Navigating Complex Crypto and DeFi Taxes
Public Key
Navigating Crypto Tax Complexities
Exploring the intricacies of crypto taxation, this chapter covers practical aspects of reporting taxes on digital assets. It discusses challenges in applying traditional tax rules to smart contracts, delving into scenarios like smart contract lending and crypto staking. The chapter sheds light on the complexities of taxable events in crypto transactions, addressing nuances in staking rewards and the implications on tax treatment.
It’s that time of year in the USA where the trees are blossoming, the winter jackets are being packed away for the season and there is only one thing on everyone’s mind. Taxes.
But how do you report DeFi transactions, crypto staking and lending and stablecoin purchases? Well Ian Andrews (CMO, Chainalysis) brings in crypto tax generalist, Lorenz Haselberger (Partner at Shearman & Sterling LLP) to dive deep into the most complex tax implications facing the crypto industry.
Lorenz unfolds the nuances of reporting taxes within the dynamic and evolving world of cryptocurrencies and shares his journey into the crypto tax niche and unwraps the critical aspects of current tax considerations.
He discusses the tax challenges with DeFi protocols and underscores the importance of understanding the tax implications for both individual and institutional investors and the need for the US Government to provide more clarity and guidance to the crypto industry
2 | Lawrence's background in taxation and involvement in the crypto industry
6 | Discussion on the complexity of reporting obligations for exotic cases like crypto and DeFi lending
14 | Everything you need to know about staking and potential tax implications
22 | The debate on whether DeFi transactions should be treated as a taxable event
25 | The national and international tax implications for crypto investors vs traders
33 | Debate on expanding information reporting requirements for crypto
36 | Does tax complexity and uncertainty deter some from participating in crypto?
39 | Differentiating stablecoins from cryptocurrencies for tax purposes
42 | The evolution of DeFi protocols and need for Government guidance for crypto tax implications
Related resourcesCheck out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.
- Website: Shearman & Sterling: Forbes names senior partner, Adam Hakki to top 200 lawyers in USA
- Report: New York State Bar Association Tax Section On Crypto and Fungible Digital Assets
- Blog: Blockworks: US Treasury once again proposes new crypto tax rules to “modernize” code
- Blog: Intellectual Property Infringement: Crypto Used in Sales for Illicit Streaming Services and Counterfeit Pharmaceuticals
- Blog: What FATF’s Report on Recommendation 15 Means for Regulators & Private Sector
- Event: Chainalysis Links Conference NYC 2024 (Apr. 9-10, 2024) - Early Bird Pricing On Now!
- YouTube: Chainalysis YouTube page
- Twitter: Chainalysis Twitter: Building trust in blockchain
- Tik Tok: Building trust in #blockchains among people, businesses, and governments.
- Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
- Lorenz Haselberger (Partner, Shearman & Sterling LLP)
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