Bitcoin Forum

Our Government here will always question people who become rich instantly, sometimes they will relate all the wealth to drugs and smuggling so they can send us to jail for a questionable wealth and not paying taxes. they will do background checking, even if they dont find any illegal activities we did they still think that we do illegal. What if I become rich because of BTC do you think they will believe if I say that its bitcoin that making me rich? How will I explained to them?

You pay taxes for your Bitcoin earnings. That way you have a paper trail for your wealth and they can't accuse you of anything illegal. You should be paying your taxes correctly anyway.

I don't know where you're from but can they really send you to jail without conclusive evidence of wrongdoing? I mean, I would understand if sudden riches is enough of a flag to get you accused of tax evasion, but wouldn't they have to prove that first? If they did turn out to be right, then you have a problem on your hands.

I do not think that they are so paranoid and will all blame for the fact that this is illegal. Everything is fine and will pass as it costs the candles legally and independently of the higher observers.

you do not need to explain anything to them, you do not really need to show everything to the show)) and if you have to tell them how you became rich, tell the truth, they know it, they will soon say everything and pay taxes, but if they say that bitcoin is not legitimate, then I'd just gave them nothing))

This explains everything quite simply. I mean there is no way we should be afraid of getting rich and if it is completely legal way then we have to worry about nothing.  :D Plus im not sure if government really puts you in the jail without any evidences or not but that would be illegal to do so without any evidence. Lol. That simply means your government is corrupt and it want brine from you and nothing else.

Also if you are getting rich enough then im sure with the all money you have earned you can take care of your legal activities by paying various people like legal authorities, tax department etc.  ;)

we do not need to explain to the government how bitcoin owners can become rich because the government already knows about bitcoin. What needs to be explained is the people around us because of course they will ask where our wealth comes from.

Well, this is a very important role is knowledge and experience of course.
if one day there is a state party, which deals with taxation and asks you. you can prove with proof that you have done so far. this is very important, because in the bitcoin and crypto system has a clear transparency can be proved. so knowledge is important for everything.

They will think like that if you are not making tax filing properly and without any concrete proof of your earnings.

If you follow the proper taxation then it will include lot many things like : 1) Giving proofs of income sources. 2) Transaction slips if the transactions are big one. 3) Proof of investment into trades, gambling, lending programs and mutual funds etc All these can become your proof of income and if you submit it then im sure there is no government in the world who will ask you any further question about it.

Its better to keep your portfolio completely white and make proper way through paper trail.

If you just pay your taxes, you should have nothing to fear. Most people think the IRS is something that's out there bto get them and put them in jail, this is not true.
The only thing the IRS cares about is getting its money. Even if you can't pay straight away they'll help you set up a payment plan etc.

Why would the government put you in jail, just for becoming rich? It's more taxes for them... Stop reading conspiracy theories, I would say :p

Not only the government had a questionable issues regarding the people that become wealthy because of Cryptocurrency even the banks that are accepting exchange towards fiat had a multiple verification and question on where did they get that kind of amount of money and sometimes would want to know what type of business we crypto investors have, I really think this is for security and safety reasons and regarding sometimes illegal whereabouts of the money criminals are possessing.

Yes, the governments in the countries are very interested in who gets rich quickly where I live if a bank detects a person's account with the money rising swiftly. And they are going to investigate and ask how the money is earned and whether it violates the law of the government.

If in Your country there is no criminal penalty for cryptocurrency transactions, the prison does not threaten you. In some States there is criminal responsibility. And the term of imprisonment is up to 12 years.If suddenly regulatory authorities find out that you suddenly become rich you will have to pay tax. And pay a big fine. Remember what the outcome of their activities al Capone. He was put in jail for tax evasion.

Get rich first before thinking what your defence will be.  ;D

Honestly, I have often given this scenario a second thought knowing fully well how massive the gains from cryptocurrency can be if one is right with timely decision of picking a profitable trade or crypto. I shudder at the result. But then we shouldn't deny ourselves such wealth because of what people may say.

That's why it is important to have several bank accounts, and to exactly know what the trigger point of each bank is. I found out that my current bank has a trigger point of €10,000 per month, and €5000 per incoming deposit.

As long as you remain below these trigger points, the bank will **likely** not start an investigation and demand for proof of funds. The only thing is that they can change their terms at any time.

If you just blindly assume that these trigger points are still valid, while in reality they have been lowered, you'll have some explaining to do afterwards. That's why it's better to read their terms carefully before depositing money.

if you pay your taxes and keep your earnings clear, no one, no any government can accuse you.

For sure they will believe,this is through your local bank that is buying your Bitcoin from you,they are the ones paying into your local bank and you will be investigated from there

How are you planning to explain your wealth to your government? Have they asked you any questions? Do you think they will in the future? How much money do you think you will make from bitcoin? Why do you think they won't believe you if you tell the truth? I can't really see any problem. You just declare your profits like you do with any business. I don't see that making money from bitcoin is any different. You may need to pay tax on your profits and they would be happy with that.

You don't need to tell anyone that you are now rich because of crypto, dont be afraid because you are not doing anything illegal. If someday you become rich, then the government questioned you, just settle and pay your tax of your earning. Just simple as that.

It's easy to say that it comes from Investment in Bitcoins. Your only case is the non-payment of taxes that you will not be detained if you pay them.
We must not be afraid, because we are doing the right thing. But we must also obey the law so we have no problem to deal with.

