Bitcoin Forum

Ever since Bitcoin and other cryptocurrencies became a hit within the mainstream world, governments have been quite skeptical about them. Despite the promise of crypto to bring trustless payments to the world in a frictionless manner, governments have taken every effort to try to prevent its growth worldwide. As of now, centralized exchanges dominate the space where they're subject to KYC/AML laws. There's literally no way to prevent government surveillance except for P2P trading (like Local Bitcoins, etc).

Considering that centralized exchanges serve as gateways from crypto to Fiat (or vice-versa), they've been the targets of governments worldwide. The main concern of governments is tax evasion and money laundering. Sometimes I wonder why governments want to tax our cryptocurrency funds if they're not considered as money by most people worldwide? After all, crypto's nature is a highly unpredictable and volatile one. It seems to me that governments want to profit from this venture more than anything else. Any other cryptocurrency which prevents them from "taxing" people, would be considered illegal to them in the future (like Monero, and other privacy coins).

Which is why, I believe that crypto taxation is more of a problem than anything else. Do you agree with me? What are your thoughts? ???

Unlike any market condition governments always want to profit out of it. When it comes to cryptocurrency, governments suffer a lot to profit out of the same. Even after hard try governments were not able to make things happen perfectly. This is all because of the decentralization of the entire network and people also stay pseudonyms.

Some countries have taxed the same adding cryptocurrency along with gold, but they weren't able to make it work perfect. When governments fail in taxing each and every transaction they try to ban the usage or restrict people from using cryptocurrencies.

KYC in itself isn't entirely a bad idea. It does prevent some fraud and adds another layer of security but still depends if the exchange is trustworthy enough. KYC could help retrieve coins sent to wrong address, on exchanges that implements KYC too could use these details to fix some issues. However, even though tax isn't also a bad thing (since it is necessary to have law enforcement and peace and order), I do also disagree on government's hot eyes on cryptocurrencies, especially now that they had seen its potential, it just looks like they just want to profit from these grounds.

It's funny how governments want to fight tax evasion by declaring strings of letters illegal. What if people decide to start sending only numbers and letters to one another without wallets or similar platforms while having copies of very simple and lightweight ledger of their transactions?

Well, I think tax is very important if you use government stuff. Otherwise you don't need to pay anything. The best way to avoid governments stuff is to use nature or go natural. The only tax we pay the CREATOR or OWNER of our world & nature is good behavior. Good behavior includes taking care of HIS creations.

I have to disagree.

KYC might not be entirely bad but it is entirely bad, if you know what I mean. We are here in the internet, in a cryptocurrency world where everyone came from different countries that have different identities, personalities, and so many more, that fact solidifies that KYC is not a good thing when it comes to privacy itself, it is like exchanges or anything that requires it are not that trustworthy for me, because look, they could do things they could even though without any KYC, yet they requires it.

And about the taxation in cryptocurrency, I am against it, because Governments should stay away and respect that cryptocurrency doesn't need one.

Well ... and I fully agree with you.

Basically, KYC is a rule made by them called third parties (government and banks). As someone who believes that cryptocurrency must be a symbol of freedom, I think, KYC is very inappropriate in the crypto space. Likewise with Taxes, once again, as some people here say, KYC and taxes in crypto are "very contrary" to the basic principles of cryprtocurrency.

We can't deny that sooner or later government will really interfere in crypto as many see it's importance as Investment and payment option. We should be ready and not expect too much that when we're crypto we're free not to pay tax. The only way crypto will not be ban or fully have adoption without worry of objecting the law is too put taxes like Japan since the government needs to find ways to earn in any means.

... to be honest, that's the thing I've been trying to deny so far. I really hate to admit it, when faced with the choice between being prohibited and paying taxes, maybe I would choose to pay taxes, and in the end, I had to surrender and follow the rules made by them (the government).  :-\

The very idea of a decentralized currency is something that bothers almost every country in the world, inability to control, means the possibility of non-payment of taxes. And we know that taxes are something that actually allows states to function, although many will agree that governments are taking too much from us, and in return, they give us a lot less.

Accordingly, some countries in the world want their share of the cake from crypto, and they can do that if they force crypto-exchanges to mandatory KYC for every user. After that, only the technical part remains, whether these companies will self-report users, will the tax services ask for this information, or will users make the tax reports themselves.

There is no doubt that regulations are increasingly tightening with time, and EU’s 5th Anti-Money Laundering Directive (https://www.refinitiv.com/perspectives/financial-crime/the-impact-of-the-eus-5th-aml-directive/) will further tighten the rules on cryptocurrency in EU.

I think that avoiding tax is something that will become increasingly difficult, but for people to pay for them, procedures must be simplified and crypto taxes must be in the same or similar percentages as for fiat.

Tax is identical to state income. I am sure that tax officials are very observant and will utilize the momentum of the popularity of bitcoin to increase state revenue. Even though Bitcoin or other cryptocurrencies are not considered as a legal payment instrument in many countries, in reality, Bitcoin transactions can still be carried out by both parties who share Bitcoin, or use intermediaries in online exchanges. This mechanism indicates the use of Bitcoin as a commodity and investment tool.

The implications of Bitcoin and other cryptos as Taxable Goods which are intangible goods. services provided by exchanger service providers cannot be classified as financial services, so if the company has passed a certain turnover limit then it must be confirmed as a Taxable Entrepreneur. In effect, every Bitcoin sale made by this exchanger is subject to VAT.

The capital gains obtained as a trader or Bitcoin contractor who treats it like a stock are taxable income. From the point of view of intermediary companies, income derived from the spread of the buying and selling exchange rates and services provided to members such as sending, storing and withdrawing deposits represent income from business activities subject to income tax.

Bitcoin ownership as an asset, whether from mining results or from purchases, is not necessarily accompanied by an understanding of the principle of taxation of income in a broad sense. Massive education needs to be done to Bitcoin users and cooperation with an exchange brokerage company to provide information about the definition of income subject to tax so that it can meet its tax obligations in accordance with the principles of self-assessment.

No, I don't agree with you.

In Utopian society, government has a right to charge taxation on any type of income earned by its citizens and spend the same for the benefit of mankind at whole within the boundary of the country.

Although we could argue that most of the governments are corrupt in present days and instead of spending government funds for the welfare of people, leaders are filling their own pockets. But that doesn't free us from the obligation of paying tax. Paying taxes should be viewed as forced donation. When we are earning money, it is our moral duty to donate part of it for the betterment of society on whole. But since not everyone is moral enough, the concept of taxation popped up and the system is not new, it is in existence for over 4000 years. Just imagine if we all stop paying tax, we all will left with more disposable income and can afford a little better standard of living. But what about roads, bridges, free education, subsidies? In the absence of taxation and governments, who gonna look after these aspects? So it's ok to sacrifice little on standard-of-living part and contribute for public good.

As far as illegality of cryptocurrencies is concerned, that doesn't mean illegal income should be left outside the purview of taxation. In my country (India), law states that all type of incomes are taxable, no matter legal or illegal. I personally think this is fair. On the contrary, illegal income should bear higher tax in my opinion.

To OP, I understand what you are trying to say... I somehow agree with your thoughts because the government doesn't recognize cryptocurrency as a legal thing but there are some countries that are not very strict when it comes to crypto, they are open but need to abide by the rules. Like in operating an exchange, the company needs to pay for the license to continue the business. It's okay to pay a tax just for enough but not too much.

I agree that the government seeks to minimize the misuse of cryptocurrency in illegal matters such as money laundering and other illegal transactions by issuing regulations.
Efforts to implement crypto taxes are still a hot topic where there are people who agree and disagree, because some of them think that applying taxes is something that the government should not do for users of bitcoin and other crypto currencies.
What must be known is, each country has its own considerations regarding the application of taxes and crypto taxes are also determined by certain activities which according to the government are feasible to apply. Thus, not all activities related to crypto will be taxed.

I do not agree if you say, the government efforts to impose taxes and prevent money laundering and other illegal transactions as an effort to prevent bitcoin and this technology from developing throughout the world.
Governments in many countries have now successfully cooperated with local exchanges in an effort to prevent money laundering and other illegal transactions by implementing KYC / AML.
If tax enforcement efforts are narrowed in scope, the government only needs to cooperate with exchanges to get their tax returns through the sale and purchase transactions of bitcoin and other altcoin users without making buyers and sellers feel uncomfortable about the obligation to pay taxes.

This my opinion, it doesnt have to be all true.

Well Governments always wants, that they get money from people by one means or another. Now the bad part about Cryptocurrencies are that the government cannot put tax on it and that is the reason they are trying really hard to make that happen.

If people started paying tax on Cryptocurrencies say by the means of exchanges (Government make their own exchanges and add tax on transaction) then there will be no worries to Government from crypto world, and they will happily allow people to use it because they will be monitoring and having tax from it.

They must find some good way to legalize it because people are still going to use it no matter what.

As many of the people saying that Government wants to secure transactions/reducing illegal transactions what I believe most is that they want to get money from crypto as well in the name of TAXATION.

Because of the anonymous nature, Gov treats cryptocurrency as a medium of money laundering. And they are afraid that if all rich people convert their money into the cryptocurrency then there could be a possible critical situation in the economy. So they made the KYC mandatory in the exchanges. And also made the crypto taxable.

It quite makes sense. Since we can generate income via cryptocurrency it does makes sense to pay for tax, however paying taxes on money generated in decentralized network would absolutely ruin the meaning of it, but I have to agree that any taxes paid is for society betterment. Government warned their citizen not to deal with any cryptocurrency as it is volatile and risky, yet they run after cryptocurrency to ask for taxes claiming it is subject for tax evasion. Ironic isn't it?

But how do they know it came from illegal activity? And how will you able to pay taxes for it when in the first place they can't handle it?

I don't know if it is already applied to every country but I've read about how bitcoin is taxed, it goes like this, Once you hold long-term with bitcoin and gain from it you are required to pay for tax, and the percentage of what you need to pay from your gains will vary depending on your civil status. Does anyone know about it?

Bitcoin does not need to be a currency for them to be able to tax it. If you sell a house and you make a profit of say $100 000, the government

would take their share of the gains you made in the form of "Capital Gains" taxes. (Each country has it's own guideline and tax exemptions) So what

most governments are doing is to class it as a commodity and thus having you paying "Capital Gains" on the profit when you sell it. The main reason

why they are not defining it as a currency is because they do not want it to compete with their local reserve currency.  ::)  Some countries tax

Bitcoin as a currency (VAT) and a commodity (Capital Gains)  >:(

You're wrong here buddy, KYC is a good idea. It just has to be maintained well.

Every single bank in the world has to adhere to KYC to ensure that there is no money laundering occuring as that is somIf ething that people will abuse if given the chance.

If you want privacy, you're not going to be able to use an exchange that MUST use KYC.

But back onto the topic here:

A lot of people in this forum and in the crypto community think that they're able to avoid taxes by using Crypto or something along those lines. And we shouldn't embrace this narrative because that's not what we're here for. If people are using Crypto as an investment class (which many do) they should pay capital gains on it.

If people are using it as a way to facilitate business online they should pay the taxes on their services -- just like they SHOULD do in cash.

If you cash out, then it can be considered as a capital gain (if you receive profit, bought < sold), and capital gain is taxable. Well, when we are dealing with the government, the only options would be (1) pay taxes, or (2) get fined/banned.

I think taxation is generally better than prohibition.

I totally agree with you and to my own understand the government love the decentralization of crypto which is why they threat the crypto community with various of strategy in other to be in control using FUD news, KYC/AML and later place tax on crypto because they understand it capacity but they choose not to support it because it give people liberation from them.
Mind you, they are doing everything possible to be in power which the reason why they implemented the KYC/AML issue in the first place and this is the reason why i also dont support the act if regulating crypto market.

I wont say that taxation is a problem yet as a citizen we are really obliged to pay up our taxes.We earn then we do need to contribute for our countries development- this do talks about general sense of taxation.
But we know that there were people do really like to avoid taxes. We know that government doesnt like Crypto but they do know that they can extract out money with that by those citizens who do deal with it
and they know that they are indeed making some money so they would really target you out to set those taxes. Option? Dont use up centralized exchangers specially if your country is really very strict on implementing taxes
even on your crypto gains.

More a problem though, when taking it personally. However, we have come in a while untaxed by government which is why they got the idea of doing it in between of transaction so on and so forth. While, P2P is obviously the untouchable one. Mostly here are making fortune in crypto thus an income which is equivalent to a job that the nation has to offer to such individual that makes the spot left alone. Which is in the ideology of the government aren't good for economy specially when countless of people are doing it. Well, in my opinion, it may come forth a personal issue to us but we have been committing tax offenses till now on. We must at least comply to those KYC stuff over and converting crypto to fiats with tax, we must at least reconsidered it as gratitude for the government for somehow allowing us to have handle crypto currency in our nation. Imagine it like a capital asset which in reality bounded by taxes.

Yes, it is. We can't understand the governments stance in a situations like this but I'm sure they are always conning and chasing after what will benefit their lust cause they are getting tax from a platform they ought to support and make it better.





The last time i checked some part of the Asian and Arabs countries support illegal activities if the group involved are not catch but i dont if it still the same now. Besides, this is also the reason why Malaysian government place limit on cash transaction.




The rules and regulation of crypto tax of every country are not the same, in some countries crypto exchange site are responsible for the tax of each successful trade done on their platform  and there are some countries where crypto tax are not valid.

Probably its one of the reason why government don’t stop the pressure, If this space is not clear from regulators eyes assume the debate will not be over soon. Taxation is a thief but it is also essential for a growing country’s economy, however I believe this slight obligation gap with crypto holders and the government will have good ending depending on different government approach to help us move on.

I think it could create a good impact on the crypto itself since if we accept the taxation of crypto for sure there is a regulation will happen and if this the case for sure it can lessen the scam coins created since there is a proper Authority that will handle those one ( My opinion only) but let see how the future bring us since for sure people are enough with scams and want only the best for now.

most governments are always like that they are always looking for ways to take money from their people. With the development of cryptocurrency many new wealthy people were born from the rise of bitcoin in 2017. so the government thinks if they can take tax from cryptocurrency then the country's income will increase. that's why they always try to find a way to take tax from cryptocurrency. but when they couldn't find a way they finally issued a ban on cryptocurrency. that's the government they always want to take the wealth of its citizens.

We all are paying bills and taxes to our government. I understand that we pay them for usd transactions because govs providing something like support for USD-users. But we still make same transactions in btc as in usd. And I don't see anything bad about paying taxes in grocery stores for instance.

Taxation wouldn't be a problem if the money from crypto be used entirely for economy's improvement and developments. The problem here was regulation has been abused by many government personnels whose in the power. If this crypto taxation will be pushed through, it should be reviewed closely and must be implemented with deeper thoughts before being applied to cryptocurrency.

i agree . like what happen to some countries with people also charged by a tax by using fiat  . we can see thier improvements or developments therfor i think it will be the same with crypto

abused in the form of what  ? if crypto was regulated , it leaves a bad impact to some but i dont know how can they abused it more  .

yes of course  . tax implementation before were not easy and it also gone thru a lot of process before it gets approved so they should also do the same to cryptos .

Government from the start they know that the crypto currency is a decentralized in which they can't even have a transact direct from the blockchain. As the time passed by they think something to be legal and will able to have share and they utilized to have a tax. Tax is everywhere especially buying goods or anything that involves money through the establishment in our place and that's the use of tax and will spend from the government and we have nothing to do about that.

Whatever that is giving the people money that is not profitable for the government drives the government crazy. They feel that it is a way that most people use to run away from taxation.
Since they don't control Bitcoin, they feel reluctant about regulating it because they feel they are not profiting from it. When the government finally find a way to tax people about every Bitcoin the own completely, they will surely accept Bitcoin.

Government acceptance connects with tax always. Once it is acknowledged by the government it will be open for public to use freely. The question will only be where they will monitor the tax as they can only put taxes once it is converted to fiat. So user still have their to take advantage of the situation that not always convert. Sooner government will accept it once they find more ways to profit from crypto users.

For now we are still anonymous yet there were exchangers that doesnt require or imply full kyc but if the time comes that they do require each users then for sure we arent safe totally for us not to
get detected nor being found on evading taxes.We've seen on some govt that do target out exchange to trace off their citizens activity when it comes to profits ex. USA.

They are too strict when it comes to taxes thats why complying or paying up your part should really be considered or prioritize first if you dont like to suffer or experience headaches later on.

I'm not afraid of crypto taxation because most governments don't want it. This is a stupid idea and those who support it should be laughed at.

You don't tax people who hold cash but you want to tax those who hold Bitcoin? Bitcoin is not stocks. You can't compare these two.

The only way to effectively tax bitcoin is to tax Bitcoin exchanges and make people pay additional fee that will later be converted to tax. There's no way people will report their held cryptocurrencies and pay tax on them every year.

That's certainly true, mate. Governments always take advantage of the latest trends in technology. While Blockchain technology promises the elimination of middleman or other third parties, governments can still have an influence over its growth within the mainstream world. As long as these entities are able to successfully tax crypto in its entirety, they'll give it the "green light" for people to use it without restrictions. Otherwise, governments will go against cryptocurrencies by spreading misinformation to their citizens with the purpose of preventing the average person to gain financial freedom. Personally, I don't mind paying my taxes on crypto as long as I obey the law. Crypto taxation becomes a real issue if governments take a lot more money from you than they do with ordinary Fiat currencies. Not to mention, tax guidance has been very poor from some governments which leaves many people as non-tax payers.

In the US, there's no clear guidance for tax compliance within the crypto industry. There are many people that don't know how to properly pay their taxes with crypto because of this matter. It's hoped that the government take their part in properly guiding people to pay their crypto taxes, or they'll be unsuccessful at claiming tax for each crypto transaction. Despite that many governments want to tax crypto, this could be rather unnecessary since crypto is not considered as money within the mainstream world. After all, crypto cannot be compared to the likes of Fiat (mostly because of crypto's price volatility), defeating the whole purpose of "crypto taxation" within the mainstream world.

Nonetheless, time will tell us whenever people will truly allow governments to take their financial freedom or not. If most people don't pay their crypto taxes, then I believe that governments would find other means to collect funds successfully (like centralized exchanges that enforce KYC/AML regulations). Taxes or not, at least crypto provides us greater financial freedom than Fiat itself. Just my opinion :)

Don't forget that many of this government understand what crypto is, and they have informant even amidst us"Crypto users" they are the ones who will draw the attention of the government to how productive crypto is and thereby instigate government to pressurize tax. Not even in advance countries like USA,CHINA.....will you hide under the internet.Once government has sighted it as a source of finances, no more rest until tax is paid.

I quite agree with you on the tax issue. but indeed it will be very difficult to control the government on this matter. because we make money trading, buying low and selling high in a decentralized market and there is no record that the government can check. so they won't be able to tax us in the future unless they partner with banks to control our accounts.
I just hope that in the future the government will not be too harsh on traders and the tax rate should still be maintained at 10% for income.

