Established Crypto Taxes for Countries in 2022

Cryptocurrency tax has been one of the most discussed topics in the industry. With the global adoption of cryptocurrencies, the ambiguity revolving around its tax regime has also been on the rise.

Digital assets have come a long way from being a speculative asset to their current position. Since millions of investors are pouring their funds into cryptocurrencies, governments across the globe are trying to tax them. However, there is no-one-size-fits-all situation. Some countries have imposed crypto-friendly tax rules, whereas others are purely trying to kill the industry.

Countries with established crypto taxes

Some countries have recently jumped to frame cryptocurrency laws, and some countries are revisiting their decision and making changes.

One such example is Nigeria. Nigeria recently announced that it will be passing a bill to recognize cryptocurrencies. The country banned digital assets in 2021 but has now had a change of heart.

India is an example of a country that has imposed a not-so-friendly tax framework. The country imposed a 30% tax on the sale of cryptocurrencies. As if a 30% tax was not enough, they also imposed a 1% TDS on all transactions.

The recent collapse of FTX has also triggered the government to think quicker. Canada recently imposed a ban on cryptocurrency leverage and margin trading. The decision will affect 3.2% of the population that has invested in cryptocurrencies.

While some countries imposed stringent tax measures, other countries like El Salvador, the Cayman Islands, Puerto Rico, Malta, Georgia, Malaysia, Belarus, Singapore, Dubai, Switzerland, and more, made cryptocurrencies tax-free for their citizens.

Source: KoinX

Cryptocurrency tax still seems to be a confusing subject for several nations. As digital assets are spreading like wildfire, governments have to sprint faster to impose the necessary measures that don’t kill the emerging industry.