We'll for me I rather to keep silent for now and keep on a low profile so that they wouldn't get confused about the what they called questionable wealth because of bitcoin. I would still keep quite and wait till our society knows about bitcoin and besides our government already knows about bitcoin so yes I would never bother to explain my source of income to them.

That is why it is wisest to either keep low profile about your wealth, or report your wealth dutifully and keep low profile all the same.

The problem with people boasting around how rich they have become is that they are easy prey not only for governments, but for fellow people as well: they become victims of theft, burglary, robbery or at least human envy.

I do not know why this would worry anyone really. If you become rich simply hire a lawyer and/or an accountant to take care of the pesky government affairs such as taxes for you.

Instead, you can be out on the water enjoying your new yacht with some of your new young good looking lady friends.

The fact that you can get rich thanks to bitcoin is very simple and all this wealth will lie in your online wallet until you bring it out. Maybe this is called dubious.

Really good topic
Wealth from crypto its really questionable for someone who doesn't have any job
But if you be as a bounty hunter you can say it as online marketing and all transaction can be trace from where you get the coin
So calm and keep working hard and make lot of money

there is no question why it is questionable if it is real in our world you can get a certain amount and then you can sow a real money when they are withdrawn, they do not become doubtful.

Yes indeed its really questionable that a certain person especially who had no job or even just a minimum wage earner will suddenly get rich.People who surrounds you will also suspects you that you might be doing something illegal and about the government its also possible that they will do background checking about you but theres nothing to be worried about it because you arent doing illegal things.If theres someone asking were did you get lots of money just explain it to them until they understand it but if they are still suspicious then let them be and just dont mind them coz they can never harm you unless they have a proof that your doing illegal stuff.

when you'll be millionaire you will start a new life in another country
all that you will need is the private key of you wallet, nothing more ;D ;D ;D

There is a case in our country that somebody withdraw a large amount of money and he stated that he get it by trading in bitcoin but his statement is not enough to prove his statement he jailed because of money laundering.

It would boil down on how are you managing your properties/money. If the government sees that you were able to bought multi-million properties but have declared your income/gains per year at significantly lower amount, then they would have to investigate where were you getting your funds. From where I live, we aren't required to pay taxes from crypto gains, but because I know and I feel that the government would somehow question where am I getting my funds from, even if I have my own business set, I still declared my crypto holdings as a form of an asset just so I'd be safe.

If you fear to be rich then don't be.
And if you want to become rich,then ready to face the consequences.
Pay the tax for bitcoin earnings and other transactions too.
Don't do anything illegal with this money you have earned.
Someone here said too if you are rich then you know how to handle officers in a country.

If its about government to worry about in your country then I won't bother because over here, government does not care about your life so far you are leaving moderately and the bank has not flagged your account as being engaged in illegal activities. Over here the people that would question you and even judge you are the society including your own family member especially parents who are so much convinced that nothing good can come out from the internet.

Over here, if you want to avoid the scrutiny and judgment no matter the amount you are making from crypto, you just must go to work in the morning and come back at night or you have money without the option of spending to the point of attracting attention of other people just live your life to the standard of the people around you. That is the discriminatory knowledge one needs to face at this time but as we move on, the hope is that it would get better.

Yeah I, myself also question people that got rich because of bitcoin like what they are doing their entire time ? but after studying the nature of bitcoin the system and functions i figured it out and so did i, No question for those who got rich, they deserve it because of time and patience they gave for this. Government should also study bitcoin and other cryptocurrency because what they sees on bitcoin is a nonsense theory.

The first paragraph of the sentence is almost correct, however, the rest is an exaggerated scene from a movie or drama though it is possible to happen if you owe something bad or an arrears to a person with a great influence on the authority or a government official then you are in a pretty bad position its possible that they can do the said scenario if your going to reveal your wealth but in the normal case, they are not allowed to do that as it is against to the laws of the Government, sending us to jails without any proof or any legal process to defend and explain yourself? you can't escape the questioning if your going to sell all your coins constantly, even the crypto exchange will ask about it most if they are centralized, be honest and pay your taxes, don't need to worry if your not doing anything wrong.

Bitcoin trading and investment is just like stocks trading, forex trading, etc. Some people become rich through them. So I see nothing wrong in becoming rich through bitcoin if you used it legally and pay your taxes.

Of course, any government will question you if you acquire any wealth specially in huge amount. If you cannot present any details on how you acquire they will assume they came from illegal activities

You just need to present them your activities on crypto-currency to validate your acquired wealth. And paying taxes is a must for everyone, either you acquire some assets, illegally or legally.

It all depends on what country you live in and how you use your money. You'd better get advice from a lawyer in your country that will ease the problems.

I agree with you. However, actually I do not care about the legitimate bitcoin after that. We have seen a lot about how the US government is imposing tax laws on the stock market. If the legitimacy of bitcoin is accepted, we may lose the gaps and failures because of it.

It differs on perspective on how you will use your wealth if you are really suspicious on where your money came from even if you explain to them where you get them you will probably land in jail. But if you use it to invest and make a bussiness where you can just get out a minimum crypto money i guess you will have no problem to it.

