World governments are preparing to introduce a new tax reporting system for cryptocurrencies. According to the Financial Times, 48 countries are set to start sharing information via the Crypto-Asset Reporting Framework (CARF).
This system will enable the automatic transfer of information about cryptocurrency transactions between countries by 2027. Initially, data will be received from cryptocurrency exchanges in the form of purchase and sale prices, profits earned and the tax residency of crypto investors.
The first group of participating countries includes most European countries, as well as parts of Asia, Africa and Latin America, along with several offshore zones. Another 27 jurisdictions plan to join by 2028, including the US, which plans to join by 2029.
I think the US authorities chose 2029 for a reason. North America takes taxes seriously. By that year, I think information about wallets will force node owners to disclose their identities and de-anonymisation mechanisms will have been strengthened.
According to Vitalik Buterin’s predictions, with the advent of quantum computers in 2028, the US authorities will be able to hack wallets and hold cryptocurrencies until the owner passes verification. What will happen to crypto freedom then?
submitted by /u/tornavec
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