Crypto Taxation

[Ucy]

So far as I know they still want to tax crypto as a capital gain in many countries, rather then allowing it be defined as a currency which would make it tax free basically.  The example might be gold coins which are liable to no taxes in many countries, even though you can easily double your money over some years buying a gold coin when the price has fallen.  See the last few years for gold and its risen alot in normal terms, just nothing moves quite as much as crypto is able to in price.

Your example with Gold coin is quite interesting.

Crypto( well decentralized crypto) is even a special case in my opinion but many still do not understand this or they choose not to understand. I wouldn't be surprised if a properly decentralized and well built crypto with advanced ecosystem also tax other nations/people and the nations tax it too when necessary.
It's way bigger than people think. Most are probably not aware of its great potentials and what it seeks to achieve hence the confusions, contradictions, abuses and deviations from proper/safe standards in the space. You can't allow centralization to control you without losing (or gradually losing) your freedom/sovereignty/independence.
Taxes can occur without losing your values/ideals to central powers.

[1714507507]

1714507507

[1714507507]

1714507507

[mycryptocoin]

I think that collecting taxes in cryptocurrency trading is necessary because the cryptocurrency market is like other financial markets like forex or gold ... And so, countries that have built the legal framework Complete management of cryptocurrency trading, which will help the cryptocurrency market to expand, is accepted by countries as a financial market rather than as it is today.

[tvplus006]

Does the government still have plans to tax cryptocurrency users? It's been ten years yet but there is still no regulation for it, so maybe everything is fine. Will the coin sellers be exempted in exchange for another coin in paying taxes whose withdrawal option is crypto as well? Our wallet app has a high buy/sell rate compared to the market. Maybe that's where they take their tax payable to legalities.

One of the tasks of the state is to collect taxes. Therefore, we should not hope that the cryptocurrency market will stay away from paying taxes. When the government develops laws that will be clear to both traders and tax authorities, then the tax will be introduced.

[Abiky]

So far as I know they still want to tax crypto as a capital gain in many countries, rather then allowing it be defined as a currency which would make it tax free basically.  The example might be gold coins which are liable to no taxes in many countries, even though you can easily double your money over some years buying a gold coin when the price has fallen.  See the last few years for gold and its risen alot in normal terms, just nothing moves quite as much as crypto is able to in price.

Governments don't want to classify crypto as "currency" because they don't want to miss crypto's profit opportunities. Crypto taxation will continue to be the norm as long as people allow it. As a form of protest, you could simply use crypto directly for goods and services without having to cash it out to Fiat. Taxation cannot be enforced this way since you're not selling crypto to Fiat for your own personal gain. And taxing crypto directly might be considered unethical/illegal since governments have no jurisdiction on it. After all, cryptocurrencies are used globally by people worldwide. It's the decentralized and open source design of crypto which makes this possible.

With lack of tax guidance from government agencies, many people have been unaware of crypto taxation. If governments are unable to successfully tax crypto, they'll ban its usage. Chainalysis has already claimed that it can trace Zcash and Dash transactions on the blockchain. So much for privacy-oriented coins that have been labeled as "untraceable" for a very long time. This gives governments the tools to easily tax people's transactions at will. As long as it remains this way, crypto taxation will be the norm for the foreseeable future. Just my opinion

[nomenclatur]

the government will always make decisions that benefit the state tax for crypto sooner or later will be an idea and if taxation in crypto enacted I think this would be a problem for buying and selling currencies in various countries I worry every transaction will be withdrawn tax this course will be more difficult for future cryptocurrency.

[chrisculanag]

the government will always make decisions that benefit the state tax for crypto sooner or later will be an idea and if taxation in crypto enacted I think this would be a problem for buying and selling currencies in various countries I worry every transaction will be withdrawn tax this course will be more difficult for future cryptocurrency.

Yes government can control and put tax in crypto currently . But government need more knowledge about crypto and learn to how to get tax by trading or blockchain too. Yes you right , because that is make us difficulty if that happen in future. But we need to expect that soon.

[Text]

This government is annoying, everyone just wants to pay taxes. Think about it, as well as street vendors who only have small incomes are willing to tax. Recently, it has been reported that online sellers are registering their business. Lacking it, even breathing is paying off. This is just the way other people earn money to earn a living on a daily basis. The capital here is not large, it is also used to generate extra income because others are unemployed or dependent on work from home. Maybe it's too close to our country to have a tax on crypto use.

