Crypto has made many people rich. Even those who had literally zero chances of being rich by following the hamsterwheel of the jobs and the services. And this is something banks, rich and the govt don't want to continue for yet another decade. So they are keeping an eye on the FIAT and the crypto link to fix this.
I thought why not list some of the tracing systems that are coming out in upcoming times and govt are going to use that to track the money laundering and other crypto crimes. So if you happen to like this topic then this is the post for you and you would learn something at the end.
Let's take a look at some of the crypto-fiat tracing system that govt wish to use in upcoming times.
USA: 1099B Forms and Crypto income Filing Software
Our tax filing softwares are not yet ready with the crypto income filing means. And govt has just released the form 1099B for this year but it would be possible to use to file in the 2025/2026. This would be making the consumers, business and the brokers file this form and they would be declaring the crypto assets. Which is kind of new norm in next 2 years. Check the form here.
As for the crypto income filing software, we don't have the quicken and the other softwares currently including all the crypto in their database. Soon they may end up fetching the coinmarketcap and the API data to trace the link in the fiat-crypto systems. You would understand that with the software made the filing would get easier and disclosure would be easy to track.
Russia : Know Your Crypto Client Pilot
Russia has witnessed a lot of crypto trading since the war. And they have noticed there are some of the people who are laundering the assets. So when you think of the laundering that needs to be curbed, there needs to be more centralized approach for the exchanges. And so russia has worked on a system that would track the crypto-fiat link which would make AML easier.
In case of such project they have run one pilot project and there are some good results out of the same. You can read about this pilot project here. There is a lot of data that russia has estimated on this topic. And you can explore in this document where you can find about it as well. As there is a lot of international conflict russia has gone through, I suppose we would see how this ends up in their final release.
India: Flat tax rate and VDA tracking
Just like US and Russia, there is a progress from the India on the topic of the crypto tax tracking. And they are making sure that the exchanges data would become accessible for the crypto filing. They take the PL data and also the loss setoff is counted in the overall data. In short the india is taking more digital approach to track the PL and the crypto investments which would bring more clarity.
If we consider the flat tax rate people are going to hate that considering it is 30 percent. And the Virtual digial asset is considered and taxed on the flat rate too. So in short it would be reasonable to say that VDAs can make the tax filing possible through such tracking softwares. So if we ignore the decentralized coins and p2p market, it's going to get tough soon.
The days of free transfer of the fiat assets for the crypto are over. And now we are going to get tracked by the crypto exchanges and the govt would be keeping eye on the transactions for controlling the money laundering.
Posted Using InLeo Alpha
Posted Using InLeo Alpha