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New Report on Tax Treatment of Cryptocurrency Block Rewards

In Custodia Legis – New Report on Tax Treatment of Cryptocurrency Block Rewards Published: “The foreign law specialists of the Law Library of Congress recently completed a multinational report titled Taxation of Cryptocurrency Block Rewards. The report surveys the tax treatment of new tokens obtained by cryptocurrency mining or staking, often known as “block rewards,” in 31 countries around the globe. It also addresses the tax implications of cryptocurrency tokens acquired through activities like airdrops and hard forks (also referred to as “chain splits”) in various jurisdictions. “The Library of Congress report contains valuable information on how countries are responding, or failing to respond, to this new technology. How nations tax the people who maintain cryptocurrency networks will obviously have a big effect on attracting or repelling innovators and investment,” said Abraham Sutherland in the press release issued by Congressman Tom Emmer’s office announcing the publication of the report. The report shows that while tax authorities of a number of countries have published guidance on the taxation of mined tokens such as Bitcoin and other “proof-of-work” cryptocurrencies, only a few specifically address the taxation of tokens received through staking, a term used to describe the process of obtaining reward tokens in the newer “proof-of-stake” cryptocurrencies…”

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