How do Bitcoin exchanges factor in taxation and prevent people from bypassing tax payment on transactions?
If exchange platform are registered somewhere than they have to pay taxes but I don't think most of them will pay those taxes.
Topic: Bitcoin exchanges factor ? (Read 243 times)
How do Bitcoin exchanges factor in taxation and prevent people from bypassing tax payment on transactions?
If exchange platform are registered somewhere than they have to pay taxes but I don't think most of them will pay those taxes.
I doubt that even with regulation the governments will be able to recover stolen coins. They can shake their fists angrily at whoever hacked the exchange but that would probably be it. Nonetheless it would make it easier to prosecute "hacked" exchanges. With regulation exchanges have to operate more transparently, making it easier to get to the heart of the matter.
Insuring Bitcoin exchange deposits is an interesting problem. Given BTC's tendency to heavily appreciate insuring BTC deposits won't come cheaply and would probably lead to higher trading fees.
Insuring Bitcoin exchange deposits is an interesting problem. Given BTC's tendency to heavily appreciate insuring BTC deposits won't come cheaply and would probably lead to higher trading fees.
I would never say that the government would have no way of recovering hacked coins. Maybe in some situations they will, with the cooperation of other exchanges, Bitcoin mixers and some concerned Bitcoiners. With regulations, it is the responsibility of the government to put hackers or thieves behind bars.
We do not have that kind of protection today.
There are definitely situations in which stolen coins can be recovered, but that's not the normal case. As soon as coins are out of exchanges they are gone, no court order or regulation will change that. You can try to track the transactions and hope that your target missteps, but that's it. Or do you expect the victims of ransomware to see their money again anytime soon? These coins are not gone for lack of a legal basis to prosecute the offenders.
In some cases I'd also argue that even regulations only offer as much protection as conflict of interests allows (*cough* bailouts *cough* golden parachutes *cough*)
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The good that comes with regulation is that you are protected by the government in case the exchange gets hacked and you have your coins stolen. They could help you recover all of your coins or the government pays you part of it. In America it might the same as the Federal Deposit Insurance Corporation.
The good that comes with regulation is that you are protected by the government in case the exchange gets hacked and you have your coins stolen. They could help you recover all of your coins or the government pays you part of it. In America it might the same as the Federal Deposit Insurance Corporation.
I doubt that even with regulation the governments will be able to recover stolen coins. They can shake their fists angrily at whoever hacked the exchange but that would probably be it. Nonetheless it would make it easier to prosecute "hacked" exchanges. With regulation exchanges have to operate more transparently, making it easier to get to the heart of the matter.
Insuring Bitcoin exchange deposits is an interesting problem. Given BTC's tendency to heavily appreciate insuring BTC deposits won't come cheaply and would probably lead to higher trading fees.
I would never say that the government would have no way of recovering hacked coins. Maybe in some situations they will, with the cooperation of other exchanges, Bitcoin mixers and some concerned Bitcoiners. With regulations, it is the responsibility of the government to put hackers or thieves behind bars.
We do not have that kind of protection today.
How do Bitcoin exchanges factor in taxation and prevent people from bypassing tax payment on transactions?
They don't in the same way forex, stock and futures exchanges don't. They provide services to customers in many different tax jurisdictions all with their own individual rules and laws. It's purely down to the individual to file honest and correct tax documents in their own country. Whenever someone moves money from crypto into a fiat currency using a bank there is a record for the tax authorities to see, so it's wise to make sure you declare all gains.
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The good that comes with regulation is that you are protected by the government in case the exchange gets hacked and you have your coins stolen. They could help you recover all of your coins or the government pays you part of it. In America it might the same as the Federal Deposit Insurance Corporation.
The good that comes with regulation is that you are protected by the government in case the exchange gets hacked and you have your coins stolen. They could help you recover all of your coins or the government pays you part of it. In America it might the same as the Federal Deposit Insurance Corporation.
I doubt that even with regulation the governments will be able to recover stolen coins. They can shake their fists angrily at whoever hacked the exchange but that would probably be it. Nonetheless it would make it easier to prosecute "hacked" exchanges. With regulation exchanges have to operate more transparently, making it easier to get to the heart of the matter.
Insuring Bitcoin exchange deposits is an interesting problem. Given BTC's tendency to heavily appreciate insuring BTC deposits won't come cheaply and would probably lead to higher trading fees.
I think it would be good if bitcoin is taxed primarily in countries that have legalized bitcoin, because it is useful for state security and bitcoin users, it might be preventing hackers from acting. and which will definitely be governed by laws that will benefit bai bitcoin and its users.
They don't.
If you live in a country where Bitcoin is regulated and if the exchanges become regulated, I believe the government will have the right to look at your records if they think you are evading taxes.
The good that comes with regulation is that you are protected by the government in case the exchange gets hacked and you have your coins stolen. They could help you recover all of your coins or the government pays you part of it. In America it might the same as the Federal Deposit Insurance Corporation.
The good that comes with regulation is that you are protected by the government in case the exchange gets hacked and you have your coins stolen. They could help you recover all of your coins or the government pays you part of it. In America it might the same as the Federal Deposit Insurance Corporation.
How do Bitcoin exchanges factor in taxation and prevent people from bypassing tax payment on transactions?
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