Topic: Crypto Taxation - page 4. (Read 4571 times)

So now, I wonder if I will continue online selling. My investment is small. Income is poor and not great. And even more difficult situations today. I do not want to think that what I pay in taxes will just go into their own pocket and benefit. No doubt, it's better that I just focus here on cryptocurrency, it's just hoping for free income.

The tax does not support the growth of the industry or the development of a country's economy until there are corrupt politicians around it. They are the impediment to the advancement of the common people, rather than the poor, but they are still the cause of poverty.

The IRS taxes crypto as property and honestly, I'm not sure if they're totally off base. Bitcoin price fluctuates meaning with potential increases, you make profits. If you do the same with the stock market investing in a mutual fund, you're going to pay capital gains taxes off the profit you make so it's not much of a difference. You own a home that's increased in value over 10 years and you sell it? You pay the same capital gains tax as a stock sale.

Bitcoin is essentially akin to gold, and no one views gold as a currency.

I agree that crypto taxation is a debate, because the government really wants to get the benefits of cryptocurrency. But because
cryptocurrency is largely decentralized, it is difficult for governments to impose taxes on cryptocurrency users. In the end, the
government took steps to legalize centralized exchanges, especially local exchanges. Because the government sees chances are
many crypto users convert their crypto asset to fiat, to spend cryptocurrency. Then with centralized exchanges the government
can impose crypto taxation, which starts with the application of KYC for users centralized exchanges. And that is not a problem for
me, at least I can spend the crypto that I have generated from trading.

But the problem is how will the government implement this?Cryptocurrency being decentralized is far from the reality of being handled by anyone or any government  In this case it will be harder for them to put this as necessary and obligation of each crypto users.
Unless they will start to accept this as monetary or currency then they may add taxes in every purchase or services being held as payment using crypto.

Crypto Taxation is an important issue both for governments and cryptocurrency users. People all over the world use cryptocurrency for their daily transactions and the number of such kinds of people increasing day by day. A lot of people depend on their livelihood on cryptocurrency income. On the other hand, the government of a country cannot run the country without taxes. Without taxes, the government will not be able to meet the expenses of running the country. Because of the increasing number of cryptocurrency users, Every government should make some regulations for tax collection.

Eventually everything will be tax, it's just a matter of prioritization, if a certain industry grow, the government will surely sees it and the time will come that they will impose taxes on it, maybe online selling has been increasing in transactions that's why the government wants to benefit on it.

Crypto is a big market too, so they will tax us, in fact a lot of exchanges are already regulated in our country, that means we users of the site will have to remit taxes if there's due. No clear regulation first, but eventually the government will come up with a more detailed in the long run.

This government is annoying, everyone just wants to pay taxes. Think about it, as well as street vendors who only have small incomes are willing to tax. Recently, it has been reported that online sellers are registering their business. Lacking it, even breathing is paying off. This is just the way other people earn money to earn a living on a daily basis. The capital here is not large, it is also used to generate extra income because others are unemployed or dependent on work from home. Maybe it's too close to our country to have a tax on crypto use.

Yes government can control and put tax in crypto currently . But government need more knowledge about crypto and learn to how to get tax by trading or blockchain too. Yes you right , because that is make us difficulty if that happen in future. But we need to expect that soon.

the government will always make decisions that benefit the state tax for crypto sooner or later will be an idea and if taxation in crypto enacted I think this would be a problem for buying and selling currencies in various countries I worry every transaction will be withdrawn tax this course will be more difficult for future cryptocurrency.

Governments don't want to classify crypto as "currency" because they don't want to miss crypto's profit opportunities. Crypto taxation will continue to be the norm as long as people allow it. As a form of protest, you could simply use crypto directly for goods and services without having to cash it out to Fiat. Taxation cannot be enforced this way since you're not selling crypto to Fiat for your own personal gain. And taxing crypto directly might be considered unethical/illegal since governments have no jurisdiction on it. After all, cryptocurrencies are used globally by people worldwide. It's the decentralized and open source design of crypto which makes this possible.

With lack of tax guidance from government agencies, many people have been unaware of crypto taxation. If governments are unable to successfully tax crypto, they'll ban its usage. Chainalysis has already claimed that it can trace Zcash and Dash transactions on the blockchain. So much for privacy-oriented coins that have been labeled as "untraceable" for a very long time. This gives governments the tools to easily tax people's transactions at will. As long as it remains this way, crypto taxation will be the norm for the foreseeable future. Just my opinion

One of the tasks of the state is to collect taxes. Therefore, we should not hope that the cryptocurrency market will stay away from paying taxes. When the government develops laws that will be clear to both traders and tax authorities, then the tax will be introduced.