When you withdraw your earnings from bitcoin in what method are you using? Isn't it like somewhat a verified wallet in order for you to make transactions to cash out, so there's no need for you to worry since there is a history that can proved that all your wealth came from crypto investments and you do pay your taxes.

Unless you are engaged in illlicit activities, you have nothing to fear from the taxman. Some people get rich overnight by winning in poker games or betting on college basketball games.

What country? What government? In the USA it may draw attention if you suddenly are paying $10k a month in taxes. But you can only be charged with drug dealing after an investigation, arrest, and a trial proving your involvement in drug dealing. The government can't just say "Hmmm. you seem too rich, we're going to jail you just in case".

P.S. They believe me. Just file your taxes.

You wouldn't have to explain anything to them. It's not you, who must prove your innocence, but them, prosecutors, who have to furnish with proofs.

Simply, this wealth can always be considered doubtful because until you bring this wealth out so it will be digitized lying on your wallet.

There should be records when you sell your BTC in exchanges especially when you need to go through identity verification. This can easily prove that the Bitcoin belongs to you. I suggest that you should keep all records of buying and selling of Bitcoin. In this case, you can present to your government when required.

Some of the countries like mine and many establisment in my home country doesn't know what bitcoin and cryptocurrency is. There's a time when I try to encash my bitcoin into fiat and make my way into the money exchanger the guard ask me why I got so much money to withdraw with bitcoin because their staff dont know what bitcoin is and asking me over and over what bitcoin is and if its illegal or not. I think Knowledge and understanding or even promoting bitcoin itself can make a way with living with crypto without asking too much about the wealth of people who are using it.

If you became rich directly from your investments in BTC then that is an easy thing to prove, and you should not have any problems with any government. On your capital gain you should pay taxes as well. The same way you would if you became rich from real estate or playing the stock market.

yes this can be questionable by the government because they are checking how did you get such huge amount of money? because there are many mediums like drugs and illegal trades that can also be subjective as per regulations being a suspect to this kind of market is another thing to be considered when transacting big amounts you must have some supportive docs or business to prove that this money came from trading or investing and the like and not from money laundering and other criminal ways.

Just explain them that you have got the money from bitcoin. Who knows they will be happy to know that and might just ask you how you do it and may get involved themselves. After all they are also people who needs money. Lolz. At least in my country this will surely happen if I go and file a tax worth millions. They might just ask for some bribe I guess and will sort out the matter immediately. Who knows that might just happen out of greed of the money!  :D

Well, if you are from well developed country then I dont think there will be any kind of problem once you file the taxes and go with the procedure. You are not stealing money at all! No need to explain!

If you are rich because of bitcoin, you have usually proof of it. You either purchased bitcoin or received it for offering services or trading products. You have a wallet with the transactions to prove how you accumulated them.

Despite of this, if your government sentence people to prison without proof of criminal offenses committed, it might be worth leaving your country and go to where bitcoin wealth is fairly treated. In some countries you even do not have to pay taxes on it. Think about it.

I believe that everything can be proven, and what that has with anything, people know are they doing something legal or illegal and if they get caught there will be some consequences.
To add a little humor into this gray topic, do you know what you never ask a woman? How old is she! And what you think what you never ask a man? How he earned first million! How older I am, more I believe in this saying, it is like that. Earn that money somehow and if you continue to earn more its ok, you will cover your tracks, and because you are so rich nobody will ask you nothing, but if you don't continue to earn and make more profit government will bust you, one way or another, legal or illegal you need to pay some kind of task and protection from governments.

The anonymous payment of BTC can evade detection, which is the disadvantage of BTC and is also one of the characteristics of BTC.

i can't sleep very well now when i know this bitcoin but i accept that because i need money for my future

I think money is everything and we can earn here but there's no need to be an addict because of that

There's a lot of way where you spend your time like play basketball or run every morning that's good in health and very joyful

I just recently heard a story about a friend and neighbors were curious about him getting rich instantly. He was already suspected to be a drug lord which I can attest that bitcoins are the main reason behind his instant wealth.
He helps his family to finish building their house, gives monthly to his family and even buys himself what he wants.
However, there is no taxes on bitcoins for now and I think many will still assume that what he does is illegal. There is nothing much we can do about it but to tell the truth or even provide evidences that bitcoins provide such opportunity to earn big time and its just a matter of hard work. If taxes are implemented then pay taxes for assurance of legal activities.

Bitcoin is just like other modes of investments such as real estate, stock market but the difference lies in the digital nature of the bitcoin. Besides the potential of bitcoin to fluctuate in prices at any time and at any level. So if you have invested your hard earned money into bitcoin and are now enjoying the sweet fruits of your investments, I don’t think so there should be any problem in proving your assets to state.

Over time, you will begin to understand the trends and varieties of the crypto currency, which will allow you to multiply your income several times.

As expected if you live in a third world country and perhaps live around a poor suburb and suddenly amass wealth through cryptocurrencies the locals will be suspicious of your wealth with different views some will attribute your to wealth to ritual I.e blood money, some will say it's from internet scam of course it requires strenuous efforts in explaining your source of wealth else your dignity will be suspicious.

Yes of course it is, and you shouldn't have and no need to explain to everyone about your wealth and since they was out of your business too so we are not required to explain it to them. But if you are thinking about what others may think just be a low profile person and just an ordinary so they can't trace that your already wealthy.