That's why I said "if you cash out," meaning that you will likely to give up your identity. Exchanges would be heavily regulated in the US & EU because of AML. Well, of course, except you could cash out in a "decentralized" way.

Taxes on capital gains are common in various countries. So it shouldn't be a problem.

No they are not! What world do you live in?
I have cash lying in a locked box at home and nobody cares! I have never paid taxes for cash and I never will. Cash is untraceable. The government isn't asking you to tax cash you're holding because it's impossible for them to verify how much you actually have.
They don't even tax fiat on your bank account, only your fiat gains. Do you really pay taxes based on how much you have on your account? I've never heard of anything like that.


I can only laugh at that. You want your government to have more money at your expense? You're like an employee who is asking for unpaid overtime. You want to sacrifice your time and money for the good of fat pigs who run things?

Taxes really are headache. What I don't with the government is that they hate crypto currency however they are taxing it in a way possible. I do understand that exchanges though for crypto however, in exchange features of converting crypto to fiat are included which when we talk about fiats the  government handles it. We cannot certainly just avoid it specially when we need physical money because not everyone are afford to have transaction to be in digital. Let us just imagine that we just got the favor and let this go on because as long as the government included here we cannot avoid TAX.

I don't agree with the taxation of crypto. Exchanges paid taxes on their permits and income and I think they should spare the users. Though taxes are important to the government, I think it should not on the individual clients but for the exchanges as a whole and it depends on exchanges how they will pass this to their clients.

Cryptocurrency itself is not taxable. As you said government can't fully control or ascertain cryptocurrenices hold by individuals, so it can't tax the cryptocurrencies. I may have $500K lying on my Eth Address but who gonna know it belongs to me.
So the only way which government gonna tax your crypto income is when you convert the same to fiat money and withdraw it to bank. Only this way government gonna know you made money. It can be your earned income (can be said freelancing income if you earned via activities like signature campaigns, etc), long-term or short-term gain (if you first bought cryptocurrencies from your bank and now withdrawing relatively larger amount to bank) or business income (if you doing crypto-related business and making profits). More specific treatment differs from country to country basis.

actually taxation in crypto market will bring many positive think to us as investors. Before government attract taxes , they have to prepare the regulation for it.  Some of them maybe about protection our fund in exchange. Not all taxation will have negative side, we must think clearly not based on our emotion only.

Regulations haven't ever protected anyone's funds. In the history of the us stock market there have been multiple multi billion dollar scams that the regulators didn't protect investors against, and that while it's their main reason of existence, so they say. Isn't that ironic? All regulators are doing is actively block innovation.

They sporadically hand out approvals for instruments to no longer care about them afterwards, and that while they should be on top of everything they have given approval to operate or trade. The world would be a better place if these shitty regulators actually did what they have been designed for to do, but what can we expect from a government body? All they care about is control and the rest is not of importance.

If the government will accept cryptocurrency as tax payment, its as if they admit cryoptocurrency like BTC is real money. My government isn't yet taxing cryptocurrencies but will the government sets in to impose tax after I exchange my coins to fiat or how do they calculate it?

Because if the government will not tax me if its in the crypto form, then I will not exchange my coins to fiat.

Basic take i go with is that anything can serve as money but some things are more naturally competent in this capacity then others.   Nobody forced BTC to become money, it just retained some value naturally seems like and that accumulated.    How well it fairs vs every other possibility is still unknown to us.    What is obvious is the worst governments forcing horrible monetary standards on their people to result in inflation that favours an elite is very poor money and by contrast BTC does well as a replacement.  
     Taxing every alternative to your governments choice for money can be unfortunate and even result in total loss in the worst countries and examples of inflation, I dont believe in capital controls but its natural every citizen must pay the taxes agreed by law in that nation.   I disagree that inflation when used as an enforced tax, thats a sad situation and I hope the 'good' nations of the world never try to force inflation on their people as a deliberate tax.

Taxation has nothing to do with crypto currencies. This is one of the reasons why investors started buying bitcoin, to get freedom from all such formalities. Taxation is essential for the improvement of a country but with a corrupted government, it becomes pain in the neck for common people. With decentralized coins, finally we can enjoy freedom of control over our own assets and economy.

Actually one should understand that taxation is essential , if thing aren't taxed people never fail to misuse it therefore this is why government have to do it and also they are earning a lot from it but that's also going in the pockets from where it's gonna be reused for the public and this is the same as stock market shares and all , it is essential because it also gaurentees it a legal status somehow not just anything which is deep and now at the surface .

Governments and institutions in general are rather scared of bitcoin, and have done everything possible to stop it from advancing.
It is clear that the idea of being able to pay and accumulate money without control and anonymously does not like those who are used to treating citizens as slaves. Perhaps we will be able to rebel, maybe not. But at least we're trying.

Of course I don’t want to pay taxes in cryptocurrencies, but if governments can get some taxes from it, then they are less likely to try to ban them. In other words, taxes may not be an entirely bad thing for the health of the Bitcoin economy.

whybwe should worry if government attract taxes in cryptocurrency market. Actually we get many benefits if government do it , atleast they will not banned crypto exchanges and it give us certainity in our Investment. No more when we get this , investor will put more their money  and market capitalization recovered again.

yes i agree with you i think it doesn't matter if the government imposes a tax on cryptocurrency. because indeed most countries rely on taxes as the country's main income and taxes used to develop the country. the important thing is the tax that must be paid is not high and the crypto tax payment process is not complicated so I'm sure crypto investors will be willing to pay crypto taxes using fiat money.

For my own opinion government is really wanted bitcoin to control and own big taxation through it, but they don't know what action that possible to do and in that case no one will help them because everyone know what they aim if they control everything that's why they are afraid that the time come. everyone will not follow them and everything what they want is no longer enforceable.

I think that the government taxing cryptocurrency is when you are earning through it then taxes follows as what it is though I hope that only those who earn massively in crypto are taxed or just companies. Small time crypto users are normal people who are trying to earn money in the online world is nothing compared to those companies in cryptoworld where they earn a lot of money. There is nothing wrong with taxation as long as it is reasonable. I'm curious as how will they implement this in a decentralized platform of Bitcoin.

That's what we wanted too, but most of the time the government really wanted to take almost a large sum of profit of the people especially those who are doing business, here in our country income taxation is really a burden as it will range up to 25% of your income which is not a good one for a family who has only 1 earning and has kids, the 25% is really big enough money for all of us here.

Tax can be called the most effective instrument in fiscal policy. To increase state development, the government can regulate state revenues in the form of taxes by raising taxes with the aim of limiting consumption, providing subsidies to the community so that economic inequality is reduced, and reducing taxes with the aim of increasing people's purchasing power.

If the government implements a contractive fiscal policy, I think they will impose taxes on everyone, including individuals, not just corporations and business people. Individual taxes may be small in number but if the number of individual taxpayers is large it will be a significant input for the country.

Income tax systems in some countries are imposed on all additional economic capabilities, from any source. That is, the provisions of tax legislation do not 'limit themselves' only to income that is legal and legally recognized. Although the characteristics of digital currencies are unique, they do not justify the existence of special provisions. The government always prioritizes the level playing field principle by considering whether administrative breakthroughs are needed to ensure the compliance of business people who earn income from the presence of cryptocurrency.

Having a tax is already on our side especially we purchase on the different establishment around us since it is mandated to our government. Likewise, here in crypto currency community in which they want a tax in order to have a share for their own income. I definitely agree that there is nothing wrong having a tax but to the fact the it should be valid.enough to be good of many.

People see crypto currencies as the best way to avoid taxes that is why governments also targetting crypto users and asking for high taxes.We have to pay the right taxes for the real adoption happens or the government will push ourselves not to use the crypto currencies by any extreme.

Main problem on some countries that do have corrupt government where these funds isnt used on the right path or on the right thing this is why we do see
a certain progress of said country.

Development and progress will vary on how its being used correctly and knowing that Tax is a must for a citizen on such country. Crypto taxation? possible but when its already converted to fiat.

In fact, the tax on cryptocurrencies is formed because the government wants people not to participate in transactions there. It's quite risky and dangerous, because there will be money laundering factors and lots of scam components. High forms of taxation indicate that the government is paying more attention to the people. In many Southeast Asian countries, the majority of governments do not allow the use of cryptos to trade and to minimize the fact that people give up their main jobs to depend on "virtual" assets. After all, they do not prevent us from making money so well, we are free to make money and pay taxes like ordinary people.

Then it's best to never cash out your crypto unless you need to (like in emergency situations, etc). As long as you keep your crypto in a wallet without converting it to Fiat, you may never need to pay tax out of it. You need to be careful not to disclose your crypto balances to the public, or the government will be on your tail for tax compliance. Considering that most exchanges in the crypto industry are centralized, they'll require identity verification to process Fiat withdrawals. Your best bet would be to trade crypto to Fiat in a P2P manner. And when I say P2P, I'm referring to trading crypto in person for physical cash.

Other than that, you'll be subject to paying taxes once you exchange crypto to Fiat in a centralized exchange. I know that paying taxes on a volatile currency seems ridiculous, but that's what most governments (like the US and the EU) have imposed nowadays. If you want to comply with the law and be okay with the government, then it's best to pay tax off crypto instead of going to jail. I'm sure that most people would do this, since they have no choice after all. What's odd is that governments are requiring taxes from crypto when it's not considered as money or legal tender worldwide. With the regulatory uncertainty and lack of guidance within the crypto industry, most people have been unable to fully comply with crypto taxation in every way.

Nonetheless, time will tell us whenever governments will be successful at taxing crypto or not. If they become largely successful at the task, crypto will be here to stay. Otherwise, expect to see a massive crackdown on the entire crypto industry as we know it. Just my thoughts ;D

I believe the goverment has still good heart for the people but i don't understand why they put taxes in crypto when in fact they cannot legalize bitcoin as a currency.

Maybe it's just a sort of humor for those people who want to carry out the legalities of bitcoins and altcoins but unfortunately I don't really think that this time will be happen since for sure the certain market condition nor  the volatility will create a confusion to the authorities to trust the relevance of it. But also it cross on my mind  maybe they can't really legalize it due to the fact that they can't trace out the users because of its anonymity.

Although the government is looking for a way to collect taxes from crypto when the sector hides too many people who launder money and evade taxes but to the best of their ability, the only measure they feel extreme and can prevent this situation and force people to pay taxes, it is off the internet. And this measure obviously brings more losses, rather than benefits, until now, the problem of taxation on crypto has not yet taken measures, perhaps in the future it will have but it is too late.

No its is not too late to avoid the tax implementation for the right cause because only a small amount of people using cryptos for now so governments have to take measures as soon as possible so they also could make benefits rather than tax evaders.

From the point of view of the government, they are right, because they tax traders in their favor. From your point of view, they are wrong because they encroach on your money. I think that when the government taxes something, it should give equal value rights, insurance funds and legal protection. Otherwise, it's just a robbery.

Unfortunately, it's flat out robbery. All they care about is to have their pockets filled, and whenever you want to pay your taxes and make a mistake, they will threaten you with hefty fines and possibly even prison time.

The sad part is that when you are eligible for a tax return, it could take months to actually receive it (complaining will not work), while if they think you owe them money, they want it right away and you can't even be a day too late.

KYC is really one of  the worse things that hit btc, even localbitcoin has made it seriously mandatory without KYC you can't trade, almost all the platforms now, P2P or not. Taxation now depends on where you live some places in Europe take 40% that is when the govt really comes out to get you, i know from experience, some EU states will paint it good for you to come in only or them to rip you off when you start getting stable, i just think that this is just the govt scheme to oppress the weak to abandon crypto.

In the real world, the word tax is existing. This is a method that a person who wants to buy or sell something of their things has an additional cost as a payment for the transaction. To be more related common example is just buying a fruit in a grocery store the fruit has a lower price and then the by exporting the price of the fruit has an additional cost because of the transaction to deliver, and you will buy a fruit now with a tax those are like a service fee, today there is no free by just doing anything you need to play. Like in cryptocurrency the websites or the software you are using has a converter to different coins to earn also they getting an additional fee for using their software as your conversion for your needs that the tax runs out.

absolutely true if they only regulate crypto for tax alone I think it's something funny and there is no protection at all,
but the positive is bitcoin and the crypto currency is recognized

It didn't hit Bitcoin. It hit centralized platforms providing a service to people. It was bound to happen because the easiest targets are centralized platforms.

I honestly expected regulators to step in sooner, but it seems that they either didn't take this space serious enough in the past, or they just didn't know how to deploy their regulatory framework covering everything related to crypto. If I had to guess, it's probably the latter because governments in general are super slow to catch up to new developments in the internet/tech field.

It won't take long before Yobit is one of the last standing centralized non-kyc exchanges.  :D

Taxation can be a very beneficial system for improving lives of common people and their economical standards but the problem is corrupted governments who do not care in the least about the citizens. Politicians are common people like others before they join politics, but afterwards become landlords by robbing national banks. All the existing methods have failed and only bitcoin and altcoins can resolve financial problems.

Its true that they were afraid of people will not pay their taxes if they adopt cryptos that is why they are taking regulatory measures on every centralized crypto related platforms so that they can record 90% of crypto transactions and ask taxes based on that.Its not a bad idea to ask taxes for cryptos because governments needs taxes from every citizen that is how they maintain expenses of their nations but they have to mark cryptos as legal tender not as an asset so people will pay less than the current value which encourages more people to use cryptos as currencies.

Governments weren't skeptical about bitcoin, no, they know pretty well what's pros and cons of it. Do you really think that in government people look world in different colors? And they are stupid enough to not understand what's bitcoin and how/why it's used? They know it well but want to benefit themselves, not you, that's the problem. Despite the fact that some country don't consider bitcoin as a currency, taxes are welcome for that. They say different thing and do different thing, I think it's 100% clear, at least elections are pure example of it.

The people assigned to create policies that are perfectly tailored to fit the exact description and characteristic of crypto are failing because they are not really knowledgeable about cryptocurrency. From very limited knowledge comes bad decisions. They craft regulatory policies that will make the function of crypto limited in a way that it will lose its real purpose. Crypto is not an asset. Crypto is money. This very basic misunderstanding is enough to produce more erroneous policies such as the one related to crypto taxation.

I think governments won't allow people to escape from their taxes just because they are dealing in cryptos. There is a pretty huge economy working on cryptos. When on private key wallets it's impossible to trace out people so I don't think there will be any tax but once it goes into dealing with exchanges taxes might come in. But I am sure revenue authorities won't contact exchanges with such a vast information because such an enquiry would take place at a very extensive scale and it would be very difficult to escape if you happen to stuck in it on a later stage so we all must pay our taxes on our Incomes.

KYC is indeed troubling traders but let’s just hope for the best and definitely things will get settled with time. With taxation, no matter where a person lives, the problem remains the same. Not all the countries of the world corrupted but with non-corrupted governments, the tax rates are very high. Moreover, if we look at the main agenda of this technique, then it is just people spending money for   having services. So nothing is blessing on the end of authorities.

Well we can see KYC is the hindrance because people wont get into exchange that need to pass KYC because there are still some exchanges does not obeying on KYC process but once it is mandated by law we can see a good effect in the price and in regulation in cryptocurrency.

Crypto coins cannot be taxed due to their nature and anonymity. Although there are some centralized crypto currencies, no one prefers these crypto currencies just because they will pay taxes, so the states cannot receive taxes from these transactions. But there is a case that states can follow our accounts in crypto money exchange services and tax us on our income here. For this reason, it would not be very accurate to say that crypto moneys cannot be taxed, but they cannot be taxed.

Most of the cryptocurrency transactions can be tracked in blockchain (besides the private mode of anonymous crypto) - the more transactions you make on a single wallet, the easier it is. And of course, they can be taxed. In many countries, they (like all other goods you can invest in) are already taxed under income tax. And if you do not present the profits on your tax form, it is often a criminal offence to hide your profits as it is a clear example of tax evasion.

The only things which may not be clear enough are:
1) when the tax obligation arises - on the moment you sold the crypto, or in accordance with their value at the end of the year/fiscal year.
2) especially in case of people who own cryptocurrencies since the very beginning it may be hard to show to taxation authorities that the cryptocurrency is coming from a legal source (as in most cases there was no bill/invoice issued)

The KYC is really making it hard for us to escape all these taxation, although they were not getting crypto from us but only fiat, its still a form of tax that they wanna get from owning crypto. We got what we want though. We want adoption and they need to regulate and I guess this is a fair trade off for what is going to happen. Tax may change for each country when in the future our country also have digital currency and I guess that's the digital currency they will get from us and not BTC.

Since crypto currencies are considered assets, they can be taxed by the local authorities of our countries according to the laws, and these taxes aren't cheap if you follow the rules strictly. I don't agree with this, but there is nothing I can do, as the law works to benefit the government, not the people.
The tax should be defined on the moment you exchange crypto currency into fiat, considering currency price on the moment of the selling.
Yes, on the moment you sell the currency is more accurate.

That's certainly true, mate. It's sad to see crypto being taxed, after being unstable in prices. After all, most governments don't consider them to be legal tender. But these entities still tax them, to benefit themselves in every way. For the average person, this may seem unfair but it's the law. As long as you comply with your crypto taxes, you'll be safe from going to jail anytime soon. If you want full discretion of your crypto funds, it's best to use privacy-oriented coins like Monero or even Grin. At least, you'll avoid governments being on your tail most of the times. Once you deal with privacy coins on centralized exchanges, expect your balances to be exposed to the government for taxation purposes.

In the end, governments might win the battle over crypto taxation. All we could is obey the law to retain our "liberty" or freedom in every way. Once governments are able to successfully tax crypto, they'll pave the way for the whole industry to grow without disruptions. I believe that transparent cryptos like Bitcoin, Ethereum, and others will have full support of worldwide governments while privacy coins like Monero, Zcash, Grin, and Beam will become the #1 target of governments within the mainstream world. These coins won't be able to last for long if governments declare them to be illegal in every way. People will stop using them, leaving transparent coins like Bitcoin and Ethereum on the scene for a very long time. Just my thoughts ;D

Currently, governments can only tax cryptocurrency exchanges and users in those trading networks. Apart from the exchanges they manage, there's no other way to collect taxes. If they want to collect taxes on Crypto users, they need more specific and complete rules

Unsurprising. It's all about getting their share. At least in my country they only take their "cut" when the crypto is sold aka cashing out.

They can only really collect (legally) from these KYC exchanges anyway that's why they are going hard on them. Anything outside that and they'd have to do a lot of monitoring. It might become more routine though if transactions outside these exchanges become more and more common.

what government want is money, no need to know where come the money from, as long as it can be profit from government, they will take it. there are many funny way that government do to take money. in my country, they have health card, you must pay for it, when you are jot pay it, collector will come to you, like force you to pay it, which is health is the important thing for society. its good, but they have bad system

If the system is bad, everything that comes from it could also be bad. The rest of the policies or laws that are emanating from a bad system are like vehicles for the perpetuation of this bad system. The people who are taking the better of it will be the ones who will benefit from all those. Taxation is one of the most effective vehicle of this. Taxing crypto is like dragging crypto into the old bad system that will not benefit crypto itself nor its end users.   