I think that collecting taxes in cryptocurrency trading is necessary because the cryptocurrency market is like other financial markets like forex or gold ... And so, countries that have built the legal framework Complete management of cryptocurrency trading, which will help the cryptocurrency market to expand, is accepted by countries as a financial market rather than as it is today.

Your example with Gold coin is quite interesting.

Crypto( well decentralized crypto) is even a special case in my opinion but many still do not understand this or they choose not to understand. I wouldn't be surprised if a properly decentralized and well built crypto with advanced ecosystem also tax other nations/people and the nations tax it too when necessary.
It's way bigger than people think. Most are probably not aware of its great potentials and what it seeks to achieve hence the confusions, contradictions, abuses and deviations from proper/safe standards in the space. You can't allow centralization to control you without losing (or gradually losing) your freedom/sovereignty/independence.
Taxes can occur without losing your values/ideals to central powers.

So far as I know they still want to tax crypto as a capital gain in many countries, rather then allowing it be defined as a currency which would make it tax free basically.  The example might be gold coins which are liable to no taxes in many countries, even though you can easily double your money over some years buying a gold coin when the price has fallen.  See the last few years for gold and its risen alot in normal terms, just nothing moves quite as much as crypto is able to in price.

Does the government still have plans to tax cryptocurrency users? It's been ten years yet but there is still no regulation for it, so maybe everything is fine. Will the coin sellers be exempted in exchange for another coin in paying taxes whose withdrawal option is crypto as well? Our wallet app has a high buy/sell rate compared to the market. Maybe that's where they take their tax payable to legalities.

Agree. Bitcoin is not tied to a single jurisdiction. This means it cannot be taxed, since it’s a global currency used by many people worldwide. But we all know government's intentions in the first place. They just want to profit from the revolutionary Blockchain industry. Governments wouldn't want to miss the "crypto train", considering how Bitcoin went from being worth nothing to thousands of dollars in just a few years since its inception. As responsible citizens, we should do our duty to pay taxes every time we sell crypto to Fiat. The more people use crypto directly instead of cashing out to Fiat, the harder the government's efforts will be in taxing cryptocurrencies for their own gain.

But even now, many merchants and businesses accept Fiat on top of crypto for daily commerce. The average person will end up selling crypto to Fiat just to participate in the worldwide economy. As long as governments tax crypto fairly, there should be nothing to worry about. It may take quite some time before people are able to use crypto independently from Fiat. Right now, people are measuring the price/value of crypto relative to Fiat as a unit of account. The ecosystem of merchants and businesses accepting crypto needs to grow, in order to make the crypto economy more independent from the traditional one. I doubt how governments will be able to continue to collect taxes from people's crypto holdings after this. The most likely scenario is that governments will end up banning widespread use of crypto, due to being unable to effectively tax it. In the bright side, it'll still be possible to use crypto because of its decentralized nature. But it cannot be bought or sold to Fiat as it'll be considered illegal by governments worldwide. Let's hope all goes well, as crypto and governments cooperate in order to make the world a better place. Just my opinion

If even crypto will be fully regulated there will always exists more private decentralized exchanges,
or trades locally and illegal way to evade of paying tax from your crypto to maximize income.
Its our choice to be legal or illegal. With crypto comes more control and responsibility on your
digital assets. Its far more easier to be needle in stack. Still I think that is better to contribute
to society and taking legal way of living.
 
 

Due to the decentralization of cryptocurrency, it will be very difficult to calculate a trader's income if cryptocurrency exchanges do not provide such data. You can calculate a trader's income when they withdraw it to fiat. But even here there will be inaccuracies if part of the cryptocurrency will be used to pay for goods or services.

It is a good idea to think that the taxation we make on selling our crypto assets to fiat will contribute to the economic growth of our country. But, there are actually other politicians sitting around who are robbing others of their money. That's one of the diseases of society, cancer. Maybe when the day comes, they won't even pay taxes on using crypto. Crocodiles that are easily dazzled for money.

We? you are talking for all the gainers and every time there are investors who gained in crypto, there are also investors who lose their money here.
Actually if they keep making money with the current set up, they will prefer this and will not pay taxes if its not required by their government, every country has different policy, lucky are those who live in a country where crypto is not yet fully regulated as they can maximize their income if they are profitable investing here.