Your Crypto Stack is legal right?

This is a great year for blockchain, financial technology and cryptocurrency lovers and investors. We saw the resurrection of Bitcoin, which just thrived through a hard fork and shortly after broke it’s all time high price record a few times.
We also saw the rise of Ethereum, which opened the path for everyone to invest in upcoming companies and coins in the form of ICO’s – Initial Coin Offerings.

We can thank the huge inflow of new investors and talented developers for this.
These are people who put their faith in this new technology and have invested time and money into different projects leading to the before mentioned rise in popularity.

While investing in Crypto Currency can be very profitable, we should all know the potential dangers of investing time and money into a high-risk market like the Crypto Currency one. We saw examples of a coin dropping in almost 75% of it’s value in a time span of a few hours!

And this is not the only risk of investing in Crypto Currency. There a lot of you out there who made more money this year, than they ever did in their entire life.
You probably made great profit and if you’re like me – one day you will want to withdraw some of that profit into fiat-currency like the USD or the Euro.
When that time comes you may have an unpleasant guest knocking at your window to claim (some of) those sweet gains you made, yes, I am talking about the tax authorities. Because the chance is very high that you’re living in a country where the ownership of and the gains on crypto currency is a taxable event. If you’re in a position where you bought those coins for a few cents a long while ago, and did not submit them in your previous tax forms – your authorities may decide – in a worst case scenario - to claim your bank account (temporarily), or worse. So what can you do to prevent this from happening?

1. You
Invest time and money to learn how to submit your taxes and how taxes on crypto currencies work in your own country. Then you submit your portfolio and your realized gains on crypto currency while filing your taxes.

2. Us
If you don’t have the time or the understanding, there a lot of people willing to help you out. Next to me, there are a lot of accountants who have an interest or even a specialisation in Crypto Currency. We can help you with your taxes, your organisation and your book-keeping. It will be a small investment, but I promise we are cheaper than the fine in taxes you’ll pay to the authorities.

So, let’s all agree on the following:

Let’s start thinking of today and file our taxes legally, because there is still a lot of time for you to dream about that poison-green Lambo.

Let's connect on Twitter:
Follow @CryptoCountant