Crypto investors have many problems to solve, and new ones have emerged over the past few years. Cryptocurrencies are not yet fully regulated around the world. However, the IRS in the United States has taken significant steps regarding taxation. The latest announcements are troubling for investors in the US.
Cryptocurrencies and Taxation in Turkey
Turkey has not yet taken concrete steps regarding the taxation of cryptocurrencies. Authorities mentioned the need for comprehensive studies on taxation during the bull market of 2021. Since laws cannot be applied retroactively, there seems to be no problem for Turkey at the moment.
However, it seems that necessary steps will be taken following the latest draft crypto law expected to be enacted by June, prepared by the Ministry of Treasury and Finance. The rules aimed at removing Turkey from the FATF grey list also signal that cryptocurrency regulations will soon be implemented.
After resolving issues such as the definition of cryptocurrencies and how they will be recognized as assets, the issue of taxing cryptocurrencies will come to the agenda in Turkey.
The US and Cryptocurrency Taxation
The situation for US investors is less complicated. There, the IRS is requesting declarations of crypto income for 2024. Guy Ficco, Chief of Criminal Investigation at the IRS, said in his latest interview with CNBC;
“Right now, and in our current inventory, what we see more of is crypto tax crimes. And these are, particularly federal income tax violations involving crypto, very common. It could be simply not reporting income from crypto sales, or it could be hiding the true basis. There is an increase in crime in this area, and I think we will see more cases going forward.”
Ficco also talks about the strength provided to them by private companies like Chainalysis.
“Chainalysis and some other partners are very helpful to us. I can say that the partnership aspect, the public-private partnership aspect is [important]. Almost all of our IRS special agents have accounting degrees and are extraordinary at following and tracking money, but when we started investigating in the crypto world, some tools, some practices required support from the private sector.”
