Topic: Crypto Taxation - page 6. (Read 4571 times)

I know right? But even with the challenging environment of crypto, governments will still require people to pay taxes on their crypto income. The only way they'll be able to enforce this is through centralized exchanges. However, there will still be a portion of crypto users performing P2P trades, using decentralized exchanges, and even using privacy-preserving protocols making it impossible to tax their crypto holdings. Ultimately, Bitcoin and other transparent cryptocurrencies will see the approval of mainstream governments while privacy coins will end up being used in-person only.

As long as the crypto industry and governments work together, there should be nothing to worry about. Collaboration is necessary from both ends (the average person and the government) for crypto to succeed in the mainstream world. If we do our duty as a citizen to pay taxes in Fiat, then I don't see a reason why it shouldn't be done on crypto as well. Remember, governments only ask people to pay taxes from their crypto funds if they cash it out to Fiat. If you do everything with crypto directly, this shouldn't be a problem for you. In the future, crypto will either continue to be taxed or banned altogether. Let's hope everything goes positively for the crypto/Blockchain industry in general. Just my opinion

but i dont think there will be people that are willing to donate some of their profit as a form of tax  .

cant you see that even people that arent using cryptos  are still evading the tax so how much more if its not required  ? people will be happy and this is the reason why there are now many people going for cryptos  and one of that reason maybe is to escape the taxation   .  aside from tax , you cant say that peopple really have freedom on here because there are now kyc and other strict rules that will reveal your identity  .

      Until recently, I agreed with KYC for users, but by learning more and seeing how the governments of many countries are putting pressure on the crypto market and wanting to control this market segment, I became skeptical. I want the crypto market to remain a decentralized majority, but I am afraid that these KYCs, which are considered confidential, will actually be reported further.

I don't think it is that good.

Even in the normal days, I don't think it is that good for cryptocurrencies to be taxed. I think it is better to what it is right now since people are enjoying the freedom they have and I think it is also good for privacy out of the government's hands. If you are a good citizen, why don't you just add your profits from cryptocurrencies to your income taxes?

I still do not understand how crypto could be taxed if you could hide it well enough. There is no way that government could know about me and my bitcoin if I can hide it well and I do. So, right now I have been doing a little bit of earning in crypto which means nothing from my bank account goes to bitcoin, there is no connection there, I work hard and get paid in crypto.

After that money comes in to my bank account or not and the government usually doesn't ask there that money came from because they know that as long as I have money to spend I am bringing money to market and that is what they care about. The only tax I am paying right now is the tax when you buy something, even if you buy a loaf of bread you are paying taxes and that is the only one I am responsible for right now.

Agree. It's our responsibility to comply with the government whenever possible. Anything that's received as income, should be taxed. After all, you're converting crypto to Fiat for your own gains. As long as the government taxes crypto income in a fair manner, I don't see any reason why crypto shouldn't be taxed in the first place. Crypto to crypto transactions cannot be taxed as the government has no control whatsoever in the Blockchain space. It'll be a real blow to the crypto industry, if governments decide to tax crypto-only transactions as well.

What's important here is that people, companies, and developers work together with the government in order to make the crypto industry as legitimate as possible. If governments want people to pay their taxes from their crypto gains, they should educate them on how to do so. Lack of clear guidance (especially from the US' IRS) is what has made crypto taxation a "pain in the head". With so many cryptocurrencies being traded at centralized exchanges with Fiat trading pairs, it's easy enough to tax transparent cryptocurrencies like Bitcoin and Ethereum. The real deal would be decentralized exchanges and in-person trades. But these lack liquidity and widespread use in the mainstream world, which should have little to no effect over government's ability to tax people's crypto income. If centralized exchanges would've been replaced by decentralized ones, that would've been another story.

Nonetheless, time will tell us what the outcome of crypto taxation will be in the long run. With people's cooperation, the crypto industry could grow at a large scale. Otherwise, mainstream adoption will reduce over time as nobody will want to use something that's declared illegal by the government. Just my opinion

Simply because the government thinks that there is a shift from the legal sector to the illegal sector. In essence, the tax object is all the wealth we have. For example, we store assets or fiat money in the right pocket and crypto assets in the left pocket. Concern tax is all the assets that are in our pockets and more details about tax objects that we might move from the right pocket to the left pocket or the one we immediately store in the left pocket.

