Crypto Taxation

[Mahanton]

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?

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.

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[alexsandria]

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.

[posi]

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?

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.

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?

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.

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.

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?

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.

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?

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.

[ecnalubma]

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?

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.

[Taskford]

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?

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.

[yulionoo]

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.

[Jaspion]

the government thinks if they can take tax from cryptocurrency then the country's income will increase.

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.

[Hippocrypto]

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?

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.

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.

[shoreno]

Taxation wouldn't be a problem if the money from crypto be used entirely for economy's improvement and developments.

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

The problem here was regulation has been abused by many government personnels whose in the power.

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  .

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.

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 .

[Cherylstar86]

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.

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.

[vintages]

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.

[Wapfika]

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.

[Oilacris]

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.

They can’t just simply collect taxes on crypto users because at the first place this is decentralized and we are still anonymous not unless you provide your information. Taxation is important and if there’s already rules and regulation for this one, then we should follow that than to suffer later on. There’s no wrong about paying taxes, the purpose of taxation is really good.

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.

[pixie85]

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.

[Abiky]

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.

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

[TIDOVEE]

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.

[ajaymukund]

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.

[mu_enrico]

They can’t just simply collect taxes on crypto users because at the first place this is decentralized and we are still anonymous not unless you provide your information.

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.

[darkangel11]

People who holds cash are being taxed by the government because it is a responsibility as an adult.

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.

Paying tax because you are holding and doing transaction in cryptocurrencies is a good idea because it can help the government indirectly to gain more money to fund their projects and when the government acknowledge cryptocurrency as an asset that needs to get taxed then it will help to lessen the skeptical type of people.

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?

[Rosilito]

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.