Tax authority wants all crypto traders data on exchanges

drlukacs

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Quote from: TanakabZX on November 09, 2020, 03:22:15 AM

What the heck is happening? Canada’s tax authority is reportedly asking a federal court to force cryptocurrency exchange Coinsquare to hand over information and certain documents on all of its users since the beginning of 2013...

News source: https://news.bitcoin.com/canada-tax-authority-coinsquare-crypto-exchange-data-all-users/

Canada is seemingly opposed to using Crypto in their own country. The Government of Canada allows Crypto to operate in their own country but they have high taxes

To me , this action also makes sense that the Canadian government does not want their country to have more money laundering crimes. It was also a political decision and I support it.

DDante

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This isn't surprising because from scratch that's what centralized exchanges or platform are all about, they can easily be put to trails or controlled or even manipulated, if you are surprised by this then you are just using exchanges without understanding what they are all about, DEX will surely have a solid community love in near future, Centralized platforms should be ready to lose their customers because of this

jrrsparkles

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Quote from: TanakabZX on November 09, 2020, 03:22:15 AM

What the heck is happening? Canada’s tax authority is reportedly asking a federal court to force cryptocurrency exchange Coinsquare to hand over information and certain documents on all of its users since the beginning of 2013...

News source: https://news.bitcoin.com/canada-tax-authority-coinsquare-crypto-exchange-data-all-users/

Its not a wonder, every centralized exchanges under the regulation of their origin which mean they should follow what their government asks and even in future it maybe changed and centralized exchanges has no choice other than accepting it.

MFahad

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Quote from: TanakabZX on November 09, 2020, 03:22:15 AM

What the heck is happening? Canada’s tax authority is reportedly asking a federal court to force cryptocurrency exchange Coinsquare to hand over information and certain documents on all of its users since the beginning of 2013...

News source: https://news.bitcoin.com/canada-tax-authority-coinsquare-crypto-exchange-data-all-users/

I have not traded on Coinsquare but do they enforce KYC for every person who opens the account there ?

That's one drawback of doing the KYC at exchanges.

JohnBitCo

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Quote from: TanakabZX on November 09, 2020, 03:22:15 AM

What the heck is happening? Canada’s tax authority is reportedly asking a federal court to force cryptocurrency exchange Coinsquare to hand over information and certain documents on all of its users since the beginning of 2013...

News source: https://news.bitcoin.com/canada-tax-authority-coinsquare-crypto-exchange-data-all-users/

For sure, they want to collect the data of the Canadian citizens and track their activity on the exchanges and then perhaps charge them the taxes which the traders had avoided. To be completely anonymous, we need decentralized exchanges. The data and the activity on the centralized exchanges can be monitored anytime.

jostorres

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Quote from: Kvalentine on November 09, 2020, 05:42:02 AM

Then let's get ready for DEX taking over, though I'm not a fan of dex exchanges because of lack of liquidity and trading volume but I remember that binance got binanceDEX Cool

so I got nothing to worry about here, this is why I always have problem dropping my KYC information to third parties.

Absolutely agreed with you. You know I have a few friends who use fake identities on exchanges to avoid taxes and being recognized by legal authorities and I don't like such practices but now I understand why some guys pay to buy identities online and then use those on exchanges.

Although this is a bad news but I see one positive here that is, if authorities are asking for data they are recognizing the crypto trading as legal and that makes me feel good because in certain countries the laws about crypto trading are still bogus and ambiguous. I think more and more people might shift to dex after such news but the legal traders will be more than happy to pay some taxes/fees and trade proudly.

Yatsan

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Upon using centralized exchanges, expect that you will be facing the interfering of the government upon wanting to have the data covered up to be into their hand to have a payback on what must be paid upon issuing taxations with regards to crypto trading. We all do know that the government is the one managing the taxes from the people and use it upon such projects and related innovations that is supposedly for national use excluding personal interest and corruption. Now, anything that is operated to earn up money is need to have tax which is maybe the reason why they were asking for the data of the crypto traders on certain exchanges. Surely, centralized exchanges were obligated to do such for they were under government supervision so expect no less that they will follow through such recommendation. We are talking about legal matters in here and with regards to that, that must be a followed procedure specially by the centralized exchanges.

Vishnu.Reang

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Well.. this is something that is expected. I always prefer Dex sites to mainstream exchanges. And to convert Bitcoins or Ethereum to fiat cash, I always use peer-to-peer platforms. A couple of years ago, Localbitcoins was the preferred platform to convert Bitcoins to fiat. But after they made it mandatory to have KYC verification, I shifted to some of the lesser known P2P platforms.

TheGreatPython

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Quote from: TanakabZX on November 09, 2020, 03:22:15 AM

What the heck is happening? Canada’s tax authority is reportedly asking a federal court to force cryptocurrency exchange Coinsquare to hand over information and certain documents on all of its users since the beginning of 2013...

