Bitcoin Forum

Since bitcoin and other digital currencies are such a game changer for the traditional economics systems, could there be any government policies that can be devastating to this new market? and even if governments in North America or Europe might not be able to do such things, how about policies from other more centralized countries that could bring the same effect?

There's a regulation that is already functioning for the exchange sites, like in my local exchange,we were required to comply with he KYC Policy and fill up all the information that is necessary. With that rules, we have no choice but to follow and i guess it's just fine because exchange sites are legitimate and they are operating with the license granted by the government.

What I am afraid of to happen, is the time will come that our transaction will be tax..

We cant do  anything about that  because its been required  by  the  government and exchangers would  have  no choice but to follow same as  you mentioned.  Its  somehow a good  move for exchangers   to be  registered  or legalized   because  we could  assure  ourselves  on the  legitimacy of a certain sites. You said that  you were afraid to  put or  impose taxes on our  bitcoin , its  an  impossible  thing   to be happen for sure.

And that is already implementing here in my country as well.

It's not that they have no choice but it's really a must if a legit company will comply to the rules and regulations under the anti-money laundering act of a certain country since they are involved in money transfers. Just fine with me and I see no wrong if ever some of my information will be on hand.

About the tax, it's already there in a different form. You can obviously see that in their given exchange rates.

the regulations are usually laws about businesses and same laws about money and conducting business with money and these include laws about the money laundry (i think it is called AML) and other money/ business rules and also there will be taxes. but none of it would have any negative effect but even positive effects.


transactions will never have taxes!
taxes will be paid when you buy something or sell something or in other words when you are doing business , it is the same taxes you pay when you buy with fiat.

Politics and economics have always been so tightly linked to each other. If one day bitcoin and other digital currencies become the main stream and replace centralized currencies, I am guessing there will be changes in government policies as well. After all the nature of bitcoin makes transactions harder to trace, which opens up windows for illegal activities. With this new form of market, the government quite possibly would end up having less and less control.

There is possibility like few of the american, european and even china may implement limiation on bitcoin trading however government can't just stop all the bitcoin transactions in their country. So even there may be limitation in trading volume through legal exchanger people will keep on buying selling  with face to face deal in local level which can't be regulated for sure.

Legal limitation on local exchanger can surely effect the price as well as use cases of bitcoin in every country.

In the future there probably will be some kind of unique regulation in form of a directive, speaking from the European Union point of view, but not in sense to destroy but regulate the cryptocurrencies market.
All governments are by now aware that they can't stop Bitcoin and other cryptocurrencies, the question is now how will they turn that for their own benefit.

The problem with a international descentralized currency that don't have a "owner" is it, some countries will allow, some contries will ban...
And it's a bigger scenario, think about all altcoins, not just bitcoin, is a mess.

It would  surely changed  if these thing  would  happen  on where bitcoin would be  the mainstream and   the  possible effects  is  on wide ranged  as   you mentioned   government policies  would  surely changed  and   more illegal  activities would  surely  rampant because of bitcoins  anonymity i think its better to be on this way though thats  bitcoin would still remain a  digital currency  and  not the  mainstream currency.

They may let all wallets to be registered? Or registering a wallet would require an ID so that hwy can watch your transaction over the blockchain. In that case,the anonymity is useless.But government are wary of bitcoin is being used in illegal activities and they wanted t regulate it.

from what i remember europe already regulated it via vat free, and via exchange control, they need to know every id that is registered and is trading with bitcoin, exchange need to report their database, but if one country hinder bitcoin you always have another one that will help, so i'm not worried about this

I know the exchanges need to show paper work regarding the KYC rules but on a person to person level there are some that will transact with you off the record. Fortunately for me there are two near me and one does this and the other I have not looked into so far.
You can always use localbitcoins as well to find people and go right around the dance altogether.
Here in Canada the government moves to slow on these types of issues and never gets their act in gear to actually write rules into law that crack down on people. Take online poker it is frowned upon by the banks but it stays in a gray neck of the woods and has been for quite some time.
I find the banks are usually the harder ones to deal with as government has a hard enough time tracking taxes and messing that up to go into other facets of potential tax earnings or regulation.
Our current Federal government also wants to look like the cool kid on the block and embracing technology is how they can talk to the young kids.
Regulating it would not be a good look for them,its more likely to be something that is thrown into a trade deal or global summit,than actual Canada coming down.

It will not be bad if you are allowed to use bitcoin legitimately and the government charges tax. There are countries that do not even allow to use bitcoins, so paying taxes will not be big concern as we have got practice to pay tax for what we earn/buy.

There are definitely some policies they could put forth, however, a lot of it comes down to the willingness of the people who use Bitcoin to follow said regulations. While exchanges might be disrupted, people would find other ways to do things and get what they want. A majority of the users of Bitcoin, beyond the speculators running the market, are likely more fringe-y on the political spectrum, and chances are most don't like the government and would ignore their regulations for the most part.

This thinking makes little sense! You correlate paying tax to opening the door for Countries that are banning bitcoin and that is a big unknown.
What is known about government and taxes is they tend to go a little bonkers on the percentage and regulate without understanding what they are regulating.
The idea that it "will not be bad" is the same line they tell people when something bad is about to happen and they do not want you to squirm.

Taxation will not bring freedom for bitcoin to breathe as a global currency,it brings regulations!

Can you explain more on why you think taxing bitcoin equates to more people using bitcoin?

Bitcoin purpose is freedom and low fees betwen transactions, and the most important decentralized crypto, sure we do have whales and big people that may affect bitcoin, but dont control it, taxes will just be a punishement for the costumers, i do agree exchanges must pay something, this way they can make their business and we costumers will feel safe at those, but tax each one of us would make the most just stop using or trading bitcoin, a dark markeplace or localbitcoin would get more power.

Any measure that governments or banks may wish to take will come way before bitcoins becomes the dominant currency, since if they wait for too long it will be too late since nothing could stop bitcoin at that point.

It is possible that your transactions are already subject to tax, but that is not being enforced adequately.  ;)
Governments have an inbuilt idea of taxing everything, unless they specifically exempt certain things.

I would  tell you this bitcoin would never  become  a dominant currency even how   it would rise  up  on the future. It would  remain as  a digital currency and  nothing can replace  fiat  in any way. As  long  bitcoin cant be controlled its  not possible that  it would be regulated to impose taxes  to those  who  uses it.  If  government  would  able to  control bitcoin  then for sure we are all f*cked  up but  still im  confident  that  it wont happen.

There are some policies that can be passed to try and force users of Bitcoin and other digital currencies into either hiding or dropping it all together, but realistically there isn't a lot they can do besides going after exchanges and trying to attack shops and companies that use Bitcoin. It's nearly impossible to attack specific individuals.

actually it was considered by some countries that bitcoin is illegal of untrusted but in actual it is a legal and trusted .
some countries have banned it .
but now bitcoin legalisation in clear way is started .
i found a new topic ,it was mentioned that there needs for every user to verify his adress
 and multiple adress use needed to use verfied adress .
so it may be new way for development of bitcoin system .

To OP yes its already happening in our country.

Yes its the KYC or know your customer policy is already implemented already in our local web wallet and the same time our local exchange in our country which needs personal informations and this exchange is the one I used to convert bitcoin to fiat. And also there is fee also when I'm going to withdraw so I have no choice but to follow their rules.

When the government knows our real information it would be easy for them to trace our transaction and if they will try to question us or impose tax eventually then we have to comply with it so we will not face charges against the government.

My worries is that is lots of people and banks or organizations are only trading bitcoin with the hop of selling it at a higher value, the slightest tendency that the price exchange rate might drop can be devastating for this entire market. One or two countries starting to regulate or banning bitcoin could start this collapse.

