In DeFi, one of the biggest headaches for users may not be losing money on a trade, but facing tax issues before they’ve even made a profit.
This time, Uniswap, a16z, and the DeFi Education Fund have stepped in.
The three parties are submitting comments to the Illinois Department of Revenue, hoping to exclude DeFi protocols, front-end interfaces, withdrawals to self-custody wallets, and cross-chain bridge operations from the scope of the digital asset transaction tax.
Why are they opposed?
Because under the digital asset tax law already passed in Illinois, related digital asset businesses will face a tax of 0.2% of the asset value.
For example:
If a transaction involves digital assets worth $100,000, a 0.2% tax would amount to $200.
The problem is that wallet transfers and cross-chain operations by DeFi users don’t necessarily mean they’ve made an actual profit.
If these operations are also included in the tax scope, users’ transaction costs and projects’ compliance burdens could both increase.
At the heart of this debate is a single question: Should every movement of assets on-chain be treated as a taxable event?
#uniswap与a16z寻求伊利诺伊州defi税收豁免
This time, Uniswap, a16z, and the DeFi Education Fund have stepped in.
The three parties are submitting comments to the Illinois Department of Revenue, hoping to exclude DeFi protocols, front-end interfaces, withdrawals to self-custody wallets, and cross-chain bridge operations from the scope of the digital asset transaction tax.
Why are they opposed?
Because under the digital asset tax law already passed in Illinois, related digital asset businesses will face a tax of 0.2% of the asset value.
For example:
If a transaction involves digital assets worth $100,000, a 0.2% tax would amount to $200.
The problem is that wallet transfers and cross-chain operations by DeFi users don’t necessarily mean they’ve made an actual profit.
If these operations are also included in the tax scope, users’ transaction costs and projects’ compliance burdens could both increase.
At the heart of this debate is a single question: Should every movement of assets on-chain be treated as a taxable event?
#uniswap与a16z寻求伊利诺伊州defi税收豁免