United States of America: Adopted IRS Notice 2023-34 regarding tax treatment of virtual currencies

On 24 April 2023, the Internal Revenue Service (IRS) adopted Notice 2023-34 regarding tax treatment of virtual currencies modifying the Notice 2014-21. In particular, the Notice specifies that convertible virtual currency is considered property for federal tax purposes, and the tax laws regarding property transactions apply to the transactions using convertible virtual currency. Under the Notice, virtual currency is defined as the "digital representation of value that functions as a medium of exchange". The Notice applies to the transactions from 2021.