Standard regulation of Cryptocurrency: government exhange offices

[Elby]

Was thinking about how worldwide the cryptocurrency will be regulated. I think there will come exhange offices (run by the governments) where people can exchange them for money (or state obligations), in this method, they can automaticlly settle the tax over the transfer. I think this is the only way how governments will be satisfied, of course 95% of their concerns are tax related and not about criminal transactions which government officials state a lot, this is just an excuse.

How do you all think about this? I hope the regulation will be settled soon, because this uncertaintity damages the cryptomarket too much, it is time for a more steady course without legal concerns.

[dogandogru]

I don't think govt will ever open such a exchange as BTC in their country as it will create a competition for fiat which any govt does not want to be happen in their country

[Hydrogen]

I see people complaining about transfer fees.

I think if bitcoin ever becomes truly regulated, there will be taxes stacked on top of transfer fees and it could make things worse.

For europeans their VAT could be stacked on top of bitcoin transfer fees, for americans a sales tax could be stacked, in cases where bitcoin is used to buy/sell. I would be very interested to hear about any proposed benefit people think they might gain from that. The implications of bitcoin being taxed appear negative. If someone could point me in the direction of positive tangible gains for bitcoin being taxed or regulated, I would be very interested in seeing those arguments.

[Tankdestroyer]

I don't think govt will ever open such a exchange as BTC in their country as it will create a competition for fiat which any govt does not want to be happen in their country

That is true but as far as I know in the Philippines there is a government regulated exchange site from btc to fiat called coins.ph. I don't know how they can tax users that way since they don't charge much but I am sure it is regulated by banko sentral ng pilipinas which is a government agency in charge of regulating banks and others related to fiat currency.

[btccashacc]

I don't think govt will ever open such a exchange as BTC in their country as it will create a competition for fiat which any govt does not want to be happen in their country

Indeed, all I can see the government only interested in the technology behind cryptocurrency the blockchain instead of opening an exchange they will regulate all of the exchangers inside the country and taxed them. As you've just said bitcoin is a big threat to them so by making an exchange it kind of like supporting bitcoin.
In my country, the govt regulated bitcoin and crypto as stock so every transaction will be taxed.

[aso118]

I see people complaining about transfer fees.

I think if bitcoin ever becomes truly regulated, there will be taxes stacked on top of transfer fees and it could make things worse.

For europeans their VAT could be stacked on top of bitcoin transfer fees, for americans a sales tax could be stacked, in cases where bitcoin is used to buy/sell. I would be very interested to hear about any proposed benefit people think they might gain from that. The implications of bitcoin being taxed appear negative. If someone could point me in the direction of positive tangible gains for bitcoin being taxed or regulated, I would be very interested in seeing those arguments.

You don't pay VAT or Sales Tax when you buy and sell foreign currencies, or stocks. So why would you need to pay VAT when you buy and sell bitcoins? Typically, you pay VAT when you buy or sell a good or service. You definitely shouldn't be paying VAT when you transact currencies. There is no 'value' you are adding.

[The_Dark_Knight]

Was thinking about how worldwide the cryptocurrency will be regulated. I think there will come exhange offices (run by the governments) where people can exchange them for money (or state obligations), in this method, they can automaticlly settle the tax over the transfer. I think this is the only way how governments will be satisfied, of course 95% of their concerns are tax related and not about criminal transactions which government officials state a lot, this is just an excuse.

How do you all think about this? I hope the regulation will be settled soon, because this uncertaintity damages the cryptomarket too much, it is time for a more steady course without legal concerns.

But that is only going to work if people do not accept bitcoin directly, that system is going to fail when people begin to make transactions for physical goods in exchange of bitcoin, at that point any attempt to control bitcoin will fail, they may try to ban the usage of bitcoin as legal tender but if they do they will be shooting themselves in the foot since not all countries will do that and those countries will benefit from the consumption of bitcoin users.