Lưu trữ cho từ khóa: Regulation

Altcoin

Ethereum ETFs bring substantial benefits, yet challenges remain | Opinion

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For weeks, speculation has been mounting about when the US Securities and Exchange Commission (SEC) will approve spot Ethereum exchange-traded funds (ETFs). The introduction represents a transformative development in the cryptocurrency investment landscape, as it brings the potential to democratize access to Ethereum (ETH) investments, enhance market stability, and attract a more diverse investor base. Less discussed but equally important, however, is the need for a balanced consideration of the inherent risks investors should take into account.

On the plus side, Ethereum ETFs help simplify the process of investing in Ethereum, making it accessible to a broader audience. This ease of access is particularly beneficial for traditional investors who may be unfamiliar or uncomfortable with the complexities of direct cryptocurrency investments. Issues related to maintaining passphrases, cold storage, security, and multisignature (also known as multisig) access are a massive barrier and source of friction for investors looking to diversify away from traditional assets such as bonds/equities.

SEC approval has the added benefit of providing regulatory assurance. As a regulated financial product, an Ethereum ETF offers a level of security and oversight that is not present in the direct cryptocurrency market. This regulatory framework can instill confidence among investors, especially those wary of the unregulated nature of cryptocurrency exchanges. Including an Ethereum ETF in investment portfolios allows for greater diversification in an uncorrelated asset that many see as the future of finance. 

Cryptocurrencies often have different performance metrics compared to traditional assets, providing a hedge against market volatility and offering the potential for higher returns. As investors look beyond the 60/40 model for investing, Bitcoin ETFs and Ethereum ETFs provide a secure and regulated product to realize these goals. There’s also the potential benefit of institutional investors entering via ETFs, creating a larger, more mature, and more stable cryptocurrency market. Although it remains to be proven, increased institutional participation, driven by the availability of a regulated investment vehicle, could lead to more stable trading patterns and reduced volatility.

Not without challenges 

That being said, the potential benefits of an Ethereum ETF are still hypothetical and remain to be played out. With potential benefits come the potential risks that investors should weigh up, Ethereum remains a volatile asset, and an ETF will inherit this volatility. Investors must be prepared for significant price fluctuations and understand that the ETF does not eliminate the inherent risks of the underlying asset. 

There are also regulatory and technological uncertainties, as the evolving regulatory landscape for cryptocurrencies poses potential risks. Regulatory changes can impact the ETF’s performance and operations, with elections approaching in the US this November, it remains to be seen how supportive the government will be towards this nascent sector of the economy. 

Additionally, technological risks related to Ethereum, such as network upgrades and security vulnerabilities, can affect the ETF’s value. For all the industry proselytizes about the benefits of decentralization, there are significant concerns related to potential centralized points of failure, such as Validator Client software approaching a two-thirds majority, the Infura API, MEV Relays or cloud usage that could lead to catastrophic losses if not properly dealt with by the Ethereum community. 

In fairness, the Ethereum community is addressing these concerns related to centralization and being overly reliant on Geth/Teku validator client software. However, investors would be right to have concerns about how new technologies can fall down due to unexpected hurdles. There’s also the potential for market manipulation; while ETFs provide a regulated environment, the underlying cryptocurrency markets are still susceptible to manipulation. This can indirectly influence the ETF’s performance, making it essential for investors to remain vigilant.

A transformative development

The Ethereum ETF is a significant advancement that brings substantial benefits, including increased accessibility, regulatory oversight, and portfolio diversification. It can attract a wider range of investors, from retail to institutional, and contribute to the overall stability and maturity of the cryptocurrency market. However, the potential risks associated with Ethereum’s volatility, regulatory uncertainties, and technological factors cannot be overlooked. Investors must approach the Ethereum ETF with a comprehensive understanding of these risks and be prepared for the inherent uncertainties. No one is suggesting that investors should allocate more than 5–10% of their investment portfolio into digital assets, and if they do, they should be aware of the inherently volatile nature of these assets and their potential downsides.

While the Ethereum ETF offers an exciting opportunity for diversified investment and enhanced market participation, it is crucial for investors to conduct thorough research and consider their risk tolerance. The ETF’s regulated nature provides a safer entry point into the world of cryptocurrencies, but informed and cautious investment strategies remain paramount. By weighing the transformative benefits against the inherent risks, the Ethereum ETF can be seen as a balanced and innovative addition to the financial market, poised to play a pivotal role in the evolution of cryptocurrency investments and the financial services industry in general.