I have noticed the drop of the exchange rate in 2014. we market is able to recover because not much people was involved in the market back then, and as more and more new people start trading bitcoin, its value recovers slowly. But as the potential in popularity and penetration dies out, it's going to be harder and harder to recover from these drops.

with time goes , the popularity of bitcoin keeps on increasing and that will help boost the value of bitcoin rather than witnessing a price drop ,as long as mining is profitable i do not think the price would drop that much, it is possible for the government to regulate bitcoin and impose a heavy tax on it and since this is a global currency it is a bit hard to counter it.

well if a governments decides to to make laws in there country then it will be a dig deal to bitcoin and it further as no one person can have control of bitcoins or what bitcoins can be use to buy sell or make or even the way there are made so yes any government that thinks it can change what bitcoins stands for will be very devastating to bitcoin and the new currency markets.

Well, I was responding to an hypothetical scenario brought by another user, however while it may be very difficult to achieve dominant status is not impossible, if terrible economic crisis way worst than the 20 crisis affected the whole world for decades then there is the possibility people will turn their back to fiat and embrace bitcoin.

It is possible that government will make the regulation about bitcoin, in some country the government already has the draft for regulate bitcoin, and i think in the future government will try to meddle up in bitcoin, and nothing we can do to stop this

unfortunately you are right. The Government is strongly interested in the beginning cryptocurrency. Government not nravitsa that people too have begun to invest their money in Bitcoin. It attempts to regulate this sphere

The possibility is always there and we can not ignore it. Government regulations,whatever the purpose  I think it is to protect the users. Whether they after for taxes,a fee or any charges it is a government duties to implement they think what is good to the industry. Of course it will have resistance from users :)

definitely,it's just matter about the time until the government thinking it's the right time to release the bitcoin's regulation and start to tax many people
the right time is actually when bitcoin users in that country is just quite many and it's worthy to do the regulation

Hopefully this would not happen.. this will be a game changer for us once government will intervene in bitcoin.. additional fees and taxes will surely be applied everytime there's a movement of coins and there's nothing we can do about it.

I also hope that this will not happen. Then Bitcoin will lose a lot of investors. State's better controls its currency.

it is not yet changing any games and it may do it some day but for now bitcoin is too small especially with this block size to change any game in economy !

and so far the regulations have never been that extreme. i mean some countries made bitcoin illegal but those were always some third world country that noone cares about.
the countries like US is not doing it and even Japan has embraced bitcoin, so i think we can't expect anything bad in the future either.

Yes.Any new government regulations can hit the cryptocurrency market.

Bitcoin and all the other altcoins are very vulnerable to such risk and this stops the mass adoption of btc.

Fortunately bitcoin is still small (only 10 billion USD market capitalization worldwide).

I partially agree. To save and to use cryptocurrency in cryptocurrency we never need anyone's permission. Only when you need in for selling/buying cryptocurrency with fiats you may need to stick with in a government's regulations.

Any possible regulation from government will not stop the growth of the cryptocurrencies. Over in time, the mass adoption ot it and its advantages will enforce goverment to adopt cryptocurrencies as a legal one. Becasue, goverment is nohing but for people and by people.

Though bitcoin seems to be small compared to the dollar, it had grown to such a level in a very short term as well got very huge adoption. Dollar to reach such status took large number of years. So when bitcoin survive more than 100 years the capital in terms of USD will be uncountable.

I think we are already regulated in some point.  Exchanges in our country need us to supply our identities before encashing bitcoin to our currency.  This might be indirect but the third party exchanger are implementing this strict rule in order for us to cash more amount of money.  Unidentified account can only encash a daily amount of $42 while the verified account can encash a daily amount of at most $8000+.

At some point we just can't see it directly but our exchangers or any platform where we are converting our bitcoin into cash is already regulated. Legit exchanges are the one who is following the government regulations since they can't take the judgement in bitcoin itself.

As everyone noticed, the fees when we are dealing with conversion of our bitcoin into cash is kinda not cheap but it's fine for us if their service is really great. Also we can't convert coins directly if we are anonymous to the so KYC is present.

regulations are not something you should fear. actually it is the opposite. although there are times when they are hurtful and hard to accept but in general and over time regulation can even be good for bitcoin. because people will trust bitcoin easier and can use it much easier than fearing "what ifs" for the future.

I do not think it will be good. In any case, the government will try to tax the use of cryptocurrency, which is very bad

Although, if people are trading more and more with crypto currencies, and the government are not charging or incapable of charging taxes, the entire system we live in collapse, there shall be no more health care, benefits, or aids of any sort. Before humanity is ready to transform into such form, we are not going to escape from tax

i personally believe that we cant remove the possibility that government will try regulating crypto and putting taxes among us since that these kind of transaction have money involved just hoping that its not too much or be fair for all of us just in case that time happen.

Maybe they are already thinking on how to regulate bitcoin now, but it really needs a lot of time and they have to come up with a most comprehensive laws to be able for us to adopt, which I know it's hard to regulate crypto due to it's anonymous nature.

and in other side,government will make a regulation which could possibly making bitcoin users feel safe such as protection to them rather than being accused as using illegal currency and could make them getting jailed? which one would you prefer? paying tax or getting jailed if they were banned bitcoin

Watching what taxes. If the percentage is very high, it is more profitable to abandon the use of Bitcoin. Well, some certainly are risks and illegally extract cryptocurrency

If that government would regulate a quite high tax for bitcoin then it's a mistake being made by government,people will try to avoid any kind of taxes or even worse don't pay the taxes and then the regulation is failed

from my opinion,the government will only obligate bitcoin users to pay taxes as much as fiat users does

Its really  hard for   government  to take such action to  make taxes  on  each bitcoin  users  because they would  need to trace  one   by  one   on the users  here on bitcoin world  regarding  on  its  previous  transactions  and   current  bitcoin  holding  but  in  my  mind  , its  really  impossible  to  implement such thing  because they would surely waste  off their  time.

Government regulations, whether we like it or not is coming and most times when it arrives then it will lift the "veil".In as much this will have its own advantage, the disadvantages cannot also be ignored because the advantage will mean more popularity with increase acceptance from the populace which means the price will go up considering the amount of the coins in circulation but at the same time the basic reason for Bitcoin which is transactions beyond borders might be defeated...

Protection? We are not in need of protection. Only non-techy people needs that. There's 2FA for that which is enough security, IMO. You can hide your private key in a vault if you want to be "protected". Do you honestly think that the government will fund millions of money just to give you "protection"? No. When the government starts regulating bitcoins, that means the main point of bitcoin has failed. It's no decentralized any more. They can now put tax in every single thing we purchase/sell online. Good thing bitcoin being regulated is far from reality.

As above.
Has been quiet time after this news pop out. https://www.cryptocoinsnews.com/the-ecb-wants-tighter-control-of-digital-currencies/ (https://www.cryptocoinsnews.com/the-ecb-wants-tighter-control-of-digital-currencies/)
I'm wondering what is coming up soon now when Bitcoin make a reputation for oneself and the price just crossed the border of $700.

Well i think there will be positive and negative effects definitely when governments become involved in crypto and there may be a considerable changes that we may see from how it is now. For me i like bitcoin how it is today, however having governments involved would most likely open up bitcoin to a lot more users and that's a good thing

Yes governments can ban crypto currencies as a whole and as a result bitcoin too. Government will need a strong reason to ban bitcoin (or to support their decision of ban). I think we should find solution for the possible misuse of our currency because that is the only major possible reason for government to ban bitcoin. Government can label bitcoin as a currency of criminals and ban it within no time and we should do something to deal with such incident.