Governments will continue to study cryptocurrency and establish new rules in order to tax cryptocurrencies and we won’t go anywhere. In general, taxes will need to be paid so that the cryptocurrency is not outlawed by them. Of course, as always, whenever possible, we will avoid paying such taxes. So it was and so, perhaps, will be in the future. Any state has the right to establish taxes on any type of activity of citizens that brings them income. All the reasoning that this does not concern them does not make sense.

Every Government is running with the money from the people, So Government is ready to serve their people because of the taxation. I think cryptocurrency would get enlisted to the government if this system is included in the taxation system. when the government will get benefitted by this system then obviously the government would allow this platform within their territory, we know that tax is being used for the welfare of the people, it's very certain that they will find the proper way to minimize this issue and cryptocurrency will get accepted and legalized around the world very soon.

And I don't want that.

It is not that I don't want to help my country but sometimes, there are those times that you think that they are getting too much.

Cryptocurrencies are great since they are decentralized. That is the reason why a lot of people want to use it since it is anonymous, the government will never track our records or transactions. It is also a way for some people to avoid taxes. I think it is also efficient for us to earn money without any government or other people knowing that we are earning money. I don't want people to know something like that.

That is why if a country implements cryptocurrency is not illegal because they have already taken tax from the exchange, for example in my country now every cryptocurrency / commodity / forex, will be charged expensive fees if they want to establish a company.

The point is that the government does not want to take risks and does not want to make efforts to take care of cryptocurrency, they throw all it's affairs into the exchange.

That is so unfair, the money in crypto is the citizen's hard work and yet the government will just get taxes out of it. That's so irritating, I hope they consider first the crypto as money before they do that.  They just get it from exchange and that's so disturbing.

One day, crypto will just become a normal currency that many will use. Exchange also should be tax-free and let the people or citizen cash out their money without deduction.

Taxation is followed everywhere, maybe very few countries were free from taxation. Governments tax depending on the economic condition and the need in advancement. In most of the cases the economy completely depends upon the return got as taxes from its citizens. To make this taxation fair what's been got as tax needs to be used for the goodness of the citizens. Very few countries does it effectively. When we doesn't want to pay taxes we can't expect benefits from the governments.

It's just that if you will keep your bitcoins in your wallet then no one can take taxes from you as your private keys are only with you and no one can take out your bitcoins if they don't have your private keys. And if government start taking your money from the exchanges then we will have to keep our money in our wallets and when we want to sell our coins then we can do p2p trades instead of going to exchanges.

Indeed. If we don't want to pay tax by using cryptocurrency, then don't expect that cryptocurrency will be adopted by different countries. It doesn't mean that they're asking for tax, they're already taking advantage of us. Tax is part of us. They use money to run the country using the tax paid by the citizens. There are government officials that are corrupt but the main purpose of tax is for the country itself.

You have a point but actually our government are all wiser than we think, for sure they will not let this to happen and will do something that will make us panic and will disclose our earnings in crypto so that we can pay tax, so for now, they might not that too strict so we can enjoy it first, but here in our country little by little they are making tax regulations on it.

It is indeed possible because the government can regulate it, they can ban it, they can also take tax to every investors or users of cryptocurrency. But I am thinking how they can od that because we all know that cryptocurrency is decentralized meaning they do not know how to get some taxes since there are no organizations or groups of people running cryptocurrency. But maybe they can give some taxes to the banks who are accepting cryptocurrency, the idea is that they can give taxes to those people who are withdrawing their crypto using that particular bank.

Cryptos are no longer anonymous. The long secrecy thing has been spoilt with the introduction of KYC and am sure the founders of cryptocurrency will not be proud of this development. On the taxation of cryptos, sometimes I imagine what it was like when we used cowries before making a switch to paper money. How did the government get taxation during that time, am asking.

Indeed bitcoin become legal transaction I think is good way for bitcoin's taxation but how come to get tax for bitcoiner, many country not regulated bitcoin as legal currency payment but when country have allow using bitcoin and pay taxes how to know who use bitcoin or not,  always have way how to manipulated document and data with bitcoin transaction.

Life isn't fair.

You make a website on TOR and get sentenced to life in prison for it.
You sell bitcoins for cash in the USA and get treated like a criminal and put in prison with all the murderers and rapists only because you don't have a "money transmitting license". Why would you need a money transmitting license if Bitcoin isn't officially recognized as money?
There are people prosecuted for small mistakes of getting high or forgetting to file some government papers. Your taxes aren't a big deal as long as they aren't higher than 20%. Some countries are stealing over 30% of your income and that's really abusive.

The legislative framework for cryptocurrencies has been adopted in a small number of countries, and so far the sphere is uncontrolled, not to mention that very few have heard about cryptocurrencies at all and I understand why all this is necessary. It’s definitely not a thought to pay taxes to anyone until there is a clear explanation that he wants us

Exactly. As long you keep trading crypto on centralized exchanges, you'll be subject to paying taxes on your crypto funds. There's virtually no way governments will be able to enforce crypto taxation on decentralized exchanges and P2P marketplaces. The situation becomes even worse with atomic swaps as the exchange from one coin to another happens between chains without the need for a middleman whatsoever. Once governments see they're unable to tax crypto in their entirety, they'll most probably ban the whole ecosystem as we know it. If this becomes a reality, then people won't be able to use cryptocurrencies as they normally would, greatly diminishing the value of the entire crypto market. One way or another, crypto needs the governments' approval to succeed within the mainstream world.

The other choice governments have to make people pay their crypto taxes, is to implement strict regulations to the entire Blockchain industry. Perhaps, they won't allow developers to continue working on decentralized solutions such as non-custodial mixers, decentralized exchanges, other privacy tech, and even P2P trading software. If they manage to do this, then crypto will be entirely subject to centralized exchanges as it'll be the only way people will get access to them. We'll see how everything unfolds within the future as governments start rolling in their own digital currencies for the world. As governments want to maintain supremacy, they don't want alternative payment systems taking over the existent financial infrastructure. They have already rejected Facebook's Libra stablecoin, and they can do so with crypto until Fiat is the only form of payment used within the mainstream world (as it was before crypto's inception back in 2009). Let's hope that everything turns out great in the end for the growth of the crypto industry in general. Just my opinion :)

There's always time to change things. If enough people rebelled against taxation in their country the government would have to change policies. The government is strong only because it has support of the majority and people are scared to do something. They will write in the Internet how taxation is unfair but never really protest because it takes more effort to do so.

Governments simply develop national funds from the money they collect from locals in the form of taxes. No government official is using money from his or her salary or personal savings. Whatever facilities they give to public are from the money of public even their salaries as well. Definitely governments will try rather are trying to figure out a method of charging taxes from crypto holders.

Sadly, that's the hard truth we're facing nowadays. Many people complaint over the web, but they don't take efforts on protesting against an unfair rule/law imposed by a government. As long as people allow crypto to be taxed, governments will continue with the endeavor. It's so much easier to tax crypto today than it was since crypto's inception back in 2009. This is mostly because centralized exchanges dominate the space. Most (if not all) of these exchanges are required to comply with KYC/AML laws allowing governments to easily track & trace a person's funds for taxation. With decentralized exchanges, this is no longer possible. The situation is even worse for governments when a person uses mixers/tumblers or even privacy-oriented cryptocurrencies like Monero and Grin. This way, it'll be hard (if not impossible) to tax every person using crypto within the mainstream world.

Whenever governments will be successful at taxing crypto funds or not, it's yet to be seen. The Blockchain industry is still not mature after 10 years since its inception. There are a lot of flaws to be discovered, and issues to be solved in order to help fulfil Satoshi's vision of decentralized finance. If governments find out that their actions were in vain, then it's likely that they'll crackdown on the entire Blockchain industry as we know it. Time will tell us the fate of Crypto Taxation as crypto and Blockchain tech grows into a "force to be reckoned with". Just my opinion :)

I agree that the way a government taxes cryptocurrency can affect how it is used. The US requires capital gains taxes on transactions which will prevent cryptocurrency from being used as a regular payment method at least for small purchases.

Because they still haven't figured out how to control it entirely, accepting a new monetary concept while they haven't figured out the best way to control it is so risky. At least, they have made the right moves to accept it as a high-risk digital asset, although that's not so common.

I also had to think a lot about this issue. The nature of crypto is not wrong, but because its privacy is so good, it makes the government have to think and worry a lot about the future of cryptocurrency.

the government can only track taxes from centralized exchanges and system that makes users must comply, can only target those involved in jurisdiction. They cannot intervene further towards coins which remain active in privacy outside the exchange, unless they have many criminal cases to use as evidence. There is still a lot of decentralization that will run normally, the government's goal can only be to reduce the expansion of activities outside of tax control simultaneously.

Indeed. I think no one person would like to have a tax upon having transaction in cryptocurrencies, people are preferably earn through crypto market simply because it is away on taxation as a matter of fact even transactional fees is a big deal in crypto community. I think it will be tough for government to impose a tax in this kind of system due to the fact that this cryptocurrencies are decentralize and cannot be fully manipulate by anyone.

It is natural if America gives its tax to crypto currency holders, but it is unfortunate that they provide taxes because of their use as a medium of exchange, this is unfair in my opinion

It won't be that easy to get tax from Bitcoin or the like. Because people will probably never get back to paper money. Cryptocurrency will dominate the trade. I think the fear of states should be in this direction. Instead of returning everything with tax. I propose a spontaneous order.

Not really, the government once figures out our address where we save up our crypto in the past or present that could pretty much track where it's going considering that most of popular address provided by exchange haveg some kind of name label, if the government want to put additional effort they could leak everything out of it.

How exactly the government be able to track down our addresses if we never signup to an exchange which linked to our privacy id and bank account? If I just use a wallet not provide by exchanges, how they get to know who own the address? @youdacapt was right, I agree with his opinion, if you don't want to recognized by the authorities that ever use bitcoin, just stay away from exchanges, keep your bitcoin in private wallet such as bitcoin core, electrum, etc.

There are a lot of discussions about bitcoin taxation. In fact, it's a false problem: at some point, bitcoins are like points in a video game.
The fact that they have a "value" is irrelevant, at least until you try to convert it to fiat.
But even then, there are several systems of "solving the problem" ...

I think that Bitcoin has bigger problems than taxation. Lack of positive regulation and integration into financial and economy system are some of them.
As far as I know majority of countries don't tax Bitcoin or other cryptocurrencies itself, only the transactions to fiat and that isn't present in all countries, only some. So I don't think that some very big number of Bitcoin users is affected by that and I don't see Bitcoin taxation or better to say taxation of Bitcoin exchange transaction as some huge problem.

In my country, no, Bitcoin was taxed. There is one that pays the tax who has the mining farm, and he rents a room.

How could taxation can be issued where there is no wide rules and regulation by Government about crypto. On the other hand in flat money government can trace money so that we are bound to give tax in our income but here government can not trace our transaction and income-expenditure.

For kyc i think it does not work truly. In transaction many country people involved where maximum government does not know about crytpo and maximum time people give wrong information which can not be trace by KYC require team. So i think KYC is nothing and it only works in bounty.

When you rent a room, definitely you are in paper works and you have to pay for the place. That has nothing to do with bitcoin taxation. But if the person is being taxed because he or she is owning a mining farm, then this could be in one way called taxation of bitcoin. I am curious that just mining has been taxed or transactions as well. Government shall not put taxes on mining because it is already very hard on the pocket of a miner.

If government is heavily taxing mining and transactions then this is not right.
In my opinion they should tax transactions, but let miners do their job.
Other way taxation of miners will scare them off and it will lead to Currency's price getting higher.

I think that governments are "testing the waters" with their implementation of taxes within the crypto/Blockchain industry. They know how volatile prices are, but are doing their best effort to tax crypto from people in the mainstream world. If successful, you could expect crypto to get the approval of governments all around the world. Otherwise, there will be a full crackdown on crypto and Blockchain technology as we know it. I believe the main reason why Bitcoin and most other cryptocurrencies have survived is because of their transparency. Cryptocurrencies which rely on privacy solutions by default (like Monero, Grin, Bean, and so on..) may not last for long as governments will disallow people from using them. Once they're banned, most people would not want to transact with these cryptocurrencies. Only a small portion (mostly crypto enthusiasts) will continue to use privacy coins despite being banned by worldwide governments. After all, these digital assets are nearly impossible to track making them impractical for taxation.

As long as centralized exchanges exist, governments will be able to effectively tax crypto from their citizens. It's no secret that most (if not all) centralized exchanges require their customers to provide ID verification. This, alongside the record of trades performed on the exchange, can be used by governments in order to enforce crypto taxation among its citizens. However, decentralized exchanges makes the government's life harder as it's nearly impossible to track people in order to perform crypto taxation. This, combined with privacy coins, would leave governments out of the equation (which is something they're afraid of).

Nonetheless, time will tell us what will be the outcome of crypto taxation within the mainstream world. I'm sure that worldwide governments will give up doing this, since it's nearly impossible to tax every single person using crypto and Blockchain technology. With decentralized solutions such as decentralized exchanges and privacy coins, people will be able to achieve financial freedom without the need to worry about government intervention. Just my thoughts ;D

The government has always wanted to control the income of its citizens and receive interest on the profits of each person.  That is why there appeared the possibility of cashless payments in different areas of human activity, while advertising the improvement of services for each person, but at the same time using bank reports to control each person.  Thus, the state understands how large the volumes of the financial turnover of the cryptocurrency market are and therefore they want to purchase another article for the taxation of their citizens.  At the same time, they do not want to legalize cryptocurrencies, but nonetheless try to tax each user of cryptocurrencies, possibly even hiding behind the fight against crime financing or laundering money obtained by criminal means.

for the time being what actually happened has been taxed, even though the government hasn't ratified it. when we are going to exchange currency fiat at a local exchange, then right away we will be taxed. the official exchange of course requires legalization from the government, so the government can impose a tax rate on that exchange

If you are using a centralized exchange or a registered site for conversion, you are already paying taxes through the site or exchange you are using. That is right. It is already taxed in that way. Each and every registered and therefore legal business are paying regular taxes. But if you use decentralized exchanges or P2P conversion of your cryptocurrencies you are not taxed at all. You are not paying any fee for that matter.

That is the nature of governments, as long as you are getting some profits of whatever you are doing they want a cut, believe me they would like to make cryptocurrencies illegal but what argument can they use? In the case of drugs they can argue it is bad for your health and they want to protect you but they cannot use that argument against cryptocurrencies.

As such they are trying to slow it down and one perfect way to do this is by taxation, they will impose all kind of laws and contradictory regulations so companies refuse to deal with it and the rest have to pay huge taxes to them.

You put it like taxation is a simple scam to steal your money.
Govs taking a cut because it provides us a community, good laws and etc.
If we want cryptocurrencies to be a part of current world - we gotta sacrifice something to govs
Other way we shouldn't pay taxes AND should build new decentralized type of society

Your views like this that increasingly make the government think that bitcoin/cryptocurrency can be used as a tool to avoid or violate government regulations. Come on, if you want the cryptocurrency world to be more advanced, synergy with the government is needed not to eliminate the decentralized nature of bitcoin but rather to become

One citizen like you demands the government to provide employment, improve education and health facilities, and create a safe and crime-free environment. But when the government asks for your contribution to the country, you refuse on the grounds as if the state wants to rob your property.

I am sure that if the government knows the tax potential of cryptocurrency/bitcoin, many state officials will rethink to legalize bitcoin. If it is legalized, the state will create an instrument of monitoring (not controlling) cryptocurrency transactions. The ultimate goal is to increase foreign exchange.

Give up your enthusiasm for taxing Bitcoin. If you officially bring a tax on bitcoin, you'll officially recognize it. People make trading with Bitcoin more common. States can lose control over the economy. Unexpected results may occur.

I did not made the argument that paying your taxes is bad, my argument is that governments will use taxation as a weapon against cryptocurrencies, in many countries governments want to obtain taxes out of cryptocurrencies and that is acceptable but they do not want to give a clear legal framework in which people and different businesses can operate.

This is intentional, they do not want you to feel secure when you use cryptocurrencies, also it is obvious who is the one that does not want cryptocurrencies be part of the regular economy when all kind of obstacles are put forward so you cannot cash out your coins.

the strategy might be carried out by the government, where without providing legal protection for the cryptocurrency legality, the government can collect taxes from crypto. we know that legitimate local exchanges stand as exchanges, of course they are taxed according to the rules

A little from my thinking. regarding crypto tax but we do not get benefits such as legalization or receipt of crypto as a means of payment, you should not pay the crypto income tax because there is no right while we have made the obligation to pay taxes.

From what I know the government has benefited from the local exchanger business which is a gateway for crypto to fiat. like business in general, some things must be paid for and provide data to the government like KYC. it is from my knowledge that I have been involved in the government system.

I feel the best way to tax crypto earnings is to put taxes on capital gains, it can be in slabs where taxes will increase as you go up. It should not matter how much a person trades rather the taxes should be put on the money he wants to take out and spend.

Whenever every year we people goes for tax filing that time we were finding the people are trying to sell the bitcoins for more number and it will be the good if the people accept the cryptocurrencies mode of payment for its taxation.
But I am not sure what is the real issue and legalization problems with me.

Good point. Personally, I don't have issues paying taxes on my crypto as long as the government does it fairly. After all, taxes are also deduced from traditional Fiat currencies. What I don't get is why governments still want to tax crypto when the same is highly volatile in price across the market? Prices going up and down would make it somewhat complicated for people to be able to comply with taxes. Also, the decentralized nature of crypto makes it nearly impossible to be able to tax down every user's balance. Off-chain transactions, and privacy-centric transactions are hard for governments to track them down. In the event crypto becomes "untaxable", governments worldwide would simply ban crypto and Blockchain in their entirety. I hope this doesn't happen in the long run. Governments might end up using analytical tools (like Chainalysis) to keep track of their citizens' taxable income.

With widespread approval of crypto and Blockchain tech by worldwide governments, we can expect the industry to grow for the foreseeable future. Crypto taxation might be needed in the long run, in order to keep the space as legitimate as possible. Time will tell us how successful governments will be at the task as the space becomes more mature within a couple of years from now. Just my opinion :)

Isn't the IRS taxing capital gains already but not doing it the way yo have described?

They want you to pay for your unrealized capital gains. If you hold a bitcoin and it goes up in value by 1000 dollars they want you to pay a percentage in fiat money even when you are still holding. Next year if it goes up by another 1000 they will again demand you to pay and on and on until you sell and be done with it. This is so bad i'm happy i don't live in the US.

They want to tax the cryptocurrency because want it to be regulated. If there is a tax imposed by the government for every withdraws and deposits, therefore more people will think also of their loss. People wanted crypto because it is decentralized and no tax. But for me, it is good if there is a tax. Especially that most of us here is earning a large amount of money.

