Episode 41 of the Public Key podcast is here! It’s tax season, and we sat down with our Global Head of Tax Strategy at Chainalysis, Roger Brown, to provide clarity on crypto taxes around the world.
This podcast is for informational purposes only and is not intended to provide legal, tax, financial, or investment advice. Listeners should consult their own advisors before making these types of decisions.
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Public Key Episode 41 Preview: Demystifying crypto and NFT tax season
If you want to make an active crypto trader nervous, there are a few things that work better than reminding them there are only two and a half months left until the US Tax filing deadline. For most people, a tax return is full of arcane and complex rules that you’re not quite sure if you got everything right, but for crypto investors, the rules are being written and rewritten each year.
In this episode, Ian Andrews (Chief Marketing Officer, Chainalysis) brought in Chainalysis’ in-house expert, Roger Brown (Global Head of Tax Strategy), to understand the crypto tax principles and how recreational users and institutional investors are managing bitcoin on their balance sheets.
Roger informs us on the latest tax changes in the US and abroad and speculates how many people correctly report big crypto gains or losses.
Quote of the episode
“So it’s all automated, which makes perfect sense cause the IRS doesn’t have enough people to audit 180 million tax returns with their staffing. So they’re running machine analytics to detect where there’s underreporting and third-party information reporting. That system broke down with crypto because crypto grew so fast, and the way the information reporting rules work is that there’s no reference to crypto anywhere.” – Roger Brown (Global Head of Tax Strategy, Chainalysis)
Minute-by-minute episode breakdown
- (2:35) – How the ambiguity of the classification of Bitcoin challenged traditional tax principles
- (4:30) –Understanding tax law and foreign currency and where cryptocurrency fits in
- (9:15) – How countries around the world are taxing Bitcoin and cryptocurrency
- (13:07) – Are stablecoins treated as currency based on the assets backing them?
- (14:45) – Taxes may not be paid on massive crypto gains, and how the IRS is reacting.
- (18:35) – Do crypto exchanges have reporting requirements for tax purposes to their customers.
- (23:16) – Tax strategies going from bull to bear markets and the impact on staking crypto
- (27:04) – What happens when your assets are locked in Celsius, FTX, or the victim of a rug pull
- (30:00) – The complexities of institutions and companies holding crypto
- (33:37) – The future of crypto taxation and what part regulators will play
Related resources
Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.
- Article: Tax Gap Estimates for Tax Years 2014-2016
- Blog: 2021 Cryptocurrency Gains by Country: Ethereum Leads as Gains Skyrocket Around the World
- Blog: Crypto Tax 101, 201 & 301: What Taxpayers and Tax Authorities Should Consider After Cryptocurrency’s Breakout Year
- Blog: Crypto Money Laundering: Four Exchange Deposit Addresses Received Over $1 Billion in Illicit Funds in 2022
- Report: The Chainalysis 2023 Crypto Crime Report (Coming February 2023)
- Conference: Chainalysis Links Conference 2023 in New York City
- Twitter: Chainalysis Twitter: Building trust in blockchains
- TikTok: Newly launched Chainalysis TikTok page
- YouTube: Chainalysis YouTube page is completely revamped
Speakers on today’s episode
- Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
- Roger Brown (Global Head of Tax Strategy, Chainalysis))
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