Making money on crypto can feel straightforward until tax season reveals how many everyday transactions quietly trigger taxes. As IRS reporting expands, investors who assume nothing counts until they cash out may be setting themselves up for an expensive surprise. Crypto experts explained five tax traps to avoid. 1. Thinking Nothing Counts Until You Cash Out Many crypto investors assume taxes only matter when money hits their bank account. “Many taxable events happen long before that,” said Ravi Parikh ...

Core Insights - Indian policymakers are under pressure to revise the punitive crypto tax framework as capital flight to offshore platforms raises concerns about lost tax revenue and weakened regulatory oversight [1] - The upcoming Union Budget is being closely watched by the crypto industry for potential relief from a tax regime that has significantly reduced domestic trading volumes [2] - The current tax framework imposes challenges for retail participants by taxing transactions without recognizing losses, leading to a frictional environment for the crypto ecosystem [3] Tax Framework and Impact - The Indian government introduced a 30% tax on crypto income in February 2022, with no deductions or exemptions allowed [4] - The Finance Minister specified that losses from price drops or hacking incidents cannot be offset against profits, further complicating the tax landscape for investors [5] - A 1% Tax Deducted at Source (TDS) has adversely affected high-frequency traders and liquidity providers, making their business models unsustainable on domestic platforms [6] Industry Requests and Regulatory Environment - Key requests for the 2026 Budget include tax rationalization through reduced TDS, allowing loss set-offs, establishing a regulatory mechanism for the sector, and promoting blockchain adoption [4] - Despite being a leader in grassroots crypto adoption, India's tax-heavy approach has created a regulatory limbo, contrasting with more structured frameworks in other Asian countries [2]

Market Overview - Bitcoin is experiencing a drop potentially due to miner capitulation, Chinese miners shutting down, Japan raising rates, and institutional selling [1] Investment Recommendations & Disclaimers - J P Morgan is mentioned, suggesting a potentially positive outlook or contrasting viewpoint amidst the market downturn [1] - The content includes affiliate links, and the author may receive a commission if purchases are made through them [1] - The content is not investment advice, and crypto investing and trading involves risk of loss [1] Educational Resources - The content provides links to several crypto-related videos covering topics such as avoiding scams, storage diversification, dynamic DCA'ing, and tax rules [1] - Simplified Crypto Education is offered through a DAN Website [1] Cryptocurrency Services & Products - iTrust CRYPTO IRA is mentioned with a $100 sign-up bonus and no monthly fees [1] - Ben's INTO THE CRYPTOVERSE Site offers on-chain, macro & strategy analysis with a 10% discount using code DAN10 [1] - Kraken sign-up is promoted with a claim of $25 in the app [1] - TANGEM COLD STORAGE WALLET is recommended, offering simple, secure, and inexpensive storage [1] - STONEBOOK is recommended for keeping seeds & passwords safe [1] - CoinLedger is the crypto tax software used, offering a 20% discount [1] Charitable Giving - ProTechos is mentioned, helping the poor to rebuild their roofs and training the next generation carpentry skills [1] - Donations are requested for The Amigos De Los Animales Animal Shelter [1] Strategies - 5% DEGEN PLAYS is mentioned [1] - ALL CRYPTO EXITS (OLD) and 2024/2025 EXIT (NEW) strategies are linked [1] - 4 YEAR CYCLES, DCA 5 Examples, WHY DOGE, and $10 WEEK DCA strategies are linked [1]

Investment and Trading Risks - Crypto investing and trading involves risk of loss [1] - Price predictions are all worthless [1] Crypto Education and Resources - Simplified Crypto Education is available on DAN Website [1] - Ben's INTO THE CRYPTOVERSE Site offers on-chain, macro & strategy analysis with 10% off the first month using code DAN10 [1] - Recommends Kraken for crypto trading, highlighting its features and offering a $25 sign-up bonus in the app [1] Security and Storage - Advocates for diversifying crypto storage [1] - Recommends TANGEM COLD STORAGE WALLET for simple, secure, and inexpensive storage, offering a 10% discount via an affiliate link [1] - Suggests using STONEBOOK to keep seeds & passwords safe, offering a 20% discount via an affiliate link [1] Tax and Legal Considerations - Highlights a new crypto tax rule in 2025 [1] - Provides a link to crypto tax software with a 20% discount using code DANCRYPTO [1] Disclaimer - Emphasizes that the content is not financial, legal, or tax advice and is for entertainment purposes only [1]

Regulatory Updates - Government initiates CARF consultation for automatic crypto tax data exchange by 2028 [1] - Amended CRS implementation is planned by 2029 [1] - Legislative amendments are expected to be completed next year (implied 2027) [1] Policy & Compliance - Secretary Christopher Hui commits to international tax cooperation and cross-border evasion prevention [1] - Public feedback is accepted until Feb 6, 2026 [1]

Canada targets Dapper Labs users in second-ever crypto tax probe as enforcement gap widens: report https://t.co/JMLIMbUyQb ...

Regulatory Changes - UK government to crackdown on crypto tax avoidance in 2026 [1]

LATEST: 🌍 Spain's Sumar parliamentary group has proposed raising the top crypto tax rate to 47% from the current 30% savings rate, while Japan is moving in the opposite direction with plans for a flat 20% capital gains tax. https://t.co/euOwc2tCrk ...

🚨JUST IN: @CZ_BINANCE REACTS TO JAPAN’S CRYPTO TAX CUT TO 20%, CALLING IT A “GREAT STEP FOR JAPAN” ...

Regulatory Concerns - Experts consider France's proposed crypto tax "economically unjust" [1]