United States-based blockchain expert, Bright Enabulele, has expressed support for the International Monetary Fund’s (IMF) recent recommendation calling for the implementation of capital gain tax on cryptocurrencies.
The endorsement came as a significant boost to the IMF’s proposal, as the crypto industry seeks to establish clear regulatory frameworks and promote responsible taxation.
Enabulele, a highly respected figure in the cryptocurrency space, commended the IMF’s stance, highlighting the importance of treating cryptocurrencies as taxable assets similar to stocks and real estate.
Reacting to the IMF’s recommendation through his Twitter handle, Enabulele expressed a belief that imposing capital gain tax on cryptocurrencies is a necessary step towards ensuring fairness, transparency, and the long-term stability of the market.
Emphasising on the benefits, he explained that the introduction of capital gain tax would enable governments to generate additional revenue that can be utilized for public welfare, infrastructure development, and social programs. This, in turn, according to him, supports economic growth and stability within nations.
“The IMF’s recommendation stems from the need to ensure a fair and equitable tax system in the digital age. For me, it’s a way of treating cryptos like other taxable assets, such as stocks and real estate. It ensures that gains made from crypto investments are appropriately taxed, promoting fiscal responsibility and fairness across the board.
“By implementing capital gain tax on cryptocurrencies, countries can generate additional revenue streams that contribute to public welfare, infrastructure development, and social programs. It supports economic growth and stability on a national level,” he wrote.
As the thread continues, Enabulele, however, noted that capital gain is all about profits.
“It has nothing to do with your actual assets. For instance, you can’t be taxed for having oduwacoin and other cryptos, but can only be taxed when you make profit from it. At the end of the day, you may either see your crypto asset as a property or commodity. In conclusion, the IMF’s recommendation to consider capital gain tax on cryptocurrencies reflects a pragmatic approach towards embracing the potential of digital assets while ensuring fairness, transparency, and financial stability,” he stated.
Maintaining that should Nigeria and other developing nations consider capital gain tax on cryptocurrencies, the blockchain doyen said their citizens will have a strong leverage to expand their revenue net and travel beyond the shores of their countries easily.
“Every sovereign country has the right to tax but revenue is revenue and it’s important in the modern world. Once you have made money, you have to pay taxes from it. What the government is saying is that pay your tax from the money you make.
“Because you pay tax on it, you can also show your papers as a source of income. It also allows you to travel easily. Capital gains allow you to travel to a foreign country. Your revenue streams don’t have to be 9-5. It allows those that are hiding crypto profits to come out,” he added.
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