TOPEKA — The Kansas Legislature’s auditing agency reported Wednesday the state was losing income tax revenue owed by users of cryptocurrency, but the federal and state government regulators have struggled to come to grips with the complexity and instability of an industry designed to operate in secrecy.
The audit, which focused only on the Kansas taxation issue, exposed challenges faced by government entities attempting to get a handle on digital or virtual currencies and to modify a taxation framework that compelled fewer people to underreport income from…
