It is true that Bitcoin and altcoins had no status in the past as no one knew exactly where to place them in the legislations and laws. With time, Bitcoin (BTC) and altcoins have proven their status as an alternative to the traditional financing system. This is the reason why several countries have started adding cryptocurrencies to their laws and legislations.
So far, countries such as Russia, South Korea, Japan, and many more have added cryptocurrencies to their legislations and laws. They have added them to legal securities and assets that are dealt with just like other assets, thus they are taxed the same.
It is necessary for any country to implement taxes on Bitcoin (BTC) and altcoin transactions because of the major reason. That reason is that with the passage of time, cryptocurrencies have been adopted by millions of people.
In countries such as South Korea where the cryptocurrency adoption rate is tremendous, it is extremely important to impose taxes on the industry. This is exactly what the regulatory authorities in South Korea have done.
As cryptocurrency adoption increase with time, more people would shift/migrate to the cryptocurrency sector. This would result in cryptocurrencies overtaking much of the economy that the countries are trying to build up since the pandemic.
Therefore, by implementing taxes on cryptocurrencies, the countries would be able to generate high revenues from the industry. This way, the countries would be able to keep the balance intact without any losses.
Now that the United States has started adopting cryptocurrencies much faster than it did under Trump’s administration, the country is considering implementing tax laws on Bitcoin and altcoins.
Just recently, Ron Paul, a former congressman, and presidential candidate have renewed the call for consideration about Bitcoin (BTC). He has stated that Bitcoin (BTC) and altcoins must be legalized in the country. Once the initial step of legalization is taken, the next step would be to implement taxes on cryptocurrencies and Bitcoin.
Paul was one of the personalities in the US Federal Authority who has always advocated the legalization of cryptocurrencies. He has always stressed that the adoption of cryptocurrencies can no longer be stopped or banned in the country.
Therefore, the best decision for the United States is to legalize it and then implement taxes on cryptocurrencies just like fiat currency.
Even before the Bitcoin 2021 Conference took place in Miami City, Paul had spoken his mind about Bitcoin (BTC). He made a statement back on June 3, where he talked about legalizing Bitcoin (BTC).
He stated once Bitcoin (BTC) is legalized, then the US needs to leave the decision up to the citizens what they want to do.