Topic: Crypto Taxation - page 12. (Read 4601 times)

How exactly the government be able to track down our addresses if we never signup to an exchange which linked to our privacy id and bank account? If I just use a wallet not provide by exchanges, how they get to know who own the address? @youdacapt was right, I agree with his opinion, if you don't want to recognized by the authorities that ever use bitcoin, just stay away from exchanges, keep your bitcoin in private wallet such as bitcoin core, electrum, etc.

Not really, the government once figures out our address where we save up our crypto in the past or present that could pretty much track where it's going considering that most of popular address provided by exchange haveg some kind of name label, if the government want to put additional effort they could leak everything out of it.

It won't be that easy to get tax from Bitcoin or the like. Because people will probably never get back to paper money. Cryptocurrency will dominate the trade. I think the fear of states should be in this direction. Instead of returning everything with tax. I propose a spontaneous order.

It is natural if America gives its tax to crypto currency holders, but it is unfortunate that they provide taxes because of their use as a medium of exchange, this is unfair in my opinion

Indeed. I think no one person would like to have a tax upon having transaction in cryptocurrencies, people are preferably earn through crypto market simply because it is away on taxation as a matter of fact even transactional fees is a big deal in crypto community. I think it will be tough for government to impose a tax in this kind of system due to the fact that this cryptocurrencies are decentralize and cannot be fully manipulate by anyone.

the government can only track taxes from centralized exchanges and system that makes users must comply, can only target those involved in jurisdiction. They cannot intervene further towards coins which remain active in privacy outside the exchange, unless they have many criminal cases to use as evidence. There is still a lot of decentralization that will run normally, the government's goal can only be to reduce the expansion of activities outside of tax control simultaneously.

Because they still haven't figured out how to control it entirely, accepting a new monetary concept while they haven't figured out the best way to control it is so risky. At least, they have made the right moves to accept it as a high-risk digital asset, although that's not so common.

I also had to think a lot about this issue. The nature of crypto is not wrong, but because its privacy is so good, it makes the government have to think and worry a lot about the future of cryptocurrency.

I agree that the way a government taxes cryptocurrency can affect how it is used. The US requires capital gains taxes on transactions which will prevent cryptocurrency from being used as a regular payment method at least for small purchases.

Sadly, that's the hard truth we're facing nowadays. Many people complaint over the web, but they don't take efforts on protesting against an unfair rule/law imposed by a government. As long as people allow crypto to be taxed, governments will continue with the endeavor. It's so much easier to tax crypto today than it was since crypto's inception back in 2009. This is mostly because centralized exchanges dominate the space. Most (if not all) of these exchanges are required to comply with KYC/AML laws allowing governments to easily track & trace a person's funds for taxation. With decentralized exchanges, this is no longer possible. The situation is even worse for governments when a person uses mixers/tumblers or even privacy-oriented cryptocurrencies like Monero and Grin. This way, it'll be hard (if not impossible) to tax every person using crypto within the mainstream world.

Whenever governments will be successful at taxing crypto funds or not, it's yet to be seen. The Blockchain industry is still not mature after 10 years since its inception. There are a lot of flaws to be discovered, and issues to be solved in order to help fulfil Satoshi's vision of decentralized finance. If governments find out that their actions were in vain, then it's likely that they'll crackdown on the entire Blockchain industry as we know it. Time will tell us the fate of Crypto Taxation as crypto and Blockchain tech grows into a "force to be reckoned with". Just my opinion

Governments simply develop national funds from the money they collect from locals in the form of taxes. No government official is using money from his or her salary or personal savings. Whatever facilities they give to public are from the money of public even their salaries as well. Definitely governments will try rather are trying to figure out a method of charging taxes from crypto holders.

There's always time to change things. If enough people rebelled against taxation in their country the government would have to change policies. The government is strong only because it has support of the majority and people are scared to do something. They will write in the Internet how taxation is unfair but never really protest because it takes more effort to do so.

