Author: Dr. Angelika Hellweger 7 August 2023
With the International Monetary Fund (IMF) wanting tax systems to be modernised to accommodate crypto assets, Angelika Hellweger wrote a piece about the suggestion.
In her article, which was published by Taxation, Angelika explains that the IMF wants to see taxation changed in response to the challenge presented by the anonymity and decentralised nature of crypto assets. The IMF is especially concerned about the dangers of tax evasion if crypto becomes an established currency for transactions.
Angelika outlines the IMF’s belief that if most crypto activity is conducted through centralised exchanges, the tax evasion risk can be managed. But she also details the IMF’s concerns about decentralised exchanges. Angelika states that the IMF appears fearful that increasing numbers of people may be tempted to use decentralised exchanges or direct peer-to-peer trading, where the lack of oversight by a central governing body will cause problems for tax administrators.
She says the authorities need to find a way of regulating decentralised finance exchanges globally – which would require an agreement on a global regulatory compliance regime for decentralised exchanges. Such a prospect, she adds, is unlikely. And she emphasises that before any global regulatory regimes are initiated, regulators need to monitor technological developments to ensure they do not stifle beneficial technical innovation.
The full article can be read here. (Subscription required)
Angelika is a specialist in international, high-level economic crime investigations and large-scale commercial disputes. She has widely-recognised expertise in representing corporates and conglomerates in Europe, the Middle East, Africa and United States.