Topic: Crypto Taxation - page 7. (Read 4601 times)

@Abiky is right, the government and crypto should work together to benefit. Even I am willing to pay tax as long as I follow the law. However, the taxpayers are supposed to be just for entrepreneurs like those who operate the exchangers and not for the small individuals. It is nice to see and know when the government and crypto agree to take steps for the good of everyone.

Says who? I don't remember that in the Bitcoin white paper anywhere. 'A peer to peer tax evasion system' wouldn't quite scan the same way. There are tons of transactions that take place that governments would never know about. It's on you to report it.

The tax thing at the moment I'm most intrigued by is whether there's going to be some sort of wealth tax imposed to pay for economic ruin. Taxing work further isn't going to be a winner compared to taxing wealth sitting there doing nothing.

That's certainly true, mate. Crypto was meant to bring financial freedom to world. But the fact that most people rely on centralized services for crypto transactions, greatly defeats the purpose. As long as centralized exchanges keep track of people's identity, taxation will be highly possible to perform by governments worldwide.

Now, imagine if everyone used decentralized wallets and exchanges on top of centralized ones? It would be a "nightmare" for governments as they try to link Blockchain addresses to a person in the mainstream world. Even worse, truly private coins like Monero and Grin makes it impossible to browse on-chain transactions for crypto taxation. Governments might ban crypto in the end, if they're unable to tax people's crypto funds on the Blockchain. But that doesn't matter as long as people continue to support crypto in the mainstream world. Regulations either good or bad won't have an effect over crypto's longevity whatsoever. With a full government crackdown, it'll still be possible to use crypto for daily payments. The only issue would be exchanging it to Fiat or vice versa, since it'll be declared illegal by the government. But I believe that people will trade crypto to Fiat in-person to remediate the issue.

All in all, I hope that crypto and governments work together for the foreseeable future. I don't mind paying taxes just to comply with the law and avoid facing jail time. I'm sure most people will do this since they don't have a choice. Cooperation with the government is key to avoid many undesired situations. If there's a friendly crypto stance from governments worldwide, nothing should go wrong.

Everyone should pay taxes, including those who work in the cryptocurrency market. If there is income, tax must be paid. And the easiest solution to this issue may be to buy a special patent for those who trade cryptocurrency. This should be a fixed amount, because it is very difficult to calculate and check the trader's income.

On one side taxing crypto coins means the legality of it so all the scammers and thief will get legal punishments but on the other side probably there will be taxes with no benefits, like sustaining this kind of financial products or creating a more secure cyber space.

The government won't get any tax from crypto  Crypto isn't under anyone's control and therefore the government cannot control it. Will never support it Many countries don't support crypto they're going to use crypto for his or her own benefit.

Crypto was invented to avoid such things like taxes, to be a transparent process between two or more person. Government will try to put taxes where ever money or any high value is involved.

Yeah, I must say that we should be afraid of KYC policies because it might be the dead end for us, or a big rock to carry by us when dealing with cryptocurrencies. "states are very eager to rob their citizens" I find it very accusing, firstly tax is what we use for public service like police, fireman, and other government employees so we can't just say that they are robbers. Secondly, government would not be that in control without taxes, there are private companies that might take advantage of what they have got, I mean the concessionaires that holds necessity of us like water and food, and if taxes were not imposed it would be very chaotic.

Perhaps many cryptocurrency users have a negative attitude towards KYC, because they are afraid of inadequate taxation by states.  As always, states are very eager to rob their citizens, taxing people with very high taxes.  Of course, I have a positive attitude to taxes, because thanks to taxes, the state budget is filled, due to which there are all public services, social guarantees and the law enforcement system, including the army and themis.  But today, the states are strangling me with taxes only for business, but also for a simple person too.

Of course, many officials use cryptocurrency for their fraudulent and corrupt actions, because today in the world there is a struggle with offshore companies and it is necessary to launder and save stolen or criminally earned funds in new, not old ways.  Regarding taxes, there are quite a few issues that need to be resolved before they are applied to all cryptocurrency users, but providing passport data may be a priority.

I personally support taxation if i am to decide because Governments wants to have part in this profiteering community.
they Knew how much money circulating here but they don't even get a penny that's why i thing there is a problem about government adopting this crypto.

But if in the end of the day that this one is resolved? i believe we will start to be on top against Fiat and all the Online payment method like PayPal and others.

Returning to its original destination whether Satoshi was intentional or not, the move to publish bitcoin was a revolution that challenged the hegemony of the country, previously only the country had the right and could print money. It needs to be separated between a decentralized system with taxes, it is a different scope.

The use of cryptocurrency in our lives is a choice while taxes are our obligation to the country. Sometimes we need believing first and then seeing. During this time many taxpayers often assume seeing first and then believing. We must believe that actively obeying and obediently paying our taxes will help our country to develop and advance and there is equitable development.

