Governments all around the world appear to be cracking down on tax evasion and anonymity as it relates to cryptocurrency. Banks now want a piece of the pie too. It appears the way to get in on the action is by changing Merchant Category Codes associated with Coinbase transactions.
A Merchant Category Code is a four digit number assigned to merchants. It allows businesses to be categorized by the types of goods and services they sell. It’s a way for tax agencies like America’s Internal Revenue Service and Canada’s Canada Revenue Agency to keep tabs on businesses.
A cash equivalence fee is an immediate charge to a credit card that acts as proof of purchase of another secure financial instrument. A secure instrument could be foreign currency, poker chips lottery tickets, traveler’s cheques and now, cryptocurrency.