Topic: Crypto Taxation - page 2. (Read 4571 times)

If that's the case, then crypto taxation is being unfairly done. Governments should have no jurisdiction over a decentralized, distributed network. If people don't protest against these actions, countries collecting taxes from crypto-to-crypto transactions will continue with the endeavor. I have nothing against crypto taxation as long as it's done in a fair manner. After all, it's the citizen's responsibility to pay his/her taxes to obey the law. Otherwise, you'll be subject to fines or even jail time. While most transparent cryptocurrencies are easier for governments to collect taxes from, they can also do the same with privacy coins if they're traded on centralized exchanges.

As far as the LN goes, it's much easier to tax off-chain Bitcoin transactions because channels are directly linked to LN nodes with publicly available IP addresses. Developers may need to integrate privacy solutions in order to prevent this. But seeing cases where certain developers have been fined by the government (like the case of EtherDelta), could bring a lot of problems to a privacy-oriented version of the LN. It's like developers are being held liable for their actions. This could question decentralization itself as we know it. Just my opinion

You better know the law in your country so you'll be able to manage the risk if ever you think of hiding your bitcoin.
Tax evasion is a serious offense or a crime, it's publishable by law and you could go into prison when proven committing a crime.

That's why it's necessary to know the sanction so you can do the right approach.

If possible you can avoid tax, that's better but you need to hire an accountant to do the job for you, that is not illegal.

As far as I see the tax aspect of cryptos it's very similiar to investing in stocks. You should not report any unrealized gains in change of our holdings. But if you sell your coins and make a nice profit you should definitely mention it in your tax returns. For me my online wallet is similar to the hidden swiss bank accounts from 50 years ago. No one knew you had them and governments couldn't check it either. But if you start keeping everything a secret you might be in trouble in 10-15 years down the road when you want to get some money back into FIAT. For me it's just not worth it to try and hide everything from the government.

While the governments of a few nations impose taxes at the human beings to enhance their surroundings and economy, this isn't always feasible withinside the case of crypto. Crypto decentralization isn't always beneathneath anyone's control. Not all of us is compelled to make a earnings as they wish. The authorities can't receive any tax from now on this is why many nations do now no longer aid crypto and perform it as illegal. But making an investment in crypto allows enhance a country's economy.

In some countries, government is likely to take over crypto currency by using the profit to develop their environment. Government don't joke with tax they would like to force taxes to people to make their money.

I agree. Bitcoin taxation is a big help to the Government and to the country's economy as a whole. If the Country accepted and believes the usage of Bitcoin and other crypto currencies and legalized it. Then, they have all the right to get benefits from it in return. And that is by imposing tax just like the other businesses and industries.

Your opinion is correct, they are too focused on the tax but not on the regulation to minimize the risk of investing in the market.

Not really what we are expecting, it looks they just want for us to have a responsibility to them but they don't give something to us to improve the market.

If they can only make this market more secure, many investors will not be afraid to risk their money, and it's a win-win situation as the increase of adoption will certainly result to the increase of their revenue, are they thinking of that?

Most countries will actually tax you upon any trade. BTC to ETH would be considered a sale of BTC to fiat then a fiat purchase of ETH. It gets complicated when you start talking about BTC to LN, especially when it's not your own channel.

Exactly. Taxation is successfully achieved via centralized exchanges. It's this reason why governments support these type of exchanges over decentralized ones. Transparent cryptocurrencies like Bitcoin and Ethereum will see the approval of governments worldwide, as they're easy to track & trace for taxation purposes. Privacy coins, on the other hand, will see constant opposition to a point where they'll become "illegal" to use in the mainstream world. Even decentralized exchanges may become "illegal" to use in the future. While it'll still be possible to use them "under the table", most people will use centralized exchanges and transparent cryptocurrencies because of their legitimacy in the mainstream world.

As responsible citizens, it's important to comply with the law. You must pay your crypto taxes to the government, if you cash out to Fiat. Doing the contrary, will lead you towards fines or even jail time. Most people don't want to face these consequences, so they'll end up paying their taxes in return. As long as people and the government collaborate, the crypto/Blockchain industry will thrive. Efficiently taxing cryptocurrencies will pave the way towards recognizing the industry's legitimacy in the mainstream world. Which means, institutional investors will find crypto extremely attractive resulting in higher demand (and prices) on the market. Just my opinion

government participation in crypto is actually not transparent, the government only wants to take advantage of crypto by setting taxes that must be issued by each user through local exchange, even the government has supported local exchanges to turn Bitcoin into Fiat and behind all this there are black and white provisions ( official cooperation) between the government and related local exchange management.

