Unlike any market condition governments always want to profit out of it. When it comes to cryptocurrency, governments suffer a lot to profit out of the same. Even after hard try governments were not able to make things happen perfectly. This is all because of the decentralization of the entire network and people also stay pseudonyms.
The price of the specific item increases because of the tax that is included by the government. If the crypto is allowed to take place on every transaction that we are going to do, the price of a certain item will for surely gonna go down because the tax will be removed since cryptocurrency is decentralized, meaning no one controls it. 
Topic: Crypto Taxation - page 9. (Read 4571 times)
Ever since Bitcoin and other cryptocurrencies became a hit within the mainstream world, governments have been quite skeptical about them. Despite the promise of crypto to bring trustless payments to the world in a frictionless manner, governments have taken every effort to try to prevent its growth worldwide. As of now, centralized exchanges dominate the space where they're subject to KYC/AML laws. There's literally no way to prevent government surveillance except for P2P trading (like Local Bitcoins, etc).
Considering that centralized exchanges serve as gateways from crypto to Fiat (or vice-versa), they've been the targets of governments worldwide. The main concern of governments is tax evasion and money laundering. Sometimes I wonder why governments want to tax our cryptocurrency funds if they're not considered as money by most people worldwide? After all, crypto's nature is a highly unpredictable and volatile one. It seems to me that governments want to profit from this venture more than anything else. Any other cryptocurrency which prevents them from "taxing" people, would be considered illegal to them in the future (like Monero, and other privacy coins).
Which is why, I believe that crypto taxation is more of a problem than anything else. Do you agree with me? What are your thoughts?
Goverments are always in search for money, specially free money so they use every opportunity to get to them and cryptocurrency makes no exception. It is sad the fact that even păaing taxes for crypto it is somehow considered iligal. Considering that centralized exchanges serve as gateways from crypto to Fiat (or vice-versa), they've been the targets of governments worldwide. The main concern of governments is tax evasion and money laundering. Sometimes I wonder why governments want to tax our cryptocurrency funds if they're not considered as money by most people worldwide? After all, crypto's nature is a highly unpredictable and volatile one. It seems to me that governments want to profit from this venture more than anything else. Any other cryptocurrency which prevents them from "taxing" people, would be considered illegal to them in the future (like Monero, and other privacy coins).
Which is why, I believe that crypto taxation is more of a problem than anything else. Do you agree with me? What are your thoughts?
I agree with your statement.
There exists a boundary between the taxation of cryptocurrency (which would benefit its users as it will provide a layer of protection and regulation) but it will defeat the very essence of it being decentralized and its anonymity factor. Bearing this in mind, is it worth to sacrifice decentralization for protection and regulation by the government? The answer will vary depending on an individual's experience but taxation in cryptocurrency defeats the vision on what Satoshi imagined when he developed this technology.
I guess the phrase 'getting the best of both worlds' is not applicable (at least for now) if we consider these circumstances surrounding cryptocurrencies and the intervention (taxation) by the government.
There exists a boundary between the taxation of cryptocurrency (which would benefit its users as it will provide a layer of protection and regulation) but it will defeat the very essence of it being decentralized and its anonymity factor. Bearing this in mind, is it worth to sacrifice decentralization for protection and regulation by the government? The answer will vary depending on an individual's experience but taxation in cryptocurrency defeats the vision on what Satoshi imagined when he developed this technology.
I guess the phrase 'getting the best of both worlds' is not applicable (at least for now) if we consider these circumstances surrounding cryptocurrencies and the intervention (taxation) by the government.
Exactly. Taxation goes against what Satoshi intended crypto to be in the first place. A cryptocurrency like Bitcoin was meant to serve as an alternative to the current financial system by eliminating the middleman. Taxing a person's crypto transactions, will make Bitcoin no different than regular Fiat. But I guess that most people will prefer to comply with taxes as they have no other choice. It's better to cooperate with the government instead of going against it. You'll be facing fines or even jail time if you avoid taxes on your crypto transactions.
Since people don't care about the decentralization of crypto and Blockchain technology, they don't protest against crypto taxation. Remember the phrase, "strength in numbers"? If a substantial number of people join themselves together against government-imposed taxes on crypto, they'll stop doing it. But as long as people remain quiet and do nothing about it, governments will continue with the endeavor. One thing for sure is that privacy-oriented coins like Monero and Grin are in real trouble, since it's largely impossible to track & trace transactions for taxation purposes. Only Bitcoin and other cryptocurrencies with a transparent blockchain ledger will survive for the foreseeable future (as governments will approve them in every way).
