Lawmakers in the U.S. are currently making moves that will favor the crypto industry to some extent. The new bill being introduced is looking to give some tax relief to small crypto transactions.
The bill is called “The Virtual Currency Tax Fairness Act of 2020” and would help all crypto transactions that can be defined as small or personal transactions. If the bill is passed, personal crypto spending would not have to be recorded, making sure that it isn’t taxed.
The bill was put forward yesterday by four lawmakers. They include Suzan Delbene (D-Wash.), David Schweikert (R-Ariz.), Tom Emmer (R-Minn), and Darren Soto (D-Fla.) The bill will give significant clarity in the crypto industry, regarding general regulation. Also, it would take a lot of pressure off individual crypto proponents who are currently forced to be accountable for even the smallest crypto earnings or transactions.
Coin Center Director of Communications Neeraj Agrawal explains this best. He said:
“Extending this sensible exemption to cryptocurrency would allow users to do simple things like send small transactions to each other or fractions of pennies to DApps without having to deal with a fairly complicated capital gains calculation every time.”
Tax on crypto is generally still a touchy subject. Just last month, the National Tax Service of South Korea (NTS) announced a $70 million withholding tax on Bithumb.
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