International Tax Consequences of Cryptocurrency Developments

Summary

This practice note discusses the international tax consequences of cryptocurrency developments. Cryptocurrency is a decentralized digital currency in which transactions are verified and records maintained in a decentralized financial system rather than through a traditional intermediary, such as a bank. The rapid growth of cryptocurrency has forced governments around the world to scramble to address not only the taxation but also regulation of this new financial world, and the present landscape of tax rules is chaotic and scattered and requires great vigilance to properly advise clients.