Cryptocurrency Tax Issues for Cross-Border Transactions

1. Understanding Cryptocurrencies and Blockchain

Cryptocurrencies are digital assets designed to work as a medium of exchange, using cryptography to secure transactions, control the creation of additional units, and verify the transfer of assets. The underlying technology, blockchain, is a decentralized ledger that records all transactions across a network of computers. This technology ensures transparency and security but also presents unique challenges for taxation due to its anonymity and lack of central oversight.

2. Cross-Border Transactions Explained