Don't worry there are ways to manage your funds in a proper way and make a statement of those funds which you are gaining and moving in & out. The government will surely believe in you if you show them a proper statement. In our country, India the government are planning to link all the financial income and outcome to the PAN number and then all it will be a link to the Unique Id of the Citizen AAdhar by which they can easily make a record of the white income made by the citizen.

currently it's very difficult to explain we can able to earn money from bitcoin because most of government considers bitcoin is scam and already scammed many people but in your country as long as earn bitcoin not against the law and not forbidden i think government will fine and you will not got in jail

easy, let alone bitcoin is now widely known to the public. you just need to give a statement if you invest in bitcoin, explain also the benefits to them. they may even join to join after know from you about this bitcoin.

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Just declare your income so that you are taxable. That's how the government becomes hot to those people that are becoming instantly rich because they never declare their source of income. They are thinking that you are doing something illegal but if you will go with the normal process, declaring your profit, your nature of business / source of income then you are safe.

right . Because I have some friends who are naturally rich in two months. And everyone suspects that my friends have smuggled so fast. And people do not know that my friend is investing in bitcoin.

maybe the government will not be able to know our wealth if there is no party reporting, when you are rich sometimes neighbors and friends or people who dislike your wealth and they finally report it, yes it is rather difficult to explain to the government about bitcoin, but now the possibility of local authorities already know about bitcoin.

Tell the authorities that it was a result of patience, perseverance and your stern determination to HODL for a very long time despite of the many factors which questioned the sustainability of Bitcoin price over the years. There are already so many early adopters who have turned into millionaires and subject to questioning from the authorities of their respective countries but surely would've gotten the benefit of the doubt after having shown proof of early investments.

If the government in your country buys and receives bitcoin then the government's suspicions will not lead to illegal acts of activity. However, when the orders in the country assume that bitcoin is a way to engage in illegal activities such as money laundering, terrorist financing, etc. Then the government's suspicion of you over what you are saying will be a major accusation when you gain wealth through bitcoin. Hopefully, this will never happen to anyone and I expect you to be calm because your identity in transactions using bitcoin and blockchain technology cannot be tracked by any party.

Just like me i got bitcoin just from the bounty campaign so if you explain to the cop that you get bitcoin from bounty campaign lot bounty campaign that make you rich right now
So they will not asking about that anymore

In other hand, it is better to stay in a low profile because it helps you so much in a way of securing and protecting yourself in other people. But in that scenario that one government do put one person in a jail because of becoming rich that's really unjustice. We as a person, we have the right to do whatever we want just to have a better life because we on ourself are responsible in what will be our life in the future no one has the right to judge or give us punishment without any basis or proof that we are doing wrong. We have the right to fight for our self.

I'm not sure which country you live in that would convict somebody for having questionable wealth. There are hundreds of ways a person can become wealthy in non-traditional ways, that would be difficult to determine if looking through your tax records or receipt books, e.g. Gambling, sports wins, local competitions, freelance work etc.

If you get rich through crypto, just make sure you keep a detailed log of your transactions and profit and you will be fine. But I would seriously consider leaving that country if that's how things work (which they probably don't).

Well that thing is very serious and we need to be take care our steps. Because of unlegalizing of bitcoin in our country this is one of the threat on a unlawful act.
We need to discuss to them and lieve that our money is from bitcoin.

Well other people questions and it becomes a big deal for them. But if other knew what was going on for sure they will amaze what bitcoin can do in peoples life. You cannot judge anyone because you are not oblidge to do so but you can gather information how it become like that. I do believe that many people become wealthy because of bitcoin and no question about it. If you know how to strive to have a better life you will be like them and go on.

I don't think that there will be any action from government site if the person is paying taxes as per his eligibility and jurisdiction. Crypto is in the grey area right now and thus I am not expecting any harsh action from the legal authorities as of now. I am talking about general users and not the users for using Bitcoin for illegal activities or tax evasion purpose. I am sure that most of the governments will try to regulate Bitcoin instead of completely banning it

Simply I don't know because I am not good at explaining LOL

That is also in my mind. Authorities who implant drugs just to extort rich businessmen is very common here in my place so I feel scared that it could happen to me.

Crypto is a doorway for the well-being of society and success for everyone who believes in it. It takes a lot of patience, perseverance, and positivity when you're part of crypto family. It's never easy, living in a world of uncertainties, we have to be strategic and look for ways to earn and gain decently. I think if you work hard and sacrifice for it, and you do what is right then it's never questionable.

Well, there will be no worries if we will pay the right taxes to the government, and this is the right thing to do to avoid questionable wealth. Government is already aware with bitcoin its not new to them that earning here is good and there are possibilities that people who are engage with bitcoin become wealthy. They become what they are right now because of their hard work and determination to reach what they want in life. As long as we clearly know our responsibilities as a good citizen, what is due to the government is due to them nothing to worry about our wealth.

I think the best way for you is to let them know about your bitcoin earnings and start paying taxes. I know you will lose a lot of money by doing this but its much better than going to  jail. Its a bad experience for anyone to spend one night in jail without doing anything. It feels like you were caged or something. Do every means to avoid that and just tell the truth. I'm sure they will understand and let you go.

