insights from our Experts about digital assets and Blockchain, visit our ‘Expert Opinion’ column.