How should crypto income be taxed now?

The Internal Revenue Service (IRS) has taken a bystander approach to the crypto-currency market, but by not regulating it or defining it as a form of income that is taxable, they are missing out on a significant opportunity. They must apply a blanket tax to all transactions - be it fiat or crypto - and define this new type of income as part of the U.S. economy.

In addition to applying taxes, regulation will also discourage black markets from forming due to increased privacy benefits from cryptocurrency, which would lead to greater efficiency in the entire market and make taxation easier by reducing evasion rates.

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Crypto income taxation depends on your country, but generally profits from selling or trading crypto are taxed as capital gains, while income from mining, staking, or airdrops is treated as regular income. In India, for example, there’s a flat 30% tax on crypto gains plus 1% TDS on transactions. It’s always best to keep proper records and check local rules or consult a tax professional.