Crypto Taxation

[Maslate]

it is very good if crypto currencies are given government tax, but if they do it in a situation like this, I think they are wrong,
taxes will make life difficult for people who only work with little capital in crypto currencies. maybe after the COVID19 pandemic ends, taxes may be imposed

Taxes are applied in any situation, once the taxation is taxable, you are due for a tax on that, it's only the government who can declare if they will not impose in a certain situation, but just like fiat transaction, we are still subject for tax at the current situation.

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[bits4books]

Taxes on income from cryptocurrencies are not great, but they are not terrible.
KYC, taxes all these things help to go to the legal area instead of sphere related exclusively to weapons, drugs and the trade in "children's pizza".
Who do you run to when your house is robbed? You're calling the police.
And who will you run to when your btc wallet is stolen? This is an additional protection for people and the sphere as a whole.
The further the cryptocurrency develops , the more things you will have to put up with in order to continue development.
Legalization (and taxation) pushing forward more and more the moment when in the Apple Store (or any other big store) you will be able to pay for a new iPhone with btc as easily as fiat.

[Abiky]

There is not any taxation in the cryptocurrencies that you hold.
Apparently, the taxation comes in the amount of the Fiat money you want to keep in your bank so the income is taxable in fiat not in crypto.
If you want not to be taxed then you can keep your money in crypto and none is going to ask you to pay taxes for that.

Exactly. Crypto taxation takes place once you trade crypto to Fiat. It's always been this way. If governments decide to change their stance in the future, that's another story. I'd wonder how they'd be able to tax crypto directly without people exchanging it to Fiat? It'll be quite difficult to tax everyone using crypto as not every transaction is seen on the Blockchain. As long as crypto is taxed relative to Fiat, there should be nothing to worry about.

People who don't pay taxes from their crypto income, could lead governments to ask centralized exchanges for all their transaction records. The "tax evaders" would simply sell crypto in-person to Fiat, rely on decentralized exchanges or simply use a fully-private cryptocurrency like Monero or Grin. It's best to cooperate with the government in order to avoid many undesired situations in the future. If we want crypto to be recognized as legal by governments worldwide, this is the path to take. Otherwise, expect a massive crackdown into the crypto/Blockchain industry.

Nonetheless, crypto will survive in the long run with or without taxation.  It already lives on its own regardless of government's regulations. Even if it becomes banned, people can still use it "under the hood". This is thanks to the decentralized and open source nature of crypto. Things would've been worse if crypto was completely centralized. But at its current state, it's nearly impossible to shut it down. Just my thoughts

[FlightyPouch]

it is very good if crypto currencies are given government tax, but if they do it in a situation like this, I think they are wrong,
taxes will make life difficult for people who only work with little capital in crypto currencies. maybe after the COVID19 pandemic ends, taxes may be imposed

I want to help my country so I also pay tax. The thing about this is that it is bitcoin and the fact that we are using it is because we are free from the hands of the government so, with it, we can do whatever we wanted from it. I don't mind paying taxes for my bitcoins but if that is the case I don't think people would be honest with their holdings at all just like most of the taxpayers of the world. I hope though that this will not go in this state since I want something where I can earn and it is free of tax.

[silversurfer1958]

I think national governments will gradually accept cryptocurrencies. That is the trend of cashless payments in the future. Yesterday, I read a news that the Chinese government is preparing to launch the yuan in the form of cryptocurrencies. And currently, there are many transactions via BTC to evade taxes. Governments that want to collect taxes on these types of transactions are required to enact laws to regulate cryptocurrencies. Therefore, I think that cryptocurrencies will be accepted for payment widely around the world within a few years.

[Abiky]

I think national governments will gradually accept cryptocurrencies. That is the trend of cashless payments in the future. Yesterday, I read a news that the Chinese government is preparing to launch the yuan in the form of cryptocurrencies. And currently, there are many transactions via BTC to evade taxes. Governments that want to collect taxes on these types of transactions are required to enact laws to regulate cryptocurrencies. Therefore, I think that cryptocurrencies will be accepted for payment widely around the world within a few years.