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Russia’s central bank might legalize stablecoins for trades with China: report

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The Bank of Russia is considering approving stablecoins for cross-border trades, as local businesses explore alternative methods to conduct trade with China amid sanctions.

Russia‘s central bank, the Bank of Russia, is considering the legalization of stablecoins for cross-border transactions as the sanction-torn country’s economy is seeking alternative ways to keep trading activity with China.

In an interview with Russia’s state newspaper Izvestia, central bank deputy governor Alexei Guznov said the proposal is under discussion and has been formulated, adding that the eventual goal is to regulate the entire process chain that would enable individuals to “transfer these assets into Russia, accumulate them, and use them for international payments.”

Guznov indicated that the initiative could potentially transition from a temporary experiment to a permanent regulatory framework, although specifics regarding the timeline for approval weren’t disclosed.

Stablecoins, unlike traditional cryptocurrencies like Bitcoin (BTC), are typically backed by assets and have a central issuer, which addresses concerns that previously led the Bank of Russia to oppose legalizing digital assets. However, recent shifts suggest the central bank is adjusting its stance as even major Russian metal producers reportedly started using stablecoins for transactions with China as traditional payment methods face severe limitations due to sanctions.

Despite these developments, questions remain about how the legalization of stablecoins would navigate international sanctions compliance, particularly since Tether has expressed willingness to adhere to sanctions policies.

Most recently, in a bid to emphasize its commitment to comply with international sanctions, Tether collaborated with Chainalysis to identify wallets that “may pose risks or may be associated with illicit and/or sanctioned addresses.”

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Korean crypto exchanges face more pressure amid trading activity concerns

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South Korea’s financial regulator is establishing a system to monitor unusual crypto trading, urging exchanges to cooperate and provide internal data.

South Korea‘s Financial Supervisory Service (FSS) is working on a system that would monitor all unusual crypto trading activity as the country seeks to enhance transparency and oversight in its crypto market.

In a Jul. 4 statement, the agency urged the domestic trading platforms to share internal data with the system so that they could ensure compliance with the legislation that becomes active on Jul. 19.

The system targets trades outside normal volume and price ranges, large transactions, and unusually delayed executions, according to guidelines outlined by the FSS. Matt Younghoon Mok, senior foreign attorney and partner at Lee & Ko in Seoul, commented to Bloomberg that these requirements could pose “significant challenges for altcoins that cannot promptly meet regulatory standards.”

As crypto.news reported earlier, South Korean crypto exchanges are set to re-evaluate over 1,000 listed tokens, following the implementation of the Virtual Asset User Protection Act aimed at safeguarding crypto investors’ rights and interests.

Despite the extensive review, the Digital Asset Exchange Alliance, representing five major Korean exchanges, expects minimal “mass delistings” over the next six months, citing proactive regulatory compliance measures already in place across domestic platforms. The regulations will apply to nearly three dozen registered crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, which will conduct initial reviews to determine whether to maintain or delist each token.

Under the new regulatory framework, crypto exchanges must establish a review committee to evaluate various factors such as the reliability of the issuing entity, user protection measures, technology and security standards, as well as regulatory compliance.

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IRS unveils new crypto tax rules: Are they a good thing?

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While industry advocates have welcomed the finalized crypto tax measures after years of wrangling, messy deliberations about non-custodial providers still lie ahead.

It’s been a long time consuming, but the Internal Revenue Service and the Treasury Department have finally agreed upon new crypto tax reporting rules for investors.

At first, you may assume that these new guidelines would send shivers down the spine of exchanges and customers alike.

But given there’s long been exasperation over a lack of clarity in the space, the policy — which attracted a whopping 44,000 comments during a consultation — has been pretty well-received.

Why, you may ask? Because there are now clearer rules of the road to follow… and there are arguably benefits for everyone concerned.

Trading platforms will now be tasked with reporting the gains and losses of their customers, with measures gradually coming into force over the next three years.

It’s hoped this will help taxpayers — who have long had the responsibility of reporting the profits made from crypto investments — to file accurate returns with less fuss.

