Cryptocurrency Taxation: A Global Overview by Divly

Tax avoidance is a common practice among businessmen and investors around the world. In the cryptocurrency industry, which has an estimated 420 million users, the same is true. 

According to the Global Cryptocurrency Taxation Report 2022 published by Divly, a Swedish crypto-tax firm, only 0.53% of digital asset holders pay taxes on their holdings. Meanwhile, 95% of crypto owners are not willing to pay taxes.

Divly conducted the survey across 24 countries and revealed its method for calculating the tax payment rate. The firm analyzed official government figures, cryptocurrency ownership data, and search volume data.

Global Cryptocurrency Taxation Report 2022: Continent-wise Analysis

The Oceania region topped the continent rankings with the highest percentage of crypto owners who paid taxes. The survey found that 3.25% of Oceania’s crypto users paid taxes on their holdings. The platform attributed the region’s success to Australia, which represented 3.65% of its tax-compliant crypto users. 

North America was second with 1.62%, followed by Europe at 1.52% and Asia at 0.20%. Interestingly, Oceania had the least number of cryptocurrency users but paid the highest taxes. The 3.25% of taxation-compliant users represents only 1.5 million users.

The other continents of Asia, North America, South America, Europe, and Africa have an estimated 240 million, 54 million, 33 million, 31 million, and 38 million crypto users, respectively. 

Divly’s Global Cryptocurrency Taxation Report 2022: Country-wise

Divly’s report analyzed 24 countries with significant crypto adoption rates. Finland led the list with 4.09% of crypto holders paying taxes. Australia followed in second place with 3.65%, followed by Austria, Germany, the U.K., Norway, Japan, Sweden, Canada, and the U.S. 

Brazil, India, Indonesia, and the Philippines were at the bottom of the list, with 0.1%, 0.07%, 0.04%, and 0.03% of crypto owners paying taxes, respectively.