Topic: Will crypto exchanges be banned/taxed ? - page 5. (Read 551 times)

I think it is impossible for crypto-currencies exchanges to avoid paying taxes to the government, the law is set by the authorities and if the crypto-currencies exchanges owners wants to continue their business in that country, they would have to respect and follow the laws set by the authorities.

Yes. Crypto currency is a property and is subject to taxation. The procedure for taxing transactions on the exchange of crypto currency is regulated by the current legislation ... but there is another side - no guarantees from the state, all at your own peril and risk.

But we and exchanges have no choice and we were forced to follow our government policies. I feel that better to pay the taxes to governments than getting banned crypto trading. I think going forward all exchanges will pay taxes to governments.

Yes i agree with you. the main reason why people use bitcoin to be their invesment or payment method is to hide their identity, hide their balance from public (to be anonymouse) and get almost free fees. but with govs to intervene the ceypto world with taking taxes. crypto world become uncomfortable and exchanger become more like bnk which is what we avoid.

That is a rational reason because governments should also be able to balance their income and expenses. The main revenue from the government is sourced from taxes, so if there is no regulation then the use of digital currency can disrupt the income tax of the government. We must continue to support the implementation of regulations such as government taxation on exchange. So any transaction made by an exchange may be subject to appropriate and pre-arranged taxes. It is disadvantageous to Bitcoin users, but I think it will be much better because then the government will have a good role and also digital currency has a positive view from various parties.

Its not that the government dont eant the citizens free from poverty, the government just want the citizens to pay the taxes, if everyone is using bitcoin to do the transaction there won't be any income for the country and that will lead to anothwe serious problem like inflation and other things, regulations is the middle way between the users and crypto, wothout the regulations the government sure will banned crypto, because crypto is making the country losing money, I think you can't avoid taxes by being anonymous forever, one day you will need to cash out to fiat

I think that idea will be possible, but it depends on the Government of the country where we are living if they ban or make a law that using crypto exchanges will be taxed.

mugged ?
Well i hope you only do these exchanges in crowded places , not in a dead end in the suburbs.
And also you are not gonna exchange $1k in a row, but a few hundreds at a time.
That's what i would be doing.

You can be recorded, yes ( even though that's unlikely ).
But in order for you to be taxed for that cash you got from Localbitcoins, the police must break into your home and actually find that cash.
I would hide the grand part of my cash very well, better if outside of my house where nobody can find it.
So you can solve the cash out to FIAT problem

The real problem comes when you actually are spending your cash/coins for actual goods/services.
If you buy a Lamborghini with BTC/cash, they know you can afford it and they may bother you.

For now the only solution i can think of is to go to a crypto heaven. Brock Pierce is doing one AFAIK: https://steemit.com/blockchain/@eyegasm/puertopia-planting-a-cryptoseed-in-puerto-rico
Another crypto heaven is being built by an ex Paypal executive in the ocean, but i don't even remember the name of this project. I think he started an ICO for that.
In this way you don't even need to get cash, you directly spend coins.

Or go to a regular tax heaven with normal cash and spend it there. That's the classic solution that politicians and big guys like.

I think it is better to have taxes rather than to ban the crypto exchanges, why? Because we can use exchange even there is a tax. The problem is that, if the government will impose an increasingly tax per year. I think it is not better in crypto people because most of us will quit using cryptocurrency. And that will be the result of total economic loss in cryptocurrency.

There is no other option for exchanges than to comply with the rules of government.Its unavoidable for exchanges to exist in future without being taxed as no government would be willing to lose the huge tax revenues from crypto exchanges.Taxing exchanges indirectly indicates that the government allows crypto to exist and so it only helps progress of crypto coins.

I think the bitcoin status is 50% legal and 50% illegal so we can judge that the crypto exchange will still exist and not be prohibited maybe the tax will be enforced.

The problem with this is cashing out, how are you going to do it? Or are you planning to never cash out? After all any maneuver you do with your coins in exchange for fiat will leave a trail someway or another, for example you could try to sell your coins for cash on localbitcoins with a face to face trade, but that is risky you could be mugged or you could be recorded doing this.

Crypto & anonimity have been made for the exact purpose to prevent the tyrant (gov) to put their hands on your hard-earned money.

So if you want to escape poverty, you have to be anonymous.
And being anonymous means nobody will know your balance , so the problem you talk about does not exist.
You have no taxes to pay for earnings you don't get, as far as they know.

Our governments and politicians will keep fighting bitcoin and altcoins but there cannot deny the beauty of blockchain technology. Bitcoin cannot be banned and even some country that have come out that they have ban bitcoin could not stop there citizens not to used it.  Bitcoin has remained the main such of news to many media houses today because of how influential it is to the society. Taxation is good but most of the third world countries leaders do not deserve it.

It would really give a different feeling when you know such thing where you are entrusting your coins into an anonymous exchanger.I will always still prefer for those who do comply with such regulations which somehow gives an assurance if they do tend to ran off with all of their users money unlike on anonymous one where they tend to ran then theres no chance for you to recover.Why do people hate tax? and as being said above even you don't like it you wont still have any choice but to pay.

Right now if an exchange wants to stay in business they need to comply to regulations.

Even if there is an exchange that is completely anonymous, would you trust your BTC with them?

I know your not openly suggesting tax evasion are you now? If you are saying they are taxing us unfairly well welcome to the real world where shit isn't fair. We all are aware of that, but how would anybody prevent getting taxed? They will throw your ass in jail right away .

The govs don't want common people to make money or escape from their poverty, so they are trying to hinder the crypto ecosystem in general.

For example we hear about crypto exchanges to be banned in some countries, or be heavily taxed so that the govs take significant earnings without doing nothing.

"Regulation" after all is just an extorsion: if you , Bitstamp (for example) , don't give me a good part of your earnings, you can't operate.
And the gov is not going to give any service in return, they just take their slice of the pie for nothing.

And at the end of the day it is not Bitstamp the one who is losing money due to "regulation".
We are.
Because Bitstamp and all regulated exchanges will be raising their fees due to the taxes and we are the ones who must pay the gov to keep the exchange alive.

What can we do to avoid this issue?

The solution that is gaining popularity are decentralized exchanges like Waves or Streamity  ,
which are good for crypto-only trading.

But what about FIAT deposits?
How do "decentralized FIAT deposits" work , if they exist?

i can think of 2 solutions to this problem:

- Use FIAT to buy GPUs, mine coins with them, then use the mined coins to trade on DEX (decentralized exchange) platforms

- Buy crypto with FIAT directly from other people, that you can meet in forums or online announcements, Localbitcoins.com and similar sites

Well i know it's more "comfortable" to just do a bank transfer to an exchange's account , but this will have a cost for you: the gov will know what you are doing with that money, how many coins you bought , etc., so they may tax you because they think you are making profit.

While if you buy GPUs they cannot assume you are mining. You say you are just playing video games.
So your earnings are anonymous.
They don't even know you bought GPUs if you buy them at local shops with cash.

Being anonymous is worth the struggle even if it takes a bit of "discomfort" , as you are going to avoid a lot of nuasances.