According to a study by Divly, a Swedish tech company, as low as 1% of global crypto investors paid taxes on their crypto assets last year in 2022.
According to the company study examining the Global Cryptocurrency Taxation Report 2022, only 0.53% of crypto investors paid taxes on their digital assets last year globally. In contrast, this report also displays that a very small percentage of Bitcoin investors reported their assets to different tax authorities last year.
Crypto Falldown in 2022 That Led To Low Tax Filing:
Last year has undeniably been a cold year for the crypto world. Having said that, this year has seen an increase in the number of regulatory challenges affecting the digital asset business. Furthermore, since the FTX collapse dominated the disaster the crypto world saw in 2022, regulatory authorities moved to rein in the industry’s role in the modern financial sector.
But that wasn’t all to the struggles the crypto world faces in 2022, as this recent report on tax filing of crypto investors has expanded the list of noteworthy issues. Following this research, crypto fans and professionals have turned their attention to worldwide cryptocurrency investors and whether or not they have disclosed their digital holdings to their local tax authorities.
As a result, the analysis discovered that global cryptocurrency tax compliance is only 0.53%. Alternatively, the data shows a variation in that number among continents. North America, in particular, has a tax compliance rate of 1.62%. In comparison, Asia had a compliance rate of 0.20%.
The report, on the other hand, acknowledges that the “low average is affected by some countries” in terms of the size of their investment pool. Furthermore, the study showed that the United States has the highest proportion of Bitcoin taxpayers.
While the loss the crypto world faced last year is irreversible, we can clearly see this industry stepping into the brighter days and witnessing a massive global adoption. What are your views on this?
Also Read: El Salvador’s Legislature Passes Landmark Digital Securities Bill For Bitcoin Bonds
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