Yes, there is, in one of the online wallets I've been using, we do also have to comply with the local rules most probably they would get our information specially the source of income. I already saw some users getting banned because of online gambling which is prohibited.

The compliance will only be on the KYC policy just to ensure that when time the government will investigate on the possible money laundering online they can easily trace it, but in tax angle there is no connection as they would not know our venture online although we are earning.

Agree. It's not being regulated by the government.. this is for our security also to avoid scams.. and to avoid any illegal activities in bitcoin community.. just in case if found guilty we are easily to be traced once the government conduct an investigation.

I guess we could expect governments to be much more aggressive about Bitcoin especially a few years back when the overall stance towards it was gravitating between wariness and complete denial. It would be safe to say that it was mostly due to lack of understanding of the ideas and revolutionary technology it represented. As we see it has changed for the better over the years. So I think that the governments in general would refrain from interventions, but will keep on regulating some aspects of its work.

THe regulations will go anywhere from confiscation of bank account linked to bitcoin activity to jail time. We will eventually be under heavy attack by governments, they will not let bitcoin develop like its nothing.

It will be a chaos for us if this will happen. Setting boundaries and additional memorandun in bitcoin community will be hard for us to adopt. Freedom in bitcoin will be like hell and I'm really hoping that this will not happen even in the future because there's nothing we could do about it.

very posible is goverment regulate bitcoin
and several country is ready regualte, china , japan is regulated bitcoin
in europe only wait volume transaction and user bitcoin is hign in there can same regulate bitcoin

Let us wait for that to happen, and I believe even if they try it's hard for them to regulate the entire system and we will never gonna change what is the original system of bitcoin. When it is regulated, we do not have the full freedom to perform what we want.

The reason for this being that banks does not want that bitcoin grow. Bitcoin by design and nature  does not favor bank system  as bank has so many rules and regulations. For me, i think bank has to make their system flexible which is more user friendly other bitcoin will just take over not only banks but also FIAT.

I think they will try to take it the website wallet owners. Trying to make them get some more information about the user that will register to their website to use their wallet or those who are old user updating their information.
We lost the privacy there which some of us dont like.

yeah you don't literally get the freedom,but it's fine as long you will not trying to do something illegal and really forbidden by the regulation or government's rule,if you keep being such a good citizens who always have a better life rather than trying to trick the government,your freedom will not decreasing

That is another possiblity if banks lobbied for it. As banks will be losing the market to bitcoin users.but they have also an option to have their own blockchain or integrate bitcoin in banks as another currency.

In my opinion i do not like bitcoin to be under by government because i cannot enjoy the small transaction fees and also the posibility to make the price stable to limit the users profits/income.

Don't worry  pal,  it wont  happen anytime soon  that  government would able to  control  bitcoin hence  as we all  know  bitcoin cant be  controlled  by anybody  because  its a  decentralized  digital currency  no matter what they  do they cant  impose  taxes  on it  which  means   these assumptions are  imposibble to happen though, if  its  implemented I think would really takes  time   because  there are  lots of things to  consider first  before this   regulations would  be effective.

Other than regulating the bitcoin, Verifying your wallet account by submitting some personal information will most likely to happen. An app here in my country that is widely known and I think I highly reputable are already doing this.  You must verify your account before you can cash out and the number of bitcoins that you can store is limited.

regulation =/= controlling bitcoin
of course they can not control bitcoin, bitcoin is decentralized and peer to peer. but they can control the businesses though. and also they can control the customers.

besides i don't know why everybody is so afraid or even against regulations. aren't we all paying taxes right now when we purchase stuff from a supermarket for example or pay the bills?
the only difference would be the fact that your supermarket may feel safer in accepting bitcoin if it is regulated.

You cannot expect the government will keep your information private, when it's regulated we will lose the privacy that we have in bitcoin and I guess it will defeat the purpose why bitcoin is created. We should not allow that to happen as the system in place is something we are patronizing for.

If they just request some informations from us it will change a lot the current bitcoin support, i do believe we do like our privacy, and we dont wanna to share it with others, soo i believe if government make that demand we will swicht into another altcoin that allow us keep anonymous.

Such limitations are usually not very effective against entirely online businesses like Bitcoin exchanges. Just like wealth in case of calamity runs into safe havens, online businesses will run into tax havens and other safe places where the offensive government will not reach them. Governments will have to regulate the whole Internet, but it is already beyond their range of control for the most part, and such attempts will only make it even more persistent to them.

The Kraken has been released.

Mistake, governments regulation for bitcoin will not have the people best interest on mind, they will be about control, about protecting their own interest and those that are in the governments bed.

the government's regulations will either making them profit by taxing people and also giving a protection to the people they were taxing,if the government just taxing people and don't wanna protect them if some criminality case happening then they will complainining to the government hardly

Correct and i think there are more investor will stop to invest because the taxed to be imposed of the government and also they will limit the price increase of the bitcoin even the price in the markets was too high.

Very well put, governments rarely have the peoples best interest at heart when passing regulations, its all about control for them.

I agree with you, regulation and  controlling bitcoin is  not  the same or equal but   if  government  would able to  imose tax  on it  , like  on  businesses and its  users  then  its  likely  they have the control of  it  even though they  dont have access  on the whole system of bitcoin as  long   they are getting taxes from  users and  businesses. Its just  like that.

This is semantics. Basically, regulation is a light version of control. Regulate Bitcoin to the limit, and it will be of no interest to most of the players. The Wild Wild West is what seems to attract people to Bitcoin. Anyways, people will simply switch to something else which is not yet regulated.


Once they start "regulating" Bitcoin, they won't stop until they kill it.

Almost. But there are some who will rebel from this. Maybe creating something where you can buy bitcoin without the tax. Tax evaders. Not a problem with bitcoin if it is p2p. I dont think they can trace every deal that will happen. There is an offline wallet also so they cant tax some users.

They cannot trace it for sure, bitcoin is anonymous and though the government can see how big the transaction in the blockchain but they do not have the idea of who is owning the money being sent and receive. They will be having the hard time to tax us and I think it would not be possible.

The new government and the new president will not disregard cryptocurrency. We can only hope that the effect will be positive on Bitcoin

The problem isnt the big question of being regulated, and yes how much each country will charge to regulate bitcoin, lets say they input something like 10% as the ammount you trading, lets hope and see what will happen at bitcoin over the next years.

It is possible that the government it will do so with cryptocurrency. After all, it has long understood that because of the use of Bitcoin economy suffers and does not receive part of the revenue.

Technically speaking any income you have must be taxed by the government, what rate they will use will depend on the definition they give to bitcoin, currency, or other, the problem governments have with bitcoin is that is complete parallel system ad as such cannot be regulated as they would have liked.

Do you think Trump will have an interest with the crypto currencies? I guess so since Trump is a businessman.

But if that would happen so, then Trump will command his officials to create a law for crypto's and for sure he wants that to be in tax.

So, let's go back that bitcoin should be still anonymous and government will remove their interest into it.

If that happens, our freedom with bitcoin will not be the same the outcome will ne negative for us.. we will be like a slave to follow what government will tell us and even charge us some extra fees or tax and it's really a nightmare when that happen.