Meanwhile, it could also deliver a chunky windfall to the IRS, with some estimates suggesting it could boost tax income by $28 billion in the space of a decade.

Are there any losers? Yes… those who have been failing to declare their gains for the past few years on the erroneous assumption their crypto trades can’t be traced.

The IRS said it had sought to “close the tax gap related to digital assets” while ensuring the toughened rules could be implemented practically by the crypto sector.

“These regulations are an important part of the larger effort on high-income individual tax compliance. We need to make sure digital assets are not used to hide taxable income, and these final regulations will improve detection of noncompliance in the high-risk space of digital assets.”

IRS Commissioner Danny Werfel

Officials went on to make clear that there is more work to be done here. A glaring omission from these new guidelines are decentralized brokers — in other words, platforms that don’t end up taking custody of coins on behalf of users.

The IRS and the Treasury went on to admit that they need “more time to consider the nuances” of such transactions — but in any case, most taxpayers use centralized brokers anyway.

‘A game-changer’

In a statement sent to crypto.news, TaxBit’s VP of tax, Erin Fennimore, said the newly inked rules “mark an important step for digital assets in the U.S.”

Arguing they bring “much-needed clarity and legitimacy to a rapidly growing financial market,” she added:

“[This] is a game-changer for the industry. This newfound regulatory certainty empowers enterprises and traditional financial institutions to navigate the digital asset sector with confidence.”

Erin Fennimore

She went on to argue that this could make digital assets “a more accessible investment option” for individuals and enterprises alike — building on the momentum of exchange-traded funds based on Bitcoin’s spot price, with rumors that Ether could follow suit soon.

“These updates offer enterprises, specifically custodial exchanges, the guidance needed for proper compliance, further solidifying crypto’s position within the broader financial ecosystem.”

Erin Fennimore

She went on to call for businesses in the crypto space to “streamline compliance internally” — ensuring that reports aren’t doubled up and cut the chance that customers will end up falling afoul of the taxman.

A messy fight

Coin Center also welcomed the finalized reporting rules, but argued that a hell of a lot of time has been wasted in getting to this point.

A particular sticking point concerned who should be defined as a “broker” in the crypto space, with the nonprofit arguing for more than six years that it should only apply to centralized exchanges like Coinbase and Kraken.

That has finally happened now — but the IRS and the Treasury might have foregone a lot of tax revenue as they wrangled with Congress.

“By now we could have verifiable records of taxpayer gains from centralized exchanges for half a decade. We don’t.”

Coin Center

The group went on to order that, if the definition of a broker had remained “vague and unreasonable,” everyone from miners and validators to software developers would have ended up in a position where they might have had to surveil fellow crypto users and report private transactions — or face criminal punishment. Warning this could have amounted to a constitutional violation, they added:

“Had it been adopted, the broker definition would have made the US non-competitive in the field of open blockchain technologies.”

Coin Center

Unfortunately, the question of what should happen with non-custodial entities remains unanswered. What lies ahead could get messy.

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Theo Crypto News

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Italy teases selective implementation of MiCA guidelines: report

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Bank of Italy Governor Fabio Panetta announced guidelines focusing on bank-issued electronic money tokens under new E.U. crypto asset rules to stabilize the payment system.

The Bank of Italy is set to introduce guidance on crypto for financial institutions to clarify the European Union’s rules regarding crypto assets, aiming to safeguard the stability of the payment system, Reuters reports.

Speaking at the Italian Banking Association, Bank of Italy governor Fabio Panetta teased that the E.U.’s Market in Crypto Asset Regulation (MiCAR) regulation, which recognizes electronic money tokens (EMTs) as well as asset-reference tokens (ARTs) for use as means of payment, might go against Italy’s law.

According to MiCAR, issuers of ARTs and EMTs are required to hold the “relevant authorization” to carry out activities in the E.U. The relevant requirements are set out in the Markets in Crypto-assets Regulation (MiCAR) and are complemented by technical standards and guidelines developed by the European Banking Authority. However, Panetta signaled that Italy is likely to allow only EMTs, without giving the green light to ARTs.

“Our assessment is that the only instruments that can fully preserve public trust as means of payment are EMTs, which can be issued by banks or electronic money institutions.”

