Wednesday, September 11, 2019
Benjamin Molloy (J.D. 2019, Oregon), Comment, Taxing the Blockchain: How Cryptocurrencies Thwart International Tax Policy, 20 Or. Rev. Int'l L. 623 (2019):
Over the past decade, cryptocurrencies have surged into the mainstream discussion about the future of financial transactions. Although cryptocurrencies first gained notoriety as digital cash to facilitate illegal transactions, blockchain technology could help shift the international financial system into the twenty-first century. Rather than imposing strict regulations or banning cryptocurrencies, the Chinese and American governments should embrace the shift toward a digital currency.
By implementing preferential tax treatment, adopting standardized rules governing blockchain transactions, and implementing rules to protect user privacy, both countries could reduce the amount of illegal transactions and tax fraud that occurs on cryptocurrency exchanges.