Cryptocurrency taxation is becoming a consensus with varying degrees of intensity and details to be improved

Since the first Bitcoin transaction in 2009, Bitcoin has gradually entered the public eye over the past decade and has gradually received different treatments at the official level in various countries. In 2012, the Central Bank of Finland recognized the legality of Bitcoin; in 2014, the Polish Ministry of Finance confirmed Bitcoin as a financial instrument; in 2014, France issued new Bitcoin regulations; in 2015, the European Union exempted Bitcoin from VAT; in 2016, Japan recognized Bitcoin as property; in 2016, the General Principles of Civil Law defined the scope of protection for virtual assets...

So far, countries around the world have different views on cryptocurrencies, which has led to different stages of cryptocurrency tax policy making. However, in many countries that allow cryptocurrency transactions, taxing cryptocurrencies is becoming a consensus.

Previously, countries' taxation of cryptocurrencies was mainly divided into three levels. For example, a very small number of countries, such as Belarus, have adopted a policy of completely exempting them from all taxes; for example, some countries that strongly support cryptocurrency transactions, such as Singapore, have adopted a partial taxation policy, that is, only taxes are imposed on the profits from cryptocurrency transactions; for example, some countries that have adopted a strict regulatory attitude, such as the United States, not only taxes are imposed on the profits from cryptocurrency transactions, but also a series of cryptocurrency-related behaviors, such as cryptocurrency exchange, purchase of goods or services with cryptocurrency, and airdrops, are included in the tax scope.

However, as a major component of state revenue, taxation is vital to the development and stability of every sovereign state. As a new form of currency, cryptocurrency has the possibility of evading tax collection and management. If a complete tax exemption policy is implemented for a series of behaviors such as the purchase, exchange, and trading of cryptocurrency, although it is a recognition of the legality of cryptocurrency transactions, it also recognizes that domestic and foreign companies and individuals can use cryptocurrency to reasonably avoid taxes, which may be a fatal blow to the feasibility and stability of the country's overall tax collection and management.

Therefore, it is generally believed that the taxation policy on cryptocurrencies is completely necessary. Even in the few countries that currently implement a complete exemption from all taxes, such as Belarus, its tax exemption policy on cryptocurrencies is not permanent. Therefore, we can see that although the details of the tax regulations have yet to be improved, the tax authorities have begun to wake up and the taxation of cryptocurrencies is becoming a consensus.

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