The government just wants to take advantage of the ever-increasing prices of crypto on the market. They see a huge opportunity to increase their income by collecting taxes from their citizens. Some countries have gone far by implementing a high tax percentage on crypto income. South Korea is a good example of this. As long as crypto is taxed fairly, there should be nothing to worry about. Otherwise, crypto's adoption in the mainstream world will diminish by a large margin. The fact that transparent cryptocurrencies like Bitcoin and Ethereum are easily taxable, has paved the way for mainstream exchanges to adopt them at a large scale. Privacy coins, on the other hand, are in big trouble as the list of exchanges de-listing them is growing over time. What can't be taxed, will quickly see disapproval from governments worldwide. This means that as long as privacy coins are nearly impossible to enforce taxation, transparent cryptocurrencies will gain all the attention in the mainstream world.

In the end, people will decide whenever they'd want to pay taxes from their crypto income or avoid using it altogether. I think that more people will avoid using crypto as governments become strict in their tax collecting practices. Not all governments will be this way though, which means that crypto will still experience growth in mainstream adoption albeit at a slow and steady phase than usual. Just my thoughts

No bank or government authority controls it as they do with traditional currencies. If you have used cryptocurrency this year, what are the implications for when you file your taxes..If you’re selling property as a part of a business or trade,the property is not considered a capital asset and is taxed as ordinary income. This applies to virtual currency sales, too. The IRS looks at the “character” of the gain or loss—your intent, or why you’re selling.

Desperate times calls for desperate measures as they say it. I know that the government are having a hard time managing funds left and right but I think crypto currencies would be out of this matter. One of the officials of DENR (DEPARTMENT OF ENVIRONMENT AND RESOURCES), capslock intended, want to reopen closed mines. The first lines says it all but is it really necessary?

This just proves that they will not be counting crypto currencies as a source of the tax they are getting since they will be looking closer to what more they can abuse now.

I think government will put crypto tax base on the amount you are going to cash out and exchnge into fiat money. If through crypto wallet to wallet government can't put taxes on it. Only if you cash it out to different remittances or banks on which they will have access in your account because of KYC.

I noticed that each country has different approaches to taxation and legalization of cryptocurrency, and one way or another this is related to the government's views on this situation. Liberal laws are rarely adopted in relation to cryptocurrency, but nevertheless there is some progress. At least in my country, there is no specific tax on the storage of cryptocurrency, but every user who will transfer cryptocurrency in the equivalent of $ 1,500 will have to provide passport data. And the tax will be paid by those figures who carry out transactions in larger amounts.

Because the government sees that bitcoin or other cryptocurrency is doing well specially today that we are facing a pandemic and digital transactions helps a lot for us to prevent from getting infected of the virus, so they want to impose tax even though bitcoin is decentralized. But if it's really necessary,they should just impose it fairly and correctly.
 

Making huge taxes would really be a problem.

Some of the users even said that they are using Bitcoin to be able to avoid paying taxes, making it bigger means many more will evade paying taxes. Despite that, I don't mind paying tax as long as they are doing their job of not corrupting those money and putting it all on their own pockets.

Tax is helpful to government and it is really good if the tax is big because the country will have more funds to provide some projects for the developement of the country, tax is helpful and it can really have a good effect in our country, but if we talk about cypto taxation i don't think that it will become posible beause crypto is fully decentralized and we are all using crypto without tax for a long time.

Heres where the problem lies for me, how do you pay taxes in fiat if you don't have any fiat? If I trade my Ethereum for Bitcoin, and am now holding Bitcoin, how am I supposed to pay taxes on that if I don't hold any fiat? Can I pay with Bitcoin? In most places NO.

Also when it comes to swapping, lets say I have a beer in my hand, and my friend has another beer, but I want his beer so we swap beers..............do I have to pay taxes because his beer is cheaper than mine? Swapping Crypto is no different.

Personally ill continue to follow the Tax laws and pay my taxes to the best of my ability, but its almost impossible to keep track of this, because you need to know the price of both currencies of when you swapped them, however that price can be subjective. An exchanges price is the price that exchange has deemed as the price. That doesn't mean thats the price im following, as the prices of Crypto are different depending on the exchange, country etc.

There is no clear definition of cryptocurrency even for now. Bitcoin was created few years back but it does not have the right classification of this (digital currency, asset or properties). However taxing cryptocurrency is easy for the government to implement but they too provide security for the consumers and in this case it is not possible due to scammers, hijacking and phishing sites. This is a lot of work for the government and this is the reason why cryptocurrency is not yet accepted or still in the observation period. I know that some of the government had allowed few apps or echanges to operate in their jurisdiction but only to those few crypto. This is the reason for the high transaction fee of these app that are being regulated for crypto fiat exchange because the government had tax the app or exchange to which higher fee to be deducted compared from other exchanges