Due to their decentralized features, questions about the legality of cryptocurrencies are bound to arise. Interestingly, this cannot be a yes or no question.
This is because several frameworks determine the legality of these digital currencies. However, cryptocurrencies are not considered legal tender in several countries, mainly because they don’t have a paper trail, making them hard to track. However, investing and trading in cryptocurrencies is legal.
Are Cryptocurrencies Taxable?
Cryptocurrencies are taxable under various circumstances. If you purchase and keep your crypto coins in your personal wallet, you won’t owe the government any tax. However, if you are an active crypto trader, you will have several tax implications. Taxable transactions include selling your crypto coins for U.S dollars, exchanging one Cryptocurrency for another, earning income from your altcoins, or making purchases with them.
Cryptocurrencies are taxable under various circumstances. If you purchase and keep your crypto coins in your personal wallet, you won’t owe the government any tax. However, if you are an active crypto trader, you will have several tax implications. Taxable transactions include selling your crypto coins for U.S dollars, exchanging one Cryptocurrency for another, earning income from your altcoins, or making purchases with them