TCP-MARKET: cryptocurrency taxation requires reform
States continue to impose fiat frameworks on cryptocurrencies, ignoring their nature and market characteristics. TCP-MARKET believes that this approach is outdated and needs to be reconsidered.
Main Problem
Tying the value of cryptocurrency to fiat for taxation purposes creates artificial obligations. The price of the asset is fixed at the time of the transaction, but by the time the tax is due, it may have changed significantly. The investor effectively pays taxes on "paper" profits that no longer exist.
Additionally, losses are ignored: tax is levied on profits but does not account for losses, which puts investors at a disadvantage.
Double Taxation
Paying for goods or services with cryptocurrency is often considered barter. This leads to double taxation: tax on the conversion of the asset and tax on the seller's income. Such an approach hinders the widespread adoption of cryptocurrencies as a means of payment.
TCP-MARKET's Position
We advocate for reforming tax approaches:
Accounting for volatility in tax calculations.
The ability to reduce the tax base by losses.
Exclusion of double taxation.