Solving the Complexities of Crypto Tax & Accounting With the Experts at Ledgible – Sponsored Bitcoin News

As crypto matures and continues along its path of inevitable adoption, so too does the importance placed on adequately accounting for crypto as an asset class and a source of income.

Cryptocurrencies at their core were not designed to fit into traditional financial systems, after all, that’s where some of their primary benefits over fiat and banking systems are found. For crypto natives, trying to fit the square peg of crypto into the round hole of traditional finance is done begrudgingly, often come tax time – or in the case of businesses with crypto, monthly to close books. In the US and other regulated economies, these actions are necessary evils to maintain crypto – but accounting for crypto neither has to be hard nor detrimental to the overall crypto ecosystem.

But let’s back up for a moment.

A Paradoxical Equation

As companies and funds continue to make the push for a Bitcoin spot ETF and other financial products involving cryptocurrency functioning in the more traditional financial ecosystem, we’re left with a somewhat paradoxical equation.

Mass crypto adoption – particularly within hedge funds, institutions, and other large organizations – is a net positive for the space. It will drive innovation and ensure the continual permanent adoption of digital currencies. But the paradox here is that this adoption, the end goal of most in the crypto space, will come at the hand of creating a symbiotic relationship between crypto and financial regulation and process.

We’ve seen numerous crashes of companies like Celsius, Three Arrows Capital, and others as we fall into what is likely another crypto winter. All of this is reminiscent of crashes and outcomes seen in traditional financial markets under greed and mismanagement, among a plethora of other pernicious behaviors. Historically, these outcomes have brought greater scrutiny on the space – more regulation – but have all worked to build a more stable financial ecosystem for consumers and investors alike.

So we’re left with a paradox, the merging of decentralized digital currency and centralized regulation. How then, can this paradoxical situation be solved with an outcome that is both beneficial and foundational to the growth of crypto, as well as one that maintains the benefits of cryptocurrencies at their core?

While new regulation is one piece of the puzzle here, it has yet to come. There have been plenty of rumblings and discussions, but nothing substantial…