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- IRS Declares Crypto Staking Taxable Amid Legal Challenge
IRS Declares Crypto Staking Taxable Amid Legal Challenge
News on the Blockchain
December 24, 2024
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🌍 Daily Crypto Market Overview
Global Stats:
Cryptocurrencies: 2.4M+
Exchanges: 771
Market Cap: $3.3T (+0.74%)
24h Volume: $154.74B (+4.94%)
Bitcoin Dominance: 56.28% (-1.18%)
Ethereum Dominance: 12.37%
ETH Gas Price: 4.31 Gwei
Fear & Greed Index: 55 (Neutral)
🪙 Top 5 Cryptocurrencies by Market Cap:
Name | Price | 24h Change | Market Cap | 24h Volume |
|---|---|---|---|---|
Bitcoin | $93,893.63 | -0.97% | $1.86T | $57.69B |
Ethereum | $3,394.41 | +3.25% | $408.89B | $29.97B |
Tether | $0.9989 | +0.02% | $139.69B | $128.72B |
BNB | $689.39 | +4.24% | $99.28B | $1.61B |
Solana | $189.73 | +4.37% | $90.97B | $4.09B |
💹 Market Highlights:
Total DeFi Volume: $12.64B (8.17% of total 24h volume)
Stablecoins Volume: $146.11B (94.43% of total 24h volume)
Coin with Highest % Change: VIRTUAL (+28.79%)
📈 Preview On Today’s News:
- IRS Declares Crypto Staking Taxable Amid Legal Challenge
- North Korean Hackers Responsible for Over Half of 2024’s $2.2 Billion Crypto Theft
- MoonPay to Acquire Helio Pay for $150 Million to Enhance Crypto Payment Services
Keep reading below for more!
Today’s News:
1)
IRS Declares Crypto Staking Taxable Amid Legal Challenge
The Internal Revenue Service (IRS) has officially stated that crypto staking is taxable, asserting that staking activities create a tax liability upon receipt of rewards. This clarification emerges amidst an ongoing lawsuit filed by cryptocurrency investor Joshua Jarrett, who challenges the IRS's classification of staking rewards as taxable income under Revenue Ruling 2023-14. The lawsuit, initiated in October 2024, questions whether staking rewards should be considered new property, potentially impacting how investors report and pay taxes on their crypto earnings. This development occurs during a significant year for the crypto industry, marked by Bitcoin surpassing $100,000 and increased global investment, highlighting the evolving regulatory landscape that crypto investors must navigate.
IRS Clarification: The IRS has affirmed that rewards from crypto staking are taxable and must be included in a taxpayer's gross income upon receipt.
Ongoing Legal Battle: Cryptocurrency investor Joshua Jarrett is contesting the IRS's stance in a lawsuit, challenging the classification of staking rewards and potentially influencing future tax regulations for crypto activities.
2)
North Korean Hackers Responsible for Over Half of 2024’s $2.2 Billion Crypto Theft
In 2024, North Korean hackers carried out their most significant cryptocurrency heist yet, stealing $1.3 billion and more than doubling the amount taken in 2023. According to Chainalysis, these illicit activities accounted for over half of the total $2.2 billion stolen from crypto platforms this year. While the cryptocurrency sector saw remarkable growth, including the US approval of its first crypto-based ETF and Bitcoin reaching a six-figure price, it also faced increased security threats. Decentralized finance (DeFi) platforms emerged as primary targets, with private key vulnerabilities responsible for nearly 44% of the hacks. Hackers exploited these keys to funnel stolen funds through decentralized exchanges, mining, or mixing services, underscoring the persistent challenges in securing the rapidly expanding crypto landscape.
Massive Theft by North Korean Hackers: In 2024, North Korean hackers stole $1.3 billion in cryptocurrency, making up over half of the total $2.2 billion lost to crypto hacks and doubling the previous year's theft.
Targeting DeFi and Exploiting Private Keys: DeFi platforms were the primary targets, with 43.8% of hacks resulting from private key vulnerabilities, highlighting ongoing security issues despite the crypto sector’s significant growth.
3)
MoonPay to Acquire Helio Pay for $150 Million to Enhance Crypto Payment Services
Crypto payment provider MoonPay is set to acquire Helio Pay in a $150 million deal, marking the company's largest acquisition to date. This strategic move will expand MoonPay's capabilities in facilitating cryptocurrency payments for content creators and e-commerce merchants by integrating Helio Pay's self-service platform and its Solana Pay integration with Shopify. The acquisition will enable merchants to accept stablecoins such as USDC, PYUSD, and EURC, enhancing payment flexibility and broadening MoonPay's service offerings. With over 20 million users worldwide, MoonPay, often referred to as the "PayPal for crypto," continues to strengthen its position as a leading crypto payment platform by expanding its merchant services and introducing innovative products like the MoonPay Balance for seamless interaction with DeFi protocols.
Major Acquisition: MoonPay plans to acquire Helio Pay for approximately $150 million, significantly enhancing its crypto payment solutions for content creators and e-commerce merchants.
Expanded Capabilities: The deal will integrate Helio Pay's platform with MoonPay's services, enabling acceptance of stablecoins like USDC, PYUSD, and EURC, and increasing overall payment flexibility.
