Topic: Crypto Taxation - page 11. (Read 4601 times)

Good point. Personally, I don't have issues paying taxes on my crypto as long as the government does it fairly. After all, taxes are also deduced from traditional Fiat currencies. What I don't get is why governments still want to tax crypto when the same is highly volatile in price across the market? Prices going up and down would make it somewhat complicated for people to be able to comply with taxes. Also, the decentralized nature of crypto makes it nearly impossible to be able to tax down every user's balance. Off-chain transactions, and privacy-centric transactions are hard for governments to track them down. In the event crypto becomes "untaxable", governments worldwide would simply ban crypto and Blockchain in their entirety. I hope this doesn't happen in the long run. Governments might end up using analytical tools (like Chainalysis) to keep track of their citizens' taxable income.

With widespread approval of crypto and Blockchain tech by worldwide governments, we can expect the industry to grow for the foreseeable future. Crypto taxation might be needed in the long run, in order to keep the space as legitimate as possible. Time will tell us how successful governments will be at the task as the space becomes more mature within a couple of years from now. Just my opinion

Whenever every year we people goes for tax filing that time we were finding the people are trying to sell the bitcoins for more number and it will be the good if the people accept the cryptocurrencies mode of payment for its taxation.
But I am not sure what is the real issue and legalization problems with me.

I feel the best way to tax crypto earnings is to put taxes on capital gains, it can be in slabs where taxes will increase as you go up. It should not matter how much a person trades rather the taxes should be put on the money he wants to take out and spend.

A little from my thinking. regarding crypto tax but we do not get benefits such as legalization or receipt of crypto as a means of payment, you should not pay the crypto income tax because there is no right while we have made the obligation to pay taxes.

From what I know the government has benefited from the local exchanger business which is a gateway for crypto to fiat. like business in general, some things must be paid for and provide data to the government like KYC. it is from my knowledge that I have been involved in the government system.

the strategy might be carried out by the government, where without providing legal protection for the cryptocurrency legality, the government can collect taxes from crypto. we know that legitimate local exchanges stand as exchanges, of course they are taxed according to the rules

I did not made the argument that paying your taxes is bad, my argument is that governments will use taxation as a weapon against cryptocurrencies, in many countries governments want to obtain taxes out of cryptocurrencies and that is acceptable but they do not want to give a clear legal framework in which people and different businesses can operate.

This is intentional, they do not want you to feel secure when you use cryptocurrencies, also it is obvious who is the one that does not want cryptocurrencies be part of the regular economy when all kind of obstacles are put forward so you cannot cash out your coins.

Give up your enthusiasm for taxing Bitcoin. If you officially bring a tax on bitcoin, you'll officially recognize it. People make trading with Bitcoin more common. States can lose control over the economy. Unexpected results may occur.

Your views like this that increasingly make the government think that bitcoin/cryptocurrency can be used as a tool to avoid or violate government regulations. Come on, if you want the cryptocurrency world to be more advanced, synergy with the government is needed not to eliminate the decentralized nature of bitcoin but rather to become

One citizen like you demands the government to provide employment, improve education and health facilities, and create a safe and crime-free environment. But when the government asks for your contribution to the country, you refuse on the grounds as if the state wants to rob your property.

I am sure that if the government knows the tax potential of cryptocurrency/bitcoin, many state officials will rethink to legalize bitcoin. If it is legalized, the state will create an instrument of monitoring (not controlling) cryptocurrency transactions. The ultimate goal is to increase foreign exchange.

You put it like taxation is a simple scam to steal your money.
Govs taking a cut because it provides us a community, good laws and etc.
If we want cryptocurrencies to be a part of current world - we gotta sacrifice something to govs
Other way we shouldn't pay taxes AND should build new decentralized type of society

That is the nature of governments, as long as you are getting some profits of whatever you are doing they want a cut, believe me they would like to make cryptocurrencies illegal but what argument can they use? In the case of drugs they can argue it is bad for your health and they want to protect you but they cannot use that argument against cryptocurrencies.

As such they are trying to slow it down and one perfect way to do this is by taxation, they will impose all kind of laws and contradictory regulations so companies refuse to deal with it and the rest have to pay huge taxes to them.

If you are using a centralized exchange or a registered site for conversion, you are already paying taxes through the site or exchange you are using. That is right. It is already taxed in that way. Each and every registered and therefore legal business are paying regular taxes. But if you use decentralized exchanges or P2P conversion of your cryptocurrencies you are not taxed at all. You are not paying any fee for that matter.

for the time being what actually happened has been taxed, even though the government hasn't ratified it. when we are going to exchange currency fiat at a local exchange, then right away we will be taxed. the official exchange of course requires legalization from the government, so the government can impose a tax rate on that exchange

The government has always wanted to control the income of its citizens and receive interest on the profits of each person.  That is why there appeared the possibility of cashless payments in different areas of human activity, while advertising the improvement of services for each person, but at the same time using bank reports to control each person.  Thus, the state understands how large the volumes of the financial turnover of the cryptocurrency market are and therefore they want to purchase another article for the taxation of their citizens.  At the same time, they do not want to legalize cryptocurrencies, but nonetheless try to tax each user of cryptocurrencies, possibly even hiding behind the fight against crime financing or laundering money obtained by criminal means.

I think that governments are "testing the waters" with their implementation of taxes within the crypto/Blockchain industry. They know how volatile prices are, but are doing their best effort to tax crypto from people in the mainstream world. If successful, you could expect crypto to get the approval of governments all around the world. Otherwise, there will be a full crackdown on crypto and Blockchain technology as we know it. I believe the main reason why Bitcoin and most other cryptocurrencies have survived is because of their transparency. Cryptocurrencies which rely on privacy solutions by default (like Monero, Grin, Bean, and so on..) may not last for long as governments will disallow people from using them. Once they're banned, most people would not want to transact with these cryptocurrencies. Only a small portion (mostly crypto enthusiasts) will continue to use privacy coins despite being banned by worldwide governments. After all, these digital assets are nearly impossible to track making them impractical for taxation.

As long as centralized exchanges exist, governments will be able to effectively tax crypto from their citizens. It's no secret that most (if not all) centralized exchanges require their customers to provide ID verification. This, alongside the record of trades performed on the exchange, can be used by governments in order to enforce crypto taxation among its citizens. However, decentralized exchanges makes the government's life harder as it's nearly impossible to track people in order to perform crypto taxation. This, combined with privacy coins, would leave governments out of the equation (which is something they're afraid of).

Nonetheless, time will tell us what will be the outcome of crypto taxation within the mainstream world. I'm sure that worldwide governments will give up doing this, since it's nearly impossible to tax every single person using crypto and Blockchain technology. With decentralized solutions such as decentralized exchanges and privacy coins, people will be able to achieve financial freedom without the need to worry about government intervention. Just my thoughts

If government is heavily taxing mining and transactions then this is not right.
In my opinion they should tax transactions, but let miners do their job.
Other way taxation of miners will scare them off and it will lead to Currency's price getting higher.

When you rent a room, definitely you are in paper works and you have to pay for the place. That has nothing to do with bitcoin taxation. But if the person is being taxed because he or she is owning a mining farm, then this could be in one way called taxation of bitcoin. I am curious that just mining has been taxed or transactions as well. Government shall not put taxes on mining because it is already very hard on the pocket of a miner.

How could taxation can be issued where there is no wide rules and regulation by Government about crypto. On the other hand in flat money government can trace money so that we are bound to give tax in our income but here government can not trace our transaction and income-expenditure.

For kyc i think it does not work truly. In transaction many country people involved where maximum government does not know about crytpo and maximum time people give wrong information which can not be trace by KYC require team. So i think KYC is nothing and it only works in bounty.

In my country, no, Bitcoin was taxed. There is one that pays the tax who has the mining farm, and he rents a room.

I think that Bitcoin has bigger problems than taxation. Lack of positive regulation and integration into financial and economy system are some of them.
As far as I know majority of countries don't tax Bitcoin or other cryptocurrencies itself, only the transactions to fiat and that isn't present in all countries, only some. So I don't think that some very big number of Bitcoin users is affected by that and I don't see Bitcoin taxation or better to say taxation of Bitcoin exchange transaction as some huge problem.

There are a lot of discussions about bitcoin taxation. In fact, it's a false problem: at some point, bitcoins are like points in a video game.
The fact that they have a "value" is irrelevant, at least until you try to convert it to fiat.
But even then, there are several systems of "solving the problem" ...