Cryptocurrency: Regulations & Tax Implications Of Crypto Assets Seizure

Introduction - Cryptocurrency: Global Challenges, Regulations and the Tax Implications Associated with the Seizure of Crypto Assets

In May 2021, electric car manufacturer Tesla Inc. announced its decision to stop accepting Bitcoin as payment. According to CBC, Tesla's announcement sparked a decline in cryptocurrency prices. In June 2021, China announced its decision to ban all financial institutions and payment companies from providing services related to cryptocurrency transactions. According to CBC, China's announcement to "crack down on cryptocurrencies" exacerbated the decline in cryptocurrency prices. In addition, according to CBC, the Bank of Canada's Federal Reserve hinted that it may launch a challenge "declaring that crypto works against the public good". Further, according to CBC, while many investors are worried about potentially losing their digital investments, others have already "lost more than half their investments" due to the ongoing decline in