Fabio Panetta

While Italy’s decision to adopt MiCAR selectively remains unclear, the country is also reportedly considering tougher penalties for crypto-related offenses to combat market manipulation, as proposed legislation aims to impose fines ranging from €5,000 to €5 million ($5,400 to $5.4 million) for offenses like insider trading and unauthorized disclosure of inside information.

The decree assigns oversight of crypto activities to the Bank of Italy and market regulator Consob, empowering them to maintain financial stability and ensure market orderliness.

In early 2023, the Bank of Italy emphasized the need for a strong and risk-based regulatory framework surrounding stablecoins, aiming to avert a potential worst-case scenario of a destabilizing “run” on these digital assets. The financial regulator particularly highlighted the need for regulatory attention, particularly towards stablecoin issuers, due to their close ties with decentralized finance.

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CBDCs have a big problem

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From the Bahamas to Nigeria, China to Jamaica, a common theme unites countries that have rolled out their own CBDC: very few people actually use them.

Around the world, major economies are in an urgent race to launch their very own central bank digital currencies.

Data from the Atlantic Council suggests a staggering 134 countries around the world, representing 98% of global GDP, are now experimenting with one.

Of those, just three have launched so far, while 36 more are currently being put through their paces in pilot programs.

CBDC projects around the world | Source: Atlantic Council

But despite the talk of faster cross-border transactions, reduced fees for businesses, and innovative new payment methods, there’s an uncomfortable truth for many nations who have invested countless millions into creating this infrastructure: demand has been pretty tepid.

The Federal Reserve Bank of Kansas City released a staggering report that examined how successful three retail CBDCs in the Caribbean had been since launch. It noted that none had managed to achieve widespread adoption among consumers.

It cited figures that show just 105,000 consumers and 1,500 merchants had embraced the Bahamian Sand Dollar by May 2023 — with the value of this CBDC representing a mere 0.19% of the total currency in circulation. Not good.

DCash, which spans the Eastern Caribbean Currency Union — as well as Jamaica’s JAM-DEX — have fared even worse, with a share of just 0.16% and 0.11% respectively.

On the other side of the world, in Asia, there have been similar teething troubles. 

India has made much fanfare of the digital rupee — touting some of the main benefits as offline transactions in areas where there’s little internet access, along with programmable payments.

But a Reuters report recently revealed that, in the space of just six months, usage of this CBDC had plummeted precipitously to a mere tenth of the levels seen in December 2023. The sharp drop comes after incentives offered to early adopters came to an end.

Over in China, there was an especially embarrassing report when it emerged that government workers who were receiving their salaries in the digital yuan were swapping it for cash immediately.

Meanwhile, the International Monetary Fund said adoption of Nigeria’s eNaira was “disappointingly low” in the 12 months after launch, with 98.5% of wallets going unused, meaning a “coordinated policy drive” was required to drum up interest.

Making CBDCs cool (again?)

There are a multitude of factors as to why central bank digital currencies are struggling to take off.

For one, there can often be a lack of awareness about what they are — and a technical divide facing older consumers who are more accustomed to physical cash. 

And even among those who do know what a CBDC is, hurdles to adoption remain. A common criticism relates to how private these transactions are, and whether such digital assets can offer the same amount of anonymity as cash. Other sticking points include limits on the amount of CBDC that a single consumer can hold, while a lack of interest payments can be off putting too. 

It’s also fair to say that commercial banks aren’t exactly thrilled by the rise of central bank digital currencies, amid fears that they have the potential to undermine their business models. 

For CBDCs to actually have a chance at gaining traction, they need to offer clear and compelling benefits — including perks that existing payment methods cannot match. Given how the likes of China are home to vast super-apps that blend everything from messaging to grocery shopping in one place, that’s easier said than done. 

Some countries are now putting their foot down and are planning to introduce regulations that will effectively mandate the use of CBDCs. For example, the Bahamas is working on new rules that will force central banks to offer access to the Sand Dollar, in what’s been likened to a “carrot and stick” approach. Success here could influence what other economies do in the future.

You’ll be unsurprised to hear that crypto enthusiasts are rubbing their hands with glee when they hear about the resistance that CBDCs have suffered so far, along with a lack of momentum when it comes to uptake. 

And with major economies such as the U.K., U.S. and EU still many years away from having a central bank digital currency of their own — with no guarantees one will ever debut — there’s a real chance some regions will abandon this policy altogether.

