Digitising crypto taxation becomes the economical solution

financialexpress.com:

By Avinash Polepally

Over the years, the cryptocurrency market has witnessed remarkable growth. Factors such as increasing acceptance, adoption by individuals and institutions, growing interest in decentralized finance (DeFi) platforms, and the potential for cryptocurrencies to hedge against inflation and political instability have contributed to this growth. ` Advancements in blockchain technology and using cryptocurrencies for cross-border transactions have also played a pivotal role.

As more businesses and individuals embrace cryptocurrencies, digital assets are becoming a preferred medium for day-to-day transactions. By 2023, the crypto transaction value is predicted to surpass $16 billion, and the user count is expected to reach 994.30m by 2027.

On the hind side, investing and trading in cryptocurrencies can lead to capital gains and losses and the daunting task of calculating taxes. Just like traditional money transactions, crypto trading carries tax liabilities that must comply with regulations.

Considering complexities, technology-backed tax calculation tools alleviate the challenges faced by investors from crypto transactions. By connecting to exchanges and wallets, crypto tax platforms are simplifying the process of compiling transactions and tax calculations. 

Tech-based Computing – A Cost-Effective Solution for Investors

Crypto taxation can be confusing for first-time investors. Fortunately, the Internal Revenue Service (IRS) has issued comprehensive guidelines on filing taxes for crypto transactions. Many inexperienced investors found themselves unprepared, seeking assistance from chartered accountants (CAs) to navigate the complexities of filing crypto taxes comprising multiple transactions involving