Cryptomining, Blockchain forks, Cryptoassets, Disposal of Cryptoassets, and Pooling: Tax Goes Crypto

And so we see cryptomining, the loss of private keys, blockchain forks, cryptoassets, the disposal of cryptoassets, pooling, and so on, appearing within our tax regimes. Our governments are thus finally waking up to the fact that our world is less about physical and more about software, and that cryptoassets will not go away, and are likely to replace many of our existing ways of trading.

I really feel a bit sorry for governments and cryptoassets. Overall they probably wish they would go away, as they do not have the legal infrastructure to properly cope with them. The UK, for example, is currently struggling with any form of legal infrastructure for them, and where much of the understand just goes towards laying out a basic taxonomy (which is often confused). The most developed I have seen is within Liechtenstein, and where their government has properly defined a legal framework or cryptoassets.

Unfortunately, the legal system can take a while to adopt new technology, but when there’s tax revenue involved, governments often speed thing up. And so the tokenization of our world continues, we need to ask serious questions about the ownership of cryptoasset. Most of our law is based on the ownership of physical assets, but in the future, our world may…