Authorities in Europe and South America are prepared to act, as governments around the world are eying taxation and oversight of the cryptocurrency industry, according to CryptoNews.
Netherlands’ chief financial regulator, the Netherlands Authority for the Financial Markets, has reportedly advised the government to ban anonymous trading and force all Dutch wallet and cryptocurrency exchange services to apply for trading licenses. Such a policy would be similar to the system currently in place in Japan, where all domestic exchanges must obtain approval from the country’s Financial Services Authority.
Dutch regulators made their suggestion in conjunction with the country’s central bank, according to media outlet NOS. The report was commissioned by Wopke Hoekstra, the Dutch Minister of Finance. He is reportedly considering the proposals.
According to NOS, licenses would be granted to exchanges and wallet services that retain customer trading data. The providers would have to agree to hand this data over to the police or other investigators should a court require them to do so. The providers would also be obliged to monitor customer activity and report suspicious transactions.
In Chile, meanwhile, tax authorities have stated that citizens who realized gains money from cryptocurrency in FY2018 must pay taxes on their earnings.
Chilean authorities have also reportedly stated that gains from “digital or virtual assets, such as cryptocurrencies (e.g. Bitcoin)” will need to be reported as income.
Chileans must submit their tax declarations by April this year.
Chile’s crypto-community has been eagerly awaiting the outcome of a long-running legal battle between the country’s leading cryptocurrency exchanges and a number of leading banks. The banks allegedly attempted to shut down exchanges’ bank accounts last year. As a result, the exchanges complained the move constituted an unfair and arbitrary restriction of trade.
Meanwhile, Poland has implemented new regulations which will require traders to declare their revenues from the sale of cryptocurrencies starting in 2019 and subject them to a 19% tax.
In the US, cryptocurrency market player, Circle has been working with regulators to elevate some of the regulations and taxations on crypto-to-crypto transactions.
US investors lost billions via cryptocurrencies in 2018, though many reportedly they don’t intend to report their losses.
Governments will most likely continue their focus on taxation and regulation of digital assets and exchanges over the next few years. As cryptocurrencies become more regulated and reliable, the public may become more willing to mass adopt them.