The cryptocurrencies
that are an integrated part of blockchains have led to creating enormous value
and wealth that attract increasing attention from investors and governments.
The sophistication and anonymity of crypto assets create significant challenges
for tax administrations as the current tax rules and guidelines in relation to
them are either too broad or too complicated. This article proposes a
simplified tax regime that would significantly reduce compliance and
administration costs when taxing cryptocurrency for which the first taxable
event occurs at the moment when crypto assets are converted to fiat currency or
other real-world goods or services