I think the government can't do that instantly with their people. At first, they can do some background check on the nature of your lifestyle. Why you suddenly get rich. Maybe when they find out that your wealth is from bitcoin and other digital currencies . Perhaps, they will only give you some papers to pay a proper tax to the government to avoid accusations about your questionable wealth. So that, they can not sue you any case in the future. And no one can not accused you of doing illegal activities because of that wealth....

In a survey of 10 countries in Asia, six countries concur with systematic Cryptocurrency management. The remaining countries are quite cautious on this issue. For those countries that have not accepted Cryptocurrency yet, the income from Cryptocurrency is questionable. When finalizing the legal framework for Cryptocurrency, you will pay taxes to the State from your personal income. At the same time, you do not have to worry about legal issues with the work you are doing with regards to Cryptocurrency. You can improve the quality of your life and at the same time fulfill your individual obligations to your country. Meaningful.
The problem is time.

In my opinion, in any country, government agencies must prove the illegality of sources of wealth, and not you have to prove that your money you earned honestly. You just have to specify this source, that is, in this case it will be a deal with crypto currency. If in your country the crypto currency is not legalized yet, however, it is not forbidden, then you have nothing to fear. As a general rule, everything in business is not prohibited, has the right to use. If in your country circulation of the crypto currency is already settled, it is necessary to find out whether the taxation is established on the profit from operations with the crypto currency and pay the corresponding taxes. Then, I think, all problems will be lifted.

why are you so worried about all that. you can show from the investment, trade or mining. do not we have any proof of what we have done from involvement in crypto?
this is strong evidence. I am not worried about all that.

 :)      our government here will always ask the people around .who are going to be rich instantly sometimes most will relate all to a wealth of drugs and smuggling so everyone can send as to jail for a questionable wealth and not playing taxes all will do activities we all did keep thinking that we did illegally. how do I become a rich .because of bitcoin make us think everyone will believe .I'm saying that its bitcoin that we are making the rich how will I explained for them..

This happen to my friend a lot of times since he is a millionaire because of the cryptocurrencies and when he tried to apply for a bank account so he can settle some of his profit for savings then the bank ask him if what is his source of income and when he told them that his source of income is from the cryptocurrencies, they rejected his application which is very unfair.

A lot of people have made a lot of money from crypto and a lot of them have becomes millionaires. It's their hardwork and patience paying off.

You should fill out the appropriate tax forms and disclose the reason you got wealth from and if you have any prove that you owned the crypto (so save all receipts), you will be all right. The key here is paying the appropriate taxes - after you pay taxes, then they will not bother you anymore.

You are questioned by the government since possibly you did not declare your assets or source of income. Before we encash our bitcoins we should declare to the banks where are our funds coming from since if you dont declare it you will be questioned by the Anti Money Laundering Commission. But if you do not want to be in trouble if you have enough money then establish a business so that they will not question you anymore.

Just buy things with Crypto, nobody knows how you've paid for it and then just sell the assets

That's really serious, such governments shouldn't even be in existence. Anyways your trading history could help out if you're a trader and if you're into  bounties your trading history can still help you out.

Show yourself to the revenue/tax agency of your country and declare how you became rich. They will believe if you will tell them that bitcoin is the reason why you became rich. Bitcoin is popular and well known nowadays so they are not going to doubt with every single word you are going to say just to clear your name and obligations.

The question that I often get from my neighbors or from relatives, who see my lifestyle getting better, of course this is a positive thing of course I tell them, in order not to think further negative about me and my small family, the first thing I told them I was trading and they knew that, so they understood what I did every night or when I started trading, the point is that when we are asked to our relatives, we must remain calm and know the meaning of Crypto , so they can also understand what we are talking about to them ...

I would return ask them that is casino and gambling illegal? if not why the gambling currencies are becoming illegal

We only need to know the legislation of our country with respect to the crypto currency. If earlier there were no corresponding laws or other normative acts with respect to taxation of the crypto currency, there is nothing to be afraid of. It is necessary to explain directly the ways of origin of your money. It's easy to check. In addition, you should not prove the legitimacy of your behavior, and you must prove the illegality of sources of wealth.

If you get rich because of crypto some authorities will try to meddle and ask questions about the unexplainable amount of money you have because there's a possibility that your money comes from illegal means. So you should have enough evidence and explanation that you can defend against their allegations.

You just need to explain your money to the government, and encryption has been recognized by many countries.

even if we are right then also we cant make them believe because they would deny at every cost to protect their earnings

I will try to brief the working and platform and blockchain system to the Govt

This is not a big deal really. I believe that every wallet has a transaction history whether cashing in or out. If you become rich with crypto and the authorities suddenly shows up at your door, just show them your transaction history. That would do the explaining for you.

In my opinion. we better focus on the work we do today. do not get busy with people who do not believe in digital currencies. and let's show the government if we can be rich and successful by utilizing blockchain technology especially to get digital currency. so the government will regret if it can not utilize blockchain technology.

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I have a bitcoin wallet that is regulated by our government if ever i get questioned about being instant rich i would present this as evidence that i earn my money through bitcoin whenever i get wealthy with it. I have no problem paying taxes in fiat but our government has no laws about taxing bitcoin users. So i wont.

