The majority of participants in a recent poll support some forms of cryptocurrency taxation. Contrary, 20% are against, outlining that current laws are not functioning accordingly to cope with the rising role of digital assets in the modern online world.
66% Support Crypto Taxation
The topic of taxation in the cryptocurrency scene has been openly discussed for years without a definitive and precise solution. The divided evaluations are spread among countries but also digital asset investors.
A new poll on the matter compiled by a South Korea-based digital asset finance startup shed some light on people’s perception. Out of 5,750 surveyed users of the company, 48% strongly agree that cryptocurrency taxation “is a must.”
Another 18% agree “at an acceptable level,” bringing the total percentage of supporters to 66.
On the contrary, 20% of all respondents had dissented disagreement. 11% of them had strong opposing positions, insisting that current laws and frameworks are not sufficient enough to cover assets as innovative as cryptocurrencies. They pointed out that new and different rules are required.
The other 9%, who also expressed an adverse opinion on the matter, said that “taxing digital assets is premature and too early with very little to no understanding.”
14% of participants stayed neutral without taking either side.
Taxation In Different Countries
South Korea already has a complicated history with cryptocurrency taxation. For instance, the East Asian country said at the start of 2020 that digital asset trading profits are not considered as taxable income. A few months later, however, new reports indicated the exact opposite as the government began reviewing a way to implement taxation on gains from cryptocurrency trading.
Other countries such as Spain, the US, and Australia are employing the current taxation laws for digital asset profits as well. The Australian Taxation Office (ATO) announced earlier this year that it was contacting approximately 350,000 cryptocurrency traders, via email or postal letter. Interestingly, the IRS did the same in the US several months back.
Spanish authorities, amid the most dreadful days prompted by the COVID-19 pandemic, also sent notices to over 66,000 cryptocurrency traders in investors. Interestingly, the Spanish Tax Agency sent 14,700 such notices in 2019, meaning that the number of people involved in digital assets had quadrupled in a year.