In the United States, any profit is taxed. This is a rule. However, most local crypto investors believing that they are not bound by it irresponsibly ignore this obligation. The government, in return, has decided to tackle this problem. Washington is planning to introduce a tax on cryptocurrencies. The details of the new initiative will become known soon. Market participants have reacted to the news with discontent. However, the new law is meant to strengthen the cryptocurrency trading system in the long term, analysts say. Notably, many traders had expressed their willingness to pay taxes even before the corresponding legislation was approved, but could not simply track their debt. If in traditional markets, brokers are obliged to send tax declarations to their clients, cryptocurrency exchanges remain off the radar. Even if they want to help investors pay tax liabilities, they simply do not know how to act under the current legislation. The new provision should solve this issue. "Most would benefit from a tracking service to help with taxes," Andrew Johnson, a project manager at a large national bank, said. The government hopes to raise $28 billion through the tax on digital assets. Profits from cryptocurrency transactions are currently classified as income from capital gains or business income (for miners). That is why traders find it hard to understand the intricacies of taxation.
