Quote from: avikz on April 03, 2024, 05:34:47 PM

Coinbase is stock market listed company in US. So as per the local law, they are bound to report everything to IRS and other related departments. So they are doing what is expected.

Secondly, staking is your income. So you must have to pay your taxes as per the local law. That should be seen as a surprise at all. If you aren't sure about these things or not sure about the dollar value to consider, always take professional help. I am sure there are multiple tax law firms available in your country who knows how to deal with such things. Pay your taxes diligently because you wouldn't want regulatory hassles in your life.

I don't get why the US wants to tax staking income if no Fiat (USD) transactions are involved? You only pay taxes if you sell your ETH to USD. Not if you earn and "hodl" ETH without selling. At least, that's how I understood it from the very beginning. If things have changed, then it means the US government is treating ETH as a security instead of a commodity.

Nonetheless, staking on centralized exchanges brings too many issues I'd like to avoid in the first place. Non-custodial staking is the way. Maybe the US will start hunting down ETH addresses using on-chain analytics tools (Chainalysis) to detect "tax evaders"? With how strict crypto regulations are becoming, we should expect the worse. Cheesy