Let us once again separate the nature of decentralized crypto from the obligation of citizenship. Let us ask ourselves if there is no compelling element to pay taxes whether we have the awareness to pay.

On the one hand, the government should create programs that can trigger government awareness of paying taxes. The Chinese government once made a lottery transaction receipt program. Which is proven to make the habit of paying taxes and reporting transactions growing in China. For example, we eat in restaurants and taxed, then we put our food bill/receipt into the government lottery box with our name and telephone number. These are the structures used by the Chinese government to suppress and monitor tax subjects. Every lottery period, winners get prizes ranging from the value of receipts to worth billions. But before tax reforms, corrupt officials in China were executed to cause a deterrent effect among officials.

If governments are able to successfully tax crypto transactions, I don't see a reason why they should declare it illegal in the first place. We're transitioning to a cashless society where digital payments are the norm of the worldwide economy. China has already announced the launch of a digital Yuan, while other countries will soon follow. By then, both crypto and digital Fiat will be actively used by people in the mainstream world. Of course, governments will do their part to promote the use of their national currency more thoroughly. They'll also benefit from crypto's success with their ability to enforce taxation within centralized exchanges in the Blockchain industry.

Nonetheless, I believe that people will end up paying crypto taxes instead of avoiding them altogether. No one wants to be in trouble with the government, so this is the path to take from now on. Let's hope that crypto companies, startups, and developers work together with governments worldwide in order to make crypto land a better place. With a crypto-friendly regulatory environment, many scams and frauds can be avoided in the long run. Taxing transparent cryptocurrencies like Bitcoin and Ethereum will be a piece of cake. Even with privacy coins' strong anonymity, it might still be possible to tax people's transactions via a centralized exchange. With cooperation from all sides, everybody wins. Just my opinion

I think national governments will gradually accept cryptocurrencies. That is the trend of cashless payments in the future. Yesterday, I read a news that the Chinese government is preparing to launch the yuan in the form of cryptocurrencies. And currently, there are many transactions via BTC to evade taxes. Governments that want to collect taxes on these types of transactions are required to enact laws to regulate cryptocurrencies. Therefore, I think that cryptocurrencies will be accepted for payment widely around the world within a few years.

I want to help my country so I also pay tax. The thing about this is that it is bitcoin and the fact that we are using it is because we are free from the hands of the government so, with it, we can do whatever we wanted from it. I don't mind paying taxes for my bitcoins but if that is the case I don't think people would be honest with their holdings at all just like most of the taxpayers of the world. I hope though that this will not go in this state since I want something where I can earn and it is free of tax.

Exactly. Crypto taxation takes place once you trade crypto to Fiat. It's always been this way. If governments decide to change their stance in the future, that's another story. I'd wonder how they'd be able to tax crypto directly without people exchanging it to Fiat? It'll be quite difficult to tax everyone using crypto as not every transaction is seen on the Blockchain. As long as crypto is taxed relative to Fiat, there should be nothing to worry about.

People who don't pay taxes from their crypto income, could lead governments to ask centralized exchanges for all their transaction records. The "tax evaders" would simply sell crypto in-person to Fiat, rely on decentralized exchanges or simply use a fully-private cryptocurrency like Monero or Grin. It's best to cooperate with the government in order to avoid many undesired situations in the future. If we want crypto to be recognized as legal by governments worldwide, this is the path to take. Otherwise, expect a massive crackdown into the crypto/Blockchain industry.

