Alon Muroch, CEO and Co-founder, Blox and Steven Baum, CPA, Principal, Friedman LLP led a lively discussion offering up-to-date information and insights on the key issues in crypto accounting. A record attendance of over 100 crypto accounting industry professionals participated in the ABC webinar to discuss the challenges of cost basis, technology solutions, taxation and legal issues and opportunities in crypto accounting. The webinar recording and slides are available here.
Three Key Webinar Takeaways
Before listening to the recording of the podcast read the three key takeaways from the webinar below.
- Governments, tax authorities and financial institutions will need a more viable and scalable approach for the rules and ramifications of cryptocurrency taxation and accounting best practices. Currently, regulatory bodies are sorting out how they will deal with various aspects of crypto. This uncertainty in the market can severely impact crypto-related businesses hindering cryptocurrency success and mainstream adoption. Solving this regulatory challenge will be pivotal and require more help from outside the crypto communities.
- Crypto and accounting technology will need to also become scalable, automated, smarter and adhere to the new rules, laws, methods and best practices when facilitating crypto accounting or tax services. Startups, accounting firms and creators of new crypto tax and accounting technologies will need to work more closely with governments and regulatory bodies to ensure quality, accuracy and compliance.
For example, Facebooks’ Libra will introduce an array of challenges for crypto accounting and taxation when merged with digital cryptocurrencies for a global audience of billions. It has the potential to disrupt social and financial worlds and will undoubtedly create new and unique obstacles to overcome. The potential makes these ideas fascinating, but to make them possible will require time, patience and collaboration with the right people and organizations.
- Cryptocurrency taxation is becoming an increasingly important topic. The low reporting numbers of crypto investors in the US and UK that reported their earning in yearly taxes is reigniting an old conversation – how do investors of all sizes handle their crypto taxes and accounting come tax season? As 2020 approaches quickly, and the IRS issues thousands of letters to known investors, the beginning of Q2 2020 will prove to be an insightful moment for understanding the future of crypto accounting and tax.