Bitcoin Forum

 >:( >:( :( Governments are dreaming of removing anonymity from Crypto. They see Crypto as a taxable goldmine and they want to cash in.

Any thoughts? Check the post on Medium on the topic.
https://medium.com/tabularasa/the-end-of-anonymity-and-the-start-of-tax-hell-for-crypto-38de53cb04c6?source=friends_link&sk=98093ecd7ca8c2753047cbc656c73936 (link below bypasses the Medium paywall)


Any thoughts?

Just support the decentralized exchange and there was a way for these centralized exchange to not get controlled by the regulations by moving their exchange to the friendly crypto country. But the decentralized exchange can't be disrupted by the governmen and that's the main point to avoid the tax.

not that easy to disappear anonymity on the blockchain. I think the government knows that. and I see the only way that the government can tax the cryptocurrency is when crypto is in the market. the government can tax every tader to start trading. but it will be useless if on the DEX market.

This thing is to be expected, Japan has already doing so and then other countries will follow. Government are afraid that there might be money laundering within cryptocurrency ecosystem now quite the opposite it is the crypto users who are afraid of huge taxes, Identity required when cashing in or out is okay, but too huge taxes is just meh..

Honestly I wouldn't be too worried if the removal of anonymity surrounding crypto leads to stability as well as eradication of the countless scams and shitty projects currently littering the industry. The much preached decentralisation of the industry hasn't offered much really. Instead, it has created full fledged scams and substandard projects offering nothing. If the government plans on introducing regulation then my hope is that everyone embraces fully for the overall betterment of the crypto industry.

On the one hand, it seems to me that this is a good idea, because many investors agree to legalize cryptocurrency, but the most important thing is that today many investors are not going to be verified, we agree to pay the tax, but without verification

Anonymity is very important for people , but for many traders there'are no problem with revealing their personality where they accept to do KYC and even doing video calls in some cases. some governments denies Cryptocurrencies , but they want to apply taxes on banks transfer.

if I have to choose between banning cryptocurrencies and taxes, I choose taxes. It is okay,I dont see any problem, from every profit you have to pay taxes. Goverments see profit in crypto, they will be crypto-friendly and massive adoption can happen, so where is the problem?

yes I agree with you I also agree to pay taxes, but for verification I am very uninterested because it will eliminate crypto anonymity. crypto was liked because the advantages of one of them were anonymous without all crypto like other mainstream investments.

Well, it might be bad for hardcore anarchists; but I think these things help bring more adoption in the crypto system. Privacy and tax free lifestyle is a good thing. But people shouldn't mind paying some % in taxes after gaining so much profits from cryptos. As for privacy, well, truth is bad guys also take full advantage of it. You see all the hackers, scammers are flourishing coz of this privacy only. So maybe some balance is needed.

Do you think that you are anonymous? You need to do KYC on exchanges, so how come? Anonymity is not possible for now.

Not all governments are greedy. Some want only a small contribution. You can see it on the Wikipedia's income tax page. In some countries there's no income tax, in other there's no crypto tax, in some other the tax is really small like 10% or less. I think we all could lose 10% of our income without becoming poor or having to hide our income to avoid taxes. The whole world is not the same, there are countries that don't want to steal from you and you can always move there.

there is nothing bad in taxation. of course, some countries would try to squeeze the maximum, but this is just a normal industrial progression i guess.

I think that the state will be able to do this, they have repeatedly shown that they can influence cryptographic markets, let's hope that everything will end well for

Desire is one thing, the realization of desire, another.
Governments can also threaten and find people willing to be frightened, but with a little attention and technology, the crypto will continue to be anonymous, for those who want to.

Anonymity is one of the bedrocks of Cryptocurrency, how can you say it is truly decentralised and untraceable when your identity is linkedin to it? If they succeed, it would be more than just a loss of privacy, it would be a little death to crypto.

of course, the government is not interested in the population becoming richer and not sharing with the state. although people have already erased these boundaries and people live in different countries, but the government is a separate state within the state with its aggressive plans.

The taxation of states is a major problem for the crypto world. But it seems a little difficult for them to remove the anonymity created by the blockchain technology.

In my country still government haven't given any clear set of regulation on cryptocurrency and banned transaction from banking and for the same still verdict is going. But in countries like USA, JAPAN, Russia, canada etc tax is liable on the cryptocurrency trading. Also recently there was news about IDEX is implementing AML,/KYC on their platform due to order from the SEC and I feel other DEX will also follow this parh which will result death of an Anonymity and privacy of the traders.

And what will be done regarding decentralized exchanges? Probably not much, because it can't be done. Everyone can set up their own exchange and people can trade whereas with digital dollars it is not so since they go through your bank.

They can't remove the anonymity of crypto's but they can tax it. This is where the reality goes, everything that can be a source of income for the people is taxable by the government. They just have to amend a law that allows their government to tax the crypto profits of their citizen. And this is already happening though not directly, responsible tax payers are declaring their profit online though crypto's isn't recognized by the government they just declare it voluntarily.

Apart from exchanges, where we give our personally details, projects, most especially ICO and STOs and so on, are gradually making things look more centralized. So i think the governments are achieving their aim and objectives.
We are in a time where cryptocurrency that ought to be private is no longer private.   Altmost everything we want to do now involves giving out personal data.

Just don't be lazy! Don't use KYC/AML centralized exchanges, don't use centralized & censorable shady crypto projects and only decentralized blockchains with long history of adoption like bitcoin or monero, stay away from closed source wallets and only use open source alternatives like HODLER, Electrum or just Bitcoin Qt, and how is the government or anyone else gonna stop it? Bitcoin was designed to not need government for permission.   8)

People are now missing the point, the anonymity becomes no use for them. Centralized exchanges that requires KYC should be not supported. We should remain in decentralization of blockchain.  Holders should remain on freeing themselves from any control. Wallets that are closed source should be promoted like electrum and hodler wallet. Using this kind of storage should be known by many since we have to keep them in the freedom from the control of third trusted party.

obviously they are angry because the circulation of money in crypto is all the money in the world, they are difficult to detect because crypto has no connection with the government. anyone can have a lot of money without paying taxes

What the bypass paywall? I don't savvy website coding but this is a result when I scan your link with Virus total:

https://i.imgur.com/VfeFkVI.png
https://www.virustotal.com/#/url/5b20e75ae2334cb7a80c0fbacfbc3650214dcbd50c68d3c06d70f538006e04aa/detection

Who is professional, please check it.

I am still welcoming the tax hell and the strict regulations for crypto no matter what. I know it will cripple the economy a bit and make it harder for people to get into bitcoin for tax purposes and works compared to what it used to be but it is still crypto and it still provides the biggest potential for profit. Now in reality traditional ways of making investments like stocks and forex have all these rules anyway so we have to fight them in fair grounds.

It is miles better to be like this than to be anon but seen as a coin that is used for murderers and drug dealers and nothing good. Back in the day that was what bitcoin was and globally known as a dangerous thing. My mom and dad used to call me up and tell me the bad news they saw on media that night and they were scared and always said "try to stay away as much as you can" 4-5 years ago, now they are quite happy that I am in crypto business.

For me, it's fine not to be anonymous in crypto but I really prefer the convenience and transparency of crypto.

De-anonymization is still really a very terrible thing that comes closer and closer to us, because the closer we move to new facets of cryptocurrency, we move closer to verification of wallets.

if the government collects taxes from crypto it means that cripto has been accepted and is not illegal anymore. if that is true I don't think it is a problem because the obligation for us as good citizens must pay taxes, as long as we benefit from it.

It was predictable in advance. The governments of the countries certainly will not give up solid revenues to the national budget. The steps to this are already being done - on the crypto exchanges for more than a year, full verification is required for full-fledged trading. This means that at any inopportune moment the crypto exchange, at the request of the security forces, can transmit information about participants in the crypto market.

Collecting tax is also knowing the person who uses crypto as payment and it also means that it is not decentralized anymore because there is a person who controls its system. A reason why crypto are made because of anonymouse transaction that leads for a secure contract. Applying tax for it removes a relevant reason why it is made.

Not really surprised, I mean did we really think that we were going to get away with not paying taxes on our crypto earnings for a long time? It is also a good thing because if the governments have a way to tax the earnings then they have nothing against making the coins legal for general use which in the long run is a win win for everyone involved