How does crypto law address tax obligations?

Cryptocurrency tax obligations vary by country but generally treat crypto as property or an asset. Most governments require you to report gains when you sell or trade crypto for profit. The tax is calculated as: profit = selling price minus original purchase price. For example, if you bought Bitcoin at $30,000 and sold at $50,000, you owe taxes on the $20,000 gain. Different countries have different rules: the US taxes each transaction, some countries only tax when converting to traditional currency, while others tax annual holdings. Record-keeping is crucial—document all buy/sell dates, prices, and amounts. Tax obligations also apply to mining rewards and staking income, treated as taxable events. Consulting a tax professional familiar with crypto is recommended since regulations continue evolving worldwide.