Coinbase offers a new tool to help calculate crypro taxes

Coinbase released a new cryptocurrency tax calculator to help users keep up with the taxation laws in the US
13 March 2018   2914

As you probably know by now, US government plans to impose taxes on cryptocurrency assets. So, Coinbase launched a new tool to help customers to keep up with legislation – a gain/loss calculator.

In a recent blog post, the company explained the features of their new calculator. It can be used to generate a report with a summary of user's capital gains and losses on the platform, using the so-called first-in-first-out accounting method.

There are some issues with the tool, however. First of all, it's aimed at people who purchased cryptocurrency solely on the Coinbase platform. And even the aforementioned blog post says, that it's not recommended for users who participated in ICOs and/or purchased crypto elsewhere. Also, this preliminary report shouldn't be used as an official tax document without consulting your tax professional, as mentioned in the blog.

The publication of the calculator is a next step in Coinbase's effort to keep on the right side of the law. They even posted a consistent banner that users are subjected to US capital gains taxation to remind customers of the issue.

The government effort at taxation has long been a hot topic among US digital assets holders. The main issue is that digital assets are taxable as a property, rather than as a currency, as declared by U.S. Internal Revenue Service in 2014. This raised a lot of fuss among the community, but the point remains unchanged.

Coinbase is securing its bases with the new calculator, as we can see. Not only for users, but for itself too, it seems, because IRS has already filed a lawsuit against the company to release the data on US customers to fish out possible tax evaders. The lawsuit has been passed in November 2017, and now Coinbase has to release the information on more than 13,000 users, who utilized the platform between 2013 and 2015.

US Crypto Companies to Support TON in Case With SEC

The Blockchain Association said Telegram taken sufficient measures to ensure that the Gram token offer met SEC requirements
23 January 2020   162

The Blockchain Association, which combines companies such as Coinbase, Circle, 0x and Ripple, issued an expert opinion as part of the ongoing proceedings of the US Securities and Exchange Commission (SEC) with Telegram.

Previously, the Digital Commerce Chamber launched a similar initiative. The blockchain association, however, was more straightforward and stated that Telegram had taken sufficient measures to ensure that the Gram token offer met SEC requirements. According to members of the organization, the actions of the SEC can damage not only Telegram, but the market as a whole.

The Court should not block a long-planned, highly anticipated product launch by interfering with a contract between sophisticated private parties. Doing so would needlessly harm the investors that securities laws were designed to protect.

 

The Blockchain Association

The Blockchain Association notes that for many years it has not been possible for SEC to obtain clear and unambiguous guidance for conducting activities in the cryptocurrency space, while the claims of the regulator make the current situation even more ambiguous. 

The SEC’s lawsuit also raises novel questions regarding whether companies are forbidden from raising funds from sophisticated U.S. investors, under well-established regulatory provisions, to build blockchain networks.

 

The Blockchain Association

They cite examples of startups TurnKey Jet and Pocketful of Quarters, in respect of which the regulator recommended not to apply legal measures, adding that such litigations inevitably involve high costs and do not guarantee industry participants that they will not be prosecuted in the future.

Telegram discussed its plans with SEC staff for a year and a half, provided copious information and responded to limited feedback by adjusting the design of its transaction. Yet, at the end, the SEC has sued, and the SEC’s briefs thus far say nothing about the substance of those discussions. 

 

The Blockchain Association

In conclusion, the group asks the court to “reject the SEC’s arguments that the not-yet-in-existence Grams were securities at the time of the Purchase Agreements.”