[Vaculin]

This government is annoying, everyone just wants to pay taxes. Think about it, as well as street vendors who only have small incomes are willing to tax. Recently, it has been reported that online sellers are registering their business. Lacking it, even breathing is paying off. This is just the way other people earn money to earn a living on a daily basis. The capital here is not large, it is also used to generate extra income because others are unemployed or dependent on work from home. Maybe it's too close to our country to have a tax on crypto use.

Eventually everything will be tax, it's just a matter of prioritization, if a certain industry grow, the government will surely sees it and the time will come that they will impose taxes on it, maybe online selling has been increasing in transactions that's why the government wants to benefit on it.

Crypto is a big market too, so they will tax us, in fact a lot of exchanges are already regulated in our country, that means we users of the site will have to remit taxes if there's due. No clear regulation first, but eventually the government will come up with a more detailed in the long run.

[Tahsin Kabir Kollol]

Crypto Taxation is an important issue both for governments and cryptocurrency users. People all over the world use cryptocurrency for their daily transactions and the number of such kinds of people increasing day by day. A lot of people depend on their livelihood on cryptocurrency income. On the other hand, the government of a country cannot run the country without taxes. Without taxes, the government will not be able to meet the expenses of running the country. Because of the increasing number of cryptocurrency users, Every government should make some regulations for tax collection.

[kotajikikox]

Crypto Taxation is an important issue both for governments and cryptocurrency users. People all over the world use cryptocurrency for their daily transactions and the number of such kinds of people increasing day by day. A lot of people depend on their livelihood on cryptocurrency income. On the other hand, the government of a country cannot run the country without taxes. Without taxes, the government will not be able to meet the expenses of running the country. Because of the increasing number of cryptocurrency users, Every government should make some regulations for tax collection.

But the problem is how will the government implement this?Cryptocurrency being decentralized is far from the reality of being handled by anyone or any government  In this case it will be harder for them to put this as necessary and obligation of each crypto users.
Unless they will start to accept this as monetary or currency then they may add taxes in every purchase or services being held as payment using crypto.

[MCobian]

I agree that crypto taxation is a debate, because the government really wants to get the benefits of cryptocurrency. But because
cryptocurrency is largely decentralized, it is difficult for governments to impose taxes on cryptocurrency users. In the end, the
government took steps to legalize centralized exchanges, especially local exchanges. Because the government sees chances are
many crypto users convert their crypto asset to fiat, to spend cryptocurrency. Then with centralized exchanges the government
can impose crypto taxation, which starts with the application of KYC for users centralized exchanges. And that is not a problem for
me, at least I can spend the crypto that I have generated from trading.

[Gyfts]

So far as I know they still want to tax crypto as a capital gain in many countries, rather then allowing it be defined as a currency which would make it tax free basically.  The example might be gold coins which are liable to no taxes in many countries, even though you can easily double your money over some years buying a gold coin when the price has fallen.  See the last few years for gold and its risen alot in normal terms, just nothing moves quite as much as crypto is able to in price.

Governments don't want to classify crypto as "currency" because they don't want to miss crypto's profit opportunities. Crypto taxation will continue to be the norm as long as people allow it. As a form of protest, you could simply use crypto directly for goods and services without having to cash it out to Fiat. Taxation cannot be enforced this way since you're not selling crypto to Fiat for your own personal gain. And taxing crypto directly might be considered unethical/illegal since governments have no jurisdiction on it. After all, cryptocurrencies are used globally by people worldwide. It's the decentralized and open source design of crypto which makes this possible.

With lack of tax guidance from government agencies, many people have been unaware of crypto taxation. If governments are unable to successfully tax crypto, they'll ban its usage. Chainalysis has already claimed that it can trace Zcash and Dash transactions on the blockchain. So much for privacy-oriented coins that have been labeled as "untraceable" for a very long time. This gives governments the tools to easily tax people's transactions at will. As long as it remains this way, crypto taxation will be the norm for the foreseeable future. Just my opinion

The IRS taxes crypto as property and honestly, I'm not sure if they're totally off base. Bitcoin price fluctuates meaning with potential increases, you make profits. If you do the same with the stock market investing in a mutual fund, you're going to pay capital gains taxes off the profit you make so it's not much of a difference. You own a home that's increased in value over 10 years and you sell it? You pay the same capital gains tax as a stock sale.

Bitcoin is essentially akin to gold, and no one views gold as a currency.

[Text]

This government is annoying, everyone just wants to pay taxes. Think about it, as well as street vendors who only have small incomes are willing to tax. Recently, it has been reported that online sellers are registering their business. Lacking it, even breathing is paying off. This is just the way other people earn money to earn a living on a daily basis. The capