Cryptocurrency Taxes, Rules, and Regulations

Putting together everything the SEC and CFTC have said, it is safe to assume Bitcoin and Ethereum aren’t securities, but are commodities in the US.

To summarize the tax rules for cryptocurrency in the United States, cryptocurrency is an investment property, and you owe taxes when you sell, trade, or use it.

Anyone who realized crypto gains early in a year only to lose money on paper later in the year might want to consider “Tax-Loss Harvesting.”

KYC / AML stands for “Know Your Customer / Anti Money Laundering.” KYC and AML guidelines are followed by banks, insurers, broker-dealers, cryptocurrency exchanges, and other such entities.

You can carryover capital losses forward each year. $3k worth of losses can be deducted from capital income or ordinary income each year until the full amount is deducted.