Navigating Complex Crypto and DeFi Taxes

It’s that time of year in the USA where the trees are blossoming, the winter jackets are being packed away for the season and there is only one thing on everyone’s mind. Taxes.  

But how do you report DeFi transactions, crypto staking and lending and stablecoin purchases? Well Ian Andrews (CMO, Chainalysis) brings in crypto tax generalist, Lorenz Haselberger (Partner at Shearman & Sterling LLP) to dive deep into the most complex tax implications facing the crypto industry. 

Lorenz unfolds the nuances of reporting taxes within the dynamic and evolving world of cryptocurrencies and shares his journey into the crypto tax niche and unwraps the critical aspects of current tax considerations.

He discusses the tax challenges with DeFi protocols and underscores the  importance of understanding the tax implications for both individual and institutional investors and the need for the US Government to provide more clarity and guidance to the crypto industry 

Minute-by-minute episode breakdown

2 | Lawrence's background in taxation and involvement in the crypto industry 

6 | Discussion on the complexity of reporting obligations for exotic cases like crypto and DeFi lending 

14 | Everything you need to know about staking and potential tax implications

22 | The debate on whether DeFi transactions should be treated as a taxable event

25 | The national and international tax implications for crypto investors vs traders

33 | Debate on expanding information reporting requirements for crypto 

36 | Does tax complexity and uncertainty deter some from participating in crypto?

39 | Differentiating stablecoins from cryptocurrencies for tax purposes

42 | The evolution of DeFi protocols and need for Government guidance for crypto tax implications

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

• Website: Shearman & Sterling: Forbes names senior partner, Adam Hakki to top 200 lawyers in USA
• Report: New York State Bar Association Tax Section On Crypto and Fungible Digital Assets
• Blog: Blockworks: US Treasury once again proposes new crypto tax rules to “modernize” code
• Blog: Intellectual Property Infringement: Crypto Used in Sales for Illicit Streaming Services and Counterfeit Pharmaceuticals
• Blog: What FATF’s Report on Recommendation 15 Means for Regulators & Private Sector
• Event: Chainalysis Links Conference NYC 2024 (Apr. 9-10, 2024) - Early Bird Pricing On Now!
• YouTube: Chainalysis YouTube page
• Twitter: Chainalysis Twitter: Building trust in blockchain
• Tik Tok: Building trust in #blockchains among people, businesses, and governments.

Speakers on today’s episode

• Ian Andrews * Host * (Chief Marketing Officer, Chainalysis) 
• Lorenz Haselberger (Partner, Shearman & Sterling LLP)

This website may contain links to third-party sites that are not under the control of Chainalysis, Inc. or its affiliates (collectively “Chainalysis”). Access to such information does not imply association with, endorsement of, approval of, or recommendation by Chainalysis of the site or its operators, and Chainalysis is not responsible for the products, services, or other content hosted therein.

Our podcasts are for informational purposes only, and are not intended to provide legal, tax, financial, or investment advice. Listeners should consult their own advisors before making these types of decisions. Chainalysis has no responsibility or liability for any decision made or any other acts or omissions in connection with your use of this material.

Chainalysis does not guarantee or warrant the accuracy, completeness, timeliness, suitability or validity of the information in any particular podcast and will not be responsible for any claim attributable to errors, omissions, or other inaccuracies of any part of such material. 

Unless stated otherwise, reference to any specific product or entity does not constitute an endorsement or recommendation by Chainalysis. The views expressed by guests are their own and their appearance on the program does not imply an endorsement of them or any entity they represent. Views and opinions expressed by Chainalysis employees are those of the employees and do not necessarily reflect the views of the company.