in the USA, businesses get taxed on net business income. issuing a stablecoin in exchange for deposits doesn't constitute "income"---they're just taking in assets (customer deposits) and issuing them as liabilities. they're not actually generating profits with this activity.
Oh, how much I've searched for this term
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We have a stupid law here according to which any financial institution is also taxed on net revenue before taxing profit.
Now, why would your friend count it as "selling goods" isn't stable coins or any other cryptocurrency counted as an asset and should be taxed via capital gains tax?
I'm referring to the issuer, not to the person that buys those stable coins.
Since we have no law regarding this and cryptos are not treated as financial instruments they are excluded from any other regulations. According to him, a company registered as a financial entity wouldn't be able to issue freely assets denominated in local currency without the approval of the government financial regulators and since cryptos are recognized ...you can't issue coins legally ....no way of getting approval for something that has basically no legal framework. Vicious circle!
Right now everyone selling any kind of coins would be hit with a % tax on gains, no matter what kind of coins you sell.
And since obviously the profit is the same as the value....
I tried reading one of the proposals for regulations but might I need a barrel of coffee since I got to the 5 or 6 page and didn't understand a word of it.
This is why I wondered how others deal with this