Crypto Firms Seek Clarity in Regulatory and Tax Policies
Jeremy Koven, who holds senior positions at two major crypto-based companies, CoinSmart and WonderFi, has brought attention to the areas of concern for crypto firms navigating the United States financial environment. Alongside the search for regulatory clarity, these businesses are also looking for favorable tax policies in the country.
Crypto Regulations and Their Impact on Business
Koven aired his view in a conversation with Cointelegraph, at the Blockchain Futurist conference in Toronto, which took place on August 16. His perspective is that promoting cryptocurrency in gambling spaces, such as casinos and sports betting, should be simple, given the significant interest levels within the gaming community in Canada.
However, he noted that the US presents a challenge, with the responsibility for crafting crypto rules divided between two organizations – the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission. This division is raising concerns amongst crypto firms, which are looking for greater clarity in legal regulations.
Key points from Koven’s conversation include:
- Canada’s ability to manage crypto regulations efficiently.
- Flexibility in sorting out tax issues, which differs from country to country.
- The US perspective that treats every crypto purchase as a sale, creating potential tax implications with every transaction, whereas other countries offer more favorable tax policies.
Major Mergers and Their Impact
Koven’s own company, CoinSmart, announced a significant merger in April. Along with WonderFi and Coinsquare, they are set to create one of the largest crypto trading platforms in Canada, boasting over 1.6 million users. To put this into perspective, the total population of Canada is approximately 38 million people. This merger comes on the heels of a significant business move in September 2022, when Coinsquare acquired CoinSmart.
Developments in Crypto Regulations in the US and Canada
Crypto users in Canada have witnessed various developments in the industry, at a time when the U.S continues to grapple with the complexities of regulatory clarity. For instance, the SEC in the United States has never approved any spot Bitcoin (BTC) exchange-traded fund. However, Purpose launched one in Canada in February 2021, prompting various other companies to follow suit.
Notable recent developments include:
- The launch of a Bitcoin (BTC) exchange-traded fund by Purpose in Canada in February 2021.
- The expansion of services offered to Canadian users by Coinbase on August 14, through its partnership with the Peoples Trust Company.
- The withdrawal of Binance from the Canadian market due to regulatory concerns.
In conclusion, the crypto industry continues to evolve, adaptable to the unique financial landscapes of different countries. Crypto firms are actively seeking clearer regulations and more favorable tax scenarios to operate more efficiently and effectively. With key players like CoinSmart, WonderFi, and Coinsquare making significant business moves, a shifting and dynamic industry is apparent.