Several countries, such as Japan and Switzerland, are already taking action to boost the growth of their crypto industry. In contrast, U.S. tax authorities seem to be aiming to stifle the nascent crypto industry with stricter controls.
https://bitcoinist.com/singapore-to-exempt-bitcoin-from-goods-and-services-tax/
https://bitcoinist.com/singapore-to-exempt-bitcoin-from-goods-and-services-tax/
I remember Australia doing this several years back as well, alongside Japan. I believe that removal of these draconian tax standards is absolutely necessary if a country wants to move forward in terms of financial innovation.
Why do I call it draconian? Because essentially, a GST/VAT or whatever you call it is a double taxing. If you are treating BTC as a good, then shouldn't there be no capital gains tax charged? Yet, many countries used to and still have this double taxing standard, which essentially drives out legitimate individuals and businesses from participating in the regulated market.
Singapore's move is a good one. It's protecting the rights of the investors while boosting their status as a nation which welcomes FinTech, which can attract foreign bitcoin businesses to incorporate there to the benefit of themselves. This said though, this is not the only improvement that can be made on tax codes worldwide. Making clarity remains the most important aspect imo.
