Breaking 🚨: IRS Releases Guidance on Cryptocurrency ‘Staking’ Rewards

Many cryptocurrencies operate on blockchain technology, with specific consensus mechanisms in place to validate and add new transactions to the ledger. One such consensus mechanism is proof-of-stake, used by the likes of #Cardano (ADA), and #BNB Chain (BNB).

According to the report, the IRS determines the fair market value by “the date and time the taxpayer gains dominion and control over the validation rewards.” In other words, your tax payable should reflect the market value of the assets when they hit your wallet.

So for US taxpayers, keep an eye on when and how you receive your staking rewards. Otherwise, you may receive a nasty visit from the tax man.