Concerns that there are accusations that the government is corrupt so that tax funds do not run into development include our mistakes as taxpayers who are not active in controlling the use of tax money by the state and also wrongly electing people's representatives in elections or even so far we are ignorant of the importance of elections.

I agree with all that you have said, you are really encouraging me with all the votes cast in your discussion. Indeed, crypto users actually prefer that they enjoy centralized exchange sites rather than decentralized maybe for a more legitimate and more reliable reason to look and use them. The government does not really choose what they want to do especially when it comes to money because they know people are earning money and they know they will always obey because they have the power.

That's certainly true, mate. But governments (and central banks) are greedy and they want to take advantage of a revolutionary tech such as crypto and Blockchain for their own benefit. As long as they're able to tax crypto out of people's "pockets", the industry will see the "green light" for its growth within the mainstream world.

Now, imagine if Bitcoin and other cryptocurrencies across the market were completely untraceable. It would be nearly impossible for governments to be able to tax crypto effectively from everyday people. Still though, the mere fact that every single cryptocurrency is being traded on centralized exchanges has a lot to say over government's prominence within the Blockchain industry. After all, it is these same centralized exchanges which makes governments' life easier by enforcing ID verification to their customers. This allows governments to tax crypto even if privacy coins are used for trading on an exchange. With decentralized solutions, taxing crypto would be a thing of the past. The main issue is that decentralized exchanges have lesser liquidity than centralized ones. Using both a non-custodial mixer and a decentralized exchange would allow a person to remain "under the radar" for a very long time.

Nonetheless, it's our obligation to pay taxes in order to avoid facing jail time. I know this goes against crypto's value proposition of "eliminating the middleman", but this is the path crypto has taken lately. The way I see it, crypto is heading more towards centralization and manipulation than I've ever imagined. As long as big players like Binance and Bitmain dominate the industry, there's the risk of centralization which gives governments an advantage over one's crypto funds. That's why people need to use decentralized services more thoroughly in order to prevent crypto from being manipulated (sort of) at will. Until then, crypto will be forced to follow government regulations or its growth will be stifled within the mainstream world. Just my opinion

It is true tho. It works almost same as "obesed" companies like pizza hut who suffers from its own amount of workers.
So govs could suffer from operating its own taxes

I think today, most of governments income comes from newly printed money, it is magnitudes larger than their tax income, so it is very strange they still want to make lots of paper work and collect those miserable amount of tax income

I believe that only a handful of people like you would like a global legalization, for a lot of users and exchanges, life like today is probably going well when the government doesn't legalize, small controls can only be concentrated in some countries, create many advantages for investors to activate pumps, create virtual prices and make money in the market. Exchanges also do not need to pay all taxes to the government or if required, they only need to pay taxes in the markets of some countries that are required, profits are enhanced when they are not required to allocate their benefits to the tax

although it has not yet legalized it, the government can also collect taxes, albeit indirectly. for example, in a local exchange, where the company is legal with applicable state law, of course, each activity contains an element of tax collection from the government. this also happened in my country. but even so I hope crypto will be legalized in my country soon

Governments are unable to tax crypto directly, but with the advent of centralized exchanges, anything is possible these days. After all, most (if not all) centralized exchanges are require users to verify their IDs. This would make government's life easier by keeping track of an specific person's crypto trades for taxation purposes. The real deal would be enforcing crypto taxation within decentralized exchanges and non-custodial mixers as they lack a central operator or middleman. The very nature of decentralization makes it virtually impossible to tax a person's cryptocurrency wallet. As long as Bitcoin and most other cryptocurrencies have transparent Blockchain ledgers, governments will be able to continue with the endeavor.

On the other hand, privacy coins like Monero and Grin are much harder to trace from the general public. There's the feeling that one day governments will ban these cryptocurrencies from mainstream use because of this. Only Bitcoin and other cryptocurrencies with a transparent blockchain ledger will be able to survive for a very long time. People who're caught using privacy coins will be tagged as money launderers and tax evaders. The way crypto is heading towards extreme regulation is not as good as we thought it would be.

Nonetheless, most people will decide to comply with their crypto taxes in order to maintain the legitimacy of the crypto/Blockchain space (aside from avoiding jail time). As long as governments are able to successfully collect crypto taxes from their citizens, they'll give the "green light" for the growth of the Blockchain industry within the mainstream world. Like it or not, it's the way crypto will be heading for a very long time. Hopefully, regulators and crypto companies/businesses could work together in order to make crypto land a better place. Just my opinion

Yes that's right, if the government taxs the Cryptocurrency it means they have recognized Crypto as a legal thing. And I think that is a very good development for the world of Crypto because it will be easier for us to use Cryptocurrency if the government legalizes it.