Bulgaria becomes the latest nation to ensure that those investing in cryptocurrencies in the country, pay the adequate amount of cryptocurrency taxes.
As Bitcoin is seeing some minor gains at the moment and a strong rally past the $3,500 mark, investors are being assured good returns on their investments. This could be one of the reasons why the Bulgarian Tax Agnecy has decided to announce that they will be more strict with tax regulations.
The market has seen an upward trend today as Bitcoin rallied 3.58% to $3,641.00 on the Investing.com Index, as of 8:47 AM ET (13:47 GMT). The total market capitalization has also seen an increase. At press time, the total market cap was $123 billion, compared to $118 billion on Monday.
On monday, the Bulgarian National Revenue Agency announced that they plan to investigate the various cryptocurrency trading companies in the country.
They want to ensure that these companies are paying proper taxes. Not just the company, they also want to make sure that the customers are also paying the legitimate taxes.
According to Bulgarian law, digital currencies are taxable and people who trade in it are expected to pay the designated crypto taxes.
Denmark’s tax agency has also announced that it will collect information on digital currency trades from exchanges. This information will also include names, addresses and personal tax numbers of the people who are trading on these exchanges.
Among other countries, Japan has also levied taxes on cryptocurrency. Cryptopia, a New Zealand-based exchange is currently in maintenance mode after it fell prey to a security breach “which resulted in significant losses,” as was revealed by their Twitter post.
Security breaches are becoming more common as reports are surfacing about exchanges being hacked in the recent times.