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Global Digital Finance, industry body for crypto assets, released research showing support for a tax regimen.
Digital finance and crypto asset industry body Global Digital Finance (GDF) unveiled research showing support for a tax framework on the industry, citing the regulatory frameworks of Switzerland and Singapore as effective models for the asset class.
The body conducted research with 22 professionals in the tax and legal professions with expertise in crypto assets, with a total of 19 professionals supporting the notion that the introduction of tax frameworks will help to legitimise and strengthen the industry.
Though, nine of the respondents also reported that the introduction of a tax regime could slow the growth of the asset class.
However, there is disagreement among the professionals as to whether crypto assets should have a unique tax framework, with 11 respondents agreeing with the assertion that they should be classed differently.
Meanwhile, 19 respondents expect there to be new taxes imposed on the asset class in the next 12 months.
Lawrence Wintermeyer, executive co-chair of GDF, noted that tax frameworks on crypto assets must be fair if the asset class is expected to grow.
“Changes in the tax treatment of crypto and digital assets are seen as inevitable by tax and legal professionals engaged in the market and will be welcomed by GDF members,” he said.
“The tax treatment of crypto and digital assets must be consistent and fair if governments are to embrace digital assets and the economic growth opportunities they offer while avoiding the tax arbitrage of the dotcom era.
"GDF is committed to promoting best practice across the industry and supporting policy makers in the cross-border development and harmonization of meaningful tax policy.”
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Liam Garman is the managing editor of professional services, real estate and security at Momentum Media. He began his career as a speech writer at New South Wales Parliament before working for world leading campaigns and research agencies in Sydney and Auckland. Throughout his career, Liam has managed and executed international media campaigns spanning politics, business, industrial relations and infrastructure. He’s since shifted his attention to writing on politics and business, and holds a Bachelor of Commerce from the University of Sydney and a Masters from UNSW Canberra with a thesis on postmodernism and media ecology.
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