Topic: Crypto Taxation - page 8. (Read 4601 times)

I think there's no taxing within the crypto market because it's not regulated by any government and isn't enforceable in government law. you're right that the majority of countries are protecting the privacy of Bitcoin However there are not any rules for doing crypto albeit there's no personal data for the transaction it's normal for transaction fees to be deducted.

but that is one reason why Governments are preventing Crypto or Blockchain enters their system ,but they just want to put taxes for income and that is unfair.
they are preventing to cut the corruption because BlockChain will surely take their 'Under the Table'system and this is not what they wanted to happen.
though i fully support the government putting taxation because this will help the economy of my country but i also wanted assurance that the taxes will be spare rightfully.

If the government tax the cryptocurrency then they should adopt and use blockchain technology too so there will be no more corruption. All the money they spent will be posted on the public ledger, we know where the money is going and how they use it for the betterment of the country's industries and economy.

But bitcoin may be  mainstream payment method in the past. We don't know but if that happens, the government will be regulating it with a new rule. Maybe it would first go in an exchange so that they can tax it, maybe they can use the exchange itself to tax it or they can create their own exchange and that is where our payment will be going.

That is about spot on, the transfer of cash being taxable is highly profitable and not true anywhere else.    So its basically nonsense to do so and down to confusion mostly now I think.   Even with equity shares in a company the government only very lightly taxes the idea of buying and overall only a tax for a profit in a years worth of transactions with a great allowance, to be any more harsh then that for crypto is a bit silly.   Most crypto is purely just send a secure transaction one place to another, there is no ownership or equity to tax only the idea of holding value.
   Some of the famous candidates for USA president this year have the idea of taxing capital not profit just the idea of having a certain value is taxable and in the EU I think Cyprus confiscated amounts of cash from people over a certain level.   Lots of people are fine with this as its aimed at rich people but the end game is all people become liable to lose what they own.    WHen inflation gets out of control it is basically a tax on capital, thats why all these things and crypto is associated.

KYC in itself isn't always absolutely a horrific idea. It does save you some fraud and adds some other layer of security but nevertheless relies upon if the alternate is trustworthy enough. KYC should assist retrieve coins despatched to wrong cope with, on exchanges that implements KYC too could use these details to fix some problems. but, despite the fact that tax isn't always also a terrible aspect (for the reason that it's miles essential to have regulation enforcement and peace and order), I do also disagree on government's warm eyes on cryptocurrencies, in particular now that they'd seen its capability, it simply looks as if they just need to take advantage of these grounds.

Technically, it's not easy to tax cryptocurrency. But with the rise of centralized exchanges, it's becoming a "piece of cake" for governments to tax crypto from their citizens via the use of personally identifiable information. If crypto continues to become dependent on centralized exchanges to survive, then its value proposition (which is freedom of money and censorship-resistance) will be ruined. Luckily, we have DEXs, non-custodial mixers, and even privacy-oriented coins to "tackle" this. But the problem is that governments will not allow these decentralized alternatives to continue their development within the mainstream world. They'll quickly classify these "tools" as illegal claiming that they can be used for money laundering and tax evasion. The truth is that criminals use Fiat more for these purposes than crypto as physical Fiat is stable in price and it's much harder to track. Still though, governments don't see it this way which leads them to have a reluctant stance against crypto and Blockchain tech in general.

As long as centralized services within the crypto/Blockchain industry exist, taxation will be the norm of worldwide governments for a long time. Now, imagine if crypto relied on decentralized alternatives instead of centralized ones. If the entire ecosystem was completely decentralized, you could've expected a massive crackdown by governments into crypto by now. The mere fact that most (if not all) cryptos are heavily traded on centralized exchanges, allows governments to tax crypto with ease. There's nothing we can do (for now) but to comply with our crypto taxes to avoid facing fail time. Just my thoughts

Despite the fact that in my country, Ukraine, cryptocurrency is considered legalized, and the government decided not to tax users.  Of course, this question needs to be thoroughly studied to talk about the taxation of cryptocurrency users in my country, because it deals with certain volumes of cryptocurrency transactions.  Nevertheless, we must understand that almost all social guarantees, as well as services that work for the benefit of their people, are all paid for by taxpayers.  Of course, I understand that the government uses a lot of money at its discretion without the participation of its citizens, but nevertheless I believe that most of the tax reaches its goal.

