- The G7 could be set to streamline its crypto taxation policies in its upcoming February 12 summit
- Tax authorities across the world are intensifying efforts into creating a framework for taxing cryptos
- New tax measures are expected to come into play in Europe, Asia, and beyond
Along with the regulation of the crypto industry, the issue of the correct tax to be used for crypto profits has been a major issue for a long time. As the crypto market continues to grow, tax authorities around the world have indicated that they will not sit back and watch crypto traders get rich.
The G7 Taxman is Preparing a Crypto Taxation Policy
The Group of Seven, simply known as G7 is an intergovernmental organization made up of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The G7 could be looking to streamline its crypto taxation policy.
On Tuesday, the Japanese Finance Minister Taro Aso was quoted by Reuters as stating that the “implementation of digital taxation and central bank digital currency” would be one of the issues discussed in the February 12 G7 summit.
The summit scheduled to hold in Britain would be conducted online. It will be chaired by the UK, ahead of the first in-person meeting of major leaders on a major scale since the start of the coronavirus pandemic, slated for June this year.
The main purpose of the summit is to discuss the solutions available to the seven advanced economies of the world in the wake of the economic crisis caused by the Covid-19 pandemic. The G7 members will also discuss the implementation of digital taxation and new debt problems.
On the Flipside
- The Bank of Korea (BOK) has finished their research on legal issues around central bank digital currencies (CDBCs)
- The BOK concluded that the asset class could meet currency requirements and be freely exchanged with cash
- The Bank Of Korea has now given CBDCs and fiat cash the same legal status
Crypto Taxation, A Growing Global Trend
The fact that the G7 set to discuss the possibility of central bank digital currencies (CBDC) and taxes on cryptos comes as no surprise. The institution has previously announced that it wants strong legislation to regulate the digital payments industry.
As the G7 prepares to shape its crypto tax policies, other outside nations have been on the same journey, making crypto taxation a global trend. For example, the Spanish authorities already have crypto tax laws in place, like some other European nations.
The Spanish tax agency, also known as the Hacienda, is currently mulling plans to hit crypto traders who fail to declare their earnings with fines of around USD 6,000. Similarly, Russia has a declaration for crypto tax defaulters is under development.
In South Korea, the government is set to sign off on a series of bundled tax legal amendments soon, with crypto tax set to start as planned in 2022.