Tax and regulation
KYC, AML, crypto taxes and regulation: the basics.
12 terms · 1 guide
Guides
For beginners
AMLAML (anti-money laundering) is the set of measures against money laundering: checking customers, monitoring suspicious transactions and…BeginnerCapital gainsA capital gain is the profit from selling an asset for more than you paid: the sale price minus your cost basis. In many countries it is…BeginnerCrypto taxCrypto tax is tax on income from crypto: on gains when you sell or swap it, and on receipts such as staking rewards or salary paid in…BeginnerKYCKYC (Know Your Customer) is identity verification at an exchange or broker: documents, sometimes a selfie. Regulators require it to fight…BeginnerSource of fundsSource of funds is evidence of where specific money or crypto came from: salary, a sale, savings or trading profits. Banks and crypto…BeginnerTaxable eventA taxable event is an action with an asset that can create a duty to pay tax: for example selling it, swapping it or receiving crypto as…Beginner
Advanced
Cost basisCost basis is what you spent to acquire an asset, including fees. It is subtracted from the sale price to find your taxable gain or loss.AdvancedCRS and automatic information exchangeCRS (Common Reporting Standard) is an OECD standard under which banks and financial firms report accounts held by foreign tax residents,…AdvancedMiCA (EU crypto regulation)MiCA (Markets in Crypto-Assets) is the EU regulation on crypto-assets: one set of rules for stablecoin and token issuers and for crypto…AdvancedTax-loss harvestingTax-loss harvesting is selling an asset at a loss so the realised loss reduces taxable gains from other trades. It does not work the same…AdvancedTravel RuleThe Travel Rule requires crypto service providers to pass sender and receiver details to each other when crypto moves between them, just…AdvancedVASP (virtual asset service provider)A VASP (virtual asset service provider) is a business that provides crypto services: exchange, transfers or custody. FATF coined the term,…Advanced