Nonetheless, I believe that the battle over crypto taxation will be a never-ending one. For once, governments were unable to tax crypto properly. But with the increasing number of centralized exchanges, it's becoming more easier for governments to tax their citizens. The dependency on centralized services by crypto has only made matters worse for the end user. In the bright side, crypto and Blockchain technology will continue to grow in terms of development and innovation. But, it won't be the same as centralizing forces will have a negative effect over people's freedom in day-to-day transactions. Just my opinion
Sad to say, it's just how things go most of the time. Even I am a critic of taxing cryptocurrency transactions since after all it defeats the purpose of cryptocurrencies being decentralized in the first place. But if you consider the fact that it'll allow cryptocurrencies to be much more accepted and accredited by your local government almost outweighs the feeling of being taxed. Until we can find a way to ensure cryptocurrency transactions safer and a bit more convenient than what it is now we might need to put up with what the government wants
I agree with your statement.
There exists a boundary between the taxation of cryptocurrency (which would benefit its users as it will provide a layer of protection and regulation) but it will defeat the very essence of it being decentralized and its anonymity factor. Bearing this in mind, is it worth to sacrifice decentralization for protection and regulation by the government? The answer will vary depending on an individual's experience but taxation in cryptocurrency defeats the vision on what Satoshi imagined when he developed this technology.
I guess the phrase 'getting the best of both worlds' is not applicable (at least for now) if we consider these circumstances surrounding cryptocurrencies and the intervention (taxation) by the government.
The thing is crypto relates to cash not securities like shares. The exchange of value just by itself isnt a taxable event in most countries, gold for example is often protected from taxes as a holding. Silver can be subject to sales tax because its used for cutlery and jewelry and is a bit more industrially used. Its unfortunate if just sending cash makes a person requiring an accountant, luckily I'm not that rich either way.
I totally agree with that. Governments always want to capitalize on everything that’s possible. And I’m sure that they won’t miss such a chance not to tax cryptocurrency. I don’t like it, but I don’t know what can be done about it.
It is not that mainstream in our country but if it did, I am sure that it will be having a tax in the future. I don't know how would the government do that but for surez they will find a way. There are some exchange here in our country and they might find that as a way or a chance to tax users of crypto currencies here.
They will try harder and harder to make cryptocurrencies taxes to be everywhere in world and probably they won't stop there. Look at Libra how many difficulties they have to launch their project and the coin so if Bitcoin would have been created today I doubt it would have had the same success and trust like it has now.
In my country they already made cryptos taxable since last year but we have a lot of ATM's and easy access to buy Bitcoin and other cryptos but if we look on other situations from other countries , they don't have access to Bitcoin so easily or some other don't have access at all as cryptocurrencies are banned in some countries.
In my country they already made cryptos taxable since last year but we have a lot of ATM's and easy access to buy Bitcoin and other cryptos but if we look on other situations from other countries , they don't have access to Bitcoin so easily or some other don't have access at all as cryptocurrencies are banned in some countries.
If the transactions remain anonymous, then the chance of tax evasion will increase and it will become easier to hide your income. The authorities don't want that and they want to extract whatever they could from the hard working individuals. On the outside, they will say that KYC and all that crap is needed to prevent terrorism and crime. But the real intention is to increase the tax collection.
Exactly. As long as transactions are anonymous, there's virtually no way a government will be able to collect tax from you. They've noticed this already, leading them to wild ideas on how to get rid of privacy solutions within the crypto space. For once, the US talked about the possibility of banning privacy coins in their entirety (as these coins promote tax evasion and money laundering according to the government). If all the countries of the world start rejecting privacy solutions within the crypto space, then I'm afraid that people will be forced to pay taxes in every way. Personally I don't have a problem paying my taxes in crypto, but it goes against the way crypto and Blockchain tech was designed initially (which was to eliminate the middleman and counterparty risk).
Only time will tell us if people will agree unanimously with governments' decisions or not. If people don't complain about crypto taxation, then governments will continue with the endeavor without interruptions. It's up to you and me to make the difference in order to make crypto as good as it was in its early days. The mere fact that centralized exchanges dominate the crypto space, makes taxing crypto a piece of cake. Just my opinion
I totally agree with that. Governments always want to capitalize on everything that’s possible. And I’m sure that they won’t miss such a chance not to tax cryptocurrency. I don’t like it, but I don’t know what can be done about it.
