Blockchain
Nearly half of crypto investors unclear on tax rules, survey finds
A recent survey conducted by Independent Reserve and PureProfile gathered insights from over 2,100 taxpayers regarding their attitudes towards cryptocurrency, focusing on their awareness, adoption, trust, and confidence. The findings highlight significant gaps in tax compliance among cryptocurrency investors.
Awareness and Adoption:
- The survey indicated varying levels of awareness and adoption among Australian taxpayers, with many still unfamiliar with the tax implications of cryptocurrency transactions.
Trust and Confidence:
- Trust in cryptocurrencies and confidence in managing crypto-related tax obligations were also assessed, revealing a need for better education and resources.
Common Mistakes in Crypto Tax Compliance
Shane Brunette, the founder of the Crypto Tax Calculator tool available through Independent Reserve, emphasized that the most significant error made by crypto investors is failing to maintain accurate and detailed transaction records.
Taxable Events:
- Brunette pointed out that many cryptocurrency investors are unaware that numerous transactions could be considered taxable events. This includes:
- Selling cryptocurrency for fiat currency
- Trading one cryptocurrency for another
- Using cryptocurrency to purchase goods or services
Record-Keeping:
- Comprehensive records should be kept for all transactions, including dates, amounts, types of assets, and their values at the time of each transaction. This practice is crucial for accurate tax reporting and compliance.
Australian Tax Office (ATO) Regulations
The ATO treats cryptocurrencies as assets subject to capital gains tax (CGT). Key points include:
- Capital Gains Tax: Disposal of cryptocurrency incurs CGT, with a 50% discount available if held for more than a year.
- Income Tax: Income tax liabilities arise when cryptocurrency is paid to a taxpayer or earned through staking, where traders earn interest on cryptocurrencies lent to third parties.
ATO’s Enhanced Surveillance
In April, the ATO announced increased surveillance of traders failing to comply with CGT obligations, including:
- Acquiring records of up to 1 million traders from cryptocurrency exchanges.
- Collecting addresses, birthdays, and transaction details as part of its expanded data-matching initiative.
Objective:
- The aim is to ensure taxpayers correctly meet their taxation and superannuation obligations concerning cryptocurrency transactions and ownership.
Importance of Accurate Reporting
Brunette stressed the importance of recognizing and reporting all taxable events to avoid an incomplete picture of cryptocurrency income. This includes:
- Mining income
- Staking rewards
- Interest earned from cryptocurrency savings accounts
To avoid hefty tax bills and penalties for non-compliance, Brunette advises investors to prioritize tax planning and compliance from the beginning. As the ATO places increased emphasis on cryptocurrency, maintaining detailed records and understanding taxable events are essential steps for investors to ensure compliance and avoid financial pitfalls.
Source: accountantsdaily.com
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Blockchain
Switzerland Regulatory Technology Business Report 2024: Market to Surpass $550 Million by 2029, Driven by Collaborative Opportunities and Data Privacy Solutions
Swiss RegTech Market
Following a management buy-out by the management team at TOKO FZE, the business has been rebranded as Scintilla, the revolutionary platform providing on-chain solutions and services to make investments more inclusive, accessible, and efficient. Having been developed within DLA Piper’s Law& innovation portfolio, TOKO – now Scintilla has a fresh brand identity, new leadership, and innovative product offerings. Scintilla is set to reshape the future of finance by enabling businesses to unlock the power of blockchain technology across various asset classes, with DLA Piper remaining as a minority shareholder.
Regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), Scintilla is one of the first digital asset companies to gain full market licenses, marking a significant milestone in the sector’s landscape. Being a regulated entity underscores Scintilla’s commitment to the highest standards of compliance and security while pioneering new solutions for tokenization in the global market.
Innovating Finance Through Tokenization
Scintilla offers a comprehensive suite of tokenization services designed to bring liquidity, transparency, and efficiency to traditional finance sectors. From tokenized financial products, and real estate all the way to new legal funding products, Scintilla’s digital asset solutions enable clients to tokenize assets that were previously inaccessible to investors or illiquid.
Scintilla’s services include:
Advisory Services: The gateway to successful market entry. From initial opportunity assessment to strategic development of game-changing tokenization-based solutions.
Use Case Development: Bringing products to life. From initial POC development and iteration towards MVP all the way through to the full market launch.
Broker/Dealer Services: Creating new markets. Regulated primary market trading, ensuring the highest levels of trust and security within the tokenization space.
Exchange Services: Universal participation. Seamless, secure secondary trading of tokenized assets, with industry-leading technology and compliance standards.
Scintilla is uniquely positioned to capitalize on the confluence of Dubai’s world-leading regulatory environment, cutting-edge technology, and the burgeoning RWA market.
A New Era for Scintilla
The relaunch of Scintilla represents more than just a rebranding—it signifies the company’s growing ambition to lead in the digital asset space. With an expanded team of industry experts, including continuing Board representation from DLA Piper, and a clear strategic vision, Scintilla is set to drive the adoption of tokenization in traditional financial markets.
“Our relaunch marks the beginning of an exciting new chapter for Scintilla and the wider industry. We are committed to pushing the boundaries of what is possible in digital finance while ensuring our solutions are underpinned by strong regulatory compliance,” said Tim Popplewell, CEO of Scintilla. “With our new suite of products and services, we are empowering investors to transform the way they manage and access value.”
Jean-Pierre Douglas-Henry, Managing Director, Sustainability and Resilience, DLA Piper added: “Innovation is a key strand in our business strategy. As our business focuses on developing and nurturing innovations that add significant value to our clients through our Law& innovation program, it is fantastic to see this solution spun out into the thriving digital asset space for the next stage of its growth and development.”
The post DLA Piper’s crypto tokenization engine TOKO relaunches as Scintilla appeared first on HIPTHER Alerts.
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