Crypto Firm Founders Claim Blockchain Tax Better Than Restrictions Since It Leads To Legalization

Crypto firm founders Igor Telyatnikov and Vadim Telyatnikov shared their insights regarding blockchain taxation and digital coin restrictions.

(Photo : Photo by OZAN KOSE/AFP via Getty Images)
This illustration photograph taken on July 19, 2021 in Istanbul shows a physical banknote and coin imitations of the Bitcoin crypto currency. (Photo by Ozan KOSE / AFP)

As of the moment, cryptocurrencies are still not completely regulated by the U.S. and other countries. Because of this, people don’t have to pay taxes when they are investing in the rising blockchain industry.

However, the founders of AlphaPoint, the crypto software company hired by the El Salvador government to support the backend and frontend infrastructure of Chivo wallet, said that taxes are better than prohibitions.

Crypto Firm Founders Claim Taxation is Beneficial

According to NDTV‘s latest report, the two founders said that taxation is not really ideal for cryptocurrencies. However, they added that taxes are still way more beneficial to consumers compared to outright restrictions.

Crypto Firm Founders Claim Blockchain Tax Better Than Restrictions Since It Leads To Legalization

(Photo : Photo by Jack Taylor/Getty Images)
In this photo illustration of the ripple cryptocurrency ‘altcoin’ sits arranged for a photograph on April 25, 2018 in London, England. Cryptocurrency markets began to recover this month following a massive crash during the first quarter of 2018, seeing more than $550 billion wiped from the total market capitalisation.

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“When one says tax on transactions, we would assume that those are not illegal transactions,” they explained.

As of the moment, the rising digital coins are still unstable. Because of this, it is not recommended to put all your money into the blockchain market since the value of Bitcoin, Ethereum, and other cryptocurrencies can still change.

Aside from this, the blockchain industry is also attracting more and more cybersecurity attackers. Next Advisor reported a massive crypto scam in 2021, leading to a $2.8 billion cryptocurrency theft.

Cryptocurrencies Still Getting Banned?

As of the moment, cryptocurrencies are still not accepted by many countries. Recently, China, Qatar, Egypt, and other nations decided to ban crypto transactions in their regions.

Although this is the case, there are some governments that are now considering regulating the rising digital coins. This is because they believe that cryptocurrencies can benefit their countries in the long run.

In other news, Uber’s CEO is still hesitant to accept cryptocurrencies in the ride-sharing app platform. However, he said that they would soon accept digital coin payments.

Meanwhile, Bitfinex’s massive scam leads to a massive crypto collection. The FBI was able to seize more than $3.6 billion worth of digital coins.

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Written by: Griffin Davis