Not necessarily. If Bitcoin is considered a foreign currency, then currency gains arising from foreign currency conversions may not be taxable depending on particular jurisdiction and specific details, for example, commercial vs personal use of foreign currency. In the US currency gains obtained from exchanging the US currency for non US currency and vice versa are taxable overall, while currency gains of up to $200 arising from personal transactions are tax-deductible. Anything in excess of $200 per transaction is treated as a capital gain. Though Bitcoin is not considered as a foreign currency in the US, if I'm not mistaken.

i don't think paying tax means literally getting enslaved by the government whilst our safety and protection are getting guaranteed by the government
be a good citizens and you will get all the advantages of it by paying some sort of taxes and anything else which is necessary

yeah that is highly possible as i think trump is, in a way, aware of how cryptocurrencies work. hopefully he doesn't do anything that would drastically change how things are done. i don't think though that it's going to be that worse even if he decides to regulate and tax bitcoin. more people would most likely be introduced to crypto and a lot more will be using it in the long run which i think would still beneficial for us users

If you are living in a first world country that may be the case but for the people living under corrupt  governments in the third world a dilemma truly exist, if they pay taxes they keep feeding the corrupt government, if they don't they risk jail time.

government regulations are not meant to kill anything but they are designed to have the share of your returns ,so no regulations will be in place to stop bitcoin but they can impose heavy tax on it.

Thats why a regulamentation must be fair if they get greedy they can kill bitcoin, or force us to be hiden under bitcoins, hiding our income into it, i do hope to see regulamentation at bitcoin, making it a trusted currencie and not just connected to dark marketplaces.

yeah no matter what will government try to regulate bitcoin
they will never afford to stop bitcoin network , and bitcoin user itself
i myself think to keep using bitcoin even there is pressure from government like a banned
bitcoin really cannot be regulated, it's decentralized.

First step to accept bitcoin is profitable or not. If butcoin make profitable for government, I sure bitcoin will accept. Government regulations will following if more than 50% citizens know and use bitcoin.

Possible maybe if they create a department that will be specific in taxing digital transactions but being virtual nowadays is being free from reality, I guess so, how will you tax a free thing.

It's the reality for those people who live in the third world country that their taxes are being stolen and putted in the pocket of those corrupt gov't officials.

I guess there will changes if the government will adopt the usage of bitcoin and it won't be anonymous anymore for it is taxed by them.

But I just hope that a big country will not even try to touch bitcoin or else we will experience what we don't want to.

It is possible for the government to create such law since bitcoin has value, and been used by many, its just that, the world is not uniform, we don't have a common law, so if a country create one, the others won't just adopt it, so there is a tendency that on those country who don't adopt the law on regulating bitcoin there we will see progress in bitcoin use... I think we should not wish government regulation on bitcoin...  :)

for the present time i dont see any regulation or involving of the government regarding the usage of bitcoin but the time will come in the future that the government will interfere the movement of bitcoin if most of people around the world will use bitcoin they will control that and regulate and maybe they will put taxes on bitcoin transaction.

I agree to you, technically this Bitcoin thing is a currency of all countries. Let's just hope for the best, but if there is a greed nerd that will enter the politics then he/she might make taxes in trading crypto currency and it will be bad for us.

It will not control by tax or anything because bitcoin is the anonymous platform where we can see all the transactions is in the open ledger. So government is will not look bitcoin to make as centralized money.

If it's taxable there's no freedom after all and we cannot enjoy using our bitcoin anymore. Government will try to make it legal but that would be under their terms, so we do not want to allow that as government is corrupt they will make ways in favor to them instead of the majority or the people.

That will be true in an ideal world but in the real world governments and bank will see bitcoin as threat to to system and may try to pass regulations that destroy bitcoin and even if that is impossible they could try to pass regulation that slow adoption or that severely cripples the functionality of bitcoin.
 

Really are you sure with that?all of us knows bitcoin was anonymous.Think about this mate bitcoin has a million of money transaction everyday do you think that the government will not be interested with that?for now i think they will not interfere with bitcoin coz not all people in the world uses bitcoin but somehow in the future they will.they will not regulate bitcoin but they will regulate some website that you cashout your bitcoin like coinbase.

Our goverment really don't care about the regulation on bitcoin as long as it not illegal but for me i think they really don't know what really bitcoin is. And if we are talking about digital currencies they have some rules and changes in the currencies and it might change a little bit our economies

The actually care but they are still watching us, the moment we will go bigger that's the time they will have to make a law maybe and that is for the purpose to tax us, every transaction should be taxable in their eyes as they wanted to increase their income for infrastructures and other development for the country.

Regulations that could interfere our freedom of bitcoin transaction, well it's fair thing to avoid money laundering.
However, even the regulation in every country have any difference to support bitcoin used, unfortunately there is no such things in my country, so we don't have tax to pay on bitcoin transaction to exchanges.

Well, we have no choice but to adopt with the government otherwise we will be penalize.. They are just making the laws to ensure that everything was done legally online and you are right to prevent money laundering. But I guess they cannot control everything.

While it is certainly true that they may consider Bitcoin as a threat, and most likely wouldn't regret if it kicked the bucket in the end, but, nevertheless, Bitcoin is too tiny to give them real pain in the ass, unlike, for example, gold. The latter seems to be what should be giving them genuine butthurt with its multitrillion market cap and the multimillenia story of being a truly authentic store of value.

Same here in my country before we can use the exchange there
is a need to submit documents. Just to use their exchange many
are required to submit documents, as a user need to follow the rules.
As to me thats ok as long the company is legit and secure. The thing
is Im not happy if in the future  they will ask a big fees to the users.

Well we can't really tell for now but i think some time in the future bitcoin will pose a challenge and governments would be forced to take bitcoin in. Most likely, as you people have said, the clear thing they would do is to tax btc transactions and use especually if a lot of people are already using it

But how on earth are they going to tax Bitcoin transactions in practice? To me, taxing Bitcoin transactions would require changing the Bitcoin protocol, for example, in order to send a fixed share of the transacted amount to some government address. But whose government should receive the percentage? Other than that, such a change would be basically equal to hard forking Bitcoin. And how many Bitcoin users will be happy with that?

don't be absurd that is never going to happen and that was never the plan anyways.
taxes are always taken from businesses and when you do a business with money. what you said is like saying government is going to tax me if I take a $100 bill from my pocket out and put it in my other pocket!!! or like if you are holding money in your hand they come and tax you!!!

taxes and regulations would be when you purchase something online just the same way when you purchase something online with your paypal or credit card.

Welcome to a brave new world, mate! This is exactly how it happens nowadays. You hold your money in your hand, and while you are holding it the government is taxing you. You don't get taxed directly, no, but the effect is basically the same. Your money is constantly losing its value and purchasing power, and the lost value is the tax you pay to the government. This value doesn't vanish into nothing as you may think, it goes right into the hands of those who control the money.

Bitcoin is relatively new compared to any currency, gold was the currency of choice for thousands of years until people fell in the trap of fiat money not backed by anything, but given enough time bitcoin could pose an even greater treat for its decentralized nature.

Bitcoin is the internet gold and look at the market, it's booming and will continue in the future. Government will probably act on the possible regulation that is to protect the interest of the majority as there are transactions online that involves illegal activities and bitcoin is the means.

Yes it is new and they should study first the implication. We know many people are discovering this bitcoin and finding opportunity in it. Though it is good that they regulate it is also for our own good.

Government can easily study it as they have a lot of intelligent people but what we hope is just they will judge it with fairness and see the value rather than the negative usage of it, it can certainly help a lot of people as by nature it's not an investment but a currency, the remittance worldwide can be done in bitcoin so they should see that.

Actually what government can do is just limit the amount that can be bought or sold per day as they can't just ban the use of bitcoin or stop bitcoin network. However these limitations may not effect the volume of bitcoin that can be transferred between two parties anonymously.

