by Marvin Dumont
Bureaucrats say one thing, but do another. Is that a trait of an entity or party that you can trust?
Apollo’s mission is to give users privacy, and to provide an unregulatable platform. Steve McCullah, director of business development, says:
Apollo was created to become a platform that is untouchable to governments — an unregulatable place where people around the globe can experience true freedom.
April 15 brought headaches to U.S. taxpayers because the Internal Revenue Service (I.R.S.) lacks clarity as to tax treatment of cryptos.
- In 2014, the agency declared cryptos as property. The problem is that each and every transaction must be recorded and treated as a taxable event — including forks and airdrops. Including buying pizza with Bitcoin after BTC has appreciated in value.
- Tiny transactions must be recorded, and users must know the date and price of each micro-transaction, as well as value in U.S. dollars. Buying coffee with crypto can be a taxable event.
Ridiculous. But the I.R.S. doesn’t care. File your taxes or pay fines and possibly go to jail.
An unregulatable platform therefore makes sense. The landscape can be worse outside America where who knows what can happen.
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One particular trader accumulated 10,000 documents detailing his transactions, but the IRS won’t allow you to submit that many sheets — even as it requires you to accurately comply with impossibly complex rules.
The agency has nearly 1,000 forms and the tax code has more than 10 million words.
The lesson? Bureaucrats often don’t care about citizens (i.e., crypto users) and could care less whether or not you understand its regulations. The burden is on you, not them (to make things simpler).
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With U.S. crypto taxes:
- You need to know the exact time of each transaction, and the exact price of the crypto at that precise moment, said Dean Steinbeck, an expert on U.S. crypto law, in a recent blog.
- He adds, “You must determine your capital gains or losses within the parameters of short and long-term investments and report that information in your tax return.”
- The I.R.S. and Securities and Exchange Commission (S.E.C.) lack guidance on token sales — whether these should be treated as securities, or if they should be treated as debt. Indeed, officials have announced contradictory guidance on token offerings, which means tax treatment is essentially regulated on a case-by-case basis.
- With initial coin offerings (ICOs), issuers may or may not be liable for income tax. The U.S. government isn’t sure — which adds uncertainty, fear, and frustration to market participants who have plenty at stake.
Crypto investors, traders, and entrepreneurs are unsure of what actions to take because bureaucrats themselves don’t know how to regulate this emerging asset class.
An unregulatable platform makes sense. It keeps you private and anonymous. Apollo is building a platform that is beyond the purview of any central planner, and it makes life simpler.
“There are more instances of the abridgment of the freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations.” — James Madison
Apollo (APL) all-in-one privacy currency combines features of mainstream cryptocurrencies in a truly private and unregulatable platform. With two-second block speed, APL is one of the fastest cryptos on Earth. The privacy platform lets “Apollonauts” transact and send data anonymously via Encrypted Messaging, Private Ledger, Decentralized Exchange, IP Masking 2.0 and Coin Mixing. Learn more at www.apollocurrency.com