Topic: Crypto Taxation - page 13. (Read 4601 times)

Taxation is followed everywhere, maybe very few countries were free from taxation. Governments tax depending on the economic condition and the need in advancement. In most of the cases the economy completely depends upon the return got as taxes from its citizens. To make this taxation fair what's been got as tax needs to be used for the goodness of the citizens. Very few countries does it effectively. When we doesn't want to pay taxes we can't expect benefits from the governments.

That is so unfair, the money in crypto is the citizen's hard work and yet the government will just get taxes out of it. That's so irritating, I hope they consider first the crypto as money before they do that.  They just get it from exchange and that's so disturbing.

One day, crypto will just become a normal currency that many will use. Exchange also should be tax-free and let the people or citizen cash out their money without deduction.

That is why if a country implements cryptocurrency is not illegal because they have already taken tax from the exchange, for example in my country now every cryptocurrency / commodity / forex, will be charged expensive fees if they want to establish a company.

The point is that the government does not want to take risks and does not want to make efforts to take care of cryptocurrency, they throw all it's affairs into the exchange.

And I don't want that.

It is not that I don't want to help my country but sometimes, there are those times that you think that they are getting too much.

Cryptocurrencies are great since they are decentralized. That is the reason why a lot of people want to use it since it is anonymous, the government will never track our records or transactions. It is also a way for some people to avoid taxes. I think it is also efficient for us to earn money without any government or other people knowing that we are earning money. I don't want people to know something like that.

Every Government is running with the money from the people, So Government is ready to serve their people because of the taxation. I think cryptocurrency would get enlisted to the government if this system is included in the taxation system. when the government will get benefitted by this system then obviously the government would allow this platform within their territory, we know that tax is being used for the welfare of the people, it's very certain that they will find the proper way to minimize this issue and cryptocurrency will get accepted and legalized around the world very soon.

Governments will continue to study cryptocurrency and establish new rules in order to tax cryptocurrencies and we won’t go anywhere. In general, taxes will need to be paid so that the cryptocurrency is not outlawed by them. Of course, as always, whenever possible, we will avoid paying such taxes. So it was and so, perhaps, will be in the future. Any state has the right to establish taxes on any type of activity of citizens that brings them income. All the reasoning that this does not concern them does not make sense.

If the system is bad, everything that comes from it could also be bad. The rest of the policies or laws that are emanating from a bad system are like vehicles for the perpetuation of this bad system. The people who are taking the better of it will be the ones who will benefit from all those. Taxation is one of the most effective vehicle of this. Taxing crypto is like dragging crypto into the old bad system that will not benefit crypto itself nor its end users.   

what government want is money, no need to know where come the money from, as long as it can be profit from government, they will take it. there are many funny way that government do to take money. in my country, they have health card, you must pay for it, when you are jot pay it, collector will come to you, like force you to pay it, which is health is the important thing for society. its good, but they have bad system

Unsurprising. It's all about getting their share. At least in my country they only take their "cut" when the crypto is sold aka cashing out.

They can only really collect (legally) from these KYC exchanges anyway that's why they are going hard on them. Anything outside that and they'd have to do a lot of monitoring. It might become more routine though if transactions outside these exchanges become more and more common.

Currently, governments can only tax cryptocurrency exchanges and users in those trading networks. Apart from the exchanges they manage, there's no other way to collect taxes. If they want to collect taxes on Crypto users, they need more specific and complete rules

That's certainly true, mate. It's sad to see crypto being taxed, after being unstable in prices. After all, most governments don't consider them to be legal tender. But these entities still tax them, to benefit themselves in every way. For the average person, this may seem unfair but it's the law. As long as you comply with your crypto taxes, you'll be safe from going to jail anytime soon. If you want full discretion of your crypto funds, it's best to use privacy-oriented coins like Monero or even Grin. At least, you'll avoid governments being on your tail most of the times. Once you deal with privacy coins on centralized exchanges, expect your balances to be exposed to the government for taxation purposes.