If governments are able to successfully tax crypto transactions, I don't see a reason why they should declare it illegal in the first place. We're transitioning to a cashless society where digital payments are the norm of the worldwide economy. China has already announced the launch of a digital Yuan, while other countries will soon follow. By then, both crypto and digital Fiat will be actively used by people in the mainstream world. Of course, governments will do their part to promote the use of their national currency more thoroughly. They'll also benefit from crypto's success with their ability to enforce taxation within centralized exchanges in the Blockchain industry.

Nonetheless, I believe that people will end up paying crypto taxes instead of avoiding them altogether. No one wants to be in trouble with the government, so this is the path to take from now on. Let's hope that crypto companies, startups, and developers work together with governments worldwide in order to make crypto land a better place. With a crypto-friendly regulatory environment, many scams and frauds can be avoided in the long run. Taxing transparent cryptocurrencies like Bitcoin and Ethereum will be a piece of cake. Even with privacy coins' strong anonymity, it might still be possible to tax people's transactions via a centralized exchange. With cooperation from all sides, everybody wins. Just my opinion

[abhiseshakana]

If governments are able to successfully tax crypto transactions, I don't see a reason why they should declare it illegal in the first place. We're transitioning to a cashless society where digital payments are the norm of the worldwide economy.

Simply because the government thinks that there is a shift from the legal sector to the illegal sector. In essence, the tax object is all the wealth we have. For example, we store assets or fiat money in the right pocket and crypto assets in the left pocket. Concern tax is all the assets that are in our pockets and more details about tax objects that we might move from the right pocket to the left pocket or the one we immediately store in the left pocket.

Let us once again separate the nature of decentralized crypto from the obligation of citizenship. Let us ask ourselves if there is no compelling element to pay taxes whether we have the awareness to pay.

On the one hand, the government should create programs that can trigger government awareness of paying taxes. The Chinese government once made a lottery transaction receipt program. Which is proven to make the habit of paying taxes and reporting transactions growing in China. For example, we eat in restaurants and taxed, then we put our food bill/receipt into the government lottery box with our name and telephone number. These are the structures used by the Chinese government to suppress and monitor tax subjects. Every lottery period, winners get prizes ranging from the value of receipts to worth billions. But before tax reforms, corrupt officials in China were executed to cause a deterrent effect among officials.

[Abiky]

Simply because the government thinks that there is a shift from the legal sector to the illegal sector. In essence, the tax object is all the wealth we have. For example, we store assets or fiat money in the right pocket and crypto assets in the left pocket. Concern tax is all the assets that are in our pockets and more details about tax objects that we might move from the right pocket to the left pocket or the one we immediately store in the left pocket.

Let us once again separate the nature of decentralized crypto from the obligation of citizenship. Let us ask ourselves if there is no compelling element to pay taxes whether we have the awareness to pay.

On the one hand, the government should create programs that can trigger government awareness of paying taxes. The Chinese government once made a lottery transaction receipt program. Which is proven to make the habit of paying taxes and reporting transactions growing in China. For example, we eat in restaurants and taxed, then we put our food bill/receipt into the government lottery box with our name and telephone number. These are the structures used by the Chinese government to suppress and monitor tax subjects. Every lottery period, winners get prizes ranging from the value of receipts to worth billions. But before tax reforms, corrupt officials in China were executed to cause a deterrent effect among officials.

Agree. It's our responsibility to comply with the government whenever possible. Anything that's received as income, should be taxed. After all, you're converting crypto to Fiat for your own gains. As long as the government taxes crypto income in a fair manner, I don't see any reason why crypto shouldn't be taxed in the first place. Crypto to crypto transactions cannot be taxed as the government has no control whatsoever in the Blockchain space. It'll be a real blow to the crypto industry, if governments decide to tax crypto-only transactions as well.

What's important here is that people, companies, and developers work together with the government in order to make the crypto industry as legitimate as possible. If governments want people to pay their taxes from their crypto gains, they should educate them on how to do so. Lack of clear guidance (especially from the US' IRS) is what has made crypto taxation a "pain in the head". With so many cryptocurrencies being traded at centralized exchanges with Fiat trading pairs, it's easy enough to tax transparent cryptocurrencies like Bitcoin and Ethereum. The real deal would be decentralized exchanges and in-person trades. But these lack liquidity and widespread use in the mainstream world, which should have little to no effect over government's ability to tax people's crypto income. If centralized exchanges would've been replaced by decentralized ones, that would've been another story.

