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how cryptocurrencies result in following?
“Increased risk of tax evasion as cryptocurrency transactions take place outside the formal banking system. The current generation of cryptocurrencies are complex and difficult to track, making cryptocurrency transactions much harder to account for, increasing the ease with which they can be omitted from taxable income reports.”
I read it in technical article. when I searched on internet I found instead its beneficial for tax regulations and laws.
“Tax regulation and compliance
Have I mentioned how important transparency and immutability are yet? For example, marijuana companies can use blockchain as a means to record their sales and demonstrate to lawmakers that they’re abiding by local, state, and/or federal laws. More importantly, these sales act as a clear record for the IRS that they’ve paid their fair share of taxes to the federal government, assuming they’re profitable.”this crypto currencies and block chain articles on ACCA website need to be more comprehensive.
I wish one day you write article on these topics for ACCA. your articles are self explanatory.
Blockchain technology does create immutable records (they can be added to but not changed retrospectively) so this make them excellent for applications like recording share and property ownership.
Blockchain technology can also be used to create cryptocurrencies which can record all previous ownership of each ‘coin’. However, cryptocurrencies are also largely unregulated so how can you obtain the information you might need to if you are investigating money-laundering if the money is in a cryptocurrency that is neither regulated nor controlled by a reputable organisation?
So, the cryptocurrency can hold lots of information but that might not be accessible by law-enforcement without full cooperation from the people involved.
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