In the end, governments might win the battle over crypto taxation. All we could is obey the law to retain our "liberty" or freedom in every way. Once governments are able to successfully tax crypto, they'll pave the way for the whole industry to grow without disruptions. I believe that transparent cryptos like Bitcoin, Ethereum, and others will have full support of worldwide governments while privacy coins like Monero, Zcash, Grin, and Beam will become the #1 target of governments within the mainstream world. These coins won't be able to last for long if governments declare them to be illegal in every way. People will stop using them, leaving transparent coins like Bitcoin and Ethereum on the scene for a very long time. Just my thoughts

Since crypto currencies are considered assets, they can be taxed by the local authorities of our countries according to the laws, and these taxes aren't cheap if you follow the rules strictly. I don't agree with this, but there is nothing I can do, as the law works to benefit the government, not the people.
The tax should be defined on the moment you exchange crypto currency into fiat, considering currency price on the moment of the selling.
Yes, on the moment you sell the currency is more accurate.

The KYC is really making it hard for us to escape all these taxation, although they were not getting crypto from us but only fiat, its still a form of tax that they wanna get from owning crypto. We got what we want though. We want adoption and they need to regulate and I guess this is a fair trade off for what is going to happen. Tax may change for each country when in the future our country also have digital currency and I guess that's the digital currency they will get from us and not BTC.

Most of the cryptocurrency transactions can be tracked in blockchain (besides the private mode of anonymous crypto) - the more transactions you make on a single wallet, the easier it is. And of course, they can be taxed. In many countries, they (like all other goods you can invest in) are already taxed under income tax. And if you do not present the profits on your tax form, it is often a criminal offence to hide your profits as it is a clear example of tax evasion.

The only things which may not be clear enough are:
1) when the tax obligation arises - on the moment you sold the crypto, or in accordance with their value at the end of the year/fiscal year.
2) especially in case of people who own cryptocurrencies since the very beginning it may be hard to show to taxation authorities that the cryptocurrency is coming from a legal source (as in most cases there was no bill/invoice issued)

Crypto coins cannot be taxed due to their nature and anonymity. Although there are some centralized crypto currencies, no one prefers these crypto currencies just because they will pay taxes, so the states cannot receive taxes from these transactions. But there is a case that states can follow our accounts in crypto money exchange services and tax us on our income here. For this reason, it would not be very accurate to say that crypto moneys cannot be taxed, but they cannot be taxed.

Well we can see KYC is the hindrance because people wont get into exchange that need to pass KYC because there are still some exchanges does not obeying on KYC process but once it is mandated by law we can see a good effect in the price and in regulation in cryptocurrency.

KYC is indeed troubling traders but let’s just hope for the best and definitely things will get settled with time. With taxation, no matter where a person lives, the problem remains the same. Not all the countries of the world corrupted but with non-corrupted governments, the tax rates are very high. Moreover, if we look at the main agenda of this technique, then it is just people spending money for   having services. So nothing is blessing on the end of authorities.

I think governments won't allow people to escape from their taxes just because they are dealing in cryptos. There is a pretty huge economy working on cryptos. When on private key wallets it's impossible to trace out people so I don't think there will be any tax but once it goes into dealing with exchanges taxes might come in. But I am sure revenue authorities won't contact exchanges with such a vast information because such an enquiry would take place at a very extensive scale and it would be very difficult to escape if you happen to stuck in it on a later stage so we all must pay our taxes on our Incomes.

The people assigned to create policies that are perfectly tailored to fit the exact description and characteristic of crypto are failing because they are not really knowledgeable about cryptocurrency. From very limited knowledge comes bad decisions. They craft regulatory policies that will make the function of crypto limited in a way that it will lose its real purpose. Crypto is not an asset. Crypto is money. This very basic misunderstanding is enough to produce more erroneous policies such as the one related to crypto taxation.

Governments weren't skeptical about bitcoin, no, they know pretty well what's pros and cons of it. Do you really think that in government people look world in different colors? And they are stupid enough to not understand what's bitcoin and how/why it's used? They know it well but want to benefit themselves, not you, that's the problem. Despite the fact that some country don't consider bitcoin as a currency, taxes are welcome for that. They say different thing and do different thing, I think it's 100% clear, at least elections are pure example of it.