The new bill presented at the United States Congress could impact business with cryptocurrencies.
Recently, it was presented to the United States Congress a bill that would generate a major impact on cryptocurrencies if approved. According to information related to the legal initiative, it was known that the project is called “Virtual Currency Tax Fairness Act of 2020”, and will have the strength and power to solve certain irregularities in payments made with virtual currencies and other operations.
Some local news media detail that the objective of the law is to exempt some taxes that are generated on capital gains and made with cryptocurrencies. This is due to the constant use of the asset, especially when it has a character of daily use.
Over the years, cryptocurrencies are having a more influential role in the world’s economies, it is for this reason that more and more countries are focusing on creating legislation according to the new economic technology.
The United States Congress has become one of the main authorities in discussing if implementing the law or not, although there are discrepancies about the total legalization of the law since some members of congress have listed Bitcoin as a threat. Such is the case of Brand Sherman, a congressman who in 2019 commented that the dollar could be reduced by the use of Bitcoin and that users should be cautious about the decisions made in regulatory matters.
Besides, many congressmen take into account other factors to consider cryptocurrencies as a threat, exposing that the irregularity of the Bitcoin value or its use in crime determines the complexity to regulate the asset.
However, they find the constant variable that more and more people use cryptocurrencies in global commerce, putting the central problem on the table when regulating its use: How should cryptocurrencies be controlled?
The Fiscal Approach to the Use of Cryptocurrencies
The current law that governs the United States of America, indicates that using Bitcoin for the payment of some good or service represents a sale of holdings by the cryptocurrency. This means that this is a taxable event, which leads to a tax obligation, which must lead to the payment of taxes.
The previous bill would have determined that there would be a tax exemption in operations with amounts that are less than $600. This would enable a collection process only on large businesses with these assets. But this new version of the law takes a different turn.
The Virtual Currency Tax Fairness Act of 2020, states that taxes generated by capital gains will only have one exception when the earnings received are the result of transactions exceeding $200. This would mainly help the use of cryptocurrencies in small operations, especially when there are digital platforms that offer support for micro-payments or purchases of small goods or services.
Although complete legislation on the use of these assets in the United States has not yet been determined, everything indicates that their regulation goes by scales. This could certainly benefit the crypto industry if the approval of the US Congress is achieved.
By María Rodríguez