Yeah, it seems illogical why government will tax something which is consider as threatening for country. Most of the governments oppose cryptocurrencies but when it comes to earn free money, they are ready to tax crypto earnings of citizens which is entirely wrong. We are generating wealth from something entirely created out of thin air. We are not using the resources of a country. Rather we are creating intangible wealth on internet using logics and powerful codes. I don't know how can government claim the share of our earnings.
I think you misunderstand how cryptocurrency is treated by governments across the world. Most countries treat them as commodities. Like any commodity, when traded you either make a gain or loss. To legalize the cryptocurrencies, categorizing them within a certain tax bracket is important. It does not hamper the decentralization process, rather enables the ecosystem to be more mature. Also, right now if you check, you will see most of the countries have legalized cryptocurrencies with only a handful (around 7) where it is still illegal.
Paying taxes is a broad philosophical question, and innumerous people have spoken against and for it. Hence lies beyond our control.
I totally agree with that. Governments always want to capitalize on everything that’s possible. And I’m sure that they won’t miss such a chance not to tax cryptocurrency. I don’t like it, but I don’t know what can be done about it.
Yeah, it seems illogical why government will tax something which is consider as threatening for country. Most of the governments oppose cryptocurrencies but when it comes to earn free money, they are ready to tax crypto earnings of citizens which is entirely wrong. We are generating wealth from something entirely created out of thin air. We are not using the resources of a country. Rather we are creating intangible wealth on internet using logics and powerful codes. I don't know how can government claim the share of our earnings.
I totally agree with that. Governments always want to capitalize on everything that’s possible. And I’m sure that they won’t miss such a chance not to tax cryptocurrency. I don’t like it, but I don’t know what can be done about it.
I myself am from Ukraine and still live in this country and today, in fact, cryptocurrency is legalized and every cryptocurrency asset is recognized as a means of payment, a valuable asset and an asset for investment, but there is a certain framework for taxing activities on the cryptocurrency market. In any case, no user will pay tax on the available cryptocurrency reserves in their wallets, but taxes will be levied only on very large transactions when trading cryptocurrency. Since the cryptocurrency market in my country so far has been out of sight, that is, it was in the shade, we still have to imagine seeing how all this will work when citizens show interest in cryptocurrency assets.
You're saying cryptocurrencies do have actual legal status of a payment option in your country, but only big transactions come with taxes?
I barely can believe it, could you please proof, because if what you're saying is true that mean your country is a damn heaven for crypto traders
I myself am from Ukraine and still live in this country and today, in fact, cryptocurrency is legalized and every cryptocurrency asset is recognized as a means of payment, a valuable asset and an asset for investment, but there is a certain framework for taxing activities on the cryptocurrency market. In any case, no user will pay tax on the available cryptocurrency reserves in their wallets, but taxes will be levied only on very large transactions when trading cryptocurrency. Since the cryptocurrency market in my country so far has been out of sight, that is, it was in the shade, we still have to imagine seeing how all this will work when citizens show interest in cryptocurrency assets.
in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.
If that would be the case, the main purpose of bitcoin would be dissolve: its decentralization and anonymity. We can't really say that it is what is happening, maybe it is on the manner of use of bitcoin transactions. It is on how the two party decided on how to transact using bitcoin, might it be for buy and sell, or as a payment in the workplace that are a subject for government laws and regulations. Does taxation have something to do with privacy anyway?
I mean there are some ways to tax crypto market without getting private data of each user and their transactions
If the transactions remain anonymous, then the chance of tax evasion will increase and it will become easier to hide your income. The authorities don't want that and they want to extract whatever they could from the hard working individuals. On the outside, they will say that KYC and all that crap is needed to prevent terrorism and crime. But the real intention is to increase the tax collection.