I think the purpose of decentralized is to make each users control money and not one entity controls the market. Government would have to find and pay people who would actually make codes to tax this. Easy to say to add tax but it is hard to control and centralize cryptocurrency again.

Yeah you’re right, the government always wants to take tax from every business and when it’s not working out for them they declare it an illegal asset and try to prevent their citizens from making use of it. That’s why they are trying to take total control over centralized cryptocurrency exchanges by regulating them, since they can’t regulate cryptocurrencies like Bitcoin directly due to its decentralized nature, centralized exchanges now serves as a gateway for them to gain access into the crypto world and accomplish their plans.

I guess for the sake of welfare of our nation, anyone will be preferring taxes but only for availing goods and services and not for the income. This is my personal opinion and everyone must be having their own view on paying taxes for building their country stronger.

Tax object is a source of income that is subject to tax. Crypto tax for individuals is usually related to income tax. The object of the tax is income, that is, any additional economic capability received or obtained by the Taxpayer, both originating from domestic or from abroad, which can be used for consumption or to add to the wealth of the Taxpayer concerned, by name and in whatever form.

The tax officer target is not bitcoin or cryptocurrency, but the amount of our wealth in the form of fiat, other assets or in the form of bitcoin or crypto. The taxman is chasing our wealth that we might hide in crypto. The government statement was clear from the start that crypto is not considered a legal payment tool even though it is not prohibited, we ourselves choose to save our assets in the form of crypto. So the tax on crypto is not a government weapon to fight crypto either directly or indirectly.

Whereas for exchanger other than income tax there is also a value-added tax, assuming services provided by virtual currency exchange service providers cannot be classified as financial services, so if the company has passed a certain turnover limit then it must be confirmed as a Taxable Entrepreneur. In effect, every Bitcoin sale made by this taxable entrepreneur is subject to VAT.

I have pretty much same opinion regarding taxation and centralization of crypto currencies especially that of bitcoin. Bitcoin is something which people loved because of its decentralized nature and because it gave people an alternative way of making money without any influence from government. We simply can conduct a poll on forum in order to check whether crypto users are okay with taxation or not.

Any government is constantly looking for ways to rob its citizens, often in the most unfair way possible.
Bitcoin - in Satoshi's intentions - was born precisely to defend itself from this constant thievery.
Obviously, you need to be careful, but with a little attention you can still move anonymously.

The issue of cryptocurrency and tax has recently become popular. States may want to derive a tax income from this situation. But this is not a simple matter. How will they get the tax as bitcoin? This is a very complicated issue. I don't think it's possible for now.

There a lot of people who want government to do many good things but also not wanting to pay their taxes not because they are actually trying to steal from governments but because they saw that their governments take the money and not do anything good with it.

Living in first world nations will make you question if you should pay your taxes or not and I can understand that, if I was an UK citizen I wouldn't mind paying my debt, but do you guys realize how many third world countries have governments that take insane amount of taxes from you and basically asks 2x of what stuff cost and then do absolutely nothing with that money?

They literally steal from you and fill their own pockets with it, so of course we all want governments to provide stuff for us and we should pay our taxes for it but if our taxes goes to waste then I am sorry but I will try to find ways to not pay my taxes until government actually spends it on good stuff.

Please do not use the crypto system with its anonymity and decentralization to legitimize your reluctance to pay taxes. If the government gives you the freedom to make a self-declaration of the tax value that you must pay without having to know the source from where, will you calculate and report your crypto assets?

Don't say the government is corrupt as an excuse not to pay taxes, because where have you been all this time. The one who serves in the government and represents your interests in the legislature is your choice, and even then if you use your voting rights. If you do not use your suffrage correctly, it can be said that you participated in the formation of a corrupt government.

We are cryptocurrency users and we have faith that cryptocurrency will make the world better. So it never hurts us to proactively socialize that the legalization of cryptocurrency can bring more tax revenue, in terms of trade, in the digital world the volume is usually 10 times that of trading in conventional markets. Meaning greater tax potential.

Be a critical and curious citizen to drive tax revenue, digitally make everyone well connected, use digital media to eradicate corrupt practices, so that taxes are used properly and on target.

Exactly. That's how governments work. As long as they're able to collect taxes out of anything, they'll consider it legal. This makes me wonder if privacy-oriented coins like Monero, Grin, and even Beam will be able to survive in the long run? Because the way they're designed will make it impossible for governments to tax them properly. This could render these coins "illegal" in the long run. Only a select few privacy coins like Dash and Zcash will survive in the mainstream world as they do not enforce privacy like Monero or Grin. While crypto taxation will be quite a challenging task to achieve from worldwide governments (due to the decentralized nature of crypto), they could easily require centralized exchanges to comply with KYC/AML regulations to make the process easier than ever. Transparent coins like Bitcoin, Ethereum, and Litecoin will survive for a long time as it's possible to track & trace each transaction to require users to comply with their taxes.

It's still today, yet many people don't know how to comply with their crypto taxes accordingly. This is largely because there isn't a proper framework from worldwide governments to tax this new kind of money. The industry being only 11 years old, has a lot to go through before it's legalized in every way. As long as we do our part to comply with governments' regulations, they'll give the green light for crypto's growth within the mainstream world. Otherwise, you could expect adoption of crypto and Blockchain tech to decrease over time as the industry is declared illegal by worldwide governments. No one would want to use something that's illegal, even though they can still access it. Time will tell us what will the outcome of crypto taxation will be within the mainstream world. Just my opinion :)

Of course, I am not a supporter of the fact that the government levied taxes on me for everything that got.  Especially considering the laws the Supreme Council adopts in my country, people will soon have to pay taxes even for fruit trees.  Nevertheless, in all this there should be common sense, because by logical reasoning all state institutions exist at the expense of the state budget, which is filled by taxes, because the states no longer have their own industries that would support the economy and constant income in  State treasury.  After all, all social guarantees, as well as any structure, practically exist at the expense of taxpayers.

The cryptocurrency paradigm assumes your full control over your finances and, in some cases, complete anonymity of ownership of funds and anonymity in transactions. This model clearly does not fit into the structure of the state, which in its essence must control all the processes that occur in it. From the state's point of view, taxes should be paid, but this violates the anonymity of using cryptocurrencies. I think the state will continue to fight anonymous cryptocurrencies. However, the state normally treats non-anonymous cryptocurrencies if their owners comply with all laws adopted in this state.

Government would not allow us to just enjoy bitcoin as investment and a payment system without them interfering for their control and to tax us, I think that's the way the world goes, as long as we have the government to govern its people, tax is compulsory and they need to monitor us to ensure that we are paying taxes and to spy on us, that's how they work.

in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.

I am interested in the latest review, which in the end issued a country will make regulations that must be obeyed by its citizens. and of course the policies taken will benefit the country, but we must obey them because otherwise we will certainly not deal with applicable law

It will help bitcoin to attract more people to use it or invest in it because if the government order a regulation about cryptocurrencies then it is an obvious sign for the citizens that the government are acknowledging the use and purpose of cryptocurrency to their country so it is a win-win situation for the enthusiast and also for the government who will get more taxes for their future projects.

Exactly. Taxation is required in order for governments to function properly. Without taxes, governments won't have a "reason to live". It's interesting to see them tax crypto, when they've declared the same is not legal tender. It'll be difficult for citizens to comply with taxes on something that's decentralized by design. Not to mention, prices are volatile which greatly defeats the purpose of taxation. As long as worldwide governments tax crypto in a fair manner, there should be nothing to worry about. It's best to comply with taxes than evade them. If you go against what's already established by the government, you could be facing jail time. So you would have to choose between freedom (sort of) or jail time. In this case, it's best to cooperate with worldwide governments in order to maintain the legitimacy of crypto and Blockchain technology in general (and avoid going to jail, of course ;))

Crypto taxation becomes easier to enforce by worldwide governments, if the industry continues to rely on centralized exchanges. These services are required by law to comply with KYC/AML regulations to properly tax crypto from everyday people. The real deal would be decentralized exchanges and P2P trades, as it's nearly impossible to keep track of every citizen for proper tax compliance (decentralized solutions require no ID verification to use them). Imagine what would've been for the crypto/blockchain industry if everything was completely decentralized. By now, governments would've declared crypto illegal for mainstream use.

Nonetheless, time will tell us the outcome of government regulations whenever they'll impact the growth of the crypto industry within the mainstream world. As long as people cooperate, the industry will obtain legal recognition by the government. Otherwise, there will be a full crackdown on crypto and Blockchain technology. Just my opinion :)

Sad to say, it's just how things go most of the time. Even I am a critic of taxing cryptocurrency transactions since after all it defeats the purpose of cryptocurrencies being decentralized in the first place. But if you consider the fact that it'll allow cryptocurrencies to be much more accepted and accredited by your local government almost outweighs the feeling of being taxed. Until we can find a way to ensure cryptocurrency transactions safer and a bit more convenient than what it is now we might need to put up with what the government wants

It is decentralized, so how thr governement implement taxation in the cryptocurrency market. That's why it said that it is a threat from fiat currency because the government have no control over it. There is no tax in cryptocurrencies, it is one of the unique characteristics that attract many people in order to adopt it. I'm aware that taxation is important but it is hard to see that they will also require tax in cryptocurrencies.

I don't think we should even think about it but there are countries that already taxed Bitcoin.

This depends though on how they are using Bitcoin. If they are using Bitcoin in a company and they are accepting it as a payment or salary, they would be under the law of income tax and that would obviously be taxed.

When we do talk about directly on Bitcoin then its not really taxable but if it already involves 3rd party service then thats the time it would really be taxable.

This will depend on countries jurisdiction when it comes to crypto earnings if they would decide to recognize it as a taxable thing but on most cases that would really
be done.

bitcoin are currencies too but  the currencies are the ones that arent taxable right ? but its the goods or the service , or the property you own.  when you use your bitcoin for any of those things that i mentioned above ,  it must not be exempted by tax because that is inapropriate already  . there was a case against that if i remember and tax is one of the case that are popular because big time people tend to avoid it

Yes bitcoin itself is not having any tax issue but the things or the properties that we buy with bitcoin will surely be taxation. Crypto is independent and it has no legal connection with government taxes so just relaxed and keep holding the more you buy to hold the more you will earn from it and stop being trapped by any fake news related to crypto.

If that would be the case, the main purpose of bitcoin would be dissolve: its decentralization and anonymity. We can't really say that it is what is happening, maybe it is on the manner of use of bitcoin transactions. It is on how the two party decided on how to transact using bitcoin, might it be for buy and sell, or as a payment in the workplace that are a subject for government laws and regulations.

Does taxation have something to do with privacy anyway?
I mean there are some ways to tax crypto market without getting private data of each user and their transactions

Couldn't agree more with you, mate. It's best to comply with government's laws in order to maintain the legitimacy of the crypto industry. As long as people do their part, governments will take care of the rest. Otherwise, you could expect a full crackdown on crypto and Blockchain technology. I'm sure that mainstream businesses and companies will find out ways to properly collect taxes from their clients. There are several Blockchain analysis tools (Chainalysis is one of them) that will serve their purpose well in helping governments track & trace cryptocurrency transactions for proper tax collection.

Personally, I wouldn't mind cooperating with the government in order to continue using my hard-earned crypto funds. It's best to do this, instead of going against government rules and facing jail time. Most people will comply with crypto taxes in the long run, just to avoid having any troubles with the authorities. But we all know that crypto taxation, greatly undermines the purpose crypto was created for. Taxing crypto brings back the middleman one way or another. Sadly, this is the way to go for the sake of the crypto and Blockchain industry in general. Just my opinion :)

If the transactions remain anonymous, then the chance of tax evasion will increase and it will become easier to hide your income. The authorities don't want that and they want to extract whatever they could from the hard working individuals. On the outside, they will say that KYC and all that crap is needed to prevent terrorism and crime. But the real intention is to increase the tax collection.

I myself am from Ukraine and still live in this country and today, in fact, cryptocurrency is legalized and every cryptocurrency asset is recognized as a means of payment, a valuable asset and an asset for investment, but there is a certain framework for taxing activities on the cryptocurrency market.  In any case, no user will pay tax on the available cryptocurrency reserves in their wallets, but taxes will be levied only on very large transactions when trading cryptocurrency.  Since the cryptocurrency market in my country so far has been out of sight, that is, it was in the shade, we still have to imagine seeing how all this will work when citizens show interest in cryptocurrency assets.

You're saying cryptocurrencies do have actual legal status of a payment option in your country, but only big transactions come with taxes?
I barely can believe it, could you please proof, because if what you're saying is true that mean your country is a damn heaven for crypto traders

I totally agree with that. Governments always want to capitalize on everything that’s possible. And I’m sure that they won’t miss such a chance not to tax cryptocurrency. I don’t like it, but I don’t know what can be done about it.

Yeah, it seems illogical why government will tax something which is consider as threatening for country. Most of the governments oppose cryptocurrencies but when it comes to earn free money, they are ready to tax crypto earnings of citizens which is entirely wrong. We are generating wealth from something entirely created out of thin air. We are not using the resources of a country. Rather we are creating intangible wealth on internet using logics and powerful codes. I don't know how can government claim the share of our earnings.

I think you misunderstand how cryptocurrency is treated by governments across the world. Most countries treat them as commodities. Like any commodity, when traded you either make a gain or loss. To legalize the cryptocurrencies, categorizing them within a certain tax bracket is important. It does not hamper the decentralization process, rather enables the ecosystem to be more mature. Also, right now if you check, you will see most of the countries have legalized cryptocurrencies with only a handful (around 7) where it is still illegal.

Paying taxes is a broad philosophical question, and innumerous people have spoken against and for it. Hence lies beyond our control.

Exactly. As long as transactions are anonymous, there's virtually no way a government will be able to collect tax from you. They've noticed this already, leading them to wild ideas on how to get rid of privacy solutions within the crypto space. For once, the US talked about the possibility of banning privacy coins in their entirety (as these coins promote tax evasion and money laundering according to the government). If all the countries of the world start rejecting privacy solutions within the crypto space, then I'm afraid that people will be forced to pay taxes in every way. Personally I don't have a problem paying my taxes in crypto, but it goes against the way crypto and Blockchain tech was designed initially (which was to eliminate the middleman and counterparty risk).

Only time will tell us if people will agree unanimously with governments' decisions or not. If people don't complain about crypto taxation, then governments will continue with the endeavor without interruptions. It's up to you and me to make the difference in order to make crypto as good as it was in its early days. The mere fact that centralized exchanges dominate the crypto space, makes taxing crypto a piece of cake. Just my opinion :)

They will try harder and harder to make cryptocurrencies taxes to be everywhere in world and probably they won't stop there. Look at Libra how many difficulties they have to launch their project and the coin so if Bitcoin would have been created today I doubt it would have had the same success and trust like it has now.

In my country they already made cryptos taxable since last year but we have a lot of ATM's and easy access to buy Bitcoin and other cryptos but if we look on other situations from other countries , they don't have access to Bitcoin so easily or some other don't have access at all as cryptocurrencies are banned in some countries.

It is not that mainstream in our country but if it did, I am sure that it will be having a tax in the future. I don't know how would the government do that but for surez they will find a way. There are some exchange here in our country and they might find that as a way or a chance to tax users of crypto currencies here.

The thing is crypto relates to cash not securities like shares.   The exchange of value just by itself isnt a taxable event in most countries, gold for example is often protected from taxes as a holding.   Silver can be subject to sales tax because its used for cutlery and jewelry and is a bit more industrially used.    Its unfortunate if just sending cash makes a person requiring an accountant, luckily I'm not that rich either way.

I agree with your statement.

There exists a boundary between the taxation of cryptocurrency (which would benefit its users as it will provide a layer of protection and regulation) but it will defeat the very essence of it being decentralized and its anonymity factor. Bearing this in mind, is it worth to sacrifice decentralization for protection and regulation by the government? The answer will vary depending on an individual's experience but taxation in cryptocurrency defeats the vision on what Satoshi imagined when he developed this technology.

I guess the phrase 'getting the best of both worlds' is not applicable (at least for now) if we consider these circumstances surrounding cryptocurrencies and the intervention (taxation) by the government.

Exactly. Taxation goes against what Satoshi intended crypto to be in the first place. A cryptocurrency like Bitcoin was meant to serve as an alternative to the current financial system by eliminating the middleman. Taxing a person's crypto transactions, will make Bitcoin no different than regular Fiat. But I guess that most people will prefer to comply with taxes as they have no other choice. It's better to cooperate with the government instead of going against it. You'll be facing fines or even jail time if you avoid taxes on your crypto transactions.

Since people don't care about the decentralization of crypto and Blockchain technology, they don't protest against crypto taxation. Remember the phrase, "strength in numbers"? If a substantial number of people join themselves together against government-imposed taxes on crypto, they'll stop doing it. But as long as people remain quiet and do nothing about it, governments will continue with the endeavor. One thing for sure is that privacy-oriented coins like Monero and Grin are in real trouble, since it's largely impossible to track & trace transactions for taxation purposes. Only Bitcoin and other cryptocurrencies with a transparent blockchain ledger will survive for the foreseeable future (as governments will approve them in every way).

Nonetheless, I believe that the battle over crypto taxation will be a never-ending one. For once, governments were unable to tax crypto properly. But with the increasing number of centralized exchanges, it's becoming more easier for governments to tax their citizens. The dependency on centralized services by crypto has only made matters worse for the end user. In the bright side, crypto and Blockchain technology will continue to grow in terms of development and innovation. But, it won't be the same as centralizing forces will have a negative effect over people's freedom in day-to-day transactions. Just my opinion :)

Goverments are always in search for money, specially free money so they use every opportunity to get to them and cryptocurrency makes no exception. It is sad the fact that even păaing taxes for crypto it is somehow considered iligal.

The price of the specific item increases because of the tax that is included by the government. If the crypto is allowed to take place on every transaction that we are going to do, the price of a certain item will for surely gonna go down because the tax will be removed since cryptocurrency is decentralized, meaning no one controls it.

That's true, but it is not very easy to tax cryptocurrency. It is not a physical asset and exists only in digital form. So it is very easy for the users either to hide or manipulate the tax burden. Also, the decentralized nature of the cryptocurrency makes it vary hard to track down the users and identify them. And finally, a large part of the transactions take place outside the regulated exchanges, especially in peer-to-peer platforms.

But I'm sure these people on thw government will find a way to tax cryptocurrency somehow. Moeny is their main leverage and wherever there is money you could see your government hoarding the crap out of it. So I believe that past the decentralized nature of cryptocurrencies and whatnots, they'd still find out a way to charge people for using it. Unless, we find out who Satoshi is, he can put up with this and say that cryptos are something that are of his creation and therefore are not government properties. But this is unlikely. So far though, we don't see any taxations happening yet to any country you guys are right now so let's just breathe in the free cryptocurrency air while it lasts.

I don't see anything bad with being taxed too though. It's much better than having to deal with a ban you know.

I think that is good since if they taxed Bitcoin they will be thrown to jail if that is what you're saying.

