Is there a tax if I buy coffee with Bitcoin? We'll explain the "cryptocurrency tax" that's been discussed in the US in an easy-to-understand way!
Hello! I'm Jon, a blog writer who brings you the latest news on blockchain technology in an easy-to-understand way.
"Apparently, the US Congress is discussing legislation regarding virtual currencies..."
When you hear this news, you might think, "That sounds complicated..." or "It doesn't concern me." However, this is actually a very important story that has a bearing on how we use virtual currencies (also known as crypto assets) such as Bitcoin in the future.
This time, let's take a look at the bills recently passed in the United States and the "Virtual Currency Tax Amendment" that attracted attention!
What happened in America? Bills and the "phantom amendment"
First, a quick summary of what happened.
- Part of the US CongressThe Senate (similar to the House of Councillors in Japan)So, a bill called "The One Big Beautiful Act" was passed.
- During the debate on this bill, Senator Cynthia Lummis said, "Let's change the tax rules on virtual currencies a little!"Amendments (proposed changes to the bill)I issued.
- Unfortunately, this amendment was not adopted.The bill was passed without it being included.That's the gist of today's news.
You may think, "Oh, the amendment just didn't pass," but the important thing is the "contents of the amendment." This had a very important meaning for the future of virtual currencies.
The main point: What are the tax issues surrounding "micropayments"?
Have you ever imagined buying coffee with Bitcoin?
In fact, under the current tax rules (which are similar in both Japan and the United States), this is quite a difficult task.
This is because virtual currencies are treated as "assets (like money, stocks, and real estate)." To understand this, let's look at a simple example.
- Let's say you bought 1 Bitcoin when it was worth 500 million yen.
- After that, the value of Bitcoin rose, and one Bitcoin became 1 million yen.
- At this point, you have paid for a 500 yen coffee with Bitcoin.
At this time, in the world of taxation, you could say, "You sold some of your bitcoins and made a profit of 1 yen (technical term for this isCapital gain,Transfer incomeSo you have to pay tax on that profit."
Every time you buy a cup of coffee, you have to check how much you paid in Bitcoin, calculate the difference with the current price, record your profit... Just thinking about it is a hassle. This means that even though this technology is convenient, it remains difficult to use for everyday shopping.
What is the "de minimis tax exemption" proposed as a solution?
That's where the amendment proposed by Senator Lummis came in. Her goal was to:"De minimis tax exemption (rule that does not tax small amounts)"The goal was to introduce
This, in a nutshell,"If the payment is small, you don't have to calculate the profit and pay tax every time!"That's the rule.
For example, what if there was a rule that said, "If you use virtual currency to make a payment of less than $200 (approximately 3 yen), you won't be taxed even if you make a profit?"
We may be able to buy coffee or lunch with Bitcoin more easily, without worrying about taxes, as if it were electronic money.
This amendment had the potential to be a huge step in evolving virtual currencies from a "special investment vehicle" to "everyday money."
What happens next? What the results show
Unfortunately, this amendment did not pass this time, so for the time being, Americans will continue to have to pay complex tax calculations even when making small purchases with virtual currency.
But don't be discouraged. The important thing is,The fact that a concrete discussion on how to tax virtual currencies was held in the country's highest level of parliament.
This is evidence that governments and lawmakers are now aware that virtual currencies can no longer be ignored. Although this proposal did not pass, similar discussions will likely continue in the future. And one day virtual currencies may become more familiar and easier to use.
[Jon's Tweet]
Personally, I'm a little disappointed that this amendment didn't pass. If it had been realized, it would have been a big boost to cryptocurrency becoming "everyone's technology." But the fact that the discussion has progressed this far is a big step forward! I'm excited to see the world moving from the stage of "What is cryptocurrency?" to the stage of "How can we use it in society?"
This article is based on the following original articles and is summarized from the author's perspective:
The One Big Beautiful Act Passes in the US Senate —
Without Bitcoin Tax Amendment