Can cryptocurrency be taxed?

Can cryptocurrency be taxed

Can cryptocurrency be taxed?

This will usually depend on your home country and the regulations surrounding digital currencies. It has been a particularly heated debate in certain countries as existing laws do not offer a straightforward answer.

The decentralized blockchain framework with its distributed ledger had not been considered anywhere in the world prior to the innovation. And the multiple applications for the technology only served to complicate matters further.

Policymakers took different approaches to the taxation issues. Countries that choose to recognize virtual money as a currency or property impose taxes on cryptocurrencies. The US was among the first countries to impose tax on virtual money, referring to it as property.

Other hotspots like South Korea are set to follow suit in the near future. The European Union however said none of its member countries would tax the currency.