In an interview for TechBullion, Tax lawyer Doron Levy explains the complexities surrounding cryptocurrency taxation, from valuation difficulties to taxable events triggered by exchanges: “Cryptocurrencies, such as Bitcoin or Ethereum, present a unique challenge because of their decentralized nature and the fact that they operate outside traditional banking systems. Many people misunderstand how they should be taxed. Buying, selling, or even exchanging one cryptocurrency for another can generate a taxable event, but the valuation of these transactions is tricky. This is where expertise comes in. You need to calculate the profit or loss from these transactions in terms of both the timing and the rates applicable at the time of each transaction”.
