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Bitcoin Investments Must Register and Pay Tax | Economy | USA Edition

The profits made in cryptocurrencies or bitcoins (BTC) must pay taxes and register to avoid being considered money laundering operations, according to a report released this Sunday.

The general director of the firm FIXAT, Fidel Ortiz, assured that in 2020 there was a growth of up to 300% in investments in bitcoins and warned that although its operation is not regulated, a tax omission may be incurred on profits.

Operations in virtual currency must be registered with the tax authorities “to avoid being considered money laundering operations,” Ortiz said.

Bitcoin’s (BTC) annual return in 2020 with the covid-19 pandemic saw ups and downs but its investments were higher than traditional assets like gold.

In 2020, BTC grew close to 50%, as opposed to 25.6% for gold, which had a good year.

Ortiz stressed that bitcoin is a virtual currency that is not yet controlled by any government or bank and, in the case of Mexico, there is no particular regulation, but the returns are subject to the payment of taxes.

“It does not matter that the income is obtained through a digital platform with servers in other countries, the obligation to pay exists and must be fulfilled so as not to incur any fault or omission before the treasury,” Ortiz said in a statement.

He added that in case the taxpayer omits to declare their investments in BTC, the authority will detect a fiscal discrepancy as there is undeclared income and this can lead to sanctions, depending on the amounts.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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