Following the surged adoption of digital assets and gains from cryptocurrency, several nations have set up tax slaps to impose taxes on gains from these investments.
It is worth noting that capital gain taxes on crypto have become one of the most tax-emitting sectors compared to others. It has been reported that individuals are leveraging new tactics to avoid paying taxes to the nation’s government.
In a recent development, a regulator of the United States has reported that a Bitcoin investor from Austin, Texas, Frank Richard Ahlgren III, became the first person criminally charged for failing to report crypto capital gains.
The U.S. Department of Justice (DOJ) further notes that Frank purchased a luxury home in Park City, from gathering $3.7 million by selling 640 Bitcoin in 2017.
It is worth noting that despite huge profits, Frank cleverly falsified his tax returns in between 2017 and 2019, concealing profits and an additional $650k in Bitcoin transactions.
He reportedly used tactics like mixers, wallet transfers, and in-person cash transactions to avoid paying huge taxes for his gains.
A filing of Frank of 2017 highlights that he succeeded in evading $1 million in taxes, by reporting false information of his Bitcoin purchase.
Over these severe allegations, Frank has been jailed for two years alongside paying $1.1 million for his crime with one year in supervised release.
Texas crypto adoption surging with surged profits!
Texas is among the states yet to identify crypto as legal tenders, however, despite an official recognition, the state stands as the most preferred location by digital asset miners.
However, several businesses in the territory accept Bitcoin and other known cryptocurrencies as a mode of payment.
Earlier on December 12 it was reported by CNBC that there was legislation concerning the establishment of a Bitcoin strategic reserve that could support the U.S treasury.
As per experts, the proposed legislation would allow the state to structure a strategic Bitcoin reserve by accepting donations, fees, and other miscellaneous charges in Bitcoin.
Texas has a major contribution in the overall crypto users in the United States, and the state is also identified as the second-largest economy in the United States.
It is believed that residents of Texas are one of the most advanced in terms of technology adoption and education including several other aspects.
Crypto Market Price Updates
As Donald Trump’s presidential oath is nearing, the wider cryptocurrency market has seen a staggering inflow of funds and growth in trading prices of several cryptocurrencies.
When writing Bitcoin was trading at $101, 709 with an intraday surge of 1.99 percent and adding 2.33 percent weekly.
The cryptocurrency market capitalization was $3.65 trillion with a surge of 2.65 percent.
