Bitcoin being taxed?

[digitx]

Just happened across this one: https://motherboard.vice.com/en_us/article/7x4vad/putin-cryptocurrency-russia-mining-regulations-ico-bitcoin-ethereum?utm_source=mbfb

It sounds like a good idea from a government's perspective but wouldn't miners just move to locations where they don't have to register?

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[eckmar]

It's good for government and It's also logical since a lot of people of last few years have made mining their job. However If it would happen in my country I wouldn't like being taxed and would most probably stopped mining.

[Onimushi]

Just happened across this one: https://motherboard.vice.com/en_us/article/7x4vad/putin-cryptocurrency-russia-mining-regulations-ico-bitcoin-ethereum?utm_source=mbfb

It sounds like a good idea from a government's perspective but wouldn't miners just move to locations where they don't have to register?

Things like this aren't new. In our country Bitcoin has been taxed by regulating local traders. I think registering is not that bad enough because that is a good step towards legitimacy. Also if that country offers a very cheap electricity, why would they moved out right?

[ItsEzMkay]

Just happened across this one: https://motherboard.vice.com/en_us/article/7x4vad/putin-cryptocurrency-russia-mining-regulations-ico-bitcoin-ethereum?utm_source=mbfb

It sounds like a good idea from a government's perspective but wouldn't miners just move to locations where they don't have to register?

Sounds like a good idea in theory but your not gonna uproot your whole life just to avoid some tax are you? I mean it be worth it for a small group of people (not advocating anybody avoid tax obv) but still it seems like a lot

of hoops to jump through to avoid the taxman.

[ClownSpider]

Until Governments start calling bitcoin currency, it cannot be taxed.
IF BTC could be taxed, you could simply not report it, because it is anonymous enough to just NOT report.  lol

You could mine it, and not report it.  Easy.  Give me a break.

[Ucy]

Your Bitcoin is taxed when you convert Fiat to Bitcoin or Bitcoin to fiat. You aswell pay indirect taxes through Centralized exchanges and other related services.


So no need for governments to demand for extra taxation unless they want people to be pissed and avoid taxes entirely, which is possible with Bitcoin.

[Vatimins]

Just happened across this one: https://motherboard.vice.com/en_us/article/7x4vad/putin-cryptocurrency-russia-mining-regulations-ico-bitcoin-ethereum?utm_source=mbfb

It sounds like a good idea from a government's perspective but wouldn't miners just move to locations where they don't have to register?

This right here is mostly an attemp of the governments to adapt with the increasing and unstoppable demand for bitcoins. Thinking it wouldn't be easy to stop bitcoins, they resulted into using this demand for bitcoins to their advantage. Hence, they tax peope for mining bitcoins. Although i don't see anything bad yet, i think this is the first step of the government to take advantage of the people and tax the hell out of us. So having said that, i would probably not reveal myself being a bitcoin user. Damn taxes makes me feel chanied in the outdated system of this world

[squatz1]

Well if the miners are being taxed but the energy price is low, or they've cut a deal with the government to be able to get power for a really low cost. The tax could be something which is small and huge mining operations MAY still stay around if it's profitable enough for them to do this. Though if it's not, and it will hurt their business NOTHING is stopping people from just moving their miners, buying a new place, and setting up shop in a different area which favors them better.

But this is the big gray area with Bitcoin, as governments could in essence kill your entire operation VERY FAST.

[Crypington]

I know it is not going to be a popular thing to say here, but I think miners should be taxed just for the insane amount of energy consumption and resulting polution.  It seems we need a more eco-friendly solution than ASIC mining.

[RAmondragon]

Just happened across this one: https://motherboard.vice.com/en_us/article/7x4vad/putin-cryptocurrency-russia-mining-regulations-ico-bitcoin-ethereum?utm_source=mbfb

It sounds like a good idea from a government's perspective but wouldn't miners just move to locations where they don't have to register?

It's great that cryptocurrency is getting this much exposure as this will pave the way to faster recognition and adoption albeit the proposed regulations. The downside i'm getting here is that transaction rates will increase to cope with this taxation once implemented. So in the end, the end users are the ones paying for this tax.

There would be a lot of factors to consider before moving their mining elsewhere just to avoid the taxation. The cost of moving and price of electricity will be the top ones. You CAN just hide and not register but that could be considered a felony (tax evation) which can be punishable by imprisonment and fines if caught.

[Murloc]

Bitcoin is already taxed. Just try to exchange some good amount of your bitcoins and withdraw all this funds to your debit card. There is a high chance of getting a letter from your tax department. Governments can only try to  increase the area of their controll to whe wallets (not tax only withdraws).

[darkangel11]

Just happened across this one: https://motherboard.vice.com/en_us/article/7x4vad/putin-cryptocurrency-russia-mining-regulations-ico-bitcoin-ethereum?utm_source=mbfb

It sounds like a good idea from a government's perspective but wouldn't miners just move to locations where they don't have to register?

Things like this aren't new. In our country Bitcoin has been taxed by regulating local traders. I think registering is not that bad enough because that is a good step towards legitimacy. Also if that country offers a very cheap electricity, why would they moved out right?

It's not a total taxation. It means that only when you're converting to fiat that you're required to pay. Bitcoin being taxed would mean that blockchain funds would be tracked after coming out of exchanges to people's wallets and if they got gains due to the price going up they'd have to pay taxes regardless of whether they are converting or not. We are still far from such outcome.

[Rosa Paula]

It's very good for government.The taxation of a country's economy will certainly require tax.In particular, the governmental activities of the democratic countries are governed by taxes.So it is a very good sign that Bitcoin is paying tax.

[gamerfan]

Well, Bitcoin cannot be taxed by a central agency or government because Bitcoin transactions can be fully anonymous (at least if the user is able to keep his privacy). So Bitcoin is impossible to tax for governments.

[gredisgold88]

it should be like that, because there is a surplus value in a trade, if there is no tax in bitcoin then the money will become bubble and "doom" , the global crisis will happen.

[salihno71]

This is basically a good news. It shows that governments are slowly but surely accepting cryptocoins. Regulations should lead to wider adoption.

[erox]

I think this law after its entry into force will not work. However, like all laws in Russia.

[Karakyli]

Income in the crypto currency, how they would not be earned, should be taxed. This is a common practice of all states. Therefore, there is nothing surprising. It is necessary to get used to this, because the Crypto-currency also brings good profits to people and to ensure that this activity is protected by laws and court decisions, taxes must be paid.

[exstasie]

Just happened across this one: https://motherboard.vice.com/en_us/article/7x4vad/putin-cryptocurrency-russia-mining-regulations-ico-bitcoin-ethereum?utm_source=mbfb

It sounds like a good idea from a government's perspective but wouldn't miners just move to locations where they don't have to register?

Sure, but that will only work for a short time. Within the coming decade, I expect that nearly all governments will have regulations on cryptocurrency mining and exchange. The question will be, how liberal is one country's policies vs. another?

I'm sure some countries will outright ban cryptocurrency payments, and I've read that the governments of both Algeria and Indonesia are considering doing just that. It'll be interesting to follow what their citizens do if they follow through with it. I imagine some countries will become a haven for mining -- low taxes, power subsidies, etc. Time will tell which ones.

[greeklogos]

On reason of why bitcoin is so attractive to all of that is that we don't need to pay taxes from this kind of profit. YET. And I think it is pretty possible that those people who earn a lot with the help of bitcoin will start to earn it through other countries who do not enrolled bitcoin's taxation.