Posted in Taxes

EU Tax for Ethereum Classic (ETC)

Ethereum Classic (ETC) is a cryptocurrency that has been gaining in popularity in recent years. As with other cryptocurrencies, the European Union (EU) has been considering implementing a tax on transactions involving ETC. This article will explore the EU’s plans for taxing ETC, the potential impact on cryptocurrency investors, and what the future may hold for taxation in the cryptocurrency space.


What is Ethereum Classic?

Ethereum Classic is a decentralized platform that enables smart contracts and decentralized applications to be built on top of it. It is a fork of the original Ethereum blockchain, and its main difference is that it retains the original consensus algorithm that Ethereum abandoned. ETC is the native cryptocurrency of the Ethereum Classic network.


The EU’s Plans for ETC Taxation

The EU has been exploring the possibility of implementing a tax on cryptocurrency transactions for some time now. In 2019, the European Commission released a report outlining the potential benefits and challenges of such a tax. The report noted that a cryptocurrency tax could provide a source of revenue for governments while also helping to combat tax evasion and money laundering.

While the specifics of the proposed tax on ETC and other cryptocurrencies have not been released, it is likely that the tax would be similar to existing taxes on financial transactions. These taxes are typically calculated as a percentage of the transaction value and are used to fund government programs and services.


Impact on ETC Investors

The implementation of a tax on ETC and other cryptocurrencies would have a significant impact on investors. First and foremost, it would increase the cost of buying and selling ETC, reducing profits for traders. It could also discourage some investors from buying ETC in the first place, as they may be unwilling to pay the additional tax.

However, there are some potential upsides to an ETC tax as well. For one, it could provide a level of legitimacy to the cryptocurrency space, which has often been associated with illegal activities. Additionally, the revenue generated from the tax could be used to fund government initiatives, potentially benefiting ETC investors in the long run.


Future of Cryptocurrency Taxation

The implementation of a tax on ETC and other cryptocurrencies is far from certain, and the EU is still in the early stages of exploring this possibility. However, it is clear that governments around the world are taking notice of cryptocurrency and are looking for ways to regulate and profit from it.

One potential alternative to a tax on ETC and other cryptocurrencies is the creation of a regulatory framework that would allow governments to track and monitor cryptocurrency transactions. This would help to combat tax evasion and money laundering without necessarily imposing an additional tax on investors.

Another possibility is the creation of a global cryptocurrency tax, which would be implemented by multiple countries and would provide a standardized approach to taxing cryptocurrency transactions. This would help to prevent a patchwork of different tax laws and regulations from emerging around the world.



The potential implementation of a tax on ETC and other cryptocurrencies is a significant development in the cryptocurrency space. While it is still unclear exactly what form this tax will take, it is likely that it will increase the cost of investing in ETC and other cryptocurrencies. However, it could also provide a level of legitimacy to the industry and generate revenue for governments.

As the cryptocurrency space continues to evolve, it is likely that governments will continue to explore different ways to regulate and profit from it. Whether through a tax on transactions or a regulatory framework, it is clear that the cryptocurrency industry is rapidly becoming an important player in the global financial system.

Posted in Taxes

Discover the Tax Consequences of Holding Ethereum Classic in Canada

When it comes to Ethereum Classic (ETC) taxes in Canada, the rules and regulations vary depending on the individual. The federal government of Canada has not yet defined the taxation guidelines for cryptocurrencies such as ETC, so it is up to the individual taxpayer to interpret their obligations and decide how they will handle their cryptocurrency-related taxes.

In general, Canadian residents must report any income generated through ETC transactions as taxable income. This includes all capital gains and losses from trading or exchanging ETC, as well as any other form of income generated from virtual currency activity. Depending on individual circumstances, these amounts may be taxed at different rates that range from 15% to 50%, with higher tax brackets applying to higher net incomes.

In addition to income taxes on capital gains, individuals may also have a responsibility to pay GST/HST when buying or selling goods or services with ETC in Canada. Taxpayers should keep detailed records of their transactions for at least six years in order to calculate their true tax liability accurately and avoid penalties for under reporting or omitting information on their returns.

Individuals who want to use ETC for long-term investments should consider opening a Registered Retirement Savings Plan (RRSP) or a Tax Free Savings Account (TFSA). These accounts provide additional tax benefits which can help reduce or defer taxes on capital gains earned from investing in virtual currencies like ETC.

