PwC's global crypto tax report reveals the need for further regulatory guidance

It shouldn't come as a surprise that Big Four accounting firm PricewaterhouseCoopers has just released its first annual Crypto Tax Index as part of the "Global Crypto Tax Report." The detailed report contains the latest global crypto tax developments, along with crypto tax information for over 30 jurisdictions.

The survey's Crypto Tax Index ranks jurisdictions based on the comprehensive structure of their tax guidance.

Peter Brewin, a tax partner at PwC Hong Kong and a report contributor, told Cointelegraph that the industry is finally starting to see more activity by some of the supranational policy setters like the Organization for Economic Co-operation and Development.

"What our research shows is that the guidance issued by many tax authorities is already getting dated. Yes, it is important that people know how to account for tax on the trading of Bitcoin and other cryptocurrencies, but that is really crypto tax 101.".

Although basic guidelines have been established on how to tax common crypto assets, Brewin points out that loopholes remain.

While impressive, the PwC report highlights that without guidance, innovative companies and startups will be faced with significant tax uncertainty, especially in regards to cross-border activities.

Another important finding in the report is that most jurisdictions view cryptocurrencies as a form of property from a tax perspective.

The report points out that a tax change could potentially be triggered each time an individual spends a digital asset.

Overall, PwC's crypto tax report shows that while significant work has been done to provide guidance for the taxation of digital assets, the industry is not up-to-date with recent developments.

Mazhar Wani, fintech leader at PwC U.S., told Cointelegraph that while it's tough to estimate when official guidance will be issued in regards to topics like DeFi and staking, these points are being discussed by global tax authorities.