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PayPal announced in October that it would start trading Bitcoin. Initially, the offer is limited to the US, but US customers are on a long waiting list, with only 10% able to buy BTC.
PayPal apparently did not anticipate the rush that the offer to trade in Bitcoin triggered. Since October, US customers have been able to buy, sell and hold Bitcoin in their accounts via PayPal, but not send them.
According to this, only 10% of all customers can also participate, the rest are on a waiting list. But it’s two to three times as long as expected, as PayPal CEO Dan Schulman revealed. In the coming weeks, however, all US customers should be able to use the offer. And within the first half of the coming year they should be able to pay with Bitcoin without incurring additional fees.
In addition, one is also in talks with central banks and regulators to find out more uses of the PayPal wallet. Schulman sees a number of advantages here over the traditional banking system.
Tax laws are a problem for Bitcoin
The biggest problem is still taxes. In this case, however, not their amount, but the accounting. Because every purchase with Bitcoin represents a single event that must be taken into account for tax purposes.
This is a problem not only in the USA, but also in Germany. This problem is preceded by the classification of Bitcoin as an intangible asset. If you exchange Bitcoin for goods, you have not paid, but made a private sale, which in turn has to be claimed for tax purposes.
In this way, many countries have, to a certain extent, rendered Bitcoin harmless as a competitor to the national currency. Because it’s easy to see that it is an almost impossible expense to keep track of everything if you would pay with it every day. Depending on the individual tax situation, it can end up being more expensive if you pay with Bitcoin. According to PayPal, this is a matter for the customer.
Gold mine for the IRS
So if nothing changes in the legal situation, customers would be well advised to behave in a tax-compliant manner with their Bitcoin purchases and sales via PayPal. Because the US tax authorities have also requested data from Coinbase in the past.
It is foreseeable that they will have an easy game with PayPal and will be able to identify anyone who may have used Bitcoin for payment but did not submit a tax return. But that doesn’t have to be negative. Because there is hope that PayPal, as an innovation engine, can perhaps convince politicians to find new regulations. To this end, associations in the USA are primarily discussing exemption regulations that exclude small amounts from taxation.