Nonetheless, time will tell us what the outcome of crypto taxation will be in the long run. With people's cooperation, the crypto industry could grow at a large scale. Otherwise, mainstream adoption will reduce over time as nobody will want to use something that's declared illegal by the government. Just my opinion

[henmark]

I still do not understand how crypto could be taxed if you could hide it well enough. There is no way that government could know about me and my bitcoin if I can hide it well and I do. So, right now I have been doing a little bit of earning in crypto which means nothing from my bank account goes to bitcoin, there is no connection there, I work hard and get paid in crypto.

After that money comes in to my bank account or not and the government usually doesn't ask there that money came from because they know that as long as I have money to spend I am bringing money to market and that is what they care about. The only tax I am paying right now is the tax when you buy something, even if you buy a loaf of bread you are paying taxes and that is the only one I am responsible for right now.

[Janation]

it is very good if crypto currencies are given government tax, but if they do it in a situation like this, I think they are wrong,
taxes will make life difficult for people who only work with little capital in crypto currencies. maybe after the COVID19 pandemic ends, taxes may be imposed

I don't think it is that good.

Even in the normal days, I don't think it is that good for cryptocurrencies to be taxed. I think it is better to what it is right now since people are enjoying the freedom they have and I think it is also good for privacy out of the government's hands. If you are a good citizen, why don't you just add your profits from cryptocurrencies to your income taxes?

[wingfield_crypto]

      Until recently, I agreed with KYC for users, but by learning more and seeing how the governments of many countries are putting pressure on the crypto market and wanting to control this market segment, I became skeptical. I want the crypto market to remain a decentralized majority, but I am afraid that these KYCs, which are considered confidential, will actually be reported further.

[imstillthebest]

it is very good if crypto currencies are given government tax, but if they do it in a situation like this, I think they are wrong,
taxes will make life difficult for people who only work with little capital in crypto currencies. maybe after the COVID19 pandemic ends, taxes may be imposed

I don't think it is that good.

Even in the normal days, I don't think it is that good for cryptocurrencies to be taxed. I think it is better to what it is right now since people are enjoying the freedom they have and I think it is also good for privacy out of the government's hands. If you are a good citizen, why don't you just add your profits from cryptocurrencies to your income taxes?

but i dont think there will be people that are willing to donate some of their profit as a form of tax  .

cant you see that even people that arent using cryptos  are still evading the tax so how much more if its not required  ? people will be happy and this is the reason why there are now many people going for cryptos  and one of that reason maybe is to escape the taxation   .  aside from tax , you cant say that peopple really have freedom on here because there are now kyc and other strict rules that will reveal your identity  .

[Abiky]

I still do not understand how crypto could be taxed if you could hide it well enough. There is no way that government could know about me and my bitcoin if I can hide it well and I do. So, right now I have been doing a little bit of earning in crypto which means nothing from my bank account goes to bitcoin, there is no connection there, I work hard and get paid in crypto.

After that money comes in to my bank account or not and the government usually doesn't ask there that money came from because they know that as long as I have money to spend I am bringing money to market and that is what they care about. The only tax I am paying right now is the tax when you buy something, even if you buy a loaf of bread you are paying taxes and that is the only one I am responsible for right now.

I know right? But even with the challenging environment of crypto, governments will still require people to pay taxes on their crypto income. The only way they'll be able to enforce this is through centralized exchanges. However, there will still be a portion of crypto users performing P2P trades, using decentralized exchanges, and even using privacy-preserving protocols making it impossible to tax their crypto holdings. Ultimately, Bitcoin and other transparent cryptocurrencies will see the approval of mainstream governments while privacy coins will end up being used in-person only.

