Your crypto tax and accounting questions answered
A panel of experts from the world of crypto tax, accounting and technology tackled viewers’ questions during a recent webinar.
You might also be interested in
Replies (11)
Please login or register to join the discussion.
"never invest more than you are willing to lose" ... because that's more than likely to transpire.
has the fact that crypto is a currency ever been tested against HMRC's interpretation of them for tax rules?
Not yet!
I expect as the likes of Bitcoin start to be accepted for payment in more usual places, someone will take a case to tribunal.
"The situation with UST could be considered a black swan event"
I think that is a statement that might come back to haunt this expert. The amount of pump-and-dump coins and NFTs in the crypto sphere at present will leave UST looking more like a starling than a black swan. The first of many crypto crashes.
I would be interested to gather thoughts on this scenario...
Customer A has done a lot of trading, a lot... 10,000+ of disposals and purchases, DeFi, Staking, lots of losses, minor gains etc etc
99% of its adds up to very little, most of this was a hobby for them, but they had what they call a moon-shot and made £1,000,000 on one coin.
As an accountant would you go through every transaction....
Buy £100 - Sell £110 = gain £10 plus
Buy £500 - Sell £400 = loss £100 plus...
(now add 1,000s more lines in)
plus
Buy COIN £3,000 - Sell £1,000,000 = X (plus all of the above).
Is there a point where you say, nah?
Of course not ... or, to be precise, HMRC won't.
Almost by definition, 'taking a moonshot' means that the activity is highly unusual and unlikely to repeat.
So imagine another Customer B who makes every single trade identically to A *except* for the moonshot one.
They are now one of the vast majority of traders, about whom HMRC aren't likely to say 'oh never mind they're too small to concern ourselves with'!
Hello. I have been mining cryptocurrencies for over 7 years and still find a lot of new information that is useful to me. If you want to learn more about cryptocurrency mining, you should visit https://changelly.com/blog/most-profitable-coins-to-mine/. For me, this turned out to be a very useful thing.
I have always been very skeptical about cryptocurrency, but recently my opinion has changed dramatically. This entire thread is dedicated to learning everything you need to know so that when I feel like investing I'll be able to make an informed decision.
If you already know anything about trading, read more about the Fibonacci grid. For example, this article https://tabtrader.com/academy/articles/how-to-use-fibonacci-retracements will tell you more about what to look out for. It will be understandable even for a person who doesn't know anything about trading.