Topic: digital currencies are anonymity (Read 161 times)

I am not sure how will decentralized exchanges will be faring if the government will be demanding for them to hand their record of business or transactions otherwise get the threat of closure...all of these talks that they can be beyond the power of the government are just words. The government right now is exercising its power in the name of protecting the people from possible scams and abuse (and certainly there is a good basis on this) but sometimes they are doing it not to correct but to stifle the whole industry (this is not the firs time they are doing this). I have no problem with the government demanding their share of tax because that is just a part and parcel in doing business and everybody should cooperate and comply in exchange for recognition of the business.

Take South Korea for instance, they noticed that a lot of exchanges were operating scrupulously and they stepped in to prevent another MtGox. They forced these exchanges to clean up their act and to adhere to strict regulations to properly govern this sector.

If people abuse and exploit a system, then the government will react and the way they do it is to regulate it and also to tax it to death. < The law has spoken, we are not living in the wild west > ^smile^

The KYC system was motivated by the government to keep track on bitcoin trading to know who is making money and who is not, but the decentralized nature of bitcoin will make it almost impossible for the government to keep track on bitcoin transactions except bitcoin allows the government to introduce and implement some policy into it system not until then no government or any of it institutions like the central bank will have the ability to interfere in bitcoin transactions.

We all know about gold and diamonds, those two things are very valuable to be obtained by mined, just like bitcoins. But why gold can be officially recognized by all countries, while bitcoin is not, whereas bitcoin is worth more than gold. I think the world has to recall how they can recognize and manage gold. After that, the concept on gold should be applied to bitcoin.

people who think like this, also think that those who use VPN for example are trying to perform illegal activities.

they implemented that because they were working with fiat and banks and you need to have AML/KYC implemented when you use that.

ok, but what does this have anything to do with bitcoin if it is a general thing about any "money making machine"?

bitcoin is censorship resistance and it becomes more censorship resistance every day. let these rare governments say anything they want, in the end we will continue using bitcoin. i was reading about blockstream satellite the other day and it is very interesting how you can use bitcoin even without internet and through radio waves!
(unless it is the price you are worried about!)

The cryptocurrency market needs proper international regulations. Regulations are one of the key ingredients that gives investors confidence in marketplaces. The world learned this lesson in the 1930s.

Well, I read that South Korea is already planning to legalize trading, but is outlawing anonymity in return. They're making sure exchanges are dealing with real people who are actually authorized to trade cryptocurrencies, and they're requiring them to share their customers' data. It's very invasive, but it's probably a better alternative than a complete ban. They do use this to make sure that you're paying the correct taxes, but it also makes it extremely hard for shady actors to use the market for their own gain. It's a double edged sword, and whether people believe it's worth it depends on them alone.

To be fair, you should be paying proper taxes on your income anyway, as mandated by law. Crypto gains and trading profits fall under this, so it's not unfair for them to be taxed. What would be unfair is if governments impose higher taxes on cryptocurrency related income, and I don't think I've seen anyone go down that road yet.

Talking about anonymity of all digital cryptocurrencies, it is only a negative issues about all kinds of cryptocurrencies. For me, as a bitcoiner I'm not just focusing on what negative issues of cryptocurrencies, instead I will work hardly and share enough time by accessing bitcoin, but I was also monitoring some issues about bitcoin and I really concern of different issues, but I only trust the good management of bitcoin and they are strongly capable to solve any kind of problems that comes anytime.

I believe that decentralized exchanges will flourish because of these new KYC laws and taxes. This flies in the face of why bitcoin was created in the first place.

The government even wants a cut if you bought bitcoin at $500 and hold it for 5 years and then just purchase something with the appreciated earnings. Watch Monero fly in price as well.

I realize that the government does need taxes to operate but it has become a huge hungry machine that is growing and provides less and less things that we really need. It has far usurped it's original needs and plans. Reaching into our lives much too deeply

This is not new and unexpected. the image of digital currencies before and maybe up to now is just an instrument to launder money. A tool of cons to facilitate their dirty money undetected.The world decentralization and anonymity which are inherent to digital currencies are what make it exploitable. There is no question about the honest intentions of majority of the crypto world about this trade but still the fact remains that it could be used an instrument to do criminal activities.
How do you think the government will handle this? what measures do you think the government will implement to make the trade free from unscrupulous activities?
They already started long ago. Exchanges have implemented the KYC system. This was done due to the pressure of the government. Now, since they already knew who are trading and who makes money they are now into their second move. TAX US.
In any government, any money making machines that are not taxed are considered illegal (with the exceptions of some middle east countries). Why? Because that is how it is. You can't bake a good pie without the government having a slice of it.
We will be expecting more pressures from the government institutions in the coming days but these should not give us fear, uncertainties and doubts. Treat these us a welcoming development for us to have a safer crypto environment.
We can't control it anyway, right?