Tax authority wants all crypto traders data on exchanges

[TheGreatPython]

What the heck is happening? Canada’s tax authority is reportedly asking a federal court to force cryptocurrency exchange Coinsquare to hand over information and certain documents on all of its users since the beginning of 2013...

News source: https://news.bitcoin.com/canada-tax-authority-coinsquare-crypto-exchange-data-all-users/

I am not sure why anyone would have any problems doing that because most of the exchanges ask for KYC and if you are comfortable doing KYC then you must be well prepared for the taxes and it would be a dumb idea to have the KYC done but try and evade taxes. I am not sure of the Canadian rules and regulations but surely if they allow trading in crypto you shouldn't be afraid.

Actually it is a little unfortunate that users who thought they were trading anonymously will now be busted but seriously exchanges don't have an option rather than to follow the legal procedure. If you have done KYC on your exchange then no need to worry at all because you played safe from start.

[Vishnu.Reang]

Well.. this is something that is expected. I always prefer Dex sites to mainstream exchanges. And to convert Bitcoins or Ethereum to fiat cash, I always use peer-to-peer platforms. A couple of years ago, Localbitcoins was the preferred platform to convert Bitcoins to fiat. But after they made it mandatory to have KYC verification, I shifted to some of the lesser known P2P platforms.

[Yatsan]

Upon using centralized exchanges, expect that you will be facing the interfering of the government upon wanting to have the data covered up to be into their hand to have a payback on what must be paid upon issuing taxations with regards to crypto trading. We all do know that the government is the one managing the taxes from the people and use it upon such projects and related innovations that is supposedly for national use excluding personal interest and corruption. Now, anything that is operated to earn up money is need to have tax which is maybe the reason why they were asking for the data of the crypto traders on certain exchanges. Surely, centralized exchanges were obligated to do such for they were under government supervision so expect no less that they will follow through such recommendation. We are talking about legal matters in here and with regards to that, that must be a followed procedure specially by the centralized exchanges.

[jostorres]

Then let's get ready for DEX taking over, though I'm not a fan of dex exchanges because of lack of liquidity and trading volume but I remember that binance got binanceDEX    so I got nothing to worry about here, this is why I always have problem dropping my KYC information to third parties.

Absolutely agreed with you. You know I have a few friends who use fake identities on exchanges to avoid taxes and being recognized by legal authorities and I don't like such practices but now I understand why some guys pay to buy identities online and then use those on exchanges.

Although this is a bad news but I see one positive here that is, if authorities are asking for data they are recognizing the crypto trading as legal and that makes me feel good because in certain countries the laws about crypto trading are still bogus and ambiguous. I think more and more people might shift to dex after such news but the legal traders will be more than happy to pay some taxes/fees and trade proudly.

[JohnBitCo]

What the heck is happening? Canada’s tax authority is reportedly asking a federal court to force cryptocurrency exchange Coinsquare to hand over information and certain documents on all of its users since the beginning of 2013...

News source: https://news.bitcoin.com/canada-tax-authority-coinsquare-crypto-exchange-data-all-users/

For sure, they want to collect the data of the Canadian citizens and track their activity on the exchanges and then perhaps charge them the taxes which the traders had avoided. To be completely anonymous, we need decentralized exchanges. The data and the activity on the centralized exchanges can be monitored anytime.

[MFahad]

What the heck is happening? Canada’s tax authority is reportedly asking a federal court to force cryptocurrency exchange Coinsquare to hand over information and certain documents on all of its users since the beginning of 2013...

News source: https://news.bitcoin.com/canada-tax-authority-coinsquare-crypto-exchange-data-all-users/

I have not traded on Coinsquare but do they enforce KYC for every person who opens the account there ? 

That's one drawback of doing the KYC at exchanges.

[jrrsparkles]

What the heck is happening? Canada’s tax authority is reportedly asking a federal court to force cryptocurrency exchange Coinsquare to hand over information and certain documents on all of its users since the beginning of 2013...

News source: https://news.bitcoin.com/canada-tax-authority-coinsquare-crypto-exchange-data-all-users/

Its not a wonder, every centralized exchanges under the regulation of their origin which mean they should follow what their government asks and even in future it maybe changed and centralized exchanges has no choice other than accepting it.

[DDante]

This isn't surprising because from scratch that's what centralized exchanges or platform are all about, they can easily be put to trails or controlled or even manipulated, if you are surprised by this then you are just using exchanges without understanding what they are all about, DEX will surely have a solid community love in near future, Centralized platforms should be ready to lose their customers because of this

[drlukacs]

What the heck is happening? Canada’s tax authority is reportedly asking a federal court to force cryptocurrency exchange Coinsquare to hand over information and certain documents on all of its users since the beginning of 2013...

News source: https://news.bitcoin.com/canada-tax-authority-coinsquare-crypto-exchange-data-all-users/

Canada is seemingly opposed to using Crypto in their own country.  The Government of Canada allows Crypto to operate in their own country but they have high taxes
To me , this action also makes sense that the Canadian government does not want their country to have more money laundering crimes.  It was also a political decision and I support it.