I agree with you. Especially in some countries where money generated from tax has become the major source of money for infrastructural development and welfare even though the government might see crypto as true tender. They know how much and that many people are holding a large amount of crypto-asset which could have to fetch them a lot of money as tax in cash. I wouldn't be bordered if I see in the nearest future that the government has deciphered a mean of taxing people hodling cryptocurrency. Value-added tax through local exchanger might be one of the numerous way.

well it should be like that the government will never be able to control bitcoin so the government will not be able to do the tax costs for all bitcoin transactions because when making transactions using bitcoin you have made tax payments to be used as shipping costs.

Sometimes I feel that the government is the biggest winner in this whole crypto thing. It's a zero sum game, but they collect the taxes.

You got confused there, friend. Government wants to prevent money laundering and that second part is meaningless. You wanted to write something but didn't know what so you clumped together a few words and thought that maybe you'll get lucky and nobody will read it.


Crypto transactions won't be taxed just as fiat transactions aren't. You have to pay tax from profit - no profit means no tax.

Absolutely right, we all know that cryptocurrency is decentralized which means there are no groups of people or any organizations that are running cryptocurrency. We can actually say that it is really hard to put some taxes in cryptocurrency itself since every transaction online is free and easy. Yes, they can ban cryptocurrency doing some firewalls in their country to prevent people of the particular place to access cryptocurrency but there are lots of ways they can do to still access it.
Maybe they can give some taxes only to those people who actually turn their crypto into fiat by converting it and then withdrawing it on local banks but the tax is on a transaction have done with the bank. That is the only thing we can say that crypto can be taxed. The fees on exchanges don't have to do with the government rules.

in any case, any cash flows should be controlled by the relevant authorities in order to prevent the financing of criminal organizations and criminal activity.  in one way or another, cryptocurrency users will have to come to terms with the fact that they will have to pay the corresponding taxes on their activities, after the cryptocurrency is actually legalized in the respective countries.  But it seems to me that it is likely that the tax will not be levied on storing cryptocurrencies, but on the performance of certain operations, such as cryptocurrency trading.  In this case, taxes will be paid by trading exchanges, and the user will pay a slightly increased trading fee on the exchange.

Government doesn't want any one who will be able to transfer fund to prevent money laundering that is why they create a centralized exchange and make profit because of it. It is more like a tax that you have to pay even if it's a cryptocurrency which we all know there is no tax that we have to pay unless there is government behind it.

I'm sure it won't happen because it was obviously unfair for all of us. If ever a law passed regarding this taxation, I hope they should also follow the guidelines like they used on usual taxing. There's a specific percent should be only deducted on one's total worth and it must be in terms of btc too (disregarding the fluctuation of price).
This is what I'm worrying about. Since crypto offers more anonymous transactions, corrupt officials can now do their shady stuffs a lot easier than the usual .

The only thing that will look worse is having a high taxation fee than the transaction fee, I hope it will not happen if ever crypto taxation in a county implemented.

Paying a tax using crypto will not be illegal if it has been issued by the government. So who will take the government into jail? Well, if an authority made a mistake of collecting tax like asking a higher amount instead of the exact amount which is not covered by the rules and regulations then you can report them on a higher position because it is considered as corruption. The government's public servants are meant to served not to serve them.

I think that is good since if they taxed Bitcoin they will be thrown to jail if that is what you're saying.

I think what you are saying about the government is illegal since taxes should only be used in the country and to support the other two powers of the state. If they are using it for their own good, obviously you can report them. We are still in the time when Bitcoin and cryptocurrencies can't be directly taxed, they might or might not, more importantly, right now it is not taxable.

But I'm sure these people on thw government will find a way to tax cryptocurrency somehow. Moeny is their main leverage and wherever there is money you could see your government hoarding the crap out of it. So I believe that past the decentralized nature of cryptocurrencies and whatnots, they'd still find out a way to charge people for using it. Unless, we find out who Satoshi is, he can put up with this and say that cryptos are something that are of his creation and therefore are not government properties. But this is unlikely. So far though, we don't see any taxations happening yet to any country you guys are right now so let's just breathe in the free cryptocurrency air while it lasts.

I don't see anything bad with being taxed too though. It's much better than having to deal with a ban you know.

That's true, but it is not very easy to tax cryptocurrency. It is not a physical asset and exists only in digital form. So it is very easy for the users either to hide or manipulate the tax burden. Also, the decentralized nature of the cryptocurrency makes it vary hard to track down the users and identify them. And finally, a large part of the transactions take place outside the regulated exchanges, especially in peer-to-peer platforms.