Talking about effect of politics on price of bitcoin we have already seen several situations where political decision and even the latest US election had some effect on price.

actually century ago for every money printed the country which printing will be obligated to have gold-reserve and have the exact ratio and that's what gives the currency a value but unfortunately this system had been abolished and the fiat currency is now just a game about demand and supply

No, still governments are printing money based on their gold holding, there maybe some exceptions but if they fail to follow the basics of economics, collaspe of their nation's economy will be inevitable.

Currency notes are just being used as the medium of exchange for an economic system, an excessive medium of exchange might lead to deflation which is more dangerous like, you will have more money but shops will not have enough food to buy with it.

Fiat is strictly regulated by the government. And issuer Fiat - only the government. Cryptocurrency he can not control, but can be taxed

Let's be honest here. Cryptocurrency is real game changer only when/if people will follow. As for now it is insignificant phenomenon used by few people - compared to standard banking.
Do we really think that regulation is needed for less than (most likely) 10 million of bitcoin users and even less altcoin users?

Plus, the only countries which potentially - by introducing some bitcoin related laws - can change rules of the game with cryptos are US and China.

And how could they possibly limit the amount of bitcoins bought by an individual? If you buy bitcoins on a Bitcoin exchange, that would basically mean the governmental control over the exchange, correct? But what if this exchange is located in another country or even in another corner of the world? Even if it were possible somehow, that would be prohibitively expensive to install such controls.


We may have yet to see the real impact of the US elections on Bitcoin price after Trump starts fulfilling his threats towards China.

I am being imaginative, but can government intervene mining? or even replace tax with mining fees if bitcoin becomes the main stream of economy,m since bitcoin transactions are hard to tax?

Which government do you refer to?

In many countries like the United States or European Union Bitcoin is already regulated to some degree. Regarding Bitcoin becoming mainstream, this is unlikely to happen any time soon because it apparently means displacement of fiat currencies, but no government will ever agree to this. Why would they want to replace the currency which they can fully control with something they can't control?

I think is very unlikely we are going to get a fair assessment by any government, since governments and banks only want to things to keep their power and to acquire even more power and bitcoin is a threat to those objectives.

They have enough people to study it to tell them it's a minor force, something that may grow and should be watched, but I don't think they're on high alert. :/

Yes,  I am agree with you friends.  That will be bad deal for them. Goverment need the tax to build infrastructure of their country but some of country are take high rate in tax. They will get difficulty to trace bitcoin transaction. Goverment  will choose the one that can give them benefit and full of control. The fact is bitcoin give so many advantage to the users but no to goverment.

What if there is an evil geek that will enter the politics and make a law about taxing the cryptocurrency industry, just a wild imagination my friends.

No I do not think there will be any regulations to be honest because its something they cannot forbid and its also becoming bigger and bigger and its good for the economy in my eyes.

Yeah it's true that bitcoin community is getting bigger everyday and we are also hopijg that no government will interfere with us otherwise there will be such a lot of changes and maybe even our freedom in bitcoin will taken away.

I am also against the government cryptocurrency control. Knowing the government's methods, I'm sure it's no good will not. While some see this as a positive. And they say that since the Government recognizes Bitcoin

The best case scenario would be if governments just tax whatever you are actually earning in bitcoin, but not regulate the Bitcoin's ecosystem. That looks like what the US government is doing with bitcoin license being one major exception.

Yes, regulating bitcoin usage as an illegal is not practically possible for any government as it would be too hard for them to stop people using bitcoins. We do here people from bitcoin banned countries are still using/saving bitcoins.

Still, taxes on bitcoin will be only possible when people are encashing it, when a bitcoiner spends bitcoin definitely does not need to pay taxes as using bitcoins is always possible by keeping his anonymity.

I think the weakest link in the Bitcoin chain is miners. Mining, and I mean real mining which involves large scale mining farms, is not like your online business which is hard to find but easy to hide. Such mining always has some physical presence, so the authorities could just levy taxes on every coin people are going to mine, and that would basically mean that all new bitcoins will be taxed.

don't need to worry,bitcoin system is decentralized,it will can't be controlled by the government unless government are owning the majority of coins and even having majority of mining powers,otherwise the control is not fully functional and useful to do anything

Thats the good news because it can be controlled by anyone whos not really a major holders of the coin the only thing is they can make some ruling inside their jurisdiction if ever they will do some regulation for sure it will affect the chain.

I do not like the fact that the state taxable cryptocurrency. I'm not ready for that either morally or financially. Let the state controls its own currency

Just don't worry too much yet, the possibility of bitcoin to be tax is low, as in low. They cannot control us because people who supports love the concept of having privacy and freedom in transacting online, in bitcoin or crypto world we are the government and non other.

A law like does not seem to be necessary since any income you have is supposed to be declared to the tax office in your country even if you end up paying no tax you must inform of all your income.

That is true. What I do not like with government sometimes is that they are making the citizens as a milking cow. They are always thinking how to get money the populace. Goverment may have a good intention but not now. :)

Yes, you're right. Citizens will earn Bitcoins hard work, and the government simply does not have the income investing with Bitcoins. It's not fair. I do not want government controlled cryptocurrency

Lol, simply government utilize them as the currency machine by paying taxes. Even normal wage people are also getting affected by that.

I think that if Bitcoin becomes more popular, some countries will try to regulate it. For example, licences on online casinos using btc is one of such regulation. They may try to control Bitcoin as well by buying (or just owning already) strong mining pools. I thing that is btc is to be use in supermarkets, they can add some taxes and just insert them into the price of goods.

Going down memory lane, it has always been like that, government are tax masters, they can hardly support anything that holds nothing for them. That explains their indifference to bitcoin and their earnest desire to come up with their own version of bitcoin, which without any doubt, would be more of a Trojan Horse. 

This is very possible.  And as long as we cannot use bitcoin directly to buy stuff and the need to convert it to fiat money when in need of buying something, the government imposing regulation to bitcoin users will be easier.  They can just control the third party processor into imposing taxes to all the conversion we made.

Bitcoin has failed. Bitcoin is the future. Bitcoin cannot be regulated. Bitcoin needs to be regulated. The debate over what will happen to the decentralized virtual currency has reached a cacophonous point, and now lawmakers around the world are wondering whether the time has finally come to regulate this emerging technology.
Since bitcoins is also money, a digital money. rules must be impose so that the users can also be protected, since many scammer of bitcoins was always free to do their dirty tricks.

Bitcoin will remain to be decentralized, that's the only difference that we like compared to the other payment processors online. Since it's decentralized we are confident that no one will see our account and will know our real identity, with this people are wanting more privacy now and they loses their trust with the banking system especially the rich people.

All these regulations done by the government just makes it obvious that they a want a piece of what the bitcoin owners have. If they can't centralize it, might as well find ways in which they can extract something from it. That's were regulations come in. If all else fails, the government might create a digital currency of their own and force people to use it.

If governments are interested in bitcoin, they've already put it in mainstream and starts to adopt it, sad to say they are not doing it, that's why we are still here, and it might mean that they are not interested in bitcoin, if they are going to create one to regulate bitcoin, it is not for themselves for sure, they will do it for the sake of their people, so they won't be scammed and could still pay tax at them...  ;D, You might be right that government might create their own digital currency.

Correct me if I'm wrong anybody, but I believe the IRS wants you to put digital cyrpto currencies under taxable income if you have any type of significant amount of Bitcoin. Still, many people do not do this. It's a light governmental regulation, but nonetheless, it's a regulation.

