Topic: Crypto Taxation - page 3. (Read 4601 times)

Agreed, and myself used to think the taxation in my country. For what we pay we aren't getting anything perfect from the government. The government wants the people's money, and they never think of the people. They work for the rich and the corporate. Then why should I pay tax, and this is how the mind of people change and tries to evade tax.

When it comes to cryptocurrency, why people should pay when government hasn't got anything to do with it. As it is anonymous it is hard to collect data for taxation. Anyhow it is the interest of each ans every government.

But how will they levy tax on crypto currencies if they doesn't know who to tax? They can't actually tell whose using Bitcoin and whose holding them. Even if they write a law making these holders pay taxes for their cryptos, they can evade that tax whenever they wanted since they don't have a proof that they really have bitcoin.

I know not all of us would be doing that but I know that will happen if that is the case. There are a lot of taxpayers that evade taxes, how much more when if its bitcoin.

A 20% tax on crypto gains is insane, in my own opinion. This will stifle the growth of crypto and Blockchain tech within South Korea. Imagine if other countries around the world started doing the same. People will think twice before using cryptocurrencies for mainstream transactions. Only a small minority will be using crypto "under the table" in order to avoid paying taxes to the government. With a decentralized design, it becomes more difficult to tax every person using crypto worldwide. That is to say, if the person uses decentralized exchanges and non-custodial wallets. Otherwise, crypto taxation becomes an easy task. Ultimately, people will decide whenever they'll support crypto taxation or not. If people don't protest about government's actions, they'll continue with the endeavor. We have the power in our hands to either allow governments to continue taxing crypto or all the other way around.

Nonetheless, let's hope the crypto/Blockchain industry and the government collaborate in order to make our world a better place. Regulations need to be balanced in order to pave the way towards the growth of the entire crypto/Blockchain industry. If regulations are too strict, they will scare people and companies away from the industry. Crypto taxation should be done in the fairest way possible, in order to avoid a negative impact in the adoption of Blockchain technology worldwide. Just my thoughts

"South Korea Could Issue a Crypto Capital Gains Tax as High as 20%" Source: https://cointelegraph.com/news/south-korea-could-issue-a-crypto-capital-gains-tax-as-high-as-20#:~:text=Crypto%20taxation%20in%20South%20Korea,to%2020%25%20for%20capital%20gains.&text=South%20Korean%20private%20sector%20members,rise%20as%20high%20as%2020%25.

Today I read about taxation in South Korea, well as we all know they are few steps ahead from many others, and it's what they plan to do, I believe others will follow that path, with some changes of course! We can expect some countries to have more strict laws, while some countries will stay financial heavens as they were until now.
I don't know about you guys, but when this comes in my country I will probably hide all my crypto, and I will start using vpn, and probably I will switch to some privacy coin! We will see how will that go, I just don't plan to pay any tax on my crypto!

There is a growing adoption on crypto, and that adoption was possible because there are platforms would made it possible to buy bitcoin from our fiat, or in short, we exchange it to bitcoin. In other words, crypto exchanges do exist and they are growing, and that's where the government will get tax from their revenue of operation, and along with taxing it, they would also need to regulate the market through exchanges so they can do their function such us the Anti Money Laundering which can be detected if there's a KYC and other measures impose in a certain platform.

The term cryptocurrency is generally used to describe a digital asset in which encryption techniques are used to regulate the generation of additional units and verify transactions on a blockchain. Cryptocurrency generally operates independently of a central bank, central authority or government.

The creation, trade and use of cryptocurrency is rapidly evolving. This information is our current view of the income tax implications of common transactions involving cryptocurrency. Any reference to 'cryptocurrency' in this guidance refers to Bitcoin, or other crypto or digital currencies that have similar characteristics as Bitcoin.

If you are involved in acquiring or disposing of cryptocurrency, you need to be aware of the tax consequences. These vary depending on the nature of your circumstances.

Everybody involved in acquiring or disposing of cryptocurrency needs to keep records in relation to their cryptocurrency transactions.

If you have dealt with a foreign exchange or cryptocurrency there may also be taxation consequences for your transactions in the foreign country.

Due to crypto being decentralized, it's still possible to "bypass" KYC-oriented exchanges and services in the industry. But for the sake of your liberty, it's often best to comply with the law. I'd prefer to pay taxes on my crypto instead of evading them. I'm sure many people will do the same thing in order to avoid facing jail time (or fines). Of course, KYC greatly defeats the purpose of crypto since it introduces the middleman to the system. But for the industry to be as legitimate as possible, complying with government regulations is a must these days. Given that many cryptocurrencies are often traded at centralized exchanges, it's a whole lot easier for governments to collect their taxes.

In the end, crypto will be taxed as long as it's recognized as a commodity by governments in the mainstream world. They don't want to classify it as a "currency" as they'll lose the opportunity to tax it. Ultimately, governments will be unable to tax every citizen using crypto because of its decentralized and open source nature. With privacy coins, atomic swaps, and decentralized exchanges in play, taxing every single person will become unfeasible by the government in the not-so-distant future. Just my thoughts

I agree with you...though some other countries refuse to accept Bitcoin because of their traditional beliefs in managing finances. But now, I guess they tend to saw the importance of Bitcoin and its great features and useful  ways especially that we are now facing a severe crisis. And mostly now, we are into virtual transactions to avoid the contact of virus, a lot of necessary things will be done digitally.
And as the growing individuals learned to earn and invest in Bitcoin now, the Government thought that they could also benefit from it.
On the other hand, if the Government persists on putting tax on it, we can't really control it because Bitcoin definitely became a mainstream now. Probably, the taxes could help the Government reviving the dying economy at this time.

