The cryptocurrency accounting firm, Lukka, has announced the launch of the Lukka Library, which is an interactive compilation of academic papers that address legal, accounting, and tax questions related to crypto assets.
“In 2014, People weren’t interested in paying their taxes in 2014.”
Co-CEO of Lukka Robert Materazzi, and Lukka Library creator and head of tax and regulatory affairs, Roger Brown offer their take on the matter
Materazzi says that the firm was formed in 2014 under its former brand, Libra after the founder “Googled how to pay his capital gains tax and found that there wasn’t any solution that was out there.”
The experience encouraged the founder to bring together some developers to build what Robert says was the first cryptocurrency tax calculator. However, the product didn’t make an impact as “people weren’t interested in paying their taxes in 2014 relating to crypto.”
After the 2017 bull run, Bitcoin was pushed towards the mainstream and gave rise to an explosion in crypto hedge funds; the company decided to shift its focus towards institutions.
Brown says that they then set about making a list of 170 issues pertaining to crypto tax for which they state “there was either no IRS guidance, or the IRS guidance on the topic was overly broad and missed the nuances in their facts.”
More Than 75 Topics Covered In Lukka Library
Roger says that as of now in the Lukka Library, more than 75 topics are covered, including a wide range of taxation strategies for traders of crypto as well as suggestions on how to value digital assets that have high volatility for institutions.
The resource has articles written by more than twenty-four authors, including the University of Pennsylvania and also legal firms Steptoe & Johnson, McDermott Will & Emery, Baker & Hostetler, and Mayer Brown.
The users of Lukka can also request articles addressing desired topics and can access the authors that are featured in the collection of the library.
Users need to pay $99.95 per year annually to access the Lukka Library.
Roger states that the platform is requesting content internationally, starting with a focus on the U.K.
Brown’s take on U.S. digital dollar proposals
Looking forward, Materazzi says that Lukka believes “crypto assets and digital assets are the future,” adding: “finally all the regulators and governments are catching up to this right now.”
Brown agrees that the said future may be arriving sooner than anticipated, citing current proposals for a U.S.-government backed digital dollar.
“The US has two bills in Congress and one in the House, one in the Senate that talk about digitizing the dollar and the digitization not only just at the institutional level […] but they’re also going to creating a digital wallet for each U.S. person to, in effect, no longer have to deal with currency. And that’s incredibly important. Not only for technology, the savings around sending it, the security also associated with it […] but digital assets are more traceable than cash. So that could be part of the reason why Congress is enacting it.”
He adds: “People say you could get the coronavirus from touching money in coins, you can’t do that by touching digital assets.”
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