High-profile crypto failures in 2022 drive stricter tax reporting
Tax reporting for crypto is rapidly becoming a global phenomenon.
High-profile business failures in 2022 have driven stricter regulatory reporting across the global, the PwC reported.
In its Global Crypto Tax Report 2022, PwC found that there is still a “noticeable” difference in tax policies and guidance.
“Since we started this report in 2020, we have seen increasing tax regulation of the digital assets sector,” Peter Brewin, Partner, PwC Hong Kong and Mainland China, said.
“Nowhere is there more apparent than in the new proposals on tax reporting for virtual asset service providers released by the OECD.”
Amongst the current crypto-related policies include the OECD’s Crypto Asset Reporting Framework, updates to the Common Reporting Standard, The European Union’s Directive on Administrative Coopration 8, and the United States’ Infrastructure, Investment and Jobs Act.
Aside from the growing scrutiny on crypto, PwC said that a greater scrutiny og NFTs and NFT marketplaces will also be a trend in the coming year.
“Looking forward, the impact of the bankruptcy of FTX will continue to be felt in 2023, with calls for greater transparency,” Gwenda Ho, Tax Partner, PwC Hong Kong, said.
“Another major development is the Ethereum network’s shift from ‘proof of work’ to ‘proof of stake’, which also raises complex tax issues that have yet to be addressed in many markets. Finally, the issue of how stablecoin transactions should be treated for tax purposes is also likely to keep regulators busy.”