I guess even though they can't control crypto currency or bitcoin in our country, they are still not planning anything to ban it, in fact, they are taking care of the users here in our country which is discussed in this thread.

https://bitcointalksearch.org/topic/philippines-sec-warns-against-crypto-investment-5260318

I guess if bitcoin became mainstream, we should really be expecting them taxing bitcoin or other crypto currencies in the country. I will not be thinking how will they that but for now, it is good that they are taking care of the crypto users.

The government cannot tax a decentralized exchanger because they have no control over it. If they restrict the use of crypto in the country and they cannot come up with ways to tax decentralized platforms, then it is possible to simply ban its use. However, as we know the importance of centralized exchanges for traders, it has been part of the industry ever since it was opposed to being anonymous and having privacy.

Well, they can't really control bitcoin that is why they will just decide to put a tax on it or ban it in which I am sire that they will be putting a tax on it. They will be having an additional way of taxing people and the problem here comes with how to tax a decentralized crypto currency, that is why I thought they might indicate each person with their own wallets where the government would get a tax from. Still, people can evade that.

cryptocurrencies are transformed from being a paying way to traditional methods to investments where you pay some taxes because you are making some profits.
If everyone stops using centralized exchanges serve as gateways from crypto to Fiat (or vice-versa) and use such forums, will find that trading will be unknown and it will become impossible  to impose more taxes.
It is a race, and he who knows how to turn laws will gather a lot.
use our methos and gov have methosd

Crypto is really amazing and so many people really believe on it and there are so many ways to earn in crypto, such us trading, investing,etc,.that is why there are so many people that is now using crypto and some of them are really earning millions of dollars. That is why some government wanted crypto to be taxed but i think if crypto will be taxed it will maybe affect the crypto community. I dont think crypto taxation is a good idea since so many people use crypto for so many years without tax.

It is the nature of a human to be greedy, we can't really stop them from doing that since we are the ones calculating our taxes, people can evade whenever they wanted.

In terms of freedom, I can say that we are free. KYC may be stopping this freedom from your point of view but not all of the applications you can use requires KYC. There are a lot of alternatives you can use but this depends on how you use your cryptocurrencies. Some local exchanges do require KYCs, which I also applied since I really needed it but if I don't want to, I can use other alternatives as well. It is just that this local exchange has its convenience to me than the ones that offer you anonymity. If you want anonymity, you can use them.

If Bitcoin is controlled by the government we will be ready to pay taxes on crypto but since crypto is decentralized there is no charge for work here. However, in the case of card management crypto cards are ready to pay tax.

Other crypto users don't care about their privacy, they don't care if it's exposed. With the help of centralized platforms, it is undeniable that crypto taxation can be implemented whether we like it or not. I know that others here don't like it, but can we really do anything? We are governed by the government so they can be obeyed, only when we follow the rules of the law. If we violate it, we will be prosecuted and treated as criminals. Although I am not good at it I think it will take longer to come up with a law for it.

Then I guess to be able to do that government will be assigning each citizen their own wallet and indicate each who is the owner. At that point, there will be no confusion about who owns a wallet. Still, there are jobs where the government will  take the tax from their salary that is directed to their ATM cards, maybe we can do that the same as taxing into crypto currencies.

Sooner or later, taxation on cryptocurrency transactions will be introduced. This will be the most reasonable form of taxation on cryptocurrencies. Since someone makes 10 transactions per day, and someone only one per year.

I am definitely against taxation especially in the crypto world. What has the state done to take my taxes? Gave energy? maybe provided a laptop to work with crypto, or at least a chair? Nothing. So I will say more. There is no state at all in the cryptocurrency purchase and sale chain.

Exactly. Taxing crypto becomes a highly difficult task to achieve because of its decentralized design. The only way governments will be able to tax crypto successfully is by relying on centralized exchanges to comply with KYC laws. Once the person's identity is verified, transactions can be easily traceable for taxation purposes. Believe me, that if everyone started using decentralized exchanges more thoroughly, it would've been a nightmare for mainstream governments. My guess is that if that happens, they will declare crypto to be illegal.

Still, people are becoming more dependent on centralized infrastructure everyday. This means that crypto will continue to be taxed as long as the majority of people continue to use centralized exchanges in the industry. If you truly believe in the future of crypto and Blockchain technology, it's best that you use crypto assets directly for goods and services. This way, you cannot be taxed as you're not converting them to Fiat. Once you sell your coins for cash, you'll be subject to taxation just like it's the case with any other asset in the mainstream world today. For crypto to be truly untaxable it needs to be recognized as a currency. But governments will never allow that to happen.



Good point. But even if Bitcoin resembles gold, it's far more than that. Bitcoin can also be used as a currency if fees weren't that high, and prices would've been stable on the market. After all, Bitcoin was designed to be a "peer-to-peer electronic cash system". Governments will never recognize crypto to be a currency as they want a "piece of the pie". They'll want to tax everyone's crypto holdings for their own benefit. Personally, I don't have anything wrong with doing my duty as a citizen paying taxes. But taxing crypto, greatly defeats its purpose of eliminating the middleman from the system. One fact about crypto is that the same is decentralized, and largely distributed across several countries around the world. I find it odd that some governments tax crypto since the same is global. In other words, crypto is outside the jurisdiction of a single country or region. People might as well move to another country where crypto is not taxable, for their own benefit.

We'll see how everything works out for mainstream governments as they try to tax decentralized cryptocurrencies worldwide. With several privacy solutions in the industry, availability of decentralized exchanges, and the use of atomic swaps, it might become impossible to tax everyone using crypto in the mainstream world. Just my thoughts