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        • Blockchain: What is it?
        • What is an Exchange?
        • What are Stablecoins?
        • What is the Metaverse?
        • What are NFTs?
        • History of Bitcoin
        • What is Binance Smart Chain?
        • What is an IDO?
        • What is Staking?
        • Token Burning
        • Debunking Crypto Myths
        • The Crypto Dictionary
        • What is DYOR?
        • What is a Neo-bank?
        • Proof of Work vs Proof of Stake
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        • What is a DAO?
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        • Web 3.0
        • Regulation
        • REIT's on the blockchain
        • The Future of Business Payments: How Crypto Payment Partners are Leading the Way
        • What Is A Crypto Card? How Does It Work?
        • Blockchain and AI
        • Why are regulations essential in Crypto Market? How does Scallop lead the way?
        • Banking on Blockchain
        • E-money Tokens
        • The Power Surge of Cross-Chain Interoperability in Blockchain's Future
        • Crypto Trading 101: Must know candlestick patterns for a successful trade
        • Exploring blockchain innovations and their real-world breakthroughs
        • Do not miss these common indicators of the crypto bull market
        • Decoding the Dynamics of Permissioned Blockchain Consensus Mechanisms
        • Summary
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        • Can Quantum Computers be a potential threat to Crypto?
        • Unlocking the cryptocurrency potential: How Banks can thrive in the digital age?
        • How do privacy-enhancing technologies ensure anonymity on the blockchain?
        • What Does Fintech Mean? Understanding the Intersection of Finance and Technology
          • Decoding Data Tokenisation: Its Vital Role and Relevance
        • Unravelling the Concept of the Time Value of Money: Its Implications and Applications
        • Unlocking the Potential of Real-World Assets
        • What is Byzantine fault tolerance?
        • Global Crypto Adoption and Its Potential Socio-Economic Impact
        • How ZK-Rollups are Supercharging Blockchain Transactions?
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      • Skimming of Credit and Debit Cards: What You Need to Know
      • How Blockchain Security Can Keep Your Crypto Safe?
      • Keeping Your Account Safe
      • Money muling scams: What are they and how can you avoid them?
      • Beware of these common frauds while using payment cards
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      • How are cryptocurrencies taxed across the globe?
      • What Can You Do On An Exchange?
      • Avoid FOMO To Plan A Recovery: 5 Things To Do In A Crypto Bear Market
      • Inflation
      • Meme Coins vs Altcoins
      • The Basics Of Investing
      • The Ripple Effect
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      • Summary
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      • Getting Started: Fiat Onboarding And Exchanges
      • Getting Started: The Defi Walkthrough
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      • Staking
        • Scallop Staking Guide
          • Useful Resources
          • 1. Setting Up Metamask Wallet
          • 2. Importing existing wallet
          • 3. Installing Binance Smart Chain
          • 4. Setting up a Kucoin Account
          • 5. Buying SCLP with a market order on Kucoin
          • 6. Transferring from Kucoin to Metamask
          • 7. Connecting Metamask to the SCLP Staking platform
        • LP Staking Guide
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    • How to Donate Crypto to Ukraine
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How are cryptocurrencies taxed across the globe?

With rising crypto adoption, understanding cryptocurrency taxation globally is becoming increasingly important. Whether you're a casual crypto investor or an experienced techie looking to expand your trading horizons, taxes can be confusing and hard to figure out - especially in cryptocurrency investing. Navigating crypto taxation can be daunting with different laws across multiple countries. In this blog post, we will break down the complex landscape of global crypto taxation so that you can make informed decisions on structuring your investments while staying compliant and saving up on taxes!

USA

In the United States, cryptocurrency transactions are subject to taxes as other property-related transactions. So, if you

  • sell cryptocurrency for fiat currency (USD, GBP, etc.),

  • receive cryptocurrency from an airdrop,

  • mine cryptocurrency, or

  • stake cryptocurrency

It will be taxed according to U.S. law. Generally, it's a 37% tax on short-term capital gains for assets held for less than a year. A lower tax rate between 0% to 20% is levied on long-term capital gains for assets held for more than a year.

Italy

Italy is one of the few countries that has actively taken steps to regulate crypto trading, viewing it as a financial instrument and applying capital gains taxes. Those with a cryptocurrency portfolio exceeding 2000 Euros are subject to Italy's standard 26% tax rate on capital gains. Even simple activities like exchanging one token for another, selling crypto for fiat currency or using crypto to pay for real-world assets all incur taxation in Italy.

Germany

Under German law, any small transactions, such as those involving the sale of cryptocurrency under 600 Euros, are exempt from taxation. That means if you purchase 50 euros worth of Bitcoin and then sell it in the future at around 150 euros after a few months, Germany won't be taking any taxes out of these profits! Additionally, holding cryptocurrencies for over a year doesn't incur any tax liability on your earnings, regardless of how much the market value increases.

India

The Indian government has categorized digital assets under virtual digital assets, including cryptocurrencies such as Bitcoin, Ethereum and Non-Fungible Tokens (NFTs). At the same time, India has also levied income tax (at 30%) on transfers of these virtual digital assets.

Singapore

Due to the absence of a Capital Gains Tax, Singapore is becoming an increasingly attractive destination for crypto exchanges like KuCoin and Phemex. This means investors and businesses won't have to pay taxes when they sell their cryptocurrency, making Singapore a crypto tax haven. Also, Singapore regards cryptocurrencies as intangible property, meaning cryptocurrency payments are treated as barter trades, allowing you to avoid paying additional Goods and Services Tax (GST).

Taxes may not be pleasant. Taxing cryptocurrencies does establish that cryptocurrencies are getting recognised by governments and are no more “illegal” or “shady” investments. As many experts believe, regulations are key to making crypto sustainable. Scallop uses regulations and compliances in its ecosystem and products with the same objective, preparing it for the long haul in the crypto space.

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Last updated 1 year ago