According to a new working paper by the International Monetary Fund (IMF), governments have not yet addressed all the ways in which cryptocurrency can be taxed, resulting in the potential loss of tens of billions of dollars in uncollected taxes. The challenges to taxing cryptocurrency are numerous, including its semi-anonymity, dual nature as an investment and payment vehicle, and high volatility.

There is also no consensus on how to tax cryptocurrency, and tax systems were not designed to handle blockchain technology. However, if the potential for crypto tax collection could be harnessed, it could help offset the negative impact of crypto on macroeconomic factors and further ecological goals.