In my particular country the authorities did nothing for me to succeed.
So the question aries: why should I pay to them when I gained some extra profit from, e.g. bying and selling those bitcoins? Was it their real achievement? Did they really help me with being better off?
In this case I would rather not paying any taxes and related fees..

from what region you from OP?and how cruel your government pointing fingers to theyre people if they seen some wealthier happening to the lives of fellow men..i tend to disagree on this matter since crypto profiteering defies no illegal actions..dont you have human rights there?so officials can do anything they want?what about lending business it requires no tax if you lend person to person and what if in that kind of earning youve got the wealth,they will still send you to jail?thats not fair,maybe you should hide all you income from bitcoin and just spend the money little by little that thy dont have something to point on

Their are questionable wealth because of cryptocurriencies because your going to be rich instantly but they don't know that you are gaining the money because of your knowledge and efforts every day

It's very simple sir, if they captured you without any reason of course that's an illegal right? try to question them what's the reason you are capturing me without any reason, and when we say it's about your wealth why you are in a good living standard now while the history of your life  is only wage earner, then you can make a positive explanation like make a Revelation about the new digital crypto currency which is not illegal that;s why you have a good living standard because of Crypro Currency. Then you try to tell then to background check of your history to make sure that you are not involve of illegal activities.  

If you can obtain a copy of your trading or how you were able to get your cryptocurrencies then keep copies of it. You can use it when the government decides to question you about it. If what you earn in crypto is taxable then pay your taxes so that they cannot held you accountable because you did what you are supposed to do. You may have problems with your banks though because when you transfer a big amount and it is an amount that is quite questionable then the AML would be alerted so if possible, try to transfer only a low amount so that they will not be alerted. It is too bothersome to explain even if you obtained the coins in a legal way because they would find a way to suspend your account since most of them (the banks) are against it.

Bitcoin Is not illegal,and if you became rich in bitcoin,you dont need to explain to them where your wealth came from as long as your wealth  are not comes from any illegal activities.

Which country are you from that doesn't tax crypto income? Is your income even tax-free once converted into fiat? If so, sounds like the quite the tax haven for crypto users.

As for @OP, I think so long as you keep reasonable records then nobody will question your wealth, nobody expected bitcoin to explode like it did, so I doubt they will be as thorough as they would with other income records, even if you just log your purchases, and then identify the value at that time on coinmarketcap, that will likely suffice.

There is no regulation yet on crypto in some countries so people who are earning can really enjoy their entire profit.
But, the sooner the government sees the demand of crypto and the money going in and out, they will surely tax those people who are earning, one
county I know that does not tax bitcoin is the Philippines.

if what you are saying is true and because of questionable wealth you will go to jail even without proofs than if you become rich go and live in another country immediately

The mere fact that you do not harm people and you are earning in a good way should put them to stop their accusations. Just like others said, you don't need to explain yourself, let them know what is bitcoin and how it works.

Bitcoin/crypto currencies are very popular now, if I become rich because of them, no need to be afraid there's nothing to explain to anyone as long as you don't do any illegal things. If they questions you, be it, they will not send you to jail without any concrete evidence. If you don't want it to happen then stay on low profile, there's no need to shout to world that you are now rich, stay humble.

As long as you know very well that your earning comes from a descent and a good source why they will going to question about your wealth. Number one to question this is the government, if what is being due to the government then pay your taxes so that they will close their mouth and hoping that the taxes area being paid will goes to the right place and right project for the good of the people.

i think it can't being questionable for what we earn from it, we know bitcoin price are so high
we just like store some value of asset and we sell it when it comes high, it just same that you have a really good property and sell it when it profitable

it's better to explain to those who ask than it will even make you unpopular by the person. we should not be stingy and arrogant if we have become rich because we used to come from the poor.

I remember my professor asking about cryptos and then saying that we are somehow being unfair because we are earning cryptos without tax. My classmates who are also earning cryptos and my faces are saying like "WHAT?" How come we are being unfair? We are just students who saw the opportunity in bitcoin and cryptos in helping us financially as well as our family. We asked him "Why?" and he told us because we are earning money without paying taxes. One of us speak out that it is not true that we aren't paying tax because we pay fees with TAX whenever we converted into fiat. Converting into fiat, Cash-in/Cash-out options and etc. we are also paying tax whenever we used their SERVICES.

For me, there is nothing unfair with that. That time, I was also thinking that maybe this person is jealous because we might be earning and WE CAN earn money bigger than his salaries.

It is same as peoples who trading on stocks, they can be rich if they are lucky.
just explain that you was trading and got profit from it because the price was spiked.

Primarily, they will just make you pay taxes for earning a lit from bitcoin. That's what most countries do now a days.

The fact is that BTC is a new market and many people are skeptical. If one day you become rich because of BTC and they suspect you are illegal, you do not need to worry too much. Because BTC market has become strong and recognized by many world powers. The authorities in your area should carefully study the law before making a decision.

Bitcoin, like any other asset, can grow and generate income. In this regard, you can make a Declaration of income as a trader. Show the purchase price and show the sale price and from that pass the tax. There's nothing weird about that.

