Throughout the evolution of cryptocurrencies, there have already been many winners and losers; and there are sure to be many more, as thousands of layer-two protocols, digital currencies, exchanges, marketplaces, and ICOs all compete for their place in the volatile crypto-space. But perhaps it’s the largest and most powerful Government States that stand to lose the most at the hands of the emerging free-market cryptocurrency networks?
The US and Canadian taxmen, the Internal Revenue Service (IRS) and the Canadian Revenue Agency (CRA) respectively, have decided to treat virtual currencies as ‘property’and are demanding their cut of crypto-transactions, once at time-of-purchase and again at time-of-sale. Other governments, such as Japan and Australia, while ending their cryptocurrency consumption tax (crypto-GST), certainly still require income tax and capital gains tax be paid on all crypto-transactions. The People’s Republic of China appears to be on the path toward an all-out ban of cryptocurrencies: China bans ICOs, China bans crypto-exchanges, China cracks down on Bitcoin miners. But, perhaps the most aggressive of the lot will turn out to be the European Union (EU)?
On January 16-18, 2017, the Global conference on countering money laundering and digital currencies was held. The conference was “a joint initiative of the Basel Institute on Governance, Europol and Interpol, and funded by the authorities of Qatar.”
“400 financial investigators from money laundering, cybercrime, and financial intelligence units met with experts in asset recovery and relevant private sector representatives at the Global conference on countering money laundering and digital currencies in Doha, Qatar.”
There, the following recommendations were agreed upon (emphasis added): […]