I think what you are saying about the government is illegal since taxes should only be used in the country and to support the other two powers of the state. If they are using it for their own good, obviously you can report them. We are still in the time when Bitcoin and cryptocurrencies can't be directly taxed, they might or might not, more importantly, right now it is not taxable.

The only thing that will look worse is having a high taxation fee than the transaction fee, I hope it will not happen if ever crypto taxation in a county implemented.

Paying a tax using crypto will not be illegal if it has been issued by the government. So who will take the government into jail? Well, if an authority made a mistake of collecting tax like asking a higher amount instead of the exact amount which is not covered by the rules and regulations then you can report them on a higher position because it is considered as corruption. The government's public servants are meant to served not to serve them.

I'm sure it won't happen because it was obviously unfair for all of us. If ever a law passed regarding this taxation, I hope they should also follow the guidelines like they used on usual taxing. There's a specific percent should be only deducted on one's total worth and it must be in terms of btc too (disregarding the fluctuation of price).
This is what I'm worrying about. Since crypto offers more anonymous transactions, corrupt officials can now do their shady stuffs a lot easier than the usual :(.

Government doesn't want any one who will be able to transfer fund to prevent money laundering that is why they create a centralized exchange and make profit because of it. It is more like a tax that you have to pay even if it's a cryptocurrency which we all know there is no tax that we have to pay unless there is government behind it.

in any case, any cash flows should be controlled by the relevant authorities in order to prevent the financing of criminal organizations and criminal activity.  in one way or another, cryptocurrency users will have to come to terms with the fact that they will have to pay the corresponding taxes on their activities, after the cryptocurrency is actually legalized in the respective countries.  But it seems to me that it is likely that the tax will not be levied on storing cryptocurrencies, but on the performance of certain operations, such as cryptocurrency trading.  In this case, taxes will be paid by trading exchanges, and the user will pay a slightly increased trading fee on the exchange.

Absolutely right, we all know that cryptocurrency is decentralized which means there are no groups of people or any organizations that are running cryptocurrency. We can actually say that it is really hard to put some taxes in cryptocurrency itself since every transaction online is free and easy. Yes, they can ban cryptocurrency doing some firewalls in their country to prevent people of the particular place to access cryptocurrency but there are lots of ways they can do to still access it.
Maybe they can give some taxes only to those people who actually turn their crypto into fiat by converting it and then withdrawing it on local banks but the tax is on a transaction have done with the bank. That is the only thing we can say that crypto can be taxed. The fees on exchanges don't have to do with the government rules.

You got confused there, friend. Government wants to prevent money laundering and that second part is meaningless. You wanted to write something but didn't know what so you clumped together a few words and thought that maybe you'll get lucky and nobody will read it. :D


Crypto transactions won't be taxed just as fiat transactions aren't. You have to pay tax from profit - no profit means no tax.

Sometimes I feel that the government is the biggest winner in this whole crypto thing. It's a zero sum game, but they collect the taxes.

well it should be like that the government will never be able to control bitcoin so the government will not be able to do the tax costs for all bitcoin transactions because when making transactions using bitcoin you have made tax payments to be used as shipping costs.

I agree with you. Especially in some countries where money generated from tax has become the major source of money for infrastructural development and welfare even though the government might see crypto as true tender. They know how much and that many people are holding a large amount of crypto-asset which could have to fetch them a lot of money as tax in cash. I wouldn't be bordered if I see in the nearest future that the government has deciphered a mean of taxing people hodling cryptocurrency. Value-added tax through local exchanger might be one of the numerous way.

Despite the fact that in my country, Ukraine, cryptocurrency is considered legalized, and the government decided not to tax users.  Of course, this question needs to be thoroughly studied to talk about the taxation of cryptocurrency users in my country, because it deals with certain volumes of cryptocurrency transactions.  Nevertheless, we must understand that almost all social guarantees, as well as services that work for the benefit of their people, are all paid for by taxpayers.  Of course, I understand that the government uses a lot of money at its discretion without the participation of its citizens, but nevertheless I believe that most of the tax reaches its goal.

Technically, it's not easy to tax cryptocurrency. But with the rise of centralized exchanges, it's becoming a "piece of cake" for governments to tax crypto from their citizens via the use of personally identifiable information. If crypto continues to become dependent on centralized exchanges to survive, then its value proposition (which is freedom of money and censorship-resistance) will be ruined. Luckily, we have DEXs, non-custodial mixers, and even privacy-oriented coins to "tackle" this. But the problem is that governments will not allow these decentralized alternatives to continue their development within the mainstream world. They'll quickly classify these "tools" as illegal claiming that they can be used for money laundering and tax evasion. The truth is that criminals use Fiat more for these purposes than crypto as physical Fiat is stable in price and it's much harder to track. Still though, governments don't see it this way which leads them to have a reluctant stance against crypto and Blockchain tech in general.

As long as centralized services within the crypto/Blockchain industry exist, taxation will be the norm of worldwide governments for a long time. Now, imagine if crypto relied on decentralized alternatives instead of centralized ones. If the entire ecosystem was completely decentralized, you could've expected a massive crackdown by governments into crypto by now. The mere fact that most (if not all) cryptos are heavily traded on centralized exchanges, allows governments to tax crypto with ease. There's nothing we can do (for now) but to comply with our crypto taxes to avoid facing fail time. Just my thoughts ;D

KYC in itself isn't always absolutely a horrific idea. It does save you some fraud and adds some other layer of security but nevertheless relies upon if the alternate is trustworthy enough. KYC should assist retrieve coins despatched to wrong cope with, on exchanges that implements KYC too could use these details to fix some problems. but, despite the fact that tax isn't always also a terrible aspect (for the reason that it's miles essential to have regulation enforcement and peace and order), I do also disagree on government's warm eyes on cryptocurrencies, in particular now that they'd seen its capability, it simply looks as if they just need to take advantage of these grounds.

That is about spot on, the transfer of cash being taxable is highly profitable and not true anywhere else.    So its basically nonsense to do so and down to confusion mostly now I think.   Even with equity shares in a company the government only very lightly taxes the idea of buying and overall only a tax for a profit in a years worth of transactions with a great allowance, to be any more harsh then that for crypto is a bit silly.   Most crypto is purely just send a secure transaction one place to another, there is no ownership or equity to tax only the idea of holding value.
   Some of the famous candidates for USA president this year have the idea of taxing capital not profit just the idea of having a certain value is taxable and in the EU I think Cyprus confiscated amounts of cash from people over a certain level.   Lots of people are fine with this as its aimed at rich people but the end game is all people become liable to lose what they own.    WHen inflation gets out of control it is basically a tax on capital, thats why all these things and crypto is associated.

But bitcoin may be  mainstream payment method in the past. We don't know but if that happens, the government will be regulating it with a new rule. Maybe it would first go in an exchange so that they can tax it, maybe they can use the exchange itself to tax it or they can create their own exchange and that is where our payment will be going.

If the government tax the cryptocurrency then they should adopt and use blockchain technology too so there will be no more corruption. All the money they spent will be posted on the public ledger, we know where the money is going and how they use it for the betterment of the country's industries and economy.

but that is one reason why Governments are preventing Crypto or Blockchain enters their system ,but they just want to put taxes for income and that is unfair.
they are preventing to cut the corruption because BlockChain will surely take their 'Under the Table'system and this is not what they wanted to happen.
though i fully support the government putting taxation because this will help the economy of my country but i also wanted assurance that the taxes will be spare rightfully.

I think there's no taxing within the crypto market because it's not regulated by any government and isn't enforceable in government law. you're right that the majority of countries are protecting the privacy of Bitcoin However there are not any rules for doing crypto albeit there's no personal data for the transaction it's normal for transaction fees to be deducted.

Yes that's right, if the government taxs the Cryptocurrency it means they have recognized Crypto as a legal thing. And I think that is a very good development for the world of Crypto because it will be easier for us to use Cryptocurrency if the government legalizes it.

Governments are unable to tax crypto directly, but with the advent of centralized exchanges, anything is possible these days. After all, most (if not all) centralized exchanges are require users to verify their IDs. This would make government's life easier by keeping track of an specific person's crypto trades for taxation purposes. The real deal would be enforcing crypto taxation within decentralized exchanges and non-custodial mixers as they lack a central operator or middleman. The very nature of decentralization makes it virtually impossible to tax a person's cryptocurrency wallet. As long as Bitcoin and most other cryptocurrencies have transparent Blockchain ledgers, governments will be able to continue with the endeavor.

On the other hand, privacy coins like Monero and Grin are much harder to trace from the general public. There's the feeling that one day governments will ban these cryptocurrencies from mainstream use because of this. Only Bitcoin and other cryptocurrencies with a transparent blockchain ledger will be able to survive for a very long time. People who're caught using privacy coins will be tagged as money launderers and tax evaders. The way crypto is heading towards extreme regulation is not as good as we thought it would be.

Nonetheless, most people will decide to comply with their crypto taxes in order to maintain the legitimacy of the crypto/Blockchain space (aside from avoiding jail time). As long as governments are able to successfully collect crypto taxes from their citizens, they'll give the "green light" for the growth of the Blockchain industry within the mainstream world. Like it or not, it's the way crypto will be heading for a very long time. Hopefully, regulators and crypto companies/businesses could work together in order to make crypto land a better place. Just my opinion :)

although it has not yet legalized it, the government can also collect taxes, albeit indirectly. for example, in a local exchange, where the company is legal with applicable state law, of course, each activity contains an element of tax collection from the government. this also happened in my country. but even so I hope crypto will be legalized in my country soon

I believe that only a handful of people like you would like a global legalization, for a lot of users and exchanges, life like today is probably going well when the government doesn't legalize, small controls can only be concentrated in some countries, create many advantages for investors to activate pumps, create virtual prices and make money in the market. Exchanges also do not need to pay all taxes to the government or if required, they only need to pay taxes in the markets of some countries that are required, profits are enhanced when they are not required to allocate their benefits to the tax

I think today, most of governments income comes from newly printed money, it is magnitudes larger than their tax income, so it is very strange they still want to make lots of paper work and collect those miserable amount of tax income

It is true tho. It works almost same as "obesed" companies like pizza hut who suffers from its own amount of workers.
So govs could suffer from operating its own taxes

That's certainly true, mate. But governments (and central banks) are greedy and they want to take advantage of a revolutionary tech such as crypto and Blockchain for their own benefit. As long as they're able to tax crypto out of people's "pockets", the industry will see the "green light" for its growth within the mainstream world.

Now, imagine if Bitcoin and other cryptocurrencies across the market were completely untraceable. It would be nearly impossible for governments to be able to tax crypto effectively from everyday people. Still though, the mere fact that every single cryptocurrency is being traded on centralized exchanges has a lot to say over government's prominence within the Blockchain industry. After all, it is these same centralized exchanges which makes governments' life easier by enforcing ID verification to their customers. This allows governments to tax crypto even if privacy coins are used for trading on an exchange. With decentralized solutions, taxing crypto would be a thing of the past. The main issue is that decentralized exchanges have lesser liquidity than centralized ones. Using both a non-custodial mixer and a decentralized exchange would allow a person to remain "under the radar" for a very long time.

Nonetheless, it's our obligation to pay taxes in order to avoid facing jail time. I know this goes against crypto's value proposition of "eliminating the middleman", but this is the path crypto has taken lately. The way I see it, crypto is heading more towards centralization and manipulation than I've ever imagined. As long as big players like Binance and Bitmain dominate the industry, there's the risk of centralization which gives governments an advantage over one's crypto funds. That's why people need to use decentralized services more thoroughly in order to prevent crypto from being manipulated (sort of) at will. Until then, crypto will be forced to follow government regulations or its growth will be stifled within the mainstream world. Just my opinion :)

I agree with all that you have said, you are really encouraging me with all the votes cast in your discussion. Indeed, crypto users actually prefer that they enjoy centralized exchange sites rather than decentralized maybe for a more legitimate and more reliable reason to look and use them. The government does not really choose what they want to do especially when it comes to money because they know people are earning money and they know they will always obey because they have the power.

Returning to its original destination whether Satoshi was intentional or not, the move to publish bitcoin was a revolution that challenged the hegemony of the country, previously only the country had the right and could print money. It needs to be separated between a decentralized system with taxes, it is a different scope.

The use of cryptocurrency in our lives is a choice while taxes are our obligation to the country. Sometimes we need believing first and then seeing. During this time many taxpayers often assume seeing first and then believing. We must believe that actively obeying and obediently paying our taxes will help our country to develop and advance and there is equitable development.

Concerns that there are accusations that the government is corrupt so that tax funds do not run into development include our mistakes as taxpayers who are not active in controlling the use of tax money by the state and also wrongly electing people's representatives in elections or even so far we are ignorant of the importance of elections.

I personally support taxation if i am to decide because Governments wants to have part in this profiteering community.
they Knew how much money circulating here but they don't even get a penny that's why i thing there is a problem about government adopting this crypto.

But if in the end of the day that this one is resolved? i believe we will start to be on top against Fiat and all the Online payment method like PayPal and others.

Of course, many officials use cryptocurrency for their fraudulent and corrupt actions, because today in the world there is a struggle with offshore companies and it is necessary to launder and save stolen or criminally earned funds in new, not old ways.  Regarding taxes, there are quite a few issues that need to be resolved before they are applied to all cryptocurrency users, but providing passport data may be a priority.

Perhaps many cryptocurrency users have a negative attitude towards KYC, because they are afraid of inadequate taxation by states.  As always, states are very eager to rob their citizens, taxing people with very high taxes.  Of course, I have a positive attitude to taxes, because thanks to taxes, the state budget is filled, due to which there are all public services, social guarantees and the law enforcement system, including the army and themis.  But today, the states are strangling me with taxes only for business, but also for a simple person too.

Yeah, I must say that we should be afraid of KYC policies because it might be the dead end for us, or a big rock to carry by us when dealing with cryptocurrencies. "states are very eager to rob their citizens" I find it very accusing, firstly tax is what we use for public service like police, fireman, and other government employees so we can't just say that they are robbers. Secondly, government would not be that in control without taxes, there are private companies that might take advantage of what they have got, I mean the concessionaires that holds necessity of us like water and food, and if taxes were not imposed it would be very chaotic.

Crypto was invented to avoid such things like taxes, to be a transparent process between two or more person. Government will try to put taxes where ever money or any high value is involved.

The government won't get any tax from crypto  Crypto isn't under anyone's control and therefore the government cannot control it. Will never support it Many countries don't support crypto they're going to use crypto for his or her own benefit.

On one side taxing crypto coins means the legality of it so all the scammers and thief will get legal punishments but on the other side probably there will be taxes with no benefits, like sustaining this kind of financial products or creating a more secure cyber space.

Everyone should pay taxes, including those who work in the cryptocurrency market. If there is income, tax must be paid. And the easiest solution to this issue may be to buy a special patent for those who trade cryptocurrency. This should be a fixed amount, because it is very difficult to calculate and check the trader's income.

That's certainly true, mate. Crypto was meant to bring financial freedom to world. But the fact that most people rely on centralized services for crypto transactions, greatly defeats the purpose. As long as centralized exchanges keep track of people's identity, taxation will be highly possible to perform by governments worldwide.

Now, imagine if everyone used decentralized wallets and exchanges on top of centralized ones? It would be a "nightmare" for governments as they try to link Blockchain addresses to a person in the mainstream world. Even worse, truly private coins like Monero and Grin makes it impossible to browse on-chain transactions for crypto taxation. Governments might ban crypto in the end, if they're unable to tax people's crypto funds on the Blockchain. But that doesn't matter as long as people continue to support crypto in the mainstream world. Regulations either good or bad won't have an effect over crypto's longevity whatsoever. With a full government crackdown, it'll still be possible to use crypto for daily payments. The only issue would be exchanging it to Fiat or vice versa, since it'll be declared illegal by the government. But I believe that people will trade crypto to Fiat in-person to remediate the issue.

All in all, I hope that crypto and governments work together for the foreseeable future. I don't mind paying taxes just to comply with the law and avoid facing jail time. I'm sure most people will do this since they don't have a choice. Cooperation with the government is key to avoid many undesired situations. If there's a friendly crypto stance from governments worldwide, nothing should go wrong. ::)

Says who? I don't remember that in the Bitcoin white paper anywhere. 'A peer to peer tax evasion system' wouldn't quite scan the same way. There are tons of transactions that take place that governments would never know about. It's on you to report it.

The tax thing at the moment I'm most intrigued by is whether there's going to be some sort of wealth tax imposed to pay for economic ruin. Taxing work further isn't going to be a winner compared to taxing wealth sitting there doing nothing.

@Abiky is right, the government and crypto should work together to benefit. Even I am willing to pay tax as long as I follow the law. However, the taxpayers are supposed to be just for entrepreneurs like those who operate the exchangers and not for the small individuals. It is nice to see and know when the government and crypto agree to take steps for the good of everyone.

One way or another, this will be inevitable.

If a lot of people would use it in a country, they will find a way for them to get taxes out of it, which would result in two effects. Either people would accept the taxes and pay for their cryptocurrencies or Bitcoin or don't use it at all. Still, governments would be having a hard time taxing Bitcoin and cryptocurrencies as a whole because of its anonymity.

Many countries have banned, illegalize, or even prevent the use of crypto by their people. Despite the potential of crypto, governments are not allowing crypto to be recognized by the authorities probably because they won't have any control over it. People can take it as an advantage and maybe, the officials are afraid to compete with crypto despite it having its own characteristics. As you have mentioned, crypto taxation can be used by the government. Maybe because they still want to profit if ever crypto would be in action. Be it the coin's price increased or decreased, at the end of the day, they can profit something. But that's just unethical. They know better before doing that unreasonable action.

Agree. This can only go both ways. I'm guessing that most people will prefer to pay taxes on their crypto funds, just to avoid any undesired situations from the government. They can also choose to avoid crypto altogether, if taxes are ridiculously high. But this looks very unlikely to happen because of the benefits crypto and Blockchain technology provide on top of existing Fiat.

The only thing that's pushing crypto back from being widely adopted in the mainstream world, is its price volatility. I wonder how governments will be able to tax crypto from citizens if prices are in a constant flux across the market? It'll be quite challenging to tax crypto this way. Privacy-oriented cryptocurrencies on the other hand, might see constant opposition from governments worldwide. I wouldn't be surprised to see many de-listings from centralized exchanges due to government pressure. Bitcoin has seen the approval of most governments worldwide, mostly because of its transparent blockchain ledger. Any cryptocurrency that obfuscates transactions from the general public will be considered as a threat from these entities.

