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Coinbase Adds TurboTax to Help Users File Cryptocurrencies

Distributed Summary:

  • The cryptocurrency exchange and tax prep platform partner to automate crypto transaction tax filing
  • Onus to understand which crypto transactions should be filed in taxes still falls on users
  • Coinbase also updated tax resource center and partnered with CoinTracker

The cryptocurrency exchange Coinbase and TurboTax, an online tax preparation platform, have partnered to help American taxpayers pay taxes related to crypto assets and trading.

According to a TurboTax blog post, TurboTax customers who use the company's Premier product can upload cryptocurrency trading transactions directly into TurboTax, which will then automatically include those crypto transactions within customers' tax filings.

TurboTax supported the filing of crypto transactions previously, but users had to upload the transaction data manually, which can be onerous for users who trade crypto frequently. The new integration makes it possible to integrate up to 100 transactions at a time in an automated fashion.

The integration feature on Coinbase won't automatically resolve every tax question that crypto investors might have. Ultimately, the burden of understanding which types of crypto transactions and assets are taxable, and how they should be reported, lies with taxpayers. But the integration will speed transaction reporting, at least for Coinbase users.

Shortly after TurboTax announced its Coinbase integration feature, Coinbase revealed several other tax-related initiatives. They include an updated tax resource center to help taxpayers understand crypto-related taxes in the United States and a partnership with CoinTracker, a platform that lets users track crypto transactions across multiple exchanges. CoinTracker data can also be integrated directly into TurboTax.

So, for that matter, can data from some other crypto platforms, such as Bitcoin.Tax, a crypto-transaction tracking platform that is similar to CoinTracker and also integrates with TurboTax.

Coinbase is thus not the first platform in the crypto world to gain TurboTax integration. It is, however, the first crypto exchange to offer this feature, fulfilling a request that crypto traders have been making at least since 2017.

FinCEN Takes First-Ever Enforcement Action Against Cryptocurrency Trader

Source: FinCEN

The Financial Crimes Enforcement Network (FinCEN) has assessed a civil money penalty against a peer-to-peer bitcoin trader for violating anti-money laundering (AML) regulations, its first enforcement action against a cryptocurrency exchanger. According to the agency, the exchanger failed to register as a money services business and failed to report "suspicious transactions," among other violations. The exchanger has been assessed a $35,000 fine and is now prohibited from providing money transmission services.

2019 Investments in Crypto and Blockchain Startups at $850 Million

Source: Reuters

According to data compiled by Pitchbook for Reuters, venture capital investment in crypto and blockchain startups has reached $850 million so far this year.

EEA Launches 'Token Taxonomy Initiative'

The Enterprise Ethereum Alliance has announced a "Token Taxonomy Initiative" to develop universal definitions for tokens to encourage their interchangeability across blockchain platforms. Members of the initiative include Microsoft, R3, ConsenSys, IBM, EY, Accenture and Intel.

Gemini Adds Support for SegWit

Source: Gemini

Gemini Trust, a New York-based cryptocurrency exchange, has announced support for Segregated Witness (SegWit) addresses and transaction batching. As a result, customers can now use SegWit addresses for bitcoin deposits and withdrawals, ideally improving processing times and lowering bitcoin withdrawal fees.