Topic: UK tax on Coinbase transactions. (Read 169 times)
The fall of cryptocurrencies begins with such steps. Do not use such services, let them think about what they are doing. It all starts small, as you know.
I gather that Coinbase has had to release trading details for UK residents who have withdrawn over £5,000 in the last year. This seems to be in line with the demands of revenue departments in other countries. One result of this is that P2P transactions are likely to increase in the future, and details of these do not appear in the price movement stats.
How do you think this will affect statistical analysis of price movements, and should we be worried about this? I can see some large players recording losses on the exchanges to drive down the price, and then buying at a lower price in private transactions.
How do you think this will affect statistical analysis of price movements, and should we be worried about this? I can see some large players recording losses on the exchanges to drive down the price, and then buying at a lower price in private transactions.
Larger players aren't going to try to skirt tax law with that. There's no reputable company, with that amount of crypto, that will just ignore the regulatory concerns of reporting this sort of purchase.
Just because CoinBase reports your stuff to the IRS doesn't mean that other companies just get to ignore it because it's a private transaction. Do ya really think the IRS is going to be all happy with the fact that you wired 50M to someone out of the country randomly? That'll probably be the reason for a red flag and a explanation on your part.
Not the way this is going to work.
Bitcoin - and blockchain in general - is often lauded for its anonymity. What is sometimes forgotten is that it is also an immutable and publicly available record. If you ever withdraw to a bank account or submit KYC on an exchange, it becomes trivial for governments to determine your identity and to link this to your tax submissions. Pay your taxes, people! Don't get caught out years from now by a government demand for huge retrospective tax payments.
I gather that Coinbase has had to release trading details for UK residents who have withdrawn over £5,000 in the last year. This seems to be in line with the demands of revenue departments in other countries. One result of this is that P2P transactions are likely to increase in the future, and details of these do not appear in the price movement stats.
How do you think this will affect statistical analysis of price movements, and should we be worried about this? I can see some large players recording losses on the exchanges to drive down the price, and then buying at a lower price in private transactions.
How do you think this will affect statistical analysis of price movements, and should we be worried about this? I can see some large players recording losses on the exchanges to drive down the price, and then buying at a lower price in private transactions.
Ofcourse when you impose such restrictions there will be manipulations too. One big impact will be that UK citizens will abandon the use of coinbase as no one wants to be tracked especially when they are using the decentralized currencies.
However, i don't think this can have any significant impact on the bitcoin prices.
It actually seems good for bitcoin as a whole when this starts happening. For bitcoin to be widely accepted, rather than shunned as a "grey area" financial tool, then regulators need to have the ability to see who is trying to avoid taxes. Ultimately taxes are what helps keep a country running smoothly and certain sections of society are using "new" technology to avoid them it can be very unfair to the rest. It does strip away some of the anonymity that people like to claim is important for bitcoin, but it is always going to be a battle between what's more important: the public good versus individual privacy.
Yes but related to player safety this is a very serious issue that casinos take with high esteem thus casino epoca is licensed online and regulated by the multise lottery and gaming authority players can engage in their gaming without worrying about their money. Deposits and quick withdrawals can easily be made through mobile casino banking services due to the fast pace of transactions the uk introduced tax.
I can see some large players recording losses on the exchanges to drive down the price, and then buying at a lower price in private transactions.
I have been thinking on this topic for a while, a bit worried, but I suppose that unless there exists a deeper, darker motivation for large players to sell at a lower price, the loss of a fixed lower price for these big transactions compared to market selling should be discouraging enough.
Or have you got a bigger picture in mind?
this results in people being ok to buy bitcoin on exchanges. but the bitcoin they hold they dont want to sell on exchanges. and instead convert it elsewhere like giftcards
i personally do all my shopping using giftcards via bitcoin. thus avoid the bank deposits. and so i dont worry about the stress of fiat.
by doing this of more people buying and less people selling causes a rise in demand and a drop in supply. thus helps the price.
what it would do though is when big industry accumilate bitcoin from selling products. they would dump coin in larger volume causing more temporary dips
so instead of
/\/\/\/\/\/\/\/\/\/\
if would be
_ _
______/ | /
__/ V
i personally do all my shopping using giftcards via bitcoin. thus avoid the bank deposits. and so i dont worry about the stress of fiat.
by doing this of more people buying and less people selling causes a rise in demand and a drop in supply. thus helps the price.
what it would do though is when big industry accumilate bitcoin from selling products. they would dump coin in larger volume causing more temporary dips
so instead of
/\/\/\/\/\/\/\/\/\/\
if would be
_ _
______/ | /
__/ V
should we be worried about this? I can see some large players recording losses on the exchanges to drive down the price, and then buying at a lower price in private transactions.
I don't think we should be worried. As crypto increases in value and journeys towards mainstream adoption, it inevitably comes to the attention of tax authorities. If there is any manipulation by big players, then I think it's no more relevant than the other forms of manipulation that currently exist, and anyway is likely to be subsumed by the long-term trend of increasing prices.
Odd that they've selected 5k as a threshold. Seems a bit arbitrary. Crypto is capital gains in the UK - why not use the minimum CG threshold of 12k?
I gather that Coinbase has had to release trading details for UK residents who have withdrawn over £5,000 in the last year. This seems to be in line with the demands of revenue departments in other countries. One result of this is that P2P transactions are likely to increase in the future, and details of these do not appear in the price movement stats.
How do you think this will affect statistical analysis of price movements, and should we be worried about this? I can see some large players recording losses on the exchanges to drive down the price, and then buying at a lower price in private transactions.
How do you think this will affect statistical analysis of price movements, and should we be worried about this? I can see some large players recording losses on the exchanges to drive down the price, and then buying at a lower price in private transactions.
Jump to: