Crypto

New Taxation Proposal can Boost Cryptocurrency Merchant Adoption

Most personal transactions where a capital gain occurs are subject to taxation. A newly proposed bill in the US House of Representatives could change things up a bit in this regard.

Do not expect the taxable gain

to be eradicated completely, however.

Changing Crypto Taxation for the Better

This peculiar proposal aims to take a slightly different approach to capital gains taxes.

Any personal transactions with a profit of under $200 would no longer be taxable.

That would be rather significant if approved.

Nearly 90% of personal transactions have a profit of under $200, except for speculative dealings.

Although this new proposal is certainly exciting, it still needs to go through the proper motions first and foremost. 

Related Post

That said, it can certainly have applications to cryptocurrency trading as well.

As cryptocurrencies are currently deemed property, the capital gains taxation needs to be reported properly.

If those gains were below $200, the proposal would nullify those taxes completely. 

As far as trading is concerned, it will not alleviate anything regarding taxable events.

This will apply only to personal transactions, including nullifying price changes of a cryptocurrency asset used to buy goods or services.

For vendors and merchants, this proposal can make a world of difference.

Especially those dealing with small margin profits might become more eager to adopt cryptocurrency transactions.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

SOL Market Cap Hits $100 Billion as Possible Infinaeon Long-Term Price Targets Surge

The SOL price has surged to well over $200 as its market capitalization exceeded $100…

3 hours ago

Binance Coin Whales Reap Big Profits as Polkadot Struggles; A New Crypto Presale Is Dominating Investor Attention

BNB is already flashing signs of a bearish sentiment despite launching a new stablecoin while…

5 hours ago

Three Crypto That Surprised The Market: Rollblock, Cardano, and XRP

The crypto market is no stranger to unexpected twists. However, the recent performances of Rollblock,…

6 hours ago

As Bonk (BONK) and Pepe (PEPE) Shine, Rollblock (RBLK) Captures the Market’s Attention With Upcoming Reveal

Meme coins are back with a bang and are as insanely volatile as ever! Bonk…

6 hours ago

2024’s Top 9 Crypto Staking Platforms to Make Passive Income

Staking has become one of the most effortless ways to generate passive income in the…

8 hours ago

Qubetics, Algorand, and Near Protocol: Best Cryptos to Buy in November 2024

Qubetics, Algorand, and Near Protocol: The Best Cryptos to Buy in November 2024—Which One Is…

20 hours ago