This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!I took the following excerpt from this article:"NFTs acquired with cryptocurrency gains will attract taxes, according to new CNBC reportThere’s a not-so-subtle reminder for NFT maniacs in the United States amidst the ongoing frenzy – NFT purchases made with cryptocurrency capital gains attract taxes to the tune of 20%.Tax-free? Of Course NotIf you paid for a digital collectible with your BTC or ETH gains, then you need to think of the tax implications. Not just by Rarible, Sweet, or any other NFT marketplace, but also by the American tax watchdog. The country’s Internal Revenue Service (IRS) will levy taxes on NFT purchases made with profits of cryptocurrencies. The disposition of asset tax and other rules makes this tax mandatory.Taxes on capital gains of disposed assets are very common with traditional asset classes, but contrary to popular belief, they also apply to the digital asset world.The tax will amount to 20% of the accrued gains on the cryptocurrency. For example, if a person gains $300 from holding bitcoin and buys an NFT with the profit, the IRS mandates him to pay $60 in tax.On CNBC’s Squawk Box, Robert Frank elaborated on the topic. He said:“As it turns out, collectors who are buying NFTs with their cryptocurrency gains could face large tax bills this year for deals that most thought were tax free”Speaking further, he stated the IRS considers cryptocurrencies as a capital asset, not currencies. By doing so, it highlights that they can accrue gains or losses and should consequently attract capital gain taxes.From the look of things, NFT marketplaces are also in the dark regarding this. Robert pointed out that many NFT operators do not file with the IRS due to a lack of cryptocurrency price history for buyers. It is also unclear how the IRS will go about this, considering the difficulty in tracking cryptocurrency transaction history."I have no idea how the IRS will track this or how investors and platforms are expected to monitor this action and report, but one thing is clear - the IRS wants their piece of EVERYTHING crypto related. There's nothing wrong with that - I personally pay every penny of taxes I owe, on every tiny transaction regardless of its nature. But this reminds us to keep perfect records of every single thing that we do with our crypto, because eventually the IRS will catch up and past actions can be scrutinized.If you do it with crypto, assume you have to pay taxes on it (in the United States).In This Issue:Bitcoin Thoughts And AnalysisAltcoin ChartsLegacy Markets1.9T Stimulus - What Does It Mean?Morgan Stanley Offers Bitcoin FundsVisa Is Continuing Its Crypto JourneyGrayscale Has 5 New TrustsLepricon - Games, DeFi And PredictionsThe Wolf Of All Streets Podcast Ft. Anthony Di IorioMy Recommended Platforms And Tools