Exactly. As long you keep trading crypto on centralized exchanges, you'll be subject to paying taxes on your crypto funds. There's virtually no way governments will be able to enforce crypto taxation on decentralized exchanges and P2P marketplaces. The situation becomes even worse with atomic swaps as the exchange from one coin to another happens between chains without the need for a middleman whatsoever. Once governments see they're unable to tax crypto in their entirety, they'll most probably ban the whole ecosystem as we know it. If this becomes a reality, then people won't be able to use cryptocurrencies as they normally would, greatly diminishing the value of the entire crypto market. One way or another, crypto needs the governments' approval to succeed within the mainstream world.

The other choice governments have to make people pay their crypto taxes, is to implement strict regulations to the entire Blockchain industry. Perhaps, they won't allow developers to continue working on decentralized solutions such as non-custodial mixers, decentralized exchanges, other privacy tech, and even P2P trading software. If they manage to do this, then crypto will be entirely subject to centralized exchanges as it'll be the only way people will get access to them. We'll see how everything unfolds within the future as governments start rolling in their own digital currencies for the world. As governments want to maintain supremacy, they don't want alternative payment systems taking over the existent financial infrastructure. They have already rejected Facebook's Libra stablecoin, and they can do so with crypto until Fiat is the only form of payment used within the mainstream world (as it was before crypto's inception back in 2009). Let's hope that everything turns out great in the end for the growth of the crypto industry in general. Just my opinion

The legislative framework for cryptocurrencies has been adopted in a small number of countries, and so far the sphere is uncontrolled, not to mention that very few have heard about cryptocurrencies at all and I understand why all this is necessary. It’s definitely not a thought to pay taxes to anyone until there is a clear explanation that he wants us

Life isn't fair.

You make a website on TOR and get sentenced to life in prison for it.
You sell bitcoins for cash in the USA and get treated like a criminal and put in prison with all the murderers and rapists only because you don't have a "money transmitting license". Why would you need a money transmitting license if Bitcoin isn't officially recognized as money?
There are people prosecuted for small mistakes of getting high or forgetting to file some government papers. Your taxes aren't a big deal as long as they aren't higher than 20%. Some countries are stealing over 30% of your income and that's really abusive.

Indeed bitcoin become legal transaction I think is good way for bitcoin's taxation but how come to get tax for bitcoiner, many country not regulated bitcoin as legal currency payment but when country have allow using bitcoin and pay taxes how to know who use bitcoin or not,  always have way how to manipulated document and data with bitcoin transaction.

Cryptos are no longer anonymous. The long secrecy thing has been spoilt with the introduction of KYC and am sure the founders of cryptocurrency will not be proud of this development. On the taxation of cryptos, sometimes I imagine what it was like when we used cowries before making a switch to paper money. How did the government get taxation during that time, am asking.

It is indeed possible because the government can regulate it, they can ban it, they can also take tax to every investors or users of cryptocurrency. But I am thinking how they can od that because we all know that cryptocurrency is decentralized meaning they do not know how to get some taxes since there are no organizations or groups of people running cryptocurrency. But maybe they can give some taxes to the banks who are accepting cryptocurrency, the idea is that they can give taxes to those people who are withdrawing their crypto using that particular bank.

You have a point but actually our government are all wiser than we think, for sure they will not let this to happen and will do something that will make us panic and will disclose our earnings in crypto so that we can pay tax, so for now, they might not that too strict so we can enjoy it first, but here in our country little by little they are making tax regulations on it.

Indeed. If we don't want to pay tax by using cryptocurrency, then don't expect that cryptocurrency will be adopted by different countries. It doesn't mean that they're asking for tax, they're already taking advantage of us. Tax is part of us. They use money to run the country using the tax paid by the citizens. There are government officials that are corrupt but the main purpose of tax is for the country itself.

It's just that if you will keep your bitcoins in your wallet then no one can take taxes from you as your private keys are only with you and no one can take out your bitcoins if they don't have your private keys. And if government start taking your money from the exchanges then we will have to keep our money in our wallets and when we want to sell our coins then we can do p2p trades instead of going to exchanges.