Tax on Cryptocurrency gains – Unlocking the Mystery
Tax on Cryptocurrency gains – Unlocking the Mystery The first Cryptocurrency – Bitcoin was introduced more than a decade ago in 2009 by the so-called father of bitcoin – Satoshi Nakamoto, and since then there has been a flux of cryptocurrencies getting introduced from time to time. Bitcoin and several other rival cryptocurrencies like Litecoin, Ethereum, Ripple, Dogecoin etc. have experienced path breaking growth in the recent years, leading to lot of complexities into the accounting of such currencies and their tax implications globally. To any first-time reader here, Cryptocurrency is digital currency that uses encryption techniques, rather than a central bank, to generate, exchange, and transfer units of currency. Unlike cash transactions, no bank or government authority regulates these forms of currency or verifies the transfer of funds. Instead, these virtual transactions are recorded in a digitized public ledger called a “blockchain.” Individual units of the...