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Kraken, Coinbase form blockchain council to develop crypto security standards

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Crypto exchanges Coinbase and Kraken, along with blockchain firms like Fireblocks, have established a new council aimed at addressing emerging threats like contract exploitation.

American crypto trading giants Kraken and Coinbase have co-founded a new non-profit organization aimed at safeguarding the industry from emerging security threats by developing a “consensus of agreed upon standards.”

In a Wednesday blog announcement, Kraken said the new organization, called the Blockchain Security Standards Council (BSSC), will seek to establish “uniform security standards” to drive confidence in the industry. The council’s founding team also includes Coinbase, Anchorage Digital, Bastion, Figment, Fireblocks, Halborn, OpenZeppelin, Ribbit Capital, and Sentinel Global.

Kraken says all firms in the BSSC are committed to developing “industry security benchmarks and a robust audit process by the end of 2024.” For instance, the BSSC will focus on addressing threats such as fraud, nation-state targeted campaigns, and protocol and contract exploitation.

Besides addressing security issues, the council will also seek to engage with regulators to ensure the sector develops “unified standards that protect consumers while nurturing innovation in the asset class,” the announcement reads.

For Coinbase and Kraken, this is not their first venture into forming councils. In 2019, both platforms co-founded the Crypto Ratings Council to clarify which tokens could be traded without regulatory oversight. Despite these efforts, the council failed to shield Coinbase and Kraken from lawsuits filed by the U.S. Securities and Exchange Commission in 2023, which alleged that both companies violated securities laws.

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Crypto tax calculators to consider in 2024

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Learn about cryptocurrency tax calculators in 2024. Calculate your crypto tax liabilities with ease using CoinTracker, CoinLedger, TokenTax, ZenLedger, and more.

In most countries, including the U.S., U.K., Canada, Australia, and India, tax authorities require you to pay taxes on cryptocurrency transactions. When it’s time to file your taxes, you need to record the details of each crypto transaction. 

However, unlike traditional stock brokers, top crypto exchanges might not provide tax documents summarizing your yearly transactions. Therefore, it’s up to you to figure out your earnings and how they impact your taxes based on your country’s crypto tax rate.

While you can file by hand, this can be cumbersome if you have many transactions. That’s where a crypto tax calculator can help. This software calculates your crypto profits, losses, income, and tax liabilities based on your investing activity and data, retrieving information from your exchanges, wallets, and other crypto platforms.

Whether you’re a seasoned trader or a casual investor, a reliable cryptocurrency tax calculator is essential to ensure compliance and ease the burden of tax filing. Here’s a detailed guide on some of the best crypto tax calculators to consider in 2024.

CoinLedger

CoinLedger is a go-to tool for automating your cryptocurrency and non-fungible token (NFT) tax reporting. According to the platform, since its launch, more than 500,000 crypto investors have used it for tax calculations.

You can calculate crypto taxes using CoinLedger in three simple steps:

1. Import your crypto transactions from your wallets and exchanges.

2. Preview your report.

3. Generate your tax report.

The platform directly integrates with other popular crypto tax tools, making it easy to import all your historical transactions, whether you’re trading, earning interest, or buying NFTs.

It also allows you to download your completed tax forms to file yourself, send them to your accountant, or import them into your preferred tax filing software.

Key features:

  • Unlimited transactions: Import all your crypto transaction history for free.
  • Wide integration: Directly integrates with TurboTax, TaxAct, and other crypto tax platforms.
  • NFT and decentralized finance support: Handles transactions involving NFTs, decentralized finance (defi), and margin trading.
  • Recalculate reports: Regenerate tax reports as many times as needed for free.

Pricing:

  • Free: $0 for unlimited transactions
  • Hobbyist: $49 for up to 100 transactions
  • Investor: $99 for up to 1,000 transactions
  • Pro: $199 for up to 3,000 transactions

Pros:

  • Free plan with unlimited transactions
  • Affordable paid plans
  • Easy integration with other tax software
  • Rerun and recalculate reports at no extra cost

Cons:

  • Full tax report download requires a paid plan
  • No mobile app is available

CoinTracker

CoinTracker, which, per its official website, is used by over 2 million people, supports more than 500 crypto wallets and exchanges, over 10,000 cryptocurrencies, and more than 20,000 defi smart contracts. 

