FTX Bankruptcy Caused About 500,000 Victims In Taiwan

Cryptocurrency platform FTX has declared bankruptcy, which has caused a huge shock in the currency world, an estimated 500,000 people in Taiwan suffered investment losses. The fact that the user’s money is still stuck in the exchange makes the user worried about its decrease in value and does not list asset trading losses.

According to a media outlet, crypto platform FTX declared bankruptcy, causing a huge shock in the currency world, an estimated 500,000 people in Taiwan suffered investment losses.

Lawmakers are concerned about the loss of crypto investment public, whether asset trading losses can be listed; Finance Minister Su Jianrong said that if any income is declared, according to regulations, it is possible to report a loss deduction.

However, there is a bigger problem that users’ funds are still stuck in the FTX exchange. In addition to worrying about encountering a situation where the value of the cryptocurrency held in hand will drop due to market shocks, Taiwanese users who are also concerned about this loss cannot report as property transaction losses when filing income tax returns.

In the context of unrealized profit and loss, even if the market value of a cryptocurrency falls, it cannot be reported as it is an unrealized loss.

The Finance Ministry official further explained that income tax is through the “cash system”, the key is whether the loss has been “realized”. If the public admits that a loss has been realized, then once a transaction loss is determined as a loss of overseas property transactions. It can be paid when declaring the minimum tax burden, offset with the current year’s overseas property transaction income.

If the individual FTX native token FTT or other cryptocurrencies is not stuck in the FTX, but is in a tradable state, then even if the market value of the cryptocurrency falls into a profit and Unrealized loss, it still can’t be listed because it hasn’t made the loss report yet.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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