Nonetheless, people will ultimately decide what to do with their crypto balances. As long as there are people who cooperate with the government, we'll continue to see a friendly stance towards crypto and Blockchain tech in general. Otherwise, you'd expect a massive crackdown into every single centralized crypto exchange until they fade into oblivion. Only then, people will trade crypto in decentralized exchanges or in-person. Blockchains will continue to be alive after this, but most people will avoid crypto altogether if it's declared illegal by governments worldwide. Let's hope that doesn't happen for the sake of crypto's adoption in the mainstream world. Just my thoughts ;D

There is not any taxation in the cryptocurrencies that you hold.
Apparently, the taxation comes in the amount of the Fiat money you want to keep in your bank so the income is taxable in fiat not in crypto.
If you want not to be taxed then you can keep your money in crypto and none is going to ask you to pay taxes for that.

I feel stretch is awfully notable if you manage direction stuff. if not you don't neediness to recompense anything. The unsurpassed approach to keep away from governments kit is to manipulation disposition or spirit natural. The merely income tax we fee the initiator or proprietor of our humanity & sort is help behavior. upright activities includes attractive forethought of HIS creations.



 

This shows how the Governments can control our lives and finances, we can't really disobey because that's the system but in truth the system only benefits those in power that wants to exploit us and make profits and use that for their own benefit.
But with Bitcoin and Blockchain Technology, governments couldn't stop it because it has no centralize authority or company that they can issue a law to shut it down.

it is very good if crypto currencies are given government tax, but if they do it in a situation like this, I think they are wrong,
taxes will make life difficult for people who only work with little capital in crypto currencies. maybe after the COVID19 pandemic ends, taxes may be imposed

Taxes are applied in any situation, once the taxation is taxable, you are due for a tax on that, it's only the government who can declare if they will not impose in a certain situation, but just like fiat transaction, we are still subject for tax at the current situation.

Taxes on income from cryptocurrencies are not great, but they are not terrible.
KYC, taxes all these things help to go to the legal area instead of sphere related exclusively to weapons, drugs and the trade in "children's pizza".
Who do you run to when your house is robbed? You're calling the police.
And who will you run to when your btc wallet is stolen? This is an additional protection for people and the sphere as a whole.
The further the cryptocurrency develops , the more things you will have to put up with in order to continue development.
Legalization (and taxation) pushing forward more and more the moment when in the Apple Store (or any other big store) you will be able to pay for a new iPhone with btc as easily as fiat.

Exactly. Crypto taxation takes place once you trade crypto to Fiat. It's always been this way. If governments decide to change their stance in the future, that's another story. I'd wonder how they'd be able to tax crypto directly without people exchanging it to Fiat? It'll be quite difficult to tax everyone using crypto as not every transaction is seen on the Blockchain. As long as crypto is taxed relative to Fiat, there should be nothing to worry about.

People who don't pay taxes from their crypto income, could lead governments to ask centralized exchanges for all their transaction records. The "tax evaders" would simply sell crypto in-person to Fiat, rely on decentralized exchanges or simply use a fully-private cryptocurrency like Monero or Grin. It's best to cooperate with the government in order to avoid many undesired situations in the future. If we want crypto to be recognized as legal by governments worldwide, this is the path to take. Otherwise, expect a massive crackdown into the crypto/Blockchain industry.

Nonetheless, crypto will survive in the long run with or without taxation.  It already lives on its own regardless of government's regulations. Even if it becomes banned, people can still use it "under the hood". This is thanks to the decentralized and open source nature of crypto. Things would've been worse if crypto was completely centralized. But at its current state, it's nearly impossible to shut it down. Just my thoughts ;D

I want to help my country so I also pay tax. The thing about this is that it is bitcoin and the fact that we are using it is because we are free from the hands of the government so, with it, we can do whatever we wanted from it. I don't mind paying taxes for my bitcoins but if that is the case I don't think people would be honest with their holdings at all just like most of the taxpayers of the world. I hope though that this will not go in this state since I want something where I can earn and it is free of tax.

I think national governments will gradually accept cryptocurrencies. That is the trend of cashless payments in the future. Yesterday, I read a news that the Chinese government is preparing to launch the yuan in the form of cryptocurrencies. And currently, there are many transactions via BTC to evade taxes. Governments that want to collect taxes on these types of transactions are required to enact laws to regulate cryptocurrencies. Therefore, I think that cryptocurrencies will be accepted for payment widely around the world within a few years.

If governments are able to successfully tax crypto transactions, I don't see a reason why they should declare it illegal in the first place. We're transitioning to a cashless society where digital payments are the norm of the worldwide economy. China has already announced the launch of a digital Yuan, while other countries will soon follow. By then, both crypto and digital Fiat will be actively used by people in the mainstream world. Of course, governments will do their part to promote the use of their national currency more thoroughly. They'll also benefit from crypto's success with their ability to enforce taxation within centralized exchanges in the Blockchain industry.

Nonetheless, I believe that people will end up paying crypto taxes instead of avoiding them altogether. No one wants to be in trouble with the government, so this is the path to take from now on. Let's hope that crypto companies, startups, and developers work together with governments worldwide in order to make crypto land a better place. With a crypto-friendly regulatory environment, many scams and frauds can be avoided in the long run. Taxing transparent cryptocurrencies like Bitcoin and Ethereum will be a piece of cake. Even with privacy coins' strong anonymity, it might still be possible to tax people's transactions via a centralized exchange. With cooperation from all sides, everybody wins. Just my opinion :)

Simply because the government thinks that there is a shift from the legal sector to the illegal sector. In essence, the tax object is all the wealth we have. For example, we store assets or fiat money in the right pocket and crypto assets in the left pocket. Concern tax is all the assets that are in our pockets and more details about tax objects that we might move from the right pocket to the left pocket or the one we immediately store in the left pocket.

Let us once again separate the nature of decentralized crypto from the obligation of citizenship. Let us ask ourselves if there is no compelling element to pay taxes whether we have the awareness to pay.

On the one hand, the government should create programs that can trigger government awareness of paying taxes. The Chinese government once made a lottery transaction receipt program. Which is proven to make the habit of paying taxes and reporting transactions growing in China. For example, we eat in restaurants and taxed, then we put our food bill/receipt into the government lottery box with our name and telephone number. These are the structures used by the Chinese government to suppress and monitor tax subjects. Every lottery period, winners get prizes ranging from the value of receipts to worth billions. But before tax reforms, corrupt officials in China were executed to cause a deterrent effect among officials.

Agree. It's our responsibility to comply with the government whenever possible. Anything that's received as income, should be taxed. After all, you're converting crypto to Fiat for your own gains. As long as the government taxes crypto income in a fair manner, I don't see any reason why crypto shouldn't be taxed in the first place. Crypto to crypto transactions cannot be taxed as the government has no control whatsoever in the Blockchain space. It'll be a real blow to the crypto industry, if governments decide to tax crypto-only transactions as well.

What's important here is that people, companies, and developers work together with the government in order to make the crypto industry as legitimate as possible. If governments want people to pay their taxes from their crypto gains, they should educate them on how to do so. Lack of clear guidance (especially from the US' IRS) is what has made crypto taxation a "pain in the head". With so many cryptocurrencies being traded at centralized exchanges with Fiat trading pairs, it's easy enough to tax transparent cryptocurrencies like Bitcoin and Ethereum. The real deal would be decentralized exchanges and in-person trades. But these lack liquidity and widespread use in the mainstream world, which should have little to no effect over government's ability to tax people's crypto income. If centralized exchanges would've been replaced by decentralized ones, that would've been another story.

Nonetheless, time will tell us what the outcome of crypto taxation will be in the long run. With people's cooperation, the crypto industry could grow at a large scale. Otherwise, mainstream adoption will reduce over time as nobody will want to use something that's declared illegal by the government. Just my opinion :)

I still do not understand how crypto could be taxed if you could hide it well enough. There is no way that government could know about me and my bitcoin if I can hide it well and I do. So, right now I have been doing a little bit of earning in crypto which means nothing from my bank account goes to bitcoin, there is no connection there, I work hard and get paid in crypto.

After that money comes in to my bank account or not and the government usually doesn't ask there that money came from because they know that as long as I have money to spend I am bringing money to market and that is what they care about. The only tax I am paying right now is the tax when you buy something, even if you buy a loaf of bread you are paying taxes and that is the only one I am responsible for right now.

I don't think it is that good.

Even in the normal days, I don't think it is that good for cryptocurrencies to be taxed. I think it is better to what it is right now since people are enjoying the freedom they have and I think it is also good for privacy out of the government's hands. If you are a good citizen, why don't you just add your profits from cryptocurrencies to your income taxes?

      Until recently, I agreed with KYC for users, but by learning more and seeing how the governments of many countries are putting pressure on the crypto market and wanting to control this market segment, I became skeptical. I want the crypto market to remain a decentralized majority, but I am afraid that these KYCs, which are considered confidential, will actually be reported further.

but i dont think there will be people that are willing to donate some of their profit as a form of tax  .

cant you see that even people that arent using cryptos  are still evading the tax so how much more if its not required  ? people will be happy and this is the reason why there are now many people going for cryptos  and one of that reason maybe is to escape the taxation   .  aside from tax , you cant say that peopple really have freedom on here because there are now kyc and other strict rules that will reveal your identity  .

I know right? But even with the challenging environment of crypto, governments will still require people to pay taxes on their crypto income. The only way they'll be able to enforce this is through centralized exchanges. However, there will still be a portion of crypto users performing P2P trades, using decentralized exchanges, and even using privacy-preserving protocols making it impossible to tax their crypto holdings. Ultimately, Bitcoin and other transparent cryptocurrencies will see the approval of mainstream governments while privacy coins will end up being used in-person only.

As long as the crypto industry and governments work together, there should be nothing to worry about. Collaboration is necessary from both ends (the average person and the government) for crypto to succeed in the mainstream world. If we do our duty as a citizen to pay taxes in Fiat, then I don't see a reason why it shouldn't be done on crypto as well. Remember, governments only ask people to pay taxes from their crypto funds if they cash it out to Fiat. If you do everything with crypto directly, this shouldn't be a problem for you. In the future, crypto will either continue to be taxed or banned altogether. Let's hope everything goes positively for the crypto/Blockchain industry in general. Just my opinion :)

Tax is not a bad approach in itself because it is one of the ways governments obtain funds to build the country. Taxes can be imposed on crypto platforms (especially exchanges) but not the individual user. The larger platforms (exchanges )then split it into tiny shares (add to transaction fees) to all users who trade on the platform.

As long as governments tax crypto holdings in a fair manner, there should be nothing to worry about. Remember, anything that can be sold to Fiat, is considerable as taxable gains for the government. People who use crypto directly for online transactions are exempt from this rule. You're only required to pay your taxes from your crypto holdings if you sell them in exchange for Fiat. It's as simple as that. If people cooperate with the government, they'll give crypto the approval as a legal medium of exchange. Otherwise, you could expect a massive crackdown from these entities into the entire industry.

I believe that privacy coins will end up being used "under the table" as they become "banned" by governments worldwide. Only transparent cryptocurrencies like Bitcoin and Ethereum will "thrive" in the long run. It's much easier to track them for taxing purposes, especially at centralized exchanges with KYC requirements. Taxing on crypto platforms themselves, sounds like a nice strategy for governments to be able to perform the task efficiently. However, decentralized exchanges, atomic swaps, and in-person trades, would prove to be quite a headache for mainstream governments. We'll see how everything unfolds in the future for the entire crypto industry as the space gathers adoption from people in the mainstream world. Just my opinion :)

I just wondered why the government would tax on crypto when we used to pay taxes using fiat or national currency. Just buying goods, paying bills, and other taxes, isn't that enough? Maybe crypto can be exempted from taxation because we just want to earn, to receive crypto as a salary in online jobs. But if the day comes that they tax on crypto then hopefully, the sector is not booming, because there are little people like me who rely solely on freelancing...

Right now, enjoy the moment that the government doesn't find a way how to tax our crypto yet. But for those legal crypto exchanges or remittances who are accepting the conversion of crypto to fiat, I am thinking that we are already paying tax just by using their services as they are regulated by the government.

Now the government has to pay tax on almost every job There is no tax here as crypto is decentralized. But like Fiat, if the government controls crypto it will have to pay taxes. But now there is no tax this time we can work independently in crypto without tax.

In my country, in Ukraine, new laws speak of taxing all additional sources of income. In addition, we are talking about buying expensive things, as well as expensive gifts. It is worth noting that the government allows citizens of their country to use cryptocurrency as a means of payment in some online stores. In addition, citizens have every right to invest, buy and sell cryptocurrency. But each owner of the cryptocurrency will pay a certain tax if he will cash out the cryptocurrency in real money, exceeding the established minimums. I think that practically the same laws exist in other developed countries as the United States and countries of the European Union.

One of Bitcoin's other characteristics or of other cryptocurrencies has been meaningless since the beginning of KYC's growth in centralized exchanges. But it is also a good source of benefits and prevents illegal activities. Seriously, the government really wants to capitalize on the various sources of income. It would be nice if they also used blockchain to find out and we are sure if the tax or fund they are getting goes right and not in their own hands.

I don't see anything wrong with this and I consider taxes on crypto a decent payment for the state not to try to fight with windmills and not to ban crypto. In the end, these taxes will then go to improve your own life, so it is quite an equivalent exchange.

It seems that most countries are gradually accepting crypto as legal tender, if they're able to tax it successfully. The world's most powerful countries are already doing this, so it seems that crypto will be here to stay for many generations. Crypto taxation is not an issue, if everything is done in a fair manner. The same way you pay taxes on your Fiat income, the same way should be done on crypto (if sold to Fiat). Cooperation from all ends is necessary for the crypto space to grow towards new heights. But if people refuse to pay their taxes from their crypto holdings, things could go sideways for the development of the crypto/Blockchain industry.

Those who want to avoid paying taxes on their crypto, will simply resort to decentralized exchanges, privacy coins, or in-person trades. Be aware that the government may be on your tail, if it discovers tax evasion on your part. It's always best to comply in order to avoid facing fines or even jail time. The only way you're exempt from this is if you never sell your crypto to Fiat (using it directly for mainstream transactions).

Nonetheless, time will tell us the fate of crypto taxation in the mainstream world. Everything's fine for now, since the industry is largely dependent on centralized infrastructure. Governments can successfully tax crypto within centralized exchanges themselves. If all goes well, we can expect a fruitful relationship between the government and the crypto/Blockchain industry. Otherwise, the growth of crypto in the mainstream world will stale as people wouldn't want to use something that's declared "illegal" by said entity. Just my opinion :)

They always require taxes for anything that is legal, so as a crypto enthusiast, we have to choose, either it will be legal or illegal.

These are the possibilities:

~if its gonna be legal, the adoption will grow because people will have the confidence using this knowing it's approve by the government so they'll be protected from scammers, in adoption, it would be easy to educate people if they know crypto is lega.

~if its illegal, we will not pay taxes, but bitcoin will continue to be uncertain as a government could ban it and that will hamper its growth.

I remember my topic about Tax (https://bitcointalk.org/index.php?topic=3280237.msg34199706#msg34199706) in this forum. I wrote the different kinds of tax there and as I have seen in other topics, we are paying already our tax but it is under in indirect tax wherein we pay using transaction fees to the exchanges that registered in SEC.

But if bitcoin will become legally adopted in a country, there is a great impact of it in crypto enthusiasts. Probably, those who hate taxes wouldn't abide and those who store bucks of bitcoin will turn it into fiat again. Though we can't prevent certain changes, legalizing cryptocurrency in our country means we are working with it legally.

I am not against the imposition of tax in cryptocurrency because we are earning with it and as what I have been wrote, tax levied in citizens will use in infrastructure, highways, hospitals and other public utilities. Therefore, tax is needed by the government to run the economy of the country.

Lastly, we are already gaining a lot of profits in this industry so, I think it should be the time for us to pay back in order to help the development of our country by paying our taxes in case it would become legal.

Typically taxes relate to regulation and provision of a trading and legal atmosphere for business, if Bitcoin is international and provided by decentralised network then its not really down to any one country to be taxing it.    Same kind of deal applies to air travel which is protected from fuel taxation by United nations agreements.  Unfortunately its going to be a while before crypto has that kind of recgonition.

All business transactions are taxable but are not taxed due to the decentralization of crypto The government has to pay taxes in all cases of fuel and electricity. Crypto has not yet been taxed However, in many parts of the country, tax plans are in place but many do not support it  Because crypto is not under the control of the government. It depends on the market and determines the price of the currency.

Because the tax object is our property not our form of money. The government cannot control cryptocurrency but the government can control exchangers. The goal of a decentralized system is to eliminate the role of third parties in a process. So tax avoidance should not be considered regardless of the cryptocurrency status in a country whether it is legal or not.

After the pandemic, the government will also aggressively pursue taxpayers to close the budget hole that has not been closed due to stimulus and tax easing during the pandemic. Post-pandemic companies that are not too affected at the time of the corona will be the target of tax.

I think the government should regulate cryptocurrency on a reasonable scale. However, the government of some countries considers cryptocurrency as a means of replenishing the country's budget, and therefore they begin to introduce taxation, as a result of which small investors suffer. But still it is necessary that countries regulate cryptocurrency!

Crypto taxation will be the price to pay when we want the governments to get their share to eventually don´t restrict the living hell out of Bitcoin and co.

Btw, here is a list of countries that don´t tax cryptos: https://news.bitcoin.com/eight-countries-that-dont-tax-your-bitcoin-gains/ 

There is no tax for holding bitcoins in those 8 countries but when you convert them into fiat then you are liable to pay your income tax accordingly and in this category not only 8 countries there are lot more have to be added. Government doesn't want share they literally wants everything you have. :D

Tax is good but if the governments are ready to capitalize cryptocurrency and take taxes on transactions then it must be ready to be transparent on the where exactly the taxes go and into whose hands. The government must be accountable for that. This can only be achieve by the same utilization of Blockchain technology by the government.

to be transparent then the tax payer must be exposed as well?and this is what we don't wanna have here since all we love in crypto is our
 privacy and our semi anonymity and with this rules i believe many things may change and this same reason why people
here will never agree on this.
i think what will happen here is forever in disagreeing because government wants to have part in crypto but the concern members of the
community will never approved this thing and will always adaptation is at stake .

The government are responsible for the security of our accounts, the proper manipulation of the economy, the service that they give to us, and the public facilities that we are using. By this crypto taxation, we can somehow payback for the authority for making us safe in our everyday lives. They are the one who are responsible for the sake of its people that's why we should be glad about them.

But it is true that there are government who are corrupt and the taxes that they get to our crypto can be put into waste and abused by them. Sometimes we just need to become aware of our surroundings on where are our taxes allocated so that we will become more confident about having crypto taxation in our country.

We? you are talking for all the gainers and every time there are investors who gained in crypto, there are also investors who lose their money here.
Actually if they keep making money with the current set up, they will prefer this and will not pay taxes if its not required by their government, every country has different policy, lucky are those who live in a country where crypto is not yet fully regulated as they can maximize their income if they are profitable investing here.

It is a good idea to think that the taxation we make on selling our crypto assets to fiat will contribute to the economic growth of our country. But, there are actually other politicians sitting around who are robbing others of their money. That's one of the diseases of society, cancer. Maybe when the day comes, they won't even pay taxes on using crypto. Crocodiles that are easily dazzled for money.

