Verady, the American crypto auditing firm, announced it has developed, in collaboration with media giant Thomson Reuters, a new software tool called “Virtual Currency Organizer” aiming at integrating cryptocurrency sector in the tax system and help regulate and manage crypto transactions.
As blockchain and cryptocurrency are contagiously spreading across all economic sectors, demand for regulations is increasingly crucial. Confusion in many countries still prevails as the status of cryptocurrencies or “moneyness” is debated, and so is taxation.
In South Korea, reports of taxing gains made through crypto-currency caused hype. The Korean National Tax Service (NTS) plans to impose withholding tax despite a statement by the financial minister denying the existence of any taxation laws so far. Poland, too, drowns in controversy about irrational taxation of cryptocurrency in light of the absence of clearly-defined legal foundation for such tax.
In the US, various financial regulatory authorities differ in their outlook on crypto tax-related matters. The Department of Treasury recognizes cryptocurrencies as a currency, whereas the IRS classifies cryptocurrency as property. The CFTC treats them as a commodity.
Therefore, the tool comes as critical to help for crypto tax returns with digital asset management. The collaboration is aimed at addressing the needs of the customer’s crypto business and providing them reliable solutions for more ease in tax return filings.