FROM TAXATION TO COMPREHENSIVE REGULATION OF CRYPTOASSETS

Abstract

The rapid development of decentralized finances, new cryptoassets like NFTs, as well as statebacked projects like CBDCs in China, the USA and the EU, make it increasingly important for
every country to establish a clear legal framework for cryptoassets and digital currencies. Such
rules are not just necessary for a country to keep up with technological advancements, but also
in order to prevent illegal activities like fraud, tax evasion and money laundering. While
numerous jurisdictions have already introduced comprehensive legislation on cryptoassets,
countries like North Macedonia have still elected to, for the most part, abstain from participating
in the global discourse. However, important aspects of regulation unavoidably are country
specific. Therefore a functioning system cannot be established by only imitating foreign
solutions. Thus, first regulatory steps must be established starting from a national perspective,
before the more complex adaptation of, for example, European regulation can be conducted. In
order to incite the discussion on a regulatory framework for cryptoassets in North Macedonia,
this paper describes how various other jurisdictions approached cryptoasset regulation. It
especially focuses on the tax laws of the respective countries, as all analyzed legal systems have
in common that taxation is amongst the first issues considered by national legislators. By
defining taxable bases, taxpayers and realization events, authorities, in fact, determine key
aspects of the legal treatment of cryptoassets. Exactly these aspects can then in a later stage be
used as starting point for future legislation.