Due to the decentralization of cryptocurrency, it will be very difficult to calculate a trader's income if cryptocurrency exchanges do not provide such data. You can calculate a trader's income when they withdraw it to fiat. But even here there will be inaccuracies if part of the cryptocurrency will be used to pay for goods or services.

If even crypto will be fully regulated there will always exists more private decentralized exchanges,
or trades locally and illegal way to evade of paying tax from your crypto to maximize income.
Its our choice to be legal or illegal. With crypto comes more control and responsibility on your
digital assets. Its far more easier to be needle in stack. Still I think that is better to contribute
to society and taking legal way of living.
 
 

Agree. Bitcoin is not tied to a single jurisdiction. This means it cannot be taxed, since it’s a global currency used by many people worldwide. But we all know government's intentions in the first place. They just want to profit from the revolutionary Blockchain industry. Governments wouldn't want to miss the "crypto train", considering how Bitcoin went from being worth nothing to thousands of dollars in just a few years since its inception. As responsible citizens, we should do our duty to pay taxes every time we sell crypto to Fiat. The more people use crypto directly instead of cashing out to Fiat, the harder the government's efforts will be in taxing cryptocurrencies for their own gain.

But even now, many merchants and businesses accept Fiat on top of crypto for daily commerce. The average person will end up selling crypto to Fiat just to participate in the worldwide economy. As long as governments tax crypto fairly, there should be nothing to worry about. It may take quite some time before people are able to use crypto independently from Fiat. Right now, people are measuring the price/value of crypto relative to Fiat as a unit of account. The ecosystem of merchants and businesses accepting crypto needs to grow, in order to make the crypto economy more independent from the traditional one. I doubt how governments will be able to continue to collect taxes from people's crypto holdings after this. The most likely scenario is that governments will end up banning widespread use of crypto, due to being unable to effectively tax it. In the bright side, it'll still be possible to use crypto because of its decentralized nature. But it cannot be bought or sold to Fiat as it'll be considered illegal by governments worldwide. Let's hope all goes well, as crypto and governments cooperate in order to make the world a better place. Just my opinion :)

Does the government still have plans to tax cryptocurrency users? It's been ten years yet but there is still no regulation for it, so maybe everything is fine. Will the coin sellers be exempted in exchange for another coin in paying taxes whose withdrawal option is crypto as well? Our wallet app has a high buy/sell rate compared to the market. Maybe that's where they take their tax payable to legalities.

So far as I know they still want to tax crypto as a capital gain in many countries, rather then allowing it be defined as a currency which would make it tax free basically.  The example might be gold coins which are liable to no taxes in many countries, even though you can easily double your money over some years buying a gold coin when the price has fallen.  See the last few years for gold and its risen alot in normal terms, just nothing moves quite as much as crypto is able to in price.

Your example with Gold coin is quite interesting.

Crypto( well decentralized crypto) is even a special case in my opinion but many still do not understand this or they choose not to understand. I wouldn't be surprised if a properly decentralized and well built crypto with advanced ecosystem also tax other nations/people and the nations tax it too when necessary.
It's way bigger than people think. Most are probably not aware of its great potentials and what it seeks to achieve hence the confusions, contradictions, abuses and deviations from proper/safe standards in the space. You can't allow centralization to control you without losing (or gradually losing) your freedom/sovereignty/independence.
Taxes can occur without losing your values/ideals to central powers.

I think that collecting taxes in cryptocurrency trading is necessary because the cryptocurrency market is like other financial markets like forex or gold ... And so, countries that have built the legal framework Complete management of cryptocurrency trading, which will help the cryptocurrency market to expand, is accepted by countries as a financial market rather than as it is today.

One of the tasks of the state is to collect taxes. Therefore, we should not hope that the cryptocurrency market will stay away from paying taxes. When the government develops laws that will be clear to both traders and tax authorities, then the tax will be introduced.

Governments don't want to classify crypto as "currency" because they don't want to miss crypto's profit opportunities. Crypto taxation will continue to be the norm as long as people allow it. As a form of protest, you could simply use crypto directly for goods and services without having to cash it out to Fiat. Taxation cannot be enforced this way since you're not selling crypto to Fiat for your own personal gain. And taxing crypto directly might be considered unethical/illegal since governments have no jurisdiction on it. After all, cryptocurrencies are used globally by people worldwide. It's the decentralized and open source design of crypto which makes this possible.

With lack of tax guidance from government agencies, many people have been unaware of crypto taxation. If governments are unable to successfully tax crypto, they'll ban its usage. Chainalysis has already claimed that it can trace Zcash and Dash transactions on the blockchain. So much for privacy-oriented coins that have been labeled as "untraceable" for a very long time. This gives governments the tools to easily tax people's transactions at will. As long as it remains this way, crypto taxation will be the norm for the foreseeable future. Just my opinion :)

the government will always make decisions that benefit the state tax for crypto sooner or later will be an idea and if taxation in crypto enacted I think this would be a problem for buying and selling currencies in various countries I worry every transaction will be withdrawn tax this course will be more difficult for future cryptocurrency.

Yes government can control and put tax in crypto currently . But government need more knowledge about crypto and learn to how to get tax by trading or blockchain too. Yes you right , because that is make us difficulty if that happen in future. But we need to expect that soon.

This government is annoying, everyone just wants to pay taxes. Think about it, as well as street vendors who only have small incomes are willing to tax. Recently, it has been reported that online sellers are registering their business. Lacking it, even breathing is paying off. This is just the way other people earn money to earn a living on a daily basis. The capital here is not large, it is also used to generate extra income because others are unemployed or dependent on work from home. Maybe it's too close to our country to have a tax on crypto use.

Eventually everything will be tax, it's just a matter of prioritization, if a certain industry grow, the government will surely sees it and the time will come that they will impose taxes on it, maybe online selling has been increasing in transactions that's why the government wants to benefit on it.

Crypto is a big market too, so they will tax us, in fact a lot of exchanges are already regulated in our country, that means we users of the site will have to remit taxes if there's due. No clear regulation first, but eventually the government will come up with a more detailed in the long run.

Crypto Taxation is an important issue both for governments and cryptocurrency users. People all over the world use cryptocurrency for their daily transactions and the number of such kinds of people increasing day by day. A lot of people depend on their livelihood on cryptocurrency income. On the other hand, the government of a country cannot run the country without taxes. Without taxes, the government will not be able to meet the expenses of running the country. Because of the increasing number of cryptocurrency users, Every government should make some regulations for tax collection.

But the problem is how will the government implement this?Cryptocurrency being decentralized is far from the reality of being handled by anyone or any government  In this case it will be harder for them to put this as necessary and obligation of each crypto users.
Unless they will start to accept this as monetary or currency then they may add taxes in every purchase or services being held as payment using crypto.

I agree that crypto taxation is a debate, because the government really wants to get the benefits of cryptocurrency. But because
cryptocurrency is largely decentralized, it is difficult for governments to impose taxes on cryptocurrency users. In the end, the
government took steps to legalize centralized exchanges, especially local exchanges. Because the government sees chances are
many crypto users convert their crypto asset to fiat, to spend cryptocurrency. Then with centralized exchanges the government
can impose crypto taxation, which starts with the application of KYC for users centralized exchanges. And that is not a problem for
me, at least I can spend the crypto that I have generated from trading.

The IRS taxes crypto as property and honestly, I'm not sure if they're totally off base. Bitcoin price fluctuates meaning with potential increases, you make profits. If you do the same with the stock market investing in a mutual fund, you're going to pay capital gains taxes off the profit you make so it's not much of a difference. You own a home that's increased in value over 10 years and you sell it? You pay the same capital gains tax as a stock sale.

Bitcoin is essentially akin to gold, and no one views gold as a currency.

So now, I wonder if I will continue online selling. My investment is small. Income is poor and not great. And even more difficult situations today. I do not want to think that what I pay in taxes will just go into their own pocket and benefit. No doubt, it's better that I just focus here on cryptocurrency, it's just hoping for free income.

The tax does not support the growth of the industry or the development of a country's economy until there are corrupt politicians around it. They are the impediment to the advancement of the common people, rather than the poor, but they are still the cause of poverty.

Exactly. Taxing crypto becomes a highly difficult task to achieve because of its decentralized design. The only way governments will be able to tax crypto successfully is by relying on centralized exchanges to comply with KYC laws. Once the person's identity is verified, transactions can be easily traceable for taxation purposes. Believe me, that if everyone started using decentralized exchanges more thoroughly, it would've been a nightmare for mainstream governments. My guess is that if that happens, they will declare crypto to be illegal.

Still, people are becoming more dependent on centralized infrastructure everyday. This means that crypto will continue to be taxed as long as the majority of people continue to use centralized exchanges in the industry. If you truly believe in the future of crypto and Blockchain technology, it's best that you use crypto assets directly for goods and services. This way, you cannot be taxed as you're not converting them to Fiat. Once you sell your coins for cash, you'll be subject to taxation just like it's the case with any other asset in the mainstream world today. For crypto to be truly untaxable it needs to be recognized as a currency. But governments will never allow that to happen. :(



Good point. But even if Bitcoin resembles gold, it's far more than that. Bitcoin can also be used as a currency if fees weren't that high, and prices would've been stable on the market. After all, Bitcoin was designed to be a "peer-to-peer electronic cash system". Governments will never recognize crypto to be a currency as they want a "piece of the pie". They'll want to tax everyone's crypto holdings for their own benefit. Personally, I don't have anything wrong with doing my duty as a citizen paying taxes. But taxing crypto, greatly defeats its purpose of eliminating the middleman from the system. One fact about crypto is that the same is decentralized, and largely distributed across several countries around the world. I find it odd that some governments tax crypto since the same is global. In other words, crypto is outside the jurisdiction of a single country or region. People might as well move to another country where crypto is not taxable, for their own benefit.

We'll see how everything works out for mainstream governments as they try to tax decentralized cryptocurrencies worldwide. With several privacy solutions in the industry, availability of decentralized exchanges, and the use of atomic swaps, it might become impossible to tax everyone using crypto in the mainstream world. Just my thoughts ;D

I am definitely against taxation especially in the crypto world. What has the state done to take my taxes? Gave energy? maybe provided a laptop to work with crypto, or at least a chair? Nothing. So I will say more. There is no state at all in the cryptocurrency purchase and sale chain.

Sooner or later, taxation on cryptocurrency transactions will be introduced. This will be the most reasonable form of taxation on cryptocurrencies. Since someone makes 10 transactions per day, and someone only one per year.

Then I guess to be able to do that government will be assigning each citizen their own wallet and indicate each who is the owner. At that point, there will be no confusion about who owns a wallet. Still, there are jobs where the government will  take the tax from their salary that is directed to their ATM cards, maybe we can do that the same as taxing into crypto currencies.

Other crypto users don't care about their privacy, they don't care if it's exposed. With the help of centralized platforms, it is undeniable that crypto taxation can be implemented whether we like it or not. I know that others here don't like it, but can we really do anything? We are governed by the government so they can be obeyed, only when we follow the rules of the law. If we violate it, we will be prosecuted and treated as criminals. Although I am not good at it I think it will take longer to come up with a law for it.

If Bitcoin is controlled by the government we will be ready to pay taxes on crypto but since crypto is decentralized there is no charge for work here. However, in the case of card management crypto cards are ready to pay tax.

It is the nature of a human to be greedy, we can't really stop them from doing that since we are the ones calculating our taxes, people can evade whenever they wanted.

In terms of freedom, I can say that we are free. KYC may be stopping this freedom from your point of view but not all of the applications you can use requires KYC. There are a lot of alternatives you can use but this depends on how you use your cryptocurrencies. Some local exchanges do require KYCs, which I also applied since I really needed it but if I don't want to, I can use other alternatives as well. It is just that this local exchange has its convenience to me than the ones that offer you anonymity. If you want anonymity, you can use them.

Crypto is really amazing and so many people really believe on it and there are so many ways to earn in crypto, such us trading, investing,etc,.that is why there are so many people that is now using crypto and some of them are really earning millions of dollars. That is why some government wanted crypto to be taxed but i think if crypto will be taxed it will maybe affect the crypto community. I dont think crypto taxation is a good idea since so many people use crypto for so many years without tax.

cryptocurrencies are transformed from being a paying way to traditional methods to investments where you pay some taxes because you are making some profits.
If everyone stops using centralized exchanges serve as gateways from crypto to Fiat (or vice-versa) and use such forums, will find that trading will be unknown and it will become impossible  to impose more taxes.
It is a race, and he who knows how to turn laws will gather a lot.
use our methos and gov have methosd

Well, they can't really control bitcoin that is why they will just decide to put a tax on it or ban it in which I am sire that they will be putting a tax on it. They will be having an additional way of taxing people and the problem here comes with how to tax a decentralized crypto currency, that is why I thought they might indicate each person with their own wallets where the government would get a tax from. Still, people can evade that.

The government cannot tax a decentralized exchanger because they have no control over it. If they restrict the use of crypto in the country and they cannot come up with ways to tax decentralized platforms, then it is possible to simply ban its use. However, as we know the importance of centralized exchanges for traders, it has been part of the industry ever since it was opposed to being anonymous and having privacy.

I guess even though they can't control crypto currency or bitcoin in our country, they are still not planning anything to ban it, in fact, they are taking care of the users here in our country which is discussed in this thread.

https://bitcointalk.org/index.php?topic=5260318.0

I guess if bitcoin became mainstream, we should really be expecting them taxing bitcoin or other crypto currencies in the country. I will not be thinking how will they that but for now, it is good that they are taking care of the crypto users.

I agree with you...though some other countries refuse to accept Bitcoin because of their traditional beliefs in managing finances. But now, I guess they tend to saw the importance of Bitcoin and its great features and useful  ways especially that we are now facing a severe crisis. And mostly now, we are into virtual transactions to avoid the contact of virus, a lot of necessary things will be done digitally.
And as the growing individuals learned to earn and invest in Bitcoin now, the Government thought that they could also benefit from it.
On the other hand, if the Government persists on putting tax on it, we can't really control it because Bitcoin definitely became a mainstream now. Probably, the taxes could help the Government reviving the dying economy at this time.

Due to crypto being decentralized, it's still possible to "bypass" KYC-oriented exchanges and services in the industry. But for the sake of your liberty, it's often best to comply with the law. I'd prefer to pay taxes on my crypto instead of evading them. I'm sure many people will do the same thing in order to avoid facing jail time (or fines). Of course, KYC greatly defeats the purpose of crypto since it introduces the middleman to the system. But for the industry to be as legitimate as possible, complying with government regulations is a must these days. Given that many cryptocurrencies are often traded at centralized exchanges, it's a whole lot easier for governments to collect their taxes.

In the end, crypto will be taxed as long as it's recognized as a commodity by governments in the mainstream world. They don't want to classify it as a "currency" as they'll lose the opportunity to tax it. Ultimately, governments will be unable to tax every citizen using crypto because of its decentralized and open source nature. With privacy coins, atomic swaps, and decentralized exchanges in play, taxing every single person will become unfeasible by the government in the not-so-distant future. Just my thoughts ;D

The term cryptocurrency is generally used to describe a digital asset in which encryption techniques are used to regulate the generation of additional units and verify transactions on a blockchain. Cryptocurrency generally operates independently of a central bank, central authority or government.

The creation, trade and use of cryptocurrency is rapidly evolving. This information is our current view of the income tax implications of common transactions involving cryptocurrency. Any reference to 'cryptocurrency' in this guidance refers to Bitcoin, or other crypto or digital currencies that have similar characteristics as Bitcoin.

If you are involved in acquiring or disposing of cryptocurrency, you need to be aware of the tax consequences. These vary depending on the nature of your circumstances.

Everybody involved in acquiring or disposing of cryptocurrency needs to keep records in relation to their cryptocurrency transactions.

If you have dealt with a foreign exchange or cryptocurrency there may also be taxation consequences for your transactions in the foreign country.

There is a growing adoption on crypto, and that adoption was possible because there are platforms would made it possible to buy bitcoin from our fiat, or in short, we exchange it to bitcoin. In other words, crypto exchanges do exist and they are growing, and that's where the government will get tax from their revenue of operation, and along with taxing it, they would also need to regulate the market through exchanges so they can do their function such us the Anti Money Laundering which can be detected if there's a KYC and other measures impose in a certain platform.

"South Korea Could Issue a Crypto Capital Gains Tax as High as 20%" Source: https://cointelegraph.com/news/south-korea-could-issue-a-crypto-capital-gains-tax-as-high-as-20#:~:text=Crypto%20taxation%20in%20South%20Korea,to%2020%25%20for%20capital%20gains.&text=South%20Korean%20private%20sector%20members,rise%20as%20high%20as%2020%25. (https://cointelegraph.com/news/south-korea-could-issue-a-crypto-capital-gains-tax-as-high-as-20#:~:text=Crypto%20taxation%20in%20South%20Korea,to%2020%25%20for%20capital%20gains.&text=South%20Korean%20private%20sector%20members,rise%20as%20high%20as%2020%25.)

Today I read about taxation in South Korea, well as we all know they are few steps ahead from many others, and it's what they plan to do, I believe others will follow that path, with some changes of course! We can expect some countries to have more strict laws, while some countries will stay financial heavens as they were until now.
I don't know about you guys, but when this comes in my country I will probably hide all my crypto, and I will start using vpn, and probably I will switch to some privacy coin! We will see how will that go, I just don't plan to pay any tax on my crypto!

A 20% tax on crypto gains is insane, in my own opinion. This will stifle the growth of crypto and Blockchain tech within South Korea. Imagine if other countries around the world started doing the same. People will think twice before using cryptocurrencies for mainstream transactions. Only a small minority will be using crypto "under the table" in order to avoid paying taxes to the government. With a decentralized design, it becomes more difficult to tax every person using crypto worldwide. That is to say, if the person uses decentralized exchanges and non-custodial wallets. Otherwise, crypto taxation becomes an easy task. Ultimately, people will decide whenever they'll support crypto taxation or not. If people don't protest about government's actions, they'll continue with the endeavor. We have the power in our hands to either allow governments to continue taxing crypto or all the other way around.

Nonetheless, let's hope the crypto/Blockchain industry and the government collaborate in order to make our world a better place. Regulations need to be balanced in order to pave the way towards the growth of the entire crypto/Blockchain industry. If regulations are too strict, they will scare people and companies away from the industry. Crypto taxation should be done in the fairest way possible, in order to avoid a negative impact in the adoption of Blockchain technology worldwide. Just my thoughts ;D

But how will they levy tax on crypto currencies if they doesn't know who to tax? They can't actually tell whose using Bitcoin and whose holding them. Even if they write a law making these holders pay taxes for their cryptos, they can evade that tax whenever they wanted since they don't have a proof that they really have bitcoin.

I know not all of us would be doing that but I know that will happen if that is the case. There are a lot of taxpayers that evade taxes, how much more when if its bitcoin.