This is why it is important to file you taxes, a lot of people seem to underestimate this and i think it will come and bite them in the ass. In the usa i understand it because of their weird taxes on crypto , which can leave you with next to nothing. But once governments have a better idea how crypto works , then they will try and get the people who never payed up.

the truth is in the part of the world i come from?when ever they see you from broke to walth,they relate it with one crime or the oder.and sometimes the few people you tell find it out to believe that the internet is a wealth plartform.but that shldn't distract our mind from our work and those of us that believe's in blockchain and the digital currency i don't think we should get busy with those who don't believe.and i dont think my gov is gonna storm at my door cause i got rich with crypto because they'v not helped me in any way.but the thing just pay your tax,if u do i dont se why the gov will be @ your door

Even if we become rich with cypto, I don't think it will be that suspicious. Once you have the wealth, you can invest in land and with that you're gonna pay taxes and that's what they wanted. So, just go and be rich.

I think BTC has that potential that it can make you very rich just like drugs and smuggling can make you and yes I can understand your situation too that if you become very rich with the bitcoin then in the present scenario, it is very difficult to make people believe that it's the bitcoin, not other illegal activities because in present scenario, the people are unaware of the complete potential of BTC. So for now,  u can tell them the success stories of those people who has become that much popular and rich because of bitcoin only.

You cant anymore become rich with bitcoin because the price is very high right now so in order to make a lot of profit you need to invest a lot of money. I dont think anyone should worry that to many people will get rich with bitcoin and then become unhealthy because as far as I can tell there aren't anymore so much people that even make some profit with bitcoin and we speak about becoming rich. In order for someone to become rich through bitcoin he has to buy 5-10 bitcoin then way a few year,at least 5-10(maybe more than few) so that the price increases ten times and he gets a huge profit becoming rich. As you can see it is not that easy to become rich with bitcoin and you also have to invest thousands of dollars. It's not like old times when you had to invest only 1000$ and become a millionaire.

I do not think we should show our wealth to others or we live simply to avoid something we do not want, like a crime or a government suspicion of our wealth. We should not be too much or often in transactions, so that the banks and the government do not question. If the government questions it, I will answer that I am rich because of bitcoin. I will explain as much as I can. As long as I do not violate the rights why I should be afraid, because I do not feel harm to others.

many think bad with bitcoin and profit from bitcoin investment I think it's very easy to explain bitcoin it is an investment that requires capital and patience in its fair investment if we succeed in getting investment from the investment

I am not sure if you are from India? But we do have the same scenario as what you have stated.  The best way around is to talk to tax consultant and mention how are you making extra $ from bitcoins, and whether your income source will fall under tax scheme. Sometimes we feel that by not disclosing our earnings we can save amounts, but that all are in vain,  Banks and Govt are having records. It's better to disclose now and be safe, rather than be penalized later.

you will never go to jail as long as bitcoin is not banned. even though bitcoin is not legal yet, even if illegal bitcoin can not entrap us with a crime article unless you use bitcoin.

You can explain to them by giving transactions to the trading floor and the times you are laundering. You should note all such transactions to prevent misunderstandings.
This is very important for countries that do not block bitcoins. Keep that information very carefully.

If you like flaunting your wealth, better be ready for a lifestyle check. Friend and relatives may get curious on how did you get rich without them seeing you working in a company or running your own business. In most Third World Countries, the taxman don’t care, but is a different story when you’re in the US. Just make a record on all your transactions to be safe.

Well, practically if they don't have evidences that you do drugs or something like that, somethig illegaly , they can't put you in jail. maybe only if online trading are something illegal in your country i think ,but all you can do is paying your taxes to the state an then , try to explain to them how this works, or try talking about how the technology of these years has advanced.Really you it can't anything happen to you if they don't have a proof that you've done something illegaly.

I sometimes have trouble explaining the money I get from Cryptocurrency. Moreover, if they are lay people who are less knowledgeable of technology. They must have thought the money I got from the gamble, while I hate gambling. In essence I answer their questions honestly and with simple delivery.

I for one am really affected by this issue because in my country, young men gets harrassed by the police all the time especially if you're well to do you become their target.
And it has been generalized by most that those who work from their laptops at home are normally involved in cyber crime. I find it hard convincing my loved ones that this platform has nothing to do with cyber crime, talk much less of the police who only care of how much they can extort fom you. It's quite unfortunate.

A lot depends on the country you live in and how the crypto belongs to your state and many other factors. If the crypt in your country is legal, then you have nothing to fear just pay taxes.

As long as you remain below these trigger points, the bank will likely not start an investigation and demand for proof of funds. The only thing is that they can change their terms at any time.

Well is there even a country today that found a way to successfully tax btc yet? As far as i know there's none. And money you put in banks that came from crypto can be questioned especially in big amounts. Banks control the money you put in there anyways that's why a lot of people support this crypto revolution to put control over their money back in their hands

Some governments still associate Bitcoin investors with money laundering. I understand it because they should know that Bitcoin is not really anonymous and people switched to some other cryptocurrencies which offer much higher anonymity. There should not be any problem if you always pay your taxes from Bitcoin income like trading or mining. Both of these activities are easy to prove. Cryptocurrencies became so popular that nobody should be surprised that you earn from them.

they are the reason for the rapid growth of people in bitcoin and because people are not perfect it makes a mistake and continues to abusing money especially oneself but it does not mean that the government knows how to get rich because it.hope those people know their limit, if they have pay taxes pay it immediately

Bitcoin in the first place is not illegal so there's nothing to explain to them where our wealth came from because we work hard for it.And besides our  country accept bitcoin,so I think there's nothing for me to worried about it if in case I become instant millionaire because of bitcoin.

