Bitcoin Policy Institute: "Small virtual asset transaction tax exemption should include BTC"
Summary
- The Bitcoin Policy Institute (BPI) said it expressed concern that a U.S. small virtual asset transaction tax exemption bill, if designed around stablecoins, could exclude everyday Bitcoin (BTC) payments from the exemption.
- BPI argued that Bitcoin should be clearly included in the exemption and said small Bitcoin payments could remain taxable.
- The bill provides a tax exemption for virtual asset transactions under $300 and sets an annual exemption limit of $5,000.
The Bitcoin Policy Institute (BPI) expressed concern that a U.S. bill to exempt small virtual asset transactions from tax, if designed to focus on stablecoins, could exclude everyday Bitcoin (BTC) payments from the exemption. BPI argued that Bitcoin should be clearly included in the exemption.
On the 18th (local time), according to cryptocurrency-focused media Cointelegraph, BPI pointed out that the exemption bill could apply only to stablecoins, and in that case small Bitcoin payments might remain taxable.
BPI explained that if the small-transaction exemption is intended to promote the use of virtual assets as a means of payment, a structure that excludes Bitcoin transactions would be inconsistent with the policy's purpose. They said that if Bitcoin is excluded from everyday payments, tax burdens on users and merchants could persist.
The bill was reportedly introduced in July by U.S. Senator Cynthia Lummis (R-Wyoming). It provides a tax exemption for virtual asset transactions under $300 and sets an annual exemption limit of $5,000.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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