As long as the crypto industry and governments work together, there should be nothing to worry about. Collaboration is necessary from both ends (the average person and the government) for crypto to succeed in the mainstream world. If we do our duty as a citizen to pay taxes in Fiat, then I don't see a reason why it shouldn't be done on crypto as well. Remember, governments only ask people to pay taxes from their crypto funds if they cash it out to Fiat. If you do everything with crypto directly, this shouldn't be a problem for you. In the future, crypto will either continue to be taxed or banned altogether. Let's hope everything goes positively for the crypto/Blockchain industry in general. Just my opinion

[Jorge158]

it is very good if crypto currencies are given government tax, but if they do it in a situation like this, I think they are wrong,
taxes will make life difficult for people who only work with little capital in crypto currencies. maybe after the COVID19 pandemic ends, taxes may be imposed

Tax is not a bad approach in itself because it is one of the ways governments obtain funds to build the country. Taxes can be imposed on crypto platforms (especially exchanges) but not the individual user. The larger platforms (exchanges )then split it into tiny shares (add to transaction fees) to all users who trade on the platform.

[Abiky]

Tax is not a bad approach in itself because it is one of the ways governments obtain funds to build the country. Taxes can be imposed on crypto platforms (especially exchanges) but not the individual user. The larger platforms (exchanges )then split it into tiny shares (add to transaction fees) to all users who trade on the platform.

As long as governments tax crypto holdings in a fair manner, there should be nothing to worry about. Remember, anything that can be sold to Fiat, is considerable as taxable gains for the government. People who use crypto directly for online transactions are exempt from this rule. You're only required to pay your taxes from your crypto holdings if you sell them in exchange for Fiat. It's as simple as that. If people cooperate with the government, they'll give crypto the approval as a legal medium of exchange. Otherwise, you could expect a massive crackdown from these entities into the entire industry.

I believe that privacy coins will end up being used "under the table" as they become "banned" by governments worldwide. Only transparent cryptocurrencies like Bitcoin and Ethereum will "thrive" in the long run. It's much easier to track them for taxing purposes, especially at centralized exchanges with KYC requirements. Taxing on crypto platforms themselves, sounds like a nice strategy for governments to be able to perform the task efficiently. However, decentralized exchanges, atomic swaps, and in-person trades, would prove to be quite a headache for mainstream governments. We'll see how everything unfolds in the future for the entire crypto industry as the space gathers adoption from people in the mainstream world. Just my opinion

[Text]

I just wondered why the government would tax on crypto when we used to pay taxes using fiat or national currency. Just buying goods, paying bills, and other taxes, isn't that enough? Maybe crypto can be exempted from taxation because we just want to earn, to receive crypto as a salary in online jobs. But if the day comes that they tax on crypto then hopefully, the sector is not booming, because there are little people like me who rely solely on freelancing...

[Twinkledoe]

I just wondered why the government would tax on crypto when we used to pay taxes using fiat or national currency. Just buying goods, paying bills, and other taxes, isn't that enough? Maybe crypto can be exempted from taxation because we just want to earn, to receive crypto as a salary in online jobs. But if the day comes that they tax on crypto then hopefully, the sector is not booming, because there are little people like me who rely solely on freelancing...

Right now, enjoy the moment that the government doesn't find a way how to tax our crypto yet. But for those legal crypto exchanges or remittances who are accepting the conversion of crypto to fiat, I am thinking that we are already paying tax just by using their services as they are regulated by the government.

[Negotiation]

Now the government has to pay tax on almost every job There is no tax here as crypto is decentralized. But like Fiat, if the government controls crypto it will have to pay taxes. But now there is no tax this time we can work independently in crypto without tax.

[whyrqa]

In my country, in Ukraine, new laws speak of taxing all additional sources of income. In addition, we are talking about buying expensive things, as well as expensive gifts. It is worth noting that the government allows citizens of their country to use cryptocurrency as a means of payment in some online stores. In addition, citizens have every right to invest, buy and sell cryptocurrency. But each owner of the cryptocurrency will pay a certain tax if he will cash out the cryptocurrency in real money, exceeding the established minimums. I think that practically the same laws exist in other developed countries as the United States and countries of the European Union.

[Text]

One of Bitcoin's other characteristics or of other cryptocurrencies has been meaningless since the beginning of KYC's growth in centralized exchanges. But it is also a good source of benefits and prevents illegal activities. Seriously, the government really wants to capitalize on the various sources of income. It would be nice if they also used blockchain to find out and we are sure if the tax or fund they are getting goes right and not in their own hands.