Nonetheless, crypto will survive in the long run with or without taxation.  It already lives on its own regardless of government's regulations. Even if it becomes banned, people can still use it "under the hood". This is thanks to the decentralized and open source nature of crypto. Things would've been worse if crypto was completely centralized. But at its current state, it's nearly impossible to shut it down. Just my thoughts

Taxes on income from cryptocurrencies are not great, but they are not terrible.
KYC, taxes all these things help to go to the legal area instead of sphere related exclusively to weapons, drugs and the trade in "children's pizza".
Who do you run to when your house is robbed? You're calling the police.
And who will you run to when your btc wallet is stolen? This is an additional protection for people and the sphere as a whole.
The further the cryptocurrency develops , the more things you will have to put up with in order to continue development.
Legalization (and taxation) pushing forward more and more the moment when in the Apple Store (or any other big store) you will be able to pay for a new iPhone with btc as easily as fiat.

Taxes are applied in any situation, once the taxation is taxable, you are due for a tax on that, it's only the government who can declare if they will not impose in a certain situation, but just like fiat transaction, we are still subject for tax at the current situation.

it is very good if crypto currencies are given government tax, but if they do it in a situation like this, I think they are wrong,
taxes will make life difficult for people who only work with little capital in crypto currencies. maybe after the COVID19 pandemic ends, taxes may be imposed

This shows how the Governments can control our lives and finances, we can't really disobey because that's the system but in truth the system only benefits those in power that wants to exploit us and make profits and use that for their own benefit.
But with Bitcoin and Blockchain Technology, governments couldn't stop it because it has no centralize authority or company that they can issue a law to shut it down.

I feel stretch is awfully notable if you manage direction stuff. if not you don't neediness to recompense anything. The unsurpassed approach to keep away from governments kit is to manipulation disposition or spirit natural. The merely income tax we fee the initiator or proprietor of our humanity & sort is help behavior. upright activities includes attractive forethought of HIS creations.



 

There is not any taxation in the cryptocurrencies that you hold.
Apparently, the taxation comes in the amount of the Fiat money you want to keep in your bank so the income is taxable in fiat not in crypto.
If you want not to be taxed then you can keep your money in crypto and none is going to ask you to pay taxes for that.

Agree. This can only go both ways. I'm guessing that most people will prefer to pay taxes on their crypto funds, just to avoid any undesired situations from the government. They can also choose to avoid crypto altogether, if taxes are ridiculously high. But this looks very unlikely to happen because of the benefits crypto and Blockchain technology provide on top of existing Fiat.

The only thing that's pushing crypto back from being widely adopted in the mainstream world, is its price volatility. I wonder how governments will be able to tax crypto from citizens if prices are in a constant flux across the market? It'll be quite challenging to tax crypto this way. Privacy-oriented cryptocurrencies on the other hand, might see constant opposition from governments worldwide. I wouldn't be surprised to see many de-listings from centralized exchanges due to government pressure. Bitcoin has seen the approval of most governments worldwide, mostly because of its transparent blockchain ledger. Any cryptocurrency that obfuscates transactions from the general public will be considered as a threat from these entities.

Nonetheless, people will ultimately decide what to do with their crypto balances. As long as there are people who cooperate with the government, we'll continue to see a friendly stance towards crypto and Blockchain tech in general. Otherwise, you'd expect a massive crackdown into every single centralized crypto exchange until they fade into oblivion. Only then, people will trade crypto in decentralized exchanges or in-person. Blockchains will continue to be alive after this, but most people will avoid crypto altogether if it's declared illegal by governments worldwide. Let's hope that doesn't happen for the sake of crypto's adoption in the mainstream world. Just my thoughts

Many countries have banned, illegalize, or even prevent the use of crypto by their people. Despite the potential of crypto, governments are not allowing crypto to be recognized by the authorities probably because they won't have any control over it. People can take it as an advantage and maybe, the officials are afraid to compete with crypto despite it having its own characteristics. As you have mentioned, crypto taxation can be used by the government. Maybe because they still want to profit if ever crypto would be in action. Be it the coin's price increased or decreased, at the end of the day, they can profit something. But that's just unethical. They know better before doing that unreasonable action.

One way or another, this will be inevitable.

If a lot of people would use it in a country, they will find a way for them to get taxes out of it, which would result in two effects. Either people would accept the taxes and pay for their cryptocurrencies or Bitcoin or don't use it at all. Still, governments would be having a hard time taxing Bitcoin and cryptocurrencies as a whole because of its anonymity.