It is important for taxpayers to understand that these rules and regulations are subject to change based on new developments in the industry and government policies. As such, taxpayers should always consult a qualified professional before deciding how best to handle their crypto-related taxes in Canada. Additionally, staying abreast of updates and news regarding taxation of digital assets will enable taxpayers to make more informed decisions regarding their own financial affairs and ensure they remain compliant with current taxation laws.


As the Canadian government continues to introduce new regulations and guidelines for digital asset taxation, taxpayers must remain vigilant and stay up-to-date on the latest changes in order to ensure compliant and profitable trading. For those looking for specific guidance on Ethereum Classic (ETC) taxes in Canada, consulting a qualified professional is strongly advised. Following the appropriate rules and regulations is necessary for crypto traders who wish to maximize their profits and minimize any potential penalties or liabilities related to their activities. With careful consideration of all relevant factors, individuals can make informed decisions that keep them compliant with current taxation laws while also ensuring maximum returns from their investments in ETC tokens.


In conclusion, understanding the taxation rules for Ethereum Classic (ETC) in Canada is essential for anyone looking to invest or trade with this cryptocurrency. Taxpayers should familiarize themselves with their obligations and consult a qualified professional to ensure they remain compliant while fully enjoying the potential returns of digital asset trading. With the right information and advice, individuals can successfully navigate the ever-evolving world of digital currency taxation while also taking advantage of its lucrative opportunities.

Posted in Taxes

Taxes on Ethereum Classic (ETC) in the USA: A Complete Guide for Financial Planning & Tax Implications of Holding ETC in 2021

Ethereum Classic (ETC) is a cryptocurrency platform developed from the original Ethereum open-source blockchain software. It is an open, permissionless platform that facilitates the development of smart contracts and distributed applications (dApps). With ETC, users can take advantage of its decentralized network to build their own applications and transfer tokens or funds securely and quickly. As with other cryptocurrencies, taxes are associated with investing or using ETC in the United States.

Income Tax: In the US, income generated through ETC investments is taxed as capital gains. This means that any profits made through trading ETC will be treated similarly to stock market investments when it comes to taxation. The US Internal Revenue Service considers cryptocurrency transactions as property transactions and taxes them accordingly, so investors will be liable to pay tax on any profits made through trading ETC at their applicable federal or state capital gains rate. Furthermore, any income generated by using services related to ETC such as mining also needs to be reported for tax purposes.

Sales Tax: Sales tax applies when someone buys goods or services with ETC in the US. This includes items like digital goods purchased from merchants that accept cryptocurrency payments. Sales tax rates vary from state to state; in some states the sales tax rate can be as high as 10%. For example, if someone buys a product from a merchant who accepts cryptocurrency payments for $100 and based out of a state where sales tax is 10%, then they will have to pay $10 of taxes along with their purchase price.

Employment/Wage Tax: If someone earns wages or salary by providing services related to ETC, then they are liable to pay employment or wage taxes in accordance with IRS regulations. This could include activities such as mining or providing technical support for companies that use the ETC platform in their operations. Employment/wage taxes are usually withheld by employers before they are paid out so employees need not worry about being burdened with these after-tax deductions themselves. However, they still should report these wages on their annual income tax returns so they can benefit from eligible deductions and credits available under US federal law.

Gift/Estate Tax: In some cases people may receive gifts of value in the form of cryptocurrencies such as ETC which could potentially attract gift/estate taxes depending on certain factors like source and amount of gift received etc.. Gift/estate taxes generally apply when one receives more than $15000 from any single source during a calendar year and could go up significantly if this amount exceeds certain thresholds set under federal law for taxable gifts given/received during lifetime transfers between family members as well as upon death due to inheritance transfers between family members etc..

Overall it’s important for anyone dealing with investments related to Ethereum Classic (ETC) to understand how different types of taxes apply before taking action on any trades involving this asset class since there may be significant penalties involved otherwise due noncompliance with applicable laws regulating taxation around such transactions in the United States environment. It’s always recommended that people consult professional tax advisors or financial planners prior making decisions related involving taxation around trading activities involving new emerging asset classes like cryptocurrencies since legal rules governing such areas tend change frequently over time due advances in technology driving innovation within this space ranging from newly emerged protocols using platforms like Ethereum Classic (ETC) all way up higher level derivative instruments that arrive later down line which provide users access even more innovative ways capitalize on opportunities found within burgeoning digital asset sector without getting exposed too much risk initially discussed here today regarding taxation associated investment activities around assets such these scenarios previously mentioned relating context user gets involved Ethereum Classic (ETC) either capacity investor trader consumer etc..