Agreed, and myself used to think the taxation in my country. For what we pay we aren't getting anything perfect from the government. The government wants the people's money, and they never think of the people. They work for the rich and the corporate. Then why should I pay tax, and this is how the mind of people change and tries to evade tax.

When it comes to cryptocurrency, why people should pay when government hasn't got anything to do with it. As it is anonymous it is hard to collect data for taxation. Anyhow it is the interest of each ans every government.

There is no clear definition of cryptocurrency even for now. Bitcoin was created few years back but it does not have the right classification of this (digital currency, asset or properties). However taxing cryptocurrency is easy for the government to implement but they too provide security for the consumers and in this case it is not possible due to scammers, hijacking and phishing sites. This is a lot of work for the government and this is the reason why cryptocurrency is not yet accepted or still in the observation period. I know that some of the government had allowed few apps or echanges to operate in their jurisdiction but only to those few crypto. This is the reason for the high transaction fee of these app that are being regulated for crypto fiat exchange because the government had tax the app or exchange to which higher fee to be deducted compared from other exchanges

Heres where the problem lies for me, how do you pay taxes in fiat if you don't have any fiat? If I trade my Ethereum for Bitcoin, and am now holding Bitcoin, how am I supposed to pay taxes on that if I don't hold any fiat? Can I pay with Bitcoin? In most places NO.

Also when it comes to swapping, lets say I have a beer in my hand, and my friend has another beer, but I want his beer so we swap beers..............do I have to pay taxes because his beer is cheaper than mine? Swapping Crypto is no different.

Personally ill continue to follow the Tax laws and pay my taxes to the best of my ability, but its almost impossible to keep track of this, because you need to know the price of both currencies of when you swapped them, however that price can be subjective. An exchanges price is the price that exchange has deemed as the price. That doesn't mean thats the price im following, as the prices of Crypto are different depending on the exchange, country etc.

Tax is helpful to government and it is really good if the tax is big because the country will have more funds to provide some projects for the developement of the country, tax is helpful and it can really have a good effect in our country, but if we talk about cypto taxation i don't think that it will become posible beause crypto is fully decentralized and we are all using crypto without tax for a long time.

Making huge taxes would really be a problem.

Some of the users even said that they are using Bitcoin to be able to avoid paying taxes, making it bigger means many more will evade paying taxes. Despite that, I don't mind paying tax as long as they are doing their job of not corrupting those money and putting it all on their own pockets.

Because the government sees that bitcoin or other cryptocurrency is doing well specially today that we are facing a pandemic and digital transactions helps a lot for us to prevent from getting infected of the virus, so they want to impose tax even though bitcoin is decentralized. But if it's really necessary,they should just impose it fairly and correctly.
 

I noticed that each country has different approaches to taxation and legalization of cryptocurrency, and one way or another this is related to the government's views on this situation. Liberal laws are rarely adopted in relation to cryptocurrency, but nevertheless there is some progress. At least in my country, there is no specific tax on the storage of cryptocurrency, but every user who will transfer cryptocurrency in the equivalent of $ 1,500 will have to provide passport data. And the tax will be paid by those figures who carry out transactions in larger amounts.

I think government will put crypto tax base on the amount you are going to cash out and exchnge into fiat money. If through crypto wallet to wallet government can't put taxes on it. Only if you cash it out to different remittances or banks on which they will have access in your account because of KYC.

Desperate times calls for desperate measures as they say it. I know that the government are having a hard time managing funds left and right but I think crypto currencies would be out of this matter. One of the officials of DENR (DEPARTMENT OF ENVIRONMENT AND RESOURCES), capslock intended, want to reopen closed mines. The first lines says it all but is it really necessary?

This just proves that they will not be counting crypto currencies as a source of the tax they are getting since they will be looking closer to what more they can abuse now.

No bank or government authority controls it as they do with traditional currencies. If you have used cryptocurrency this year, what are the implications for when you file your taxes..If you’re selling property as a part of a business or trade,the property is not considered a capital asset and is taxed as ordinary income. This applies to virtual currency sales, too. The IRS looks at the “character” of the gain or loss—your intent, or why you’re selling.

The government just wants to take advantage of the ever-increasing prices of crypto on the market. They see a huge opportunity to increase their income by collecting taxes from their citizens. Some countries have gone far by implementing a high tax percentage on crypto income. South Korea is a good example of this. As long as crypto is taxed fairly, there should be nothing to worry about. Otherwise, crypto's adoption in the mainstream world will diminish by a large margin. The fact that transparent cryptocurrencies like Bitcoin and Ethereum are easily taxable, has paved the way for mainstream exchanges to adopt them at a large scale. Privacy coins, on the other hand, are in big trouble as the list of exchanges de-listing them is growing over time. What can't be taxed, will quickly see disapproval from governments worldwide. This means that as long as privacy coins are nearly impossible to enforce taxation, transparent cryptocurrencies will gain all the attention in the mainstream world.

In the end, people will decide whenever they'd want to pay taxes from their crypto income or avoid using it altogether. I think that more people will avoid using crypto as governments become strict in their tax collecting practices. Not all governments will be this way though, which means that crypto will still experience growth in mainstream adoption albeit at a slow and steady phase than usual. Just my thoughts ;D

government participation in crypto is actually not transparent, the government only wants to take advantage of crypto by setting taxes that must be issued by each user through local exchange, even the government has supported local exchanges to turn Bitcoin into Fiat and behind all this there are black and white provisions ( official cooperation) between the government and related local exchange management.

Exactly. Taxation is successfully achieved via centralized exchanges. It's this reason why governments support these type of exchanges over decentralized ones. Transparent cryptocurrencies like Bitcoin and Ethereum will see the approval of governments worldwide, as they're easy to track & trace for taxation purposes. Privacy coins, on the other hand, will see constant opposition to a point where they'll become "illegal" to use in the mainstream world. Even decentralized exchanges may become "illegal" to use in the future. While it'll still be possible to use them "under the table", most people will use centralized exchanges and transparent cryptocurrencies because of their legitimacy in the mainstream world.

As responsible citizens, it's important to comply with the law. You must pay your crypto taxes to the government, if you cash out to Fiat. Doing the contrary, will lead you towards fines or even jail time. Most people don't want to face these consequences, so they'll end up paying their taxes in return. As long as people and the government collaborate, the crypto/Blockchain industry will thrive. Efficiently taxing cryptocurrencies will pave the way towards recognizing the industry's legitimacy in the mainstream world. Which means, institutional investors will find crypto extremely attractive resulting in higher demand (and prices) on the market. Just my opinion :)

Most countries will actually tax you upon any trade. BTC to ETH would be considered a sale of BTC to fiat then a fiat purchase of ETH. It gets complicated when you start talking about BTC to LN, especially when it's not your own channel.

Your opinion is correct, they are too focused on the tax but not on the regulation to minimize the risk of investing in the market.

Not really what we are expecting, it looks they just want for us to have a responsibility to them but they don't give something to us to improve the market.

If they can only make this market more secure, many investors will not be afraid to risk their money, and it's a win-win situation as the increase of adoption will certainly result to the increase of their revenue, are they thinking of that?

I agree. Bitcoin taxation is a big help to the Government and to the country's economy as a whole. If the Country accepted and believes the usage of Bitcoin and other crypto currencies and legalized it. Then, they have all the right to get benefits from it in return. And that is by imposing tax just like the other businesses and industries.

In some countries, government is likely to take over crypto currency by using the profit to develop their environment. Government don't joke with tax they would like to force taxes to people to make their money.

While the governments of a few nations impose taxes at the human beings to enhance their surroundings and economy, this isn't always feasible withinside the case of crypto. Crypto decentralization isn't always beneathneath anyone's control. Not all of us is compelled to make a earnings as they wish. The authorities can't receive any tax from now on this is why many nations do now no longer aid crypto and perform it as illegal. But making an investment in crypto allows enhance a country's economy.

As far as I see the tax aspect of cryptos it's very similiar to investing in stocks. You should not report any unrealized gains in change of our holdings. But if you sell your coins and make a nice profit you should definitely mention it in your tax returns. For me my online wallet is similar to the hidden swiss bank accounts from 50 years ago. No one knew you had them and governments couldn't check it either. But if you start keeping everything a secret you might be in trouble in 10-15 years down the road when you want to get some money back into FIAT. For me it's just not worth it to try and hide everything from the government.

You better know the law in your country so you'll be able to manage the risk if ever you think of hiding your bitcoin.
Tax evasion is a serious offense or a crime, it's publishable by law and you could go into prison when proven committing a crime.

That's why it's necessary to know the sanction so you can do the right approach.

If possible you can avoid tax, that's better but you need to hire an accountant to do the job for you, that is not illegal.

If that's the case, then crypto taxation is being unfairly done. Governments should have no jurisdiction over a decentralized, distributed network. If people don't protest against these actions, countries collecting taxes from crypto-to-crypto transactions will continue with the endeavor. I have nothing against crypto taxation as long as it's done in a fair manner. After all, it's the citizen's responsibility to pay his/her taxes to obey the law. Otherwise, you'll be subject to fines or even jail time. While most transparent cryptocurrencies are easier for governments to collect taxes from, they can also do the same with privacy coins if they're traded on centralized exchanges.

As far as the LN goes, it's much easier to tax off-chain Bitcoin transactions because channels are directly linked to LN nodes with publicly available IP addresses. Developers may need to integrate privacy solutions in order to prevent this. But seeing cases where certain developers have been fined by the government (like the case of EtherDelta), could bring a lot of problems to a privacy-oriented version of the LN. It's like developers are being held liable for their actions. This could question decentralization itself as we know it. Just my opinion :)

In many countries, such types of taxation of cryptocurrencies as VAT and sales tax have been excluded. But some types of taxes do exist and they also differ for individuals and legal entities. As for the authorities, it is no longer a secret for anyone that popular exchanges where buy and sell cryptocurrency are increasingly exchanging information and cooperating with the governments of countries.

is it true that crypto taxation cost too much in india??

i dont agree since bitcoin is decentralized without interference of any gorvenment

unless you have a big minifarm or company who's make coin in a city or country. small player no needed cause we pay electricty and buy some product there's already tax on it

I asked the Indians who were in my contacts. Some have said yes, others do not and there are also others who do not know. Maybe because those who said no or do not know maybe they do not use services or even cash out bitcoin to fiat currency.

Here are some of their responses:
- As per government policy, it's high
- I don't know about the matter, Maybe
- If you withdraw huge money through a bank then a tax could be 20%. More than 50k, it will be captured in income tax, 50k in equivalent
- Before a little bit only, Nowadays many service tax deduction for the exchange apps
- I think so, I don't know
- Not that much but till now am just received a small amount of bitcoin only trying to get more
- Yes, It's just regulated, so the government going to make a law before March, BTC is illegal so it's new for Indian exchange, so they anything they want. Illiterate people in India don't know Blockchain, many scams occur in name of BTC, a Ponzi scheme, HYIP plans, and altcoins make scam so India banned in 2017 and again regulate it march 2020 after winning in courts

But don't forget that you can make a lot of money with alt coins. Let's say you get really lucky in one year and make 100-200% return on your coins and covert them back into FIAT, some form of taxation would need to happen. I think taxation shouldn't happen as long as you hold crypto currencies. Taxes should only be taken into consideration when you convert cryptos into FIAT.

In my opinion, if the income from crypto is large enough and stable per month, the government may impose taxes on our crypto income, meaning that the tax is based on fiat currency resulting from the withdrawal of exchangers.

We have to admit that there are countries which are friendly towards crypto, while some of them are not. Tax laws vary among different countries in the mainstream world. Some are fair in their taxation practices, while others are not. Given that most governments have started taxing crypto transactions from everyday people, we can assume that the industry is already legitimized. It would've been the contrary if governments were unable to successfully tax people's crypto holdings. But with many people using and patronizing centralized exchanges and wallet providers, crypto taxation should be easy enough to perform by said entities.

The real challenge would be taxing privacy coins. While most privacy coins are traded on centralized exchanges, anyone using a decentralized exchange to trade a privacy coin to Fiat (or vice versa) will make governments' lives impossible. Eventually, governments may end up banning or declaring privacy coins as illegal as they're unable to tax them successfully. Fear not, as crypto's decentralized and open source design will keep it going no matter what governments' regulations may be. The only issue would be getting access to crypto with Fiat currencies if they're banned from widespread use. My guess is that P2P or in-person trades will rise like never before as people use them more thoroughly for exchanging Fiat to crypto (or vice versa) without getting noticed. Taxation or not, crypto will be here to stay for many generations. Just my thoughts ;D

I don't think there should be any taxes to crypto profits.
However, most goods you buy in the store already has taxes in the price, so if we'll be able to buy with crypto that means we pay taxes already

You don't think so, but taxes are already implemented in many countries.
Crypto is considered as an investment and you are taxed based on the profits you earn.
The taxation occurs when you try to withdraw your money and send them to a bank account. If you don't want to be taxed you should better keep them in a stablecoin and in crypto space in general.

If crypto is converted to fiat currency then crypto will be taxed. Crypto is not under the control of a decentralized government so it is very difficult to collect taxes from here. If fiat is converted into currency the tax will usually be levied on our income. Banks will introduce cryptocurrencies and impose tariffs like Fiat. I think it is better not to have tax in the case of crypto everything can be exchanged independently and not after the bank's need.

This should not be considered as a standard rule, not all countries have the same treatment .
What if you buy bitcoin and then convert it after? Why would you pay a tax for that when you don't earn income?

Is a "decentralized government" exist? I thought every government are centralized.

No matter how i disagree with this crypto taxation, still i need to follow the Government here in my country if they were to impose tax on Bitcoin/cryptocurrency. Bitcoin has a lot to offer and its the main reason why Governments wanted to benefit from it. If its already legalized in a certain country, then maybe the Government has every right and will find the most effective and easiest way on how to make profit out of decentralized currencies.
Obeying the law and paying taxes is the best way to have a peaceful and abundant life. So, it would be fine for me.

But how will they implement it?

I mean they can't just pinpoint someone using cryptocurrencies. Those investors are the only ones that know they have cryptocurrencies, and most of them are really hiding that they are earning a lot of money from it. At the end of it all, it all depends on the person if they will pay for those taxes, I am not saying that all of us are like that, I am saying that there are those kinds of people.

Exactly. You only need to pay tax if you exchange crypto to Fiat. If governments decide to tax crypto transactions directly, then it'll be a nightmare. I'd imagine that the crypto/Blockchain industry's growth will stifle because of this. Governments and everyday people need to cooperate in order to make crypto land a better place. By taxing crypto transactions in a fair manner, everybody wins. It's your responsibility to pay your taxes from your crypto earnings (if you decide to cash out for Fiat) in order to avoid facing fines or even jail time. Sadly but surely, governments will collect taxes via centralized exchanges which force KYC/AML measures. If your identity is under the custody of centralized exchanges, taxing crypto becomes an easy task.

Needless to say, things would've been different if everyone started to use decentralized exchanges on top of centralized ones. In the event governments are unable to successfully tax crypto transactions, they'll simply declare cryptocurrencies as illegal. Only then, a small minority will be using crypto/Blockchain tech for transactions "under the radar". But mainstream adoption will never be the same.

Nonetheless, let's hope everything works out smoothly in the subject of crypto taxation. If all goes well, governments will give the "green light" for crypto/Blockchain tech's growth in the mainstream world. Transparent cryptocurrencies like Bitcoin and Ethereum will most likely have the government's favor, while privacy coins will see constant opposition from central banks and governments alike. People will ultimately decide whenever they'd want to cooperate with the government by paying their taxes or not. Just my thoughts ;D

A crypto tax per person is unlikely to happen as they are finalizing the regulations for crypto. Since they don't create cryptocurrencies, they will seek to tax the brokers. They require KYC to control the cash flow. I can believe that in the future they will find a way to tax everyone involved in crypto trading.

But we can't actually use it, not in all of the countries we can use bitcoin to buy goods. Usually we convert out bitcoins and even other crypto currencies into fiat and in terms of our local exchanges, even though I am using their servcies, I can't actually see any taxes deducted from the converted amount. Let's just hope that it stays like this.

All the regulated exchanges if it is legal in their country would have the KYC done and people will have to file their incomes from the crypto while filing for the tax purpose just like income from stocks. though each country may have different laws regarding crypto or how it is calculated then may differ but overall, one must pay tax on income from it. If avoided, then it could lead to penalty.

the government is too cruel in treating unauthorized civilians. as we know, that the FIAT currency is the opposite of a decentralized currency where no one will want to be responsible for the mistakes of an individual when he uses a decentralized currency. Whereas in full it can also be said that all mistakes cannot be transferred to one user of decentralized currency who is disadvantaged, for example Ethereum, Vitalik will not reply to your report for losing your private key or having your assets stolen. He will pass all the blame on you.

Then FIAT has an agency that plays a central role in overseeing the circulation of their money. This control also plays an important role in controlling the distribution of the amount of money. In addition, with the existence of a centralized party, this causes when a complex problem occurs, the company is also involved in the problem. That is, the individual is no longer assigned all the blame to him.

The conclusion is, crypto users already feel aggrieved by the absence of assistance from the government or companies related to the government in helping to solve problems that occur as the example above. As for FIAT, there must be action from the government to help solve this problem.

Then why does the government suddenly want to ask all of us for money by imposing tax regulations?
This is clearly unfair. We are already taking huge risks alone as users of the decentralized currency and why should we still be burdened with government interference to cut our profits?

It will be easier for government to tax crypto when they have the full control over the exchanges. This is what they are going to do when they want to really tax the crypto, they will just hand these exchanges in the neck let it spit who uses their exchanges, track and monitor them then tax the shit out of their profits. Centralized exchanges will be likely to be the one that is going to be a weapon for this, and decentralized exchanges will be out and will be prohibited. crossed-fingers.

KYC will be implemented every where, any ICOs will implement a KYC policy, any exchange will have KYC policy and any wallets will have KYC policy. I don't really know how will they do this but this is the only way that they can control what's going inside and outside just for getting a tax.

Exactly. Centralized exchanges will prove to be the easiest way for governments to collect taxes from their citizens. There's no other way around it. The hardest part will be collecting taxes from decentralized exchanges and in-person trades. That's largely because these solutions don't require ID verification of any kind. A decentralized exchange that complies with KYC/AML regulations is not decentralized at all, making it possible to collect taxes from it. This alongside privacy coins like Monero, BEAM, or Grin, will make crypto taxation quite an impossible task. That's why we've seen how recently governments (especially the US) have been interested in tracking down privacy coins in their entirety. Apparently a Blockchain analytics company called "CipherTrace" has been able to track & trace Monero transactions. If their tool is as they claim it to be, then governments will be able to successfully collect taxes from Monero users.

Nonetheless, time will tell us what lies ahead with the future of crypto. If taxation becomes widely successful, then crypto/Blockchain tech will be considered as legal in the mainstream world. Otherwise, expect a massive crackdown on the entire industry. Ban or no ban, crypto will always exist thanks to its decentralized and open source nature. Just my opinion :)