Majority of Cryptocurrency Users Worldwide Support Taxation of Digital Asset Transactions: Survey

A new survey performed by Childly, a South Korean digital asset wallet developer, has revealed that two-thirds, or 66%, of respondents, support the idea of taxing cryptocurrency transactions.

The poll of over 5,750 digital currency users, based in different countries throughout the world,  found that only 20%, or one-in-five, cryptocurrency traders and investors opposed the idea of taxing capital gains made via digital asset transactions.

48% of people responding to the survey “strongly” agreed that virtual currencies must be taxed.  These respondents noted that taxing crypto-asset businesses is “a must.” Only 18% of respondents were in favor of digital currency taxes, however, on the condition that they were “at an acceptable level.”

About one-in-five or 20% of polled cryptocurrency users did not support taxing digital assets transactions right now. About 9% said it’s “too early” to impose a taxation scheme, and that authorities must spend more time looking into the matter to figure out an appropriate way to tax these transactions.

11% of survey respondents strongly or completely disagreed with the idea of taxing cryptocurrency taxations (using existing tax guidelines). They recommended formulating an “entirely new approach” for taxing capital gains from digital assets.

Eunti Kim, CEO at Childly, stated:

“Although many countries have already begun its taxation on digital assets, voices of those asking for the more judicious approach to applying tax rules should be heard at all levels.”

14% of crypto users responding to the survey said they “don’t really have an opinion” when it comes to paying taxes on digital asset transactions.

In March 2020, virtual currency accounting firm Blox and Savos, a tax software developer, released the results of a survey that involved a third of established, US-headquartered Certified Public Accountants (CPAs) that work in various roles in the cryptocurrency sector.

The report identified potentially serious issues related to digital asset taxation from the tax professionals’ point of view. About 90% of CPA’s said that missing data from customers was one the biggest challenges. Fewer than 50% of tax clients are able to access their complete cryptocurrency transaction logs, as they may be dealing with multiple exchanges and platforms. This also makes it challenging to prepare accurate tax filing reports.

About 55% of cryptocurrency accountants said that regulatory policies were one of the main challenges when preparing tax documents for digital asset transactions.

The survey revealed that more than half of CPAs determined that their crypto clients may be owing back taxes.

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