News source: https://news.bitcoin.com/canada-tax-authority-coinsquare-crypto-exchange-data-all-users/

I am not sure why anyone would have any problems doing that because most of the exchanges ask for KYC and if you are comfortable doing KYC then you must be well prepared for the taxes and it would be a dumb idea to have the KYC done but try and evade taxes. I am not sure of the Canadian rules and regulations but surely if they allow trading in crypto you shouldn't be afraid.

Actually it is a little unfortunate that users who thought they were trading anonymously will now be busted but seriously exchanges don't have an option rather than to follow the legal procedure. If you have done KYC on your exchange then no need to worry at all because you played safe from start.

BlackFor3st

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It's not that surprising at all as the government will surely to find a way to increase it's tax collection especially if they can see this kind of chance where
they can surely get a good amount of tax if they can force a certain exchange to pay their taxes.

But I am not so sure if it is very necessary to hand over all the users information and certain details because their is a big risk that the users privacy will be in danger
in this situation even if we can say that the one asking for it is the government itself.

sheenshane

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That's the problem if we are using CEX for crypto trading, there's a big chance that the exchange site will reveal your real identity. We can't blame the country of Canada because since the start they are against and fighting fraud activities in their country. Tax evasion is one of the very common problems of the government, of course, they need to force implement this for the sake of economic growth.

If you don't care about your government and evade tax, there's no reason you will use DEXs in trading. It's completely anonymous that will never reveal your real identity once government confiscates on exchange.

Jawhead999

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Quote from: btc78 on November 09, 2020, 04:45:11 AM

Not only DEX are decentralized there are also some exchange in which not dex but have no KYC requirements.

I bet you're referrs to Binance since they didn't required any KYC but there's a limit with the withdrawal.

To be honest Binance DEX aren't trully decentralized exchange, they can force you to submit KYC anytime if they wanted.

Quote from: ?? on ??

When most DEX exchanges don't need KYC, actually it is a very big danger, because scammers can easily enter there and easily put useless tokens there, so users who trust the DEX exchange too much will always be victims scam.

Self education is a must in this case, you'll not be scammed since you already know how to differentiate scam token and don't be greedy.

barbara44

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Quote from: ?? on ??

these regulations are like that, but it is very good for the future of crypto currencies,
because cryptocurrencies are recognized by the state, maybe taxes will be imposed on the condition, not all members are given taxes

There should be no reason one should trade on centralized exchanges if they don't want to pay taxes or evade them, there are so many DEX made for the exact same reason for people who wish to remain unknown and don't want to pay taxes. If paying taxes is right or wrong I don't want to get that debate going here but if you are using centralized exchanges you should be fine with the law enforcements as well.

Quote from: jessyj48 on November 09, 2020, 04:54:27 AM

till this day I still trade on binance without approving KYC verifications, since I'm not hitting the minimum requirements for KYC yet I will be fine, on data part centralized exchanges can't be trusted

You know Binance doesn't ask for verification for certain under limits but they can ask your verification if they found something fishy or they detect certain abnormalities.

yurez

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This is just the beginning, in a few years, tax authorities in many countries will be more closely monitoring crypto traders and their income on centralized exchanges. Some centralized exchanges do not ask for your personal information, but the future will still be with decentralized exchanges.

L A R A

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Only exchanges that are centralized and request our personal data (KYC) can do that. If an exchange were decentralized, of course, the tax authorities would be in trouble for that. I think DEX will be the future of crypto.

Greatchu

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I'm wondering what government plans to do with the data, honestly I don't like this because they will know the worth of every crypto traders, I'm glad I use dex exchanges most times for selling coins, I don't do trading much but if I have to there are still few centralized exchanges that are useable without KYC

concept2

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Tax is one of the major problem to the government and it is certain that they will not allow businesses operating without paying a single tax. But I do not like an idea of forcing an exchange to provide its customers' private data. Well, this means that governments still do not like bitcoin and other cryptoccurencies at all. Being anonymous gives people too much power which make the leader scared of

I guess Coinsquare must have a solution for this circumstance. Many consequences will happen if they decide to transfer all the data. They are likely to lose all of their reputations and clients. Compromise is necessary. There are many firms moving to other country to avoid being controlled by the governments. Personally, I want them to do that Huh

Kvalentine

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Then let's get ready for DEX taking over, though I'm not a fan of dex exchanges because of lack of liquidity and trading volume but I remember that binance got binanceDEX Cool

so I got nothing to worry about here, this is why I always have problem dropping my KYC information to third parties.

KIZILAGA

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So what? i had Grin and lost my keys Cool

JeffBrad12

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I know this will happen for sure. The tax authorities are seeing crypto as another source to get more income for the countries. Dex is the only solution to this.
I think we will see that if it's not only canada but another countries will be trying to do the same like what canada did with coinsquare.
The tax authority seeing it as an opportunity.

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