News on foresight: The US Internal Revenue Service (IRS) has reportedly released new tax regulations on when and how to tax bitcoin staking earnings, according to CoinDesk. Crypto investors should include any rewards they earn for performing validation tasks on Proof of Stake (PoS) networks in their income for the year they possess the tokens. The fair market value of the obtained validation awards must be determined from the time the US taxpayer takes custody of the tokens and must be included in the taxpayer’s total income for the tax year, according to the IRS. Investors who stake tokens through cryptocurrency exchanges and obtain extra cryptocurrency as a reward for validation must also abide by this guideline.
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IRS Announces Tax Requirements for Bitcoin Staking Rewards
By Kushal Ghale
