Topic: Will governments around the world ask data from exchanges? (Read 226 times)
Centralised exchanges can't be trusted because they must follow the law most times, data can be asked for and they must tender it or face the consequences, this is why centralized exchanges isn't safe and they ask KYC from users to trace them easily for any reason
Centralised platforms can be controlled by the law or government so what do you expect? The purpose of crypto existence is to be fully decentralized but centralized exchanges have the highest liquidity today, this is still a big problem in crypto space, dex needs to take over centralized exchanges
Some governments are still ignoring Bitcoin, because actually not a lot of people in their country use it, so they don't miss out on a lot of taxes. So, if you found yourself to be a crypto millionaire, and you shiver at the idea of giving even a penny to a government, you could try to move to such country, sell your coins there and then live in said country, though there's still a chance that tax people will come knocking at your door if you didn't sell your coins for cash - all banks are monitoring your transactions too, and they are obligated to reported about any large volumes, and this can raise interest from tax officials.
Why they collect data if governments don't ask for it? The use of central platforms mean trusted them with your kyc and they provide it to government when they ask, if you do not like your data to be collected then use decentralized platforms.
It is not only the governments that will know your data, but it may be sold in the black market if you use a notorious wallet or do not have enough funds to make profits.
It is not only the governments that will know your data, but it may be sold in the black market if you use a notorious wallet or do not have enough funds to make profits.
The OP should know there are two types of exchanges, the custodial and the noncustodial exchanges, most custodial exchanges require kyc, they require it because they are regulated by their countries governmental policies, there are some countries that have dawning to pay crypto taxes, there was even a man jailed in US recently for evading crypto tax on coinbase or so. Governments have trying their best to compromise cryptocurrencies, and they are making use of the exchanges in question to do this. The exchanges are complyimg to governmental rules and regulalations and they will not insist to leak data for the same governments if need be.
Yes about that too. I have been in some DEX actually and also have some wallets that are custodial. Will they be able to extract data from the DEX too?
I was also thinking, will the government tax the money we got before this regulation or they can simply let it slide for now and the next time there is no letting it pass?
It is already happening, the government always asks for the data for an exchange especially with those that have the KYC, they are doing it for collecting taxes and if ever the binance rejects the government for asking for the at the for sure it will be their end. As we all know there are already many cases of tax evasion related to cryptocurrency and the exchanges are responsible for it if ever they don't give the record of the persons who have a history with them.
I think the government will not care for the data but will likely ask for taxes, with the amount of money coming in and out of the crypto world, one of the reasons they want also to regulate crypto because of tax they can collect, government needs funds for different projects, as we all know, they all get that in taxes, if people want profit, they will be happy also to get it
Yes it looks like it, I've seen the news online few days back and I'm not even worried because right from the start it's wrong to trust Centralized exchanges thinking that your data are safe with them, giving up your ID info to online money exchanges aren't safe and since they are centralized exchanges government will have power over them
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Will governments around the world ask data from exchanges?
Will they? I think they are already doing it:
British Authorities Seek Data from Crypto Exchanges in Search of Tax Evaders
Canada's Tax Authority Asks Court to Force Crypto Exchange to Hand Over Data on All Users
Coinbase received nearly 2,000 customer data requests from governments in the first half of 2020
Appeals Court Decision Fails to Protect Privacy of Cryptocurrency Exchange Users
IRS Wants to Be Able to Trace ‘Untraceable’ Digital Currencies
U.S. Regulator Demands Trading Data From Bitcoin Exchanges in Manipulation Probe
Bitfinex Starts Sharing Customer Tax Data with Authorities
Danish Tax Agency to Collect User Data from Crypto Exchanges
US Court rules that cryptocurrency exchanges must give up your private financial data
The Government Wants Your Crypto Data. And Lots of It.
Additional verification measures due to registration application
Dutch Crypto Exchange Adds Extra Verification Measures Citing ‘Disproportionate’ Central Bank Requirements
The last two cases are arguably unique because the Dutch Central Bank has forced cryptocurrency exchanges not only to collect personal information of their customers but also ask for verification of bitcoin addresses. Users of the said exchanges must provide a screenshot of the wallet they are withdrawing to, or sign a message to prove they are legitimate owners of the address.
