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Tuesday, August 1, 2023
Kim: Tax Reporting As Regulation Of Digital Monetary Market
Younger Ran (Christine) Kim (Cardozo; Google Scholar), Tax Reporting as Regulation of Digital Monetary Market, 80 Wash. & Lee L. Rev. __ (2023):
FTX’s latest collapse highlights the general instability that blockchain belongings and digital monetary markets face. Whereas using blockchain know-how and crypto belongings is broadly prevalent, the related market remains to be largely unregulated, and the way forward for digital asset regulation can be unclear. The shortage of readability and regulation has led to public mistrust and has known as for extra devoted regulation of digital belongings. Amongst these regulatory efforts, tax coverage performs an essential position. This paper introduces complete regulatory frameworks for blockchain primarily based belongings which are thought of globally and domestically and reveals that tax reporting is the important thing component of these regulatory frameworks.
Moreover, this paper argues that tax reporting and transparency necessities can considerably stabilize the digital monetary market and supply further funding for a lot wanted regulatory applications by way of elevated tax compliance. Tax reporting necessities have been efficient instruments in conventional monetary markets. By replicating such insurance policies within the digital monetary market, the market would considerably enhance. These necessities would assist fight cash laundering and tax evasion. Additionally, reporting necessities that focus on each monetary establishments and taxpayers would enhance tax compliance and decrease administrative burdens. The necessities even have the potential to generate income which may fund further regulatory developments. For these causes, tax reporting necessities could be an essential device to make the most of to convey a lot wanted stability to digital belongings and the market.
https://taxprof.typepad.com/taxprof_blog/2023/08/kim-tax-reporting-as-regulation-of-digital-financial-market.html
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