Sad to say, it's just how things go most of the time. Even I am a critic of taxing cryptocurrency transactions since after all it defeats the purpose of cryptocurrencies being decentralized in the first place. But if you consider the fact that it'll allow cryptocurrencies to be much more accepted and accredited by your local government almost outweighs the feeling of being taxed. Until we can find a way to ensure cryptocurrency transactions safer and a bit more convenient than what it is now we might need to put up with what the government wants
Couldn't agree more with you, mate. It's best to comply with government's laws in order to maintain the legitimacy of the crypto industry. As long as people do their part, governments will take care of the rest. Otherwise, you could expect a full crackdown on crypto and Blockchain technology. I'm sure that mainstream businesses and companies will find out ways to properly collect taxes from their clients. There are several Blockchain analysis tools (Chainalysis is one of them) that will serve their purpose well in helping governments track & trace cryptocurrency transactions for proper tax collection.
Personally, I wouldn't mind cooperating with the government in order to continue using my hard-earned crypto funds. It's best to do this, instead of going against government rules and facing jail time. Most people will comply with crypto taxes in the long run, just to avoid having any troubles with the authorities. But we all know that crypto taxation, greatly undermines the purpose crypto was created for. Taxing crypto brings back the middleman one way or another. Sadly, this is the way to go for the sake of the crypto and Blockchain industry in general. Just my opinion
in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.
If that would be the case, the main purpose of bitcoin would be dissolve: its decentralization and anonymity. We can't really say that it is what is happening, maybe it is on the manner of use of bitcoin transactions. It is on how the two party decided on how to transact using bitcoin, might it be for buy and sell, or as a payment in the workplace that are a subject for government laws and regulations. Does taxation have something to do with privacy anyway?
I mean there are some ways to tax crypto market without getting private data of each user and their transactions
in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.
If that would be the case, the main purpose of bitcoin would be dissolve: its decentralization and anonymity. We can't really say that it is what is happening, maybe it is on the manner of use of bitcoin transactions. It is on how the two party decided on how to transact using bitcoin, might it be for buy and sell, or as a payment in the workplace that are a subject for government laws and regulations. The issue of cryptocurrency and tax has recently become popular. States may want to derive a tax income from this situation. But this is not a simple matter. How will they get the tax as bitcoin? This is a very complicated issue. I don't think it's possible for now.
I don't think we should even think about it but there are countries that already taxed Bitcoin.
This depends though on how they are using Bitcoin. If they are using Bitcoin in a company and they are accepting it as a payment or salary, they would be under the law of income tax and that would obviously be taxed.
When we do talk about directly on Bitcoin then its not really taxable but if it already involves 3rd party service then thats the time it would really be taxable.
This will depend on countries jurisdiction when it comes to crypto earnings if they would decide to recognize it as a taxable thing but on most cases that would really
be done.
bitcoin are currencies too but the currencies are the ones that arent taxable right ? but its the goods or the service , or the property you own. when you use your bitcoin for any of those things that i mentioned above , it must not be exempted by tax because that is inapropriate already . there was a case against that if i remember and tax is one of the case that are popular because big time people tend to avoid it
The issue of cryptocurrency and tax has recently become popular. States may want to derive a tax income from this situation. But this is not a simple matter. How will they get the tax as bitcoin? This is a very complicated issue. I don't think it's possible for now.
I don't think we should even think about it but there are countries that already taxed Bitcoin.
This depends though on how they are using Bitcoin. If they are using Bitcoin in a company and they are accepting it as a payment or salary, they would be under the law of income tax and that would obviously be taxed.
When we do talk about directly on Bitcoin then its not really taxable but if it already involves 3rd party service then thats the time it would really be taxable.
This will depend on countries jurisdiction when it comes to crypto earnings if they would decide to recognize it as a taxable thing but on most cases that would really
be done.
bitcoin are currencies too but the currencies are the ones that arent taxable right ? but its the goods or the service , or the property you own. when you use your bitcoin for any of those things that i mentioned above , it must not be exempted by tax because that is inapropriate already . there was a case against that if i remember and tax is one of the case that are popular because big time people tend to avoid it
The issue of cryptocurrency and tax has recently become popular. States may want to derive a tax income from this situation. But this is not a simple matter. How will they get the tax as bitcoin? This is a very complicated issue. I don't think it's possible for now.
I don't think we should even think about it but there are countries that already taxed Bitcoin.
This depends though on how they are using Bitcoin. If they are using Bitcoin in a company and they are accepting it as a payment or salary, they would be under the law of income tax and that would obviously be taxed.
When we do talk about directly on Bitcoin then its not really taxable but if it already involves 3rd party service then thats the time it would really be taxable.
This will depend on countries jurisdiction when it comes to crypto earnings if they would decide to recognize it as a taxable thing but on most cases that would really
be done.
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