What if authorities launch a tax for owning bitcoin?

[kaka_Shipai]

I don't think that can be possible. I mean there are so many coins and tokens that people can move their funds from one blockchain to another making it real hard for the authorities to correctly calculate the worth people hodling. So i don't think its even possible, atleast not at this stage.

[0t3p0t]

Thailand’s Revenue Department is planning to impose personal income tax on the foreign revenues, including those made from crypto trading, of any person who resides in Thailand for more than 180 days.

Link: https://cointelegraph.com/news/crypto-thailand-tax-overseas-income

I think this is how it works, I just came across to this article and seems taxation on Bitcoin or any other cryptocurrency will end up like this if I am not mistaken. Though taxes will only be applicable if you are using local exchange not the transactions carried out from non-costudial hot wallets.

[Despairo]

I don't think that can be possible. I mean there are so many coins and tokens that people can move their funds from one blockchain to another making it real hard for the authorities to correctly calculate the worth people hodling. So i don't think its even possible, atleast not at this stage.

They're use centralized exchanges to buy and sell their coins, whether they declare all of their coins or not, when you sell your coins, they know how many coins you have at that time. If you make a big trade, sooner or later they will put an eye on you.

Though taxes will only be applicable if you are using local exchange not the transactions carried out from non-costudial hot wallets.

It just a matter of time when they realize there's a way to cashout without KYC, then they will add a new law to punish people who trying to not pay tax.

[KingsDen]

I think this is pretty ridiculous and there's no chance of this ever happening.  I guess it's never a bad idea to think about all sorts of different possibilities that there could be coming with owning bitcoin, but, I just don't see this one ever coming to fruition.  I mean how would they even go about tracking everyone down and holding them accountable? 

Also, if they ever come to tax my bitcoin that I'm simply hodling, I will let them know they can suck it out of the tip of my ... yeah.

How would they be able to track and tax someone who is browsing with concealed IP and has his assets on a non custodial wallet or hardware wallet. Will they have to wait until I move it to an exchange and they will trace it to my identity if I completed KYC. How about if I swap my bitcoin to fiat in a completely decentralized exchange, will they be able to track me. These are just simple ways, how about if technical means are applied.

What OP described cannot happen. The method and level of taxation in place now is enough, only a lil difference would be witnessed and not to the extent of government going dangerously against Hodlers.

[LoyceV]

browsing with concealed IP

If governments get their way, they'd end that too. Once in a while a n00b politician already suggests to ban encryption.

[gunhell16]

That is possible if the one where your Bitcoin or cryptocurrency assets are stored is on an exchange platform held by the government, but if it is on a decentralized platform, it is unclear and impossible to tax.

That is, as long as there is no authority or decentralization of Bitcoin, no matter what any government in the world does, the government will not be able to issue a tax to all Bitcoin holders. This is impossible to happen unless there is decentralization or blockchain for Bitcoin.

[joker_josue]

That is possible if the one where your Bitcoin or cryptocurrency assets are stored is on an exchange platform held by the government, but if it is on a decentralized platform, it is unclear and impossible to tax.

That is, as long as there is no authority or decentralization of Bitcoin, no matter what any government in the world does, the government will not be able to issue a tax to all Bitcoin holders. This is impossible to happen unless there is decentralization or blockchain for Bitcoin.

With mining starting to be concentrated in just 3 or 4 large pools, it is not difficult for governments to start creating greater rules and restrictions.

[LoyceV]

With mining starting to be concentrated in just 3 or 4 large pools, it is not difficult for governments to start creating greater rules and restrictions.

Miners can easily switch pools. The moment one pool is subject to unwanted government involvement (let's say a tax on freshly mined Bitcoins), miners will leave. Money talks.

[joker_josue]

With mining starting to be concentrated in just 3 or 4 large pools, it is not difficult for governments to start creating greater rules and restrictions.

Miners can easily switch pools. The moment one pool is subject to unwanted government involvement (let's say a tax on freshly mined Bitcoins), miners will leave. Money talks.

Because money speaks louder, why do they have to leave if these Pools continue to be the ones that give them the highest income?

Either way, I have great doubts that this will happen. I think the danger of mining being centralized in a few pools is another.

[Natsuu]

Well tax rules differ by place, so chat with a local expert for advice that fits your situation. Reporting a stolen wallet without a real reason might get you in legal trouble. Sending Bitcoin to an unlinked address could give you more privacy, but be careful about breaking tax laws or other rules where you are. Stay informed, and get pro advice to handle these things smoothly or just keep informed.

[Outhue]

Come to my country, nobody even care if you own Bitcoin or not, you won't pay any taxes even on realized gains, it's all yours, the government don't give a heck about how much you made from crypto, it's not even a thing here, that's why when they ban crypto it is just away from the banks, everyone still buy and keep their coins offline using peer to peer method.

I don't like the government, growing up I have hated politicians the most, the sufferness of my people is never for once solved by these people, they only know how to take advantage of the poor, I am not even talking about jobs, the biggest issue is security, now I will work hard and make my money, only to share some part with the government? It will make me extremely angry.

With everything that's happening in the country now, if in future I have to pay taxes on crypto I would rather travel out and start paying taxes in other country, where the government are truly capable.

[Assface16678]

I don't think that can be possible. I mean there are so many coins and tokens that people can move their funds from one blockchain to another making it real hard for the authorities to correctly calculate the worth people hodling. So i don't think its even possible, atleast not at this stage.