Quote from: https://bitonic.nl/en/news/213/additional-verification-measures-due-to-registration-application
From now on, we are required to ask additional details such as the purpose with which you intend to purchase Bitcoins and what kind of wallet you use. Furthermore, we are obligated to verify that you are the legitimate owner of the given bitcoin address by requesting you to upload a screenshot from your wallet, or by signing a message.
The OP should know there are two types of exchanges, the custodial and the noncustodial exchanges, most custodial exchanges require kyc, they require it because they are regulated by their countries governmental policies, there are some countries that have dawning to pay crypto taxes, there was even a man jailed in US recently for evading crypto tax on coinbase or so. Governments have trying their best to compromise cryptocurrencies, and they are making use of the exchanges in question to do this. The exchanges are complyimg to governmental rules and regulalations and they will not insist to leak data for the same governments if need be.
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Not only is it a standing practice, it is an increasing one. It will depend on the specific country, and the location of the Exchange providing the service. It will depend on specific jurisdiction, treaties and so forth, but rest assure they’ll try to the extend of their capabilities. Spain, for example, is currently adapting the laws to tighten control over all operations made on local Exchanges and any sort of custodial services, and even though the government’s tentacles are pretty much local, treaties could at any future point in time, open up access to one's historical data on a given Exchange.
Rest assure though that the first ones to tell on you are going to be the banks. Your local bank is often your starting point to purchasing crypto, as it is usually the gateway for fiat movements to/fro Exchanges. They are the first to inform your government that you have sent/received certain amounts from an Exchange, and although they won’t know the details behind, that information alone is the potential basis you to be taxed upon.
Most likely..If you are an exchange owner you only have only two options: Give data to any government who are asking for it or shutdown your exchange and start a new business.
Thats right. But I do hope the government must be fair on implementing taxes when this happened. Lots of countries have different set of taxes especially on digital asset. Im thinking if there is a chance to syhcronize this to all, but probably not due to different percentage of taxes per country. That would be terrible if past transactions would be sanction for taxes if those exchange decides to give it to relevant governments. Should we pay a long due non tax approved or only to those funds that has been generated after it gets approved.
Most likely..If you are an exchange owner you only have only two options: Give data to any government who are asking for it or shutdown your exchange and start a new business.
Governments never stop ask for such data from exchanges. How many times they ask and force exchanges to give out those data for governments? How serious do governments ask for the data? We don't know but I am sure governments are greed to have the data from exchanges.
It is a matter that they can lift their ban hammer and enforce local laws on crypto exchanges. When they do that, exchanges don't have choices. On the side of exchange, they don't lose anything and they don't hesitate to give governments data.
If banks are controlled by governments, crypto exchanges can be, in the past, now and in the future.
It is a matter that they can lift their ban hammer and enforce local laws on crypto exchanges. When they do that, exchanges don't have choices. On the side of exchange, they don't lose anything and they don't hesitate to give governments data.
If banks are controlled by governments, crypto exchanges can be, in the past, now and in the future.
any unshady centralized exchange that has not yet been shut down and is growing is already giving all your information to different authorities without a single doubt. otherwise they will be shut down in a very short time. take a look at Coinbase and Binance. they are both cooperating fully with the governments of different countries with handing over your information. basically every time you make a trade on Coinbase for example IRS finds out about it before you find out yourself 
Since the adoption of cryptocurrency is almost like everywhere, it's possible that the government will also be tracking users that they are going to be collecting taxes.
Lol at "it's possible". They are already doing it and are making no secret out of it.
Just a curious question. Will the governments from countries like South American countries going to ask data from Binance?
You're asking such a broad question, government from South America cand mean Venezuela or Brazil or Ecuador and between those 3 there are huge differences, Ecuador has banned bitcoin, Venezuela has some strict laws in place now and Brazil only cares about a small percentage as tax income as far as I know. Will they all ask for information? Probably, as the sums grow they will start looking into it but for a lot of them is far easier just to monitor the bank accounts of their citizens, after all, no country is taxing BTC but the revenue in fiat terms you have made.
Since the adoption of cryptocurrency is almost like everywhere, it's possible that the government will also be tracking users that they are going to be collecting taxes. Just a curious question. Will the governments from countries like South American countries going to ask data from Binance?
Edit: If I am not wrong then this belong to Service Discuession Exchanges https://bitcointalk.org/index.php?board=223.0
Since the adoption of cryptocurrency is almost like everywhere, it's possible that the government will also be tracking users that they are going to be collecting taxes. Just a curious question. Will the governments from countries like South American countries going to ask data from Binance?
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