The crypto tax calculator automatically syncs all your crypto activity across exchanges, wallets, defi platforms, and NFTs.

When it comes to security, CoinTracker provides read-only access to your data, end-to-end encryption, and token-based two-factor authentication. It is also SOC 1 and SOC 2 compliant.

It also comes as a mobile app with features that allow you to easily view your investment performance and filter your transaction history from anywhere. 

CoinTracker also offers full support in the U.S., India, and the U.K., with partial backing available in other countries.

Key features:

  • Comprehensive support: Syncs crypto activity across exchanges, wallets, defi, and NFTs.
  • Security: Read-only data access, end-to-end encryption, and token-based 2FA.
  • Mobile app: Monitor investment performance and transaction history anywhere.

Pricing:

  • Free: $0 for 25 transactions
  • Base: $59 for 100 transactions
  • Prime: $199 for 1,000 transactions
  • Ultra: $599 for up to 10,000 transactions

Pros:

  • Offers a free plan
  • Supports over 500 exchanges and wallets
  • Robust security features
  • Convenient mobile app

Cons:

  • Limited support for futures, swaps, and derivatives
  • Supports a limited number of tax jurisdictions

TokenTax

TokenTax is crypto tax software developed by crypto tax experts. It offers both tax calculations and full accounting services for investors globally. 

It features fast, universal data import, instant access to tax forms, real-time tax estimate previews, and is available to taxpayers worldwide.

Using TokenTax is straightforward:

1. Import and review data: The software syncs with your wallets and accounts, eliminating manual data entry and ensuring accuracy.

2. Preview your estimated tax liability: Review your crypto transactions and tax data in one place, with real-time previews of your estimated tax liability.

3. Export completed forms: Access all the forms you need to complete your taxes, whether you file with TokenTax or another provider like TurboTax.

The crypto tax calculator allows you to import data from nearly every crypto exchange, blockchain, protocol, and wallet. However, if it doesn’t have automation for a particular platform, you can use its manual CSV template to import data.

Key features:

  • Data import: Syncs with all wallets and accounts, with manual CSV templates for unsupported platforms.
  • Real-time estimates: Preview tax liabilities in real-time.
  • Comprehensive forms: Exports all necessary forms for filing taxes.

Pricing:

  • Basic: $65 for up to 100 transactions
  • Premium: $199 for up to 5,000 transactions
  • Pro: $1,599 for up to 20,000 transactions
  • VIP: $2,999 for up to 30,000 transactions

Pros:

  • Full-service tax filing
  • Customizable reports for various countries
  • Human customer support
  • Supports almost all wallets and exchanges

Cons:

  • No free plan
  • High cost for some plans

ZenLedger

ZenLedger is renowned for its crypto tax software tailored to defi portfolios. It has reportedly managed over 10 billion transactions for more than 100,000 customers.

The crypto tax tool integrates with over 100 decentralized platforms, such as 1Inch, Aave, Uniswap, and PancakeSwap. 

It also supports more than 400 cryptocurrency exchanges and over 10 NFT platforms, allowing you to import your trading history, calculate your taxes instantly, and generate an IRS Schedule D.

Using your cryptocurrency transaction history, ZenLedger can also easily generate IRS Form 8949 to report your crypto gains and losses.

Another standout feature of the crypto tax calculating platform is its seamless integration with other popular online tax tools like TurboTax and TaxAct. This lets you file your taxes for your entire portfolio, including crypto holdings, all in one place.

ZenLedger can also help you determine the total value of any profit from airdrops, staking, mining, and other sources as they grow and accumulate in real time.

Key features:

  • Defi and NFT support: Integrates with major defi platforms and NFT exchanges.
  • IRS compliance: Generates IRS Schedule D and Form 8949 for accurate crypto tax reporting.
  • TurboTax integration: Seamlessly integrates with popular crypto tax tools.

Pricing:

  • Silver: $49 for up to 100 transactions
  • Gold: $199 for up to 5,000 transactions
  • Platinum: $399 for up to 15,000 transactions
  • Professional: From $275 for a consultation to $6,500 for multi-year plans

Pros:

  • Excellent customer support
  • Quick crypto tax report generation
  • Leading software for defi earnings
  • Extensive exchange and platform integration

Cons:

  • No free plan
  • Defi and NFTs are only supported in professional plans

Crypto.com Tax

If you’re searching for a free crypto tax calculator, Crypto.com Tax is an excellent choice. Whether you’re new to the process or experienced, navigating Crypto.com Tax and generating your tax report is straightforward. 

It is fully integrated with four wallets and 25 exchanges and supports over 10,000 cryptocurrencies. The free crypto tax software is currently accessible in 11 countries, including Australia, Canada, New Zealand, the U.K., and the U.S.

However, as of June 25, Crypto.com Tax will no longer be operational but will instead offer its free crypto tax services through partnerships with Koinly and TokenTax.

Key features:

  • API and CSV support for easy data import.
  • Calculates capital gains and losses.
  • Allows for the generation of multiple tax reports.
  • Completely free for unlimited transactions.

Pricing:

  • Free: $0 for unlimited transactions

Pros:

  • Currently absolutely free
  • Easy-to-use interface
  • Supports thousands of cryptocurrencies

Cons:

  • Limited mobile functionality
  • Smaller number of supported exchanges and wallets

Final thoughts

By choosing the right crypto tax calculator for your needs, you can ensure a smoother tax filing process and stay compliant with tax regulations. 

Although not an exhaustive list, each of the options in our guide offers unique features tailored to different types of crypto investors, so select the one that best fits your trading activities and reporting requirements.

For instance, CoinTracker and CoinLedger offer robust features and extensive integration options, making them ideal for most users. ZenLedger, on the other hand, excels in managing defi portfolios, while TokenTax provides comprehensive services for those needing more personalized support. 

For a completely free solution, Crypto.com Tax is a great option, especially for beginners. Evaluate your needs and choose the tool that best suits your crypto trading activity and tax filing requirements.

FAQ

How do I calculate my crypto taxes?

To calculate your crypto taxes, you need to tally up all your transactions throughout the tax year, including buys, sells, trades, and other crypto activities. A crypto tax calculator automates this process by analyzing your transaction history and applying relevant tax rates to calculate your taxable gains or losses.

Why do I need a crypto tax calculator?

A crypto tax calculator simplifies the complex process of calculating taxes on cryptocurrency transactions. Unlike traditional investments, crypto transactions aren’t automatically documented for tax purposes by most exchanges. A tax calculator gathers all your transaction data, computes profits, losses, income, and tax liabilities, ensuring accurate reporting and compliance with tax laws.

What is the best crypto tax calculator?

The best crypto tax calculator depends on your specific needs and trading activities. Options like CoinTracker, CoinLedger, TokenTax, and ZenLedger offer comprehensive features for different types of investors. CoinLedger stands out for its integration capabilities and free plan, while ZenLedger excels in managing defi portfolios. 
For beginners seeking a free solution, Crypto.com Tax provides a straightforward interface and supports a wide range of cryptocurrencies. Choose based on your trading volume, complexity, and reporting requirements.

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Russia’s Minfin mulls crypto trades on stock exchanges for select investors only

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Russia’s Ministry of Finance is reportedly working on allowing stock exchanges to open crypto trades, but restrict access to a limited group of “highly qualified” investors.

Russia‘s Ministry of Finance, also known as Minfin, is exploring measures to permit crypto trading on stock exchanges as the country is moving closer to legalizing crypto payments for cross-border trades, Russian state news agency Interfax reports, citing sources close to the matter.

The report notes that the ministry is mulling a mechanism that would allow conducting trades with digital currencies, but for “highly qualified” investors only as Russia’s central bank, the Bank of Russia, still continues to oppose full crypto legalization.

As Interfax notes, the initiative aims to facilitate digital currency trades while navigating regulatory complexities, aligning with Russia’s prime minister Mikhail Mishustin’s 2022 push to enable cross-border crypto settlements. As per sources close to the matter, the Minfin suggests recognizing cryptocurrency as a commodity in a bid to navigate regulatory complexities.

The ministry’s proposal comes shortly after reports surfaced saying that the Bank of Russia might be considering approving stablecoins for cross-border trades as local businesses explore alternative methods to conduct trade with China amid sanctions.

In an interview with Russia’s state newspaper, central bank deputy governor Alexei Guznov said the proposal is under discussion, adding that the eventual goal is to regulate the entire process chain that would enable individuals to “transfer these assets [stablecoins] into Russia, accumulate them, and use them for international payments.”

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
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