Exactly! They are very concerned about government getting their way to bitcoin but the fact that even what technology there is bitcoin can't be penetrated, I mean even the government will have a law about putting tax to bitcoin holders what is their means of knowing who owns an wallet address or bitcoin address? Remember the only we have in bitcoin or crypto currency is our wallet address, maybe through KYC they can know but what if we moved our assets to a cold wallet? Or exchanges that doesn't require KYC? There are a lots of way to avoid governments implementing tax, that's the beauty of crypto currency it is complex and secured that we can rest assured that they can't know who we are. So I'm confident that putting a tax for us crypto holders will be impossible at least a lot of years, but even that happens I'm already prepared on how will I secure my assets.

[Justbillywitt]

I don't think that can be possible. I mean there are so many coins and tokens that people can move their funds from one blockchain to another making it real hard for the authorities to correctly calculate the worth people hodling. So i don't think its even possible, atleast not at this stage.

Honestly speaking I don't see this tax coming anytime soon. The government really have to put a lot of work to actually know the amount of Bitcoin that someone is holding, unless they will have to rely on the amount of Bitcoin one trade on cex. I think the government already know difficult it will be for them to actually achieve this that's why they haven't tried it.

[Bureau]

In my country the government does tax Bitcoin and other cryptocurrency only when it is being traded on an exchange. The tax is applicable for both profit and loss made during a trade. There is zero tax for holding Bitcoin in a self custody wallet. If in the future the government does tax for holding Bitcoin then how will they know it without the owner of the wallet disclosing about it. What you are saying is not possible unless the government forces it's citizens to disclose about it.

[Crypt0Gore]

BTC by its very nature precludes centralization, and thus governments. They can attempt to do whatever they want. BTC will fill the cracks of attempted centralization like water seeking its level.

I am not buying this, can you say the same thing about people who have been buying and selling Bitcoin all their lives using centralized exchange? The foot print is already there and nothing can clean it up, only those who have never passed KYC on any CEX and also stick with Peer to peer trading can escape this.

Bitcoin was created as a decentralized currency but the people gave power back to the authorities by using centralized entities to trade their Bitcoin, the fault is on the investors, they invest in Bitcoin but they failed to use it the right way.

You can only be taxed if you trade your Bitcoin on centralized exchanges, it's why the government want every details available on Binance exchange, to know those people buying big without paying taxes, many new mess will happen in the future, many people wont saw it coming.

[LoyceV]

If in the future the government does tax for holding Bitcoin then how will they know it without the owner of the wallet disclosing about it.

The same applies to many other taxes: tax payers are responsible for reporting the correct amounts. If you don't, government can fine or imprison you. The level of tax evasion varies per country, Italy holds the record in EU. That makes me think it's much more socially accepted in Italy, but I have no idea what consequences there are for tax evaders after they get caught.

[abel1337]

They can't shutdown bitcoin even if they want to. They can ban it but there still some people in their country who can surely access it. We are on the tech side of things and finding a way to access or transact on the blockchain would be an easy peasy way. For sure that the government know this, the best thing they can do is to regulate it and capitalize it as much as they can. Taxing it would be complicated if you ask me, especially on the countries where collecting taxes aren't that strict. If somehow new laws where created about taxing bitcoin, surely there will be new loopholes be created 

If this happens in your country, you can come to Portugal.

Here, taxes are only paid on gains, relating to buy/sale made in the last year.
In other words, if I sell Bitcoin purchased in 2022, I will not pay tax. But if you sell Bitcoin purchased in 2023, you will already pay tax.

That's why it's the "ideal country" for HOLD.  

This is a good ideal country beside other countries that is legalizing cryptocurrency. Let's see how majority of the countries react on the ever rising adoption of bitcoin and cryptocurrency.

[Blitzboy]

Despite YouTube theories, a Bitcoin HODL tax is possible in our changing financial world. Authorities want control, and taxes is a classic weapon.

Your strategy of reporting your wallet as stolen for such a tax is dangerous. Im no lawyer, but I've known Bitcoin and know that while it sounds like a smart loophole, it might backfire. Blockchain transactions are visible, so even if you claim the wallet is stolen, any fund movement could implicate you. A fine line between privacy and compliance.

Transferring BTC to an untraceable address is theoretically doable but difficult. Bitcoin's privacy is a myth - theres always a trail. Staying informed and flexible is crucial. Participate in forums, follow legal changes, and diversify your investments. Remember, Bitcoin's strength is its community.

[btc78]

It's just YouTube, but today I ran across a video that mentioned a bitcoin HODL tax.

In order to stop bitcoin, authorities would have to shut down the internet which is impossible.

Let me just expound on why this could never happen

Authorities also NEED the internet a lot of their systems would come into a halt if they were to stop the internet from running especially if they are planning on doing it forever most of our society depends now on the internet too much for the government to think that they could possibly remove it from our livelihoods

So I predict that their next move is to launch enormous taxes to discourage people from owning bitcoin

by treating the owner of 1 BTC like a drug dealer (prison sentence).

It has already been established that one of Bitcoin’s main features is its decentralization and in the past years it has proven itself true
Yes, they could link an address to another but they would always encounter a dead-end because they would not know who really owns those addresses

[Volimack]

It seems unlikely that tax authorities will introduce a tax on bitcoin ownership. When you acquire bitcoins using a government issued currency through a currency exchange service you are engaging with a regulated financial institution. A proposal to start taxing crypto assets on income derived from investments in digital assets is long overdue. The way the blockchain system is progressing the authorities will not be able to impose anything easily.