I think you already have to pay it to government however it's an anonymous coin, you can hide and be happy.
There's a lot of thing in bitcoin that government hate, they have no control about it.

the government will try to ban Bitcoin, but I hope that they will not work. Too much damage brings cryptocurrency national banking system

I don't think that it will be an easy ride to tax or regulate those online casinos. They are easy to spot but hard to find, as with any other online business which may not have physical presence at all. What could a government do to such a business if it is incredibly popular among the populace but its owners live halfway around the world?

They might try to block access to the site, but that's pretty much they can basically do.

Who knows, this may happen if the government agree bitcoin as centralized currency and centralized medium of money transaction. But bitcoin organization and miners will not allow this to happen as I know, because they are people get affected because of your mentioned future scheme in tax

In as much as we are happy that the popularity of Bitcoin is getting larger and larger and corporations coupled with countries are getting interested in what is happening in cryptoworld, then I tell you the regulation is coming and its closer than it seems. Because I tried registered on some exchange sites for trading, for verification alone that have taken away my anonymity in which Bitcoin rests upon that even when the regulation is not high. Maybe when its fully here, even this forum might start asking for KYC but hopefully the advantages will outweigh the cost.

About current political situation the US. I think Trump and his people are the best pro bitcoin establishment we had so far.
We can expect either pro bitcoin regulations or keeping status quo - which is not bad thing either.

I base my opinion on recent news that Trump hired known pro bitcoin investor Peter Thiel as part of his Presidential Transition Team:
https://www.cryptocoinsnews.com/donald-j-trump-bitcoin-peter-thiel/ (https://www.cryptocoinsnews.com/donald-j-trump-bitcoin-peter-thiel/)

To do it all then I think the Government also requires the confidential data in the bitcoin so they could freely to create a program that is the best and they could accept bitcoin as a whole. I think it is indeed something very fun and will give you a very good impact if all States accept bitcoin, subject to paying taxes. just wait for the future about this, hopefully very fun

How can government agree to accept Bitcoin as a centralized currency if Bitcoin is a decentralized currency itself? Maybe, you wanted to say that government could agree to accept Bitcoin as a universal means of payment, along with their local currency? But why would miners ever want to prohibit this, and how could they actually prevent this even if they disliked such acceptance by government?

I think every miner would be glad if governments treated Bitcoin like currencies they issue.

I partly agree with you, I think governments will put regulations only if they find that bitcoin is being used for illegal purpose and the most common reason is tax evasion. Governments can just put ban bitcoin and other crypto currencies on the grounds of law but they cannot stop growth of bitcoin completely because bitcoin was developed with the encryption technology and it’s almost near to impossible to crack it.

Well, that could surely happen, but I still strongly doubt it's happening any time soon. China's stance has been quite favorable towards bitcoin all in all.

It wasn't until around 2014(?) till they added the regulation into the tax code somewhere. I only heard about it until last year that some of the big Bitcoin companies pay huge taxes on their income. This would include individual people to put Bitcoins they own when they file their taxes. To your point though, many people don't report them.

Dollars and other major fiat currencies are used for illegal activities on a significantly larger scale than Bitcoin, and tax evasion would look really pale in comparison with some of these activities. But I haven't heard that any government was going to ban its national currency just because it is being used by criminals. Ready money, otherwise known as cash, beats Bitcoin hands down in this respect. It doesn't leave a perpetual trace in some ledger like Bitcoin blockchain, it doesn't need Internet to function, and pretty big sums can be packed in hand bags and cases. On the other hand, the encryption technology that Bitcoin uses was developed by the NSA itself...

That is, by the National Security Agency of the United States, for those unfamiliar with the abbreviation

I'm sure that governments will try to make some regulations. Bitcoin progress attracted big players and everyone like to make profit, and best profit is when you control something.
For me its just a question of time when we will see that, its been very quite for some time, big plans are made in secret just in one moment we will see explosion and we will ask ourselves where is that coming from.

Most governments treat their citizens as nothing more than a natural resource to exploit and taking advantage of, it is unfortunate but it is the sad truth.

Here in my country, they will terminate all of the online casinos soon be implemented. But people will always find ways to play online casinos. But so far theres no law that prohibits from using bitcoin here. You can use bitcoin freely here and hope it will not change. Bitcoin here is not that poplular. Only few people knows bitcoin. So the government is not that serious about adding some rules about using bitcoin.

some U.S states had made online casino illegal but the people still showing up somewhere on the site,even their access had blocked to such kind of site but they still can bypass it,i guess there's always a way,but if the government are doing it for the sake of their citizens' goodness,then it's fine i guess

It was because of bitcoin where we are not able to gamble easily, before some license gambling sites operates outside US to continue their business but since the trend now is online gambling, it is already easy for us to gamble anytime as they are operating 24 hours a day.

Well, it may look like bitcoin is really attracting big players but i don't think that would be the case with governments as they would never like their countries economic or financial system to be out of their control and if bitcoin is admired by them that is surely going to happen.

I agree with your statement, because of bitcoin I do not need to go to casino, I just sit in front of my computer and I am good to go and it's anonymous.


Whatever there decision is, it should be for the benefit of everybody especially the bitcoin holders.

I disagree a little bit with this, I understand of the governments need to take decisions about what is best for society, but I think that gambling is more a moral issue than anything so I don't like the idea of a government doing those decisions for me.

Personally, I wouldn't consider gambling as a moral issue (rather purely psychological one), though I see what you mean. It is very much like alcohol, which was prohibited in many countries for some years in different periods. But then the laws banning it were ultimately repealed in most cases since they only led to the growth in crime rates connected with the clandestine production and sale of counterfeit alcohol. In short, such laws caused more harm themselves than prevented...

And I'm inclined to think that gambling fits well into this pattern

possible government regulations?

I think bitcoin will also affect the economy of a country. therefore if bitcoin make economy become the worse, the government certainly prohibit bitcoin and vice versa if bitcoin make an economy profit so the government will support a bitcoin remain.

I can understand it sir but every government has its own currency and they will never ban it completely but on the other hand bitcoin is anonymous currency and deemed to be a foreign currency (which is not local currency) so there is no hassle for the government to take action on other currencies.
Yes, encryption is used by NSA and similar organizations but again, it’s backed by government but anyone using this technology against government (to evade tax) then any government will not entertain it.

I see that the main concern of the governments is to tax bitcoin and try to find a way to get a hold of it or at least get the least bit of authority or control over it. So as I see it, any gains made with bitcoin would be considered as a capital gain, which would then be subject to be taxable. Also, if the government goes batshit crazy, they would ask you to sign up your name at a single bitcoin address so that you won't be able to evade taxes that they impose.

In many jurisdictions (for example, in the US), the income earned from foreign currency conversion is taxed. I guess we can safely assume that there are people who don't want to pay this tax, and that would be illegal and punishable. Does this justify banning foreign currencies from circulation? There is no such evidence. In fact, in many developing countries the circulation of foreign currencies is either limited or outright banned. Because people would stick to dollars, pounds, euro, or whatever currency which is known to keep its purchasing power over time (more or less) instead of using a local currency, which might get devalued every other day...

So why would governments want to ban bitcoin just because someone is trying to evade taxes if they consider Bitcoin as a foreign currency?

I am certain that governments around the world will find a way to tax bitcoin in future and since it is in its infant stage most of the government agencies are studying what this is all about and the time will come when this will find traction and then there will be a time when the IRS with the help of ISP will be monitoring everyones connection to find what they are doing and starts sending tax vouchers online

And hopefully these would not happen otherwise it will be a very chaotic time for us in bitcoin community.. and once that happen we cannot do anything but to obey these regulations. So for now, I'm not thinking about it.. just do what I have to do and that is to invest and make savings.

Most of the places needs local exchanges in order for people to use their bitcoin in/on other services. For local exchanges to become more trustable and expand their services, they need to be a legit one and must comply with the government rules and regulations. They have to pay tax and follow money regulations of a certain country to protect their users so it's a must that we obey those regulations. I see it's not chaotic as long as every people concern is always on hand.

There is no universal exchanger that can process our request of converting bitcoin fiat that accepts most of country. We need a third party companies here and that is the purpose of our local exchanges. Also in some of the cases, we are using bank services in able to convert our bitcoin into fiat.

Maybe in the future and as bitcoin development is on progress we can see a changed.

Do a plan or the critically minded is something to be done, because without thinking that way then I'm sure anything we do is something that will only make a loss and surely all this will make our lives increasingly chaotic. It is indeed better to now follow the flow is taking place and for sure it will all be very good on time has been specified, just wait and see the results

That is what the government always wanted, to take money where they can take it.I am sure, once they figure a way to control bitcoin, they will tax it and take what little earning we get from it.

There is no agreement between governments on this issue

The US agencies regulating markets such as the CFTC tend to consider Bitcoin as a commodity, while in Europe (and I don't mean just the EU alone) governments are more inclined to treat Bitcoin as a foreign currency (for example, Switzerland and Russia). As to me, that seems to be a step in the right direction. Since almost all governments are already regulating the circulation of foreign currencies in a certain way (including taxing the income earned from the currency conversion operations where such operations are taxable), there is not much that is required to do to regulate or tax Bitcoin specifically

Governments more than anything want control, so its no surprise they don't like one bit that the average person can now use military grade encryption on their computers, but in some countries there are laws put in place that state in no uncertain terms that if you encrypt a hard drive or something and you are subject of police investigation you are obligated to give your keys to authorities.

this is what government will do and we all know that they can do it with easy and with their power. beside that if this is really happen, then i think we should obey them and don't fight with them because they will do what they can do to banned our life. like now, we can read that many country is now start to discuss about bitcoin because they realize that bitcoin is one of the good solution for they economic and in the end, they will start to integrate with bitcoin and maybe they will make regulations for bitcoins and we should pay the tax.

but i hope that they don't make the tax for bitcoin since bitcoin is not control by any source of institute or any else, and i hope the government will not make any bad regulations.

Though we are fighting for our right but it's the duty of the government to protect the interest of the many, whatever their actions should be respected and followed.

Most European governments, if they have not include provisions in their legislation they follow european directives. I believe that till now keep ‘wait and see’ policy and they expect another one EU directive too whether the occupation and bitcoin trade brings income so taxation is matter of time.

If in fiat there is money laundering, is there any possible way in bitcoin world is there also case for those people who are carrying too much bitcoins in thier wallet due to thier illegal activities? I think just like bank, the rules in international bank will slso apply by the government on bitcoins. I think putting tax on every transaction was on the number 1 list of the rules. but the question is how much could it be? And if you purchase using bitcoins, aside from transaction fee, how much is the additional payment for tax?

Methinks, you should rather ask yourself first how the government is going to collect such a tax if you think they are going to tax every Bitcoin transaction. That would obviously require changing the Bitcoin protocol and code base, but would anyone continue using such a Bitcoin even if that were possible? People would quickly switch to a Bitcoin fork without taxes hard coded in it.

Taxing a bitcoin transaction makes no sense from a technical point of view.
I think that taxes for exchanging bitcoin into fiat and back will be something we will see sooner or later in every country.
That's a point where a government can use it's power over the bank accounts of the people.

I think goverment will never create a regulation about bitcoin and the matter of fact that goverment don't really cares what will happening in bitcoin now as long as they are earning in real world and if they are going to charge trading and transaction well let's wait until the news further.

But with bitcoin we have complete control over our money how are they going to collect such taxes from every transaction? Remember they don't control the network so they cannot simply impose whatever rules they like.

They can impose taxes to sellers build and keep their sites, so the sellers will increase the price of their stuff. In the end the buyer will need to pay more per product because the government taxed it.

It's much possible this can happen when Bitcoin become more popular, the governmenr always create ''creative'' ways to take more money from the population, the imagination is the limit for them, and unfortunelly there isn't much we can do against them.

Maybe in the future this can happen but I do not think it will, we really need some patient and just hope on the best, most likely in the future there will be some!

Who knows. Since bitcoin is affecting people and been used by people, for sure government might create or formulate a law. Though they never care about bitcoin,  but if it is affecting the community, and there are crimes (theft, or worst than that ) that happens because of bitcoin, for sure they will do something and create a law  to mitigate the problem.

So do you really think fiat was not use for illegal activities like on what you have mentioned, if that is the case then we should ban fiat then. Bitcoin can be regulated but not for the system to change, we will always be decentralized as that is our main core.

Dollars more frequently used for illegal activities and support for terrorism. The problem is not in this. The problem is that the government wants to control everything, and Bitcoin is difficult to control

Even the amazing progress that bitcoin have done since its first appearance and the high price that has reached , governments will never agree on making it an international currency the reason for that is the bitcoin is something they can not control and it is not manged by a specific company or portion of the market and besides they will never agree on china becoming a very strong country since it dominates the bitcoin market

In theory we are already paying those taxes unless you mean that the government will put in place a law stating they are going to charge lets say a 5% tax on every purchase done with bitcoin in any store physical or electronic.

if the government could control the exchanges then they will have control over the bitcoin and it is as simply as that,they could make a law to regulate the digital exchanges and voila now everything is under the watchful government eyes, anything and everything is possible 

The only control they have is to let the exchange sites comply with the taxation law. They have income so they need to pay taxes.

thats true if this can be done for sure government will make many changes inside crypto because exchange really played big
in terms on how the value will go,.

Maybe we have to define what is "control", I mean if the government will control then where's the decentralization. It should only be limited because bitcoin is just a currency and bitcoin should not be controlled but only those people who are not following the law must be controlled.

In my opinion, governments can't really do much toward promoting (or demoting, for that matter) some arbitrary currency as an international currency. The US dollar has become an internationally recognized reserve currency not because the US government colluded with other governments to make it that (though they did in fact collude at the Bretton Woods conference in 1944). It became that because of the power and might of the US economy, in the first place, and not because of Bretton Woods. And if Bitcoin is set to achieve the world scale success, it won't be due to governments agreeing on making it an international currency. In other words, the power is not given, it is taken...

But what is certain, the governments won't be quite happy if Bitcoin actually gets to that level

Goverment will never impose taxes if they want to then they going to create an another blockchain where all the transaction are going to be made again so our fee's are going to be cut or minus and if this really happen in the future most of user are going to quit trading because of the taxes are apply.

They already control the exchanges albeit indirectly since they  have KYC know your customer policies and the exchanges probably report all your earnings in their platform, so those that do not want to be monitored by the government need to avoid exchanges like the plague.

Controlling exchanges is totally a different thing, just by having control on exchanges they cannot control bitcoin. Do you think that owners of all the exchanges out there has control on bitcoin? Ofcourse not, they just have control on the bitcoins they have but they don't have control on the bitcoin network which is the main thing.

Ya it is true that controlling exchanges is different from controlling Bitcoin technology, but government can track all the records of the users who ever uses the regulated exchanges which is  good and bad both ways

the government has a lot of opportunities. And if they want to be able to control it all. Including Bitcoin course. So I do not want the government to interfere in cryptocurrency

Even if they want, I think they can't. They are violating our freedom if they do that, they can regulate some transactions involving bitcoin but not the entire  system of bitcoin, they can't change it from being decentralized  to centralized.

you're wrong if you talking about your freedom to government. they don't give a shit to that thing it's was for the sake of country's goodness and involving many people. an individual rights will not matter anymore. and it's true if they can't rule and regulate the whole system of bitcoin. they can't and will never be

There are two sides of the coin. It may have an advantage and disadvantage. If government creates policies regulating the use of bitcoin and taxing it is not a bad idea but countries banning the usage is very bad to bitcoins.
So regulations and tax on bitcoin may also be advantageous to bitcoin since many more people are going to patronize it. Scammers and hackers will be lessened and our bitcoins may be safer that will attract more users.

That's why they will just make rules and regulation for the usage of bitcoin and not the entire bitcoin system. And that's were we will be taxed or something regulated and governed by the government. If that is already implemented then even if don't want it, we don't have choice but to follow what they are implementing, just think that we are helping them.

And to mitigate the problem would mean to ban Bitcoin, right?

Crimes happen not because of Bitcoin but because there are criminals (or wouldbe criminals until they get caught and convicted). Blaming Bitcoin is like blaming the gun and not the guy who pulled the trigger. Though you are right, at least to a degree, that governments don't care and more often than not just don't want to deal with the real causes of a problem

Correct, and why the government doesn't want to deal with the real problem? Because they can get more power because of it. If there is a lot of crimes governments can ask for more taxes and more intrusive laws and people give in because they want those things to stop but it doesn't.

Now you are blaming bitcoin as cause of crimes.  Anyway whether it is bitcoin fault or not, when bitcoin become popular and being used by majority of the citizen, the government can not do anything but to implement rules and regulation on usage of bitcoin.  this mainly for purpose of "protecting" their citzien while imposing taxes to every earnin made in bitcoin. 

That would be shit if they would also put value added tax into bitcoin purchases. Here in our country, it's already 12% of what the original price of the item is. If we are gonna add that amount into bitcoin purchases then I don't think people would be enticed to use bitcoin thereafter. Also take into consideration on what they're planning which is really nuts: capital gains tax. Since bitcoin is considered as an investment tool, you must declare any profits you have and give a portion of it to the government, lol.

I have to agree with that

Government (any particular government, for that matter) seems to be the worst problem "solver" out there. Instead of dealing directly with the root of the problem, they seem to be more busy incessantly fighting with symptoms. I guess if it were any other way (and any other way would still be a better way, lol), people would start questioning why there are so many slackers and shirkers sticking around in the government. Rephrasing Winston Churchill, we can always count on the government to do the right thing after they have tried everything else

And that is why we most of us here in bitcoin community don't agree to have a government intervening with bitcoin. Because it would be a bad news for us if they will apply taxes and some fees to every transactions we made using our bitcoins.

No matter what happens the government still has the right to intervinig bitcoin, they can put tax on it or ban it. We just all hope that they can create a law to bitcoin to be more useful to everyone.

One should never forbid what one lacks the power to prevent

And the same applies to taxes even more. Outright banning Bitcoin in a any single country may in fact add popularity to it (though this is debatable). It could be argued that the government wouldn't ban something which they were not afraid of. Further, once they decide to impose some tax on Bitcoin, they will have to decide as well how to make this tax collectible, and that may turn out to be expensive up to a point where it makes no sense to tax Bitcoin at all. Needless to say that most if not all bitcoin holders will quickly turn into committed tax evaders

If we see in this time, So all crypto currencies are going very well, and it has a huge business in it, and many people are making money from all crypto currencies especially using the bitcoin. But in my thinking, all government which they allow to use the bitcoin legal, and also those governments who are not allow the crypto currencies in government level, still they like it and they don't want to destroy them, So in the coming time all crypto have a good time.

The Government do not like Bitcoin for many reasons. Bankers are losing profits due cryptocurrency. It is the reason that the time will come when the government will start to monitor cryptocurrency.

I will say that now it is the game of bitcoin and it is going to establish all over the world so in the future the government will feel it much important to adopt it and without it they will not find any way to success. So in the resultant they will start to find ways to adopt bitcoin and for that it is possible that they create their specific banks and their wallets.

The governament can try regulate bitcoin use, but this is impossible to turn effective.

If people just hide your main wallet and take care to spend your money, this can be easy.

But you really need take care to not get busted.

It may not be very effective, but it would largely depend on what exactly they are going to do and to what degree they are going to regulate Bitcoin. If they regulate it in such a way that would be bordering on directly banning Bitcoin, I don't think that they will have a positive effect on it even if the regulations themselves won't be effective.

But that's what matters in the end, the effect itself.

I can imagine that some of the small user might be impressed if a government proclaims bitcoin to be banned in its country.
Those small users will surely decide to give up working with bitcoin.
The question is if that would be enough to really hit bitcoin.
Professionals, traders and businesses will surly find a way to bypass that regulations.

But the big question is, when is that going to happen? Banks are centralized while bitcoin is not. I cannot picture it out in the future, this two can never be consolidated IMO.

That was the concern of the Government does not approve the bitcoin. Of course there will be a big problem which could threaten national security if using bitcoin. When the price keeps up, bitcoin will make people reluctant to real transact and hold it, but when the price of the bitcoin down surely everyone will take off bitcoin.

It was not approve by the government yet but with the current situation you can tell that even without the support of the government bitcoin are still very progressive, we should take the necessary steps which is to invest since it's an opportunity that shouldn't be miss.

As long as it will not be ban, it will always grow and we will become a bigger community.

Agree with you mate that we should take the advantage to invest and gain more income because this opportunity was open for all people and for me i do not like it would be government regulated because now bitcoin does not have tax imposed in every transaction only fees but this is very low that is why much better to keep it away to government.

even the country is boycotting bitcoin there's always some people who bypasses this and the boycott is useless,although government can't regulate bitcoin that easily because it's decentralized, it's more likely global currency that no one could take control over it and will always be like that
that's just too imaginary what you've said before

In my opinion there should be no government policies for Bitcoin because if the policies of government will apply at Bitcoin then the Bitcoin will become like fiat . It will have  high transaction tax .

But there is no other way around it. Governments will impose such policies whether we like it or not. Most influential governments have already revealed their attitude toward Bitcoin, and truth to be said, it has been barely tolerant so far. We can only pray that they won't start preying on us if their attitude goes from bad to worse over time.

I think this regulation is useless cause the great amount will Just keep let in secret wallet, and people will Just show to governament what they want to show, this will let this things easily for us.

This is only IMHO

Yes I have same opinion. There is no way to tax transactions. On the other hand if you buy something and the store gives you the receipt then you will pay taxes after the conversion in local currency like as you have in your pocket US dollars go somewhere in Europe buy something with dollars and seller gives you a receipt in Euro.

The most probable thing I can see for governments to keep hold of bitcoin being used  is to diminish its usefulness, meaning governments will try to sanction companies that conduct transactions using bitcoin thus indirectly affecting the whole bitcoin ecosystem because if people can no longer use it the way they use fiat then the demand will surely suffer.

While it is certainly true that taxing transactions can be a hell on its own and would most certainly require a hard fork (to be done properly), which would instantly kill Bitcoin, nevertheless, effectively all transactions can be taxed if governments somehow manage to tax Bitcoin miners. For example, they could check all block generating transactions (wallet addresses) in their own ledger, and if some miner doesn't pay a tax, they will go after him...

That may be hard to implement, of course, but still a lot easier than tracing individual transactions

But in my understanding, a possible regulation will come into effect only when you are going to use or as per current scenario when we are going to convert your bitcoin into fiats by using your bank accounts. Unless then, it will not be possible for any government to regulate all your bitcoin usage. Yes we can show only whatever amount of bitcoins we prefer to.