OECD calls out countries for their inconsistent rules on crypto taxation

OECD calls out countries for their inconsistent rules on crypto taxation


A study of cryptocurrency taxation regimes from around the world by the Organization for Economic Co-operation and Development, or OECD, found that global crypto taxation laws are highly inconsistent.

Source: OECD Report.

The way crypto assets are defined vary greatly by jurisdiction. Cryptocurrency is most commonly defined as a “financial instrument or asset”, followed by a “commodity or virtual commodity.” In the U.S., the asset class remains mostly undefined for tax purposes.

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Source: OECD Report.

The same inconsistency is observed when it comes to determining the first taxable event for mined cryptocurrency assets. The most common approach here is to tax coins at creation, though some nations choose to tax the first disposal of mined coins instead. Several jurisdictions employ variable rules depending on the entity involved.

The report also noted that the inherent volatility of crypto assets presented additional challenges:

“A high level of volatility makes valuation complex, although it is key for the calculation of the

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