Crypto Tax Trends in 2022: Increased Reporting, Updated Rules, and a Wealth Tax Debate
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Crypto isn’t a secret anymore, and nowhere is this more apparent than in the concerted efforts of various governments to make sure crypto traders pay taxes on their gains. 2021 saw an increasing movement towards the creation of taxation regimes for crypto, and 2022 might see more governments actually implementing such regimes and enforcing them.
According to tax experts speaking to Cryptonews.com, a few main trends could define crypto taxation in 2022. Most notably, we might see increased reporting requirements for crypto exchanges and trading platforms, while it’s also likely that governments will introduce rules intended to facilitate the cross-border exchange of info concerning transactions.
The construction of a monolithic reporting network will leave exchanges and other crypto businesses with little option other than blanket compliance. And once reporting guidelines for cryptoasset transactions have been fully implemented, we may see debates about tax crypto-based wealth heating up.
If you’re in the United States, you’ll find that, from this year onwards, it will become increasingly more difficult to hide any profits you make (via crypto trading) from the Internal Revenue Service (IRS). As international tax specialist Selva Ozelli notes, this is the result of changes proposed as part of the USD 1trn infrastructure bill signed into law in November.
“H.R. 3684, the Infrastructure Investment and Jobs Act, requires cryptocurrency ‘brokers’ -- which includes “any person who for consideration is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person” -- to report cryptocurrency and [non-fungible token, NFT] purchases of over USD 10,000 to the IRS on Form
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