Bankruptcy and corporate restructuring experts Begbies Treynor told The Guardian that governments are at risk of not receiving tax revenues from businesses that accepted payments in cryptocurrency but later went bankrupt.
The inability to easily track cryptocurrency payments means governments can miss out on huge amounts of tax revenue. Julie Palmer, managing director of Begbies Treynor, said cryptocurrency payments were especially difficult to track when it came to winding down a business if it went bankrupt. Therefore, tax collectors such as the Internal Revenue Service and Customs do not receive their share, which reduces the government’s ability to fund social security and other state-dependent activities.
While the vast majority of companies don’t yet accept cryptocurrency as a means of payment, the idea is gaining traction with the likes of Tesla, WeWork, and others. Palmer said the potential losses to governments are limitless and depend on how popular cryptocurrency payments become.
Begbies Treynor told The Guardian that there is nothing she or other bankruptcy firms can do to address the issue. In the case of the UK, the company said laws should be introduced to ensure proper regulation and taxation of cryptocurrencies.
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