You should not have any issues unless you come from a country where law and order are not respected or where people in power can disobey the Constitution at will. Once you have a very good evidence as to what your source of income is and you are able to prove it, then you should be okay.

I experience this too , I remember one time when I try to withdraw some of my earning here in bitcointalk in money exchanger or the teller ask me what is my work so me thinking that she actually thinking that I get it in gambling or in a bad way because I always withdrawing money always in their office.

That's a valid issue. I also agree with this point with 100% because I knew a lot of people who have made a huge money by working in this platform, not only that but also they are trading and investing also here. But you can't find out them at any cost. but I don't have any problem with this issue because they are making money through a source whatever they can, so government should not interfere with this matter until the institution itself hampered.

I think if you belong in a country that knows about bitcoin then there is nothing to worry about..because they already  know bitcoins potential in making someones life to be wealthy.You don't owe them an explanation because bitcoin is the most profitable digital currency of all time and it proven its worth for the last 9 years of its existence.If people speculate tell them about your experience of bitcoin as an easy way to earn money compared in having a job that is very tiring but with low salary.If they on believe and still wonder how it change your life to be rich that fast then let them feel envy on what you become.

Whether we like it or not a person living a flamboyant life style will be questioned but how do we overcome such a scenario? I belief we need to convince people how Cryptos can turn  things around  as far as our fortunes is concerned and evidently shows all the proofs based on transactions recorded on the ledger of our wallets or else our source of wealth might be linked with illegal source especially drug trafficking.

if nothing triggers to investigate you do not be afraid. For example, having multiple bank accounts and not showing the wealth that you can in the crypto in social media. I'm sure it will be safe.

If you live in a country where you are already paying taxes on your crypto earnings, then you should be fine. If you don't, then just make sure you keep a record of the transactions you have made so that you can provide proof that your earnings were legal, should you ever need to prove it (of course this is assuming all your BTC / crypto transactions were legal).

You don't have to explain anything to anyone just pay your taxes that will be due based on how much you earn through cryptos. Crypto currencies haven't been declared illegal that you are fearing so much and there are billionaires who are investing millions of dollars into bitcoin and don't fear anything than why do you fear.

We don't need to make things complicated, just let us make sure that before we will buy something from our earnings here in bitcoin we have to make sure that we have done our part and that is to pay the right taxes before anything else, so no question will ask later.

just show them how you get your bitcoin. give them the prove. if you are miner, ask them to go to your place to see your miner, if necessary. if you are trader, show them your trading account

One of the reasons people are tickled by Bitcoin is that nifty immutability thing. This means you can categorically prove when you received your coins, when you controlled your coins and when you sold them.

If you have a bank statement showing a transfer to an exchange to buy them and a similar one to receive the proceeds of the sale then there's absolutely zero question of the source of your funds. So what if your $100 turned into $10 million? It's your property that you sold on a legit market. You can prove it all.

Hang on to all of your private keys, including the empty ones, and you're bulletproof. People seem to be very cavalier with their records when it's no sweat to retain them and may well save your arse at some point.

You pay taxes for your Bitcoin earnings. They can't accuse you of anything illegal. However, it is difficult to pay the tax correctly.

If you just pay your taxes, you should have nothing to fear. So I see nothing wrong in becoming rich through bitcoin if you used it legally and pay your taxes.

Just declare your income so that you are taxable. Declaring your profit, your nature of business / source of income then you are safe.

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If you declared what is needed to declare and pay appropriate tax I think it is enough there is no questionable wealth because of crypto.or if that all are not sufficient show them the proof that you get all your wealth in crypto.

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Oh, That's to scary, But why should i need to explain  them why i am become rich ? And i know the money i holding on is not from bad doing.

But if they question me ,Where did i get that money ? I could say to them that this is from bitcoin and if you dont believe me you could search it. The money i got is from the energy and knowledge that i contribute to bitcoin and this what i gain All of my money.

Doing your taxes while providing a record of your accumulation of wealth within crypto should be sufficient in avoiding any instance of becoming suspect to involvement in illegal activities. There still are gray areas concerning the reporting of crypto assets. Governments should be given time to adjust to the existence of a new digital currency, deciding whether they should attempt to regulate or altogether ban its use for its citizens. Either way, crypto can still be successfully used if they decide to do either.

If you want to stay safe, find p2p buyers who will give you cash for your bitcoin. Make multiple smaller transactions. No KYC, no paper trail, if you are afraid of being targeted for wealth or falsely accused. If you want to transfer your bitcoin to your bank account, document how you earned the bitcoin (print out any project descriptions, exchange logs, mining logs, forum posts, any way you can show source of transactions) and find a local lawyer who can give you better advice than here.

If investing in Bitcoin is not illegal in your country, then you can explain your source of income to them as such, but if it is a prohibited investment, then you are likely to be fined, but will not be imprisoned!

If you pay the taxes apropriately, there is nothing to fear at all.

BTC can't be blocked by governments. BTC is still legal, you keep telling them why you are rich that you invest in BTC. They can not make us so absurd, if we invest in loss, it will not affect them. If they do you, you have the right to voice your objection.

For now, it's not a concern. because bitcoin is now popular and all countries are connected to the internet. so I think you can show bitcoin and how it has been recognized by some countries. But it's different if in your country bitcoin is a prohibited currency.