A recent survey conducted by a cryptocurrency finance startup Childly reveals that two-thirds of users subscribe to the idea of crypto taxation, with nearly half of the respondents expressing strong approval.
Many of us have always dreaded the very topic of crypto taxation. But as the famous quote goes, nothing in this world is constant, except death and taxes. So why not just hop on board? Childly’s survey reveals that the crypto community is finally warming up to the complex world of crypto taxation.
The South Korean wallet services provider took into account responses from 5750 cryptocurrency owners and revealed that only one in five users oppose the idea of taxation.
Crypto taxation receives a big yes!
According to the report, some 48 percent of the surveyees strongly back the idea of taxation in cryptocurrencies, describing it as a must-have aspect. Another 18 percent thought it to be a requirement on an acceptable level, implying that while they may not welcome the idea with open arms, they certainly don’t consider it to be evil.
While 14 percent of the users don’t really have an opinion on this matter, 9 percent believe that the industry needs to be more evolved and matured to enforce taxation rules. They would rather wait and watch before forming an opinion.
Around 11 percent of the survey participants expressed strong disapproval of the existing crypto taxation regulations, stating that this outmoded industry needs an altogether new approach.
Chief executive at Childly, Eunti Kim, said that even though it is a good sign that most people are opening up to the idea of crypto taxation and acknowledging that it is, in fact, the necessary evil in the society, we must also hear out those who demand a more cautious approach.
Tax evasion still a concern among crypto community
Despite a high acceptance level, many crypto owners continue to find ways to evade the taxes and end up featuring on the blacklist year after year. A crypto accounting firm Blox and taxation software provider Sovos published a joint report in March that highlighted some of the most pressing issues being faced by crypto tax professionals across the globe.
It showed that over 90 percent of accounting personnel think that missing or inaccurate data is their most significant challenge when it comes to filing taxes. Fifty percent of these respondents do not have complete access to their crypto taxation history, making it nearly impossible to file accurate taxes. Fifty-five percent also believe that complex regulations as their top hurdle.
Crypto taxation – a necessary evil
Yes, crypto taxation is complex and a back-breaking task. But thankfully, efforts are being made by many companies to streamline it. Last month blockchain startup Lukka joined forces with one of the largest accounting firms in the world, RSM International, to offer crypto tax solutions.
In March, Taxbit and Uphold got together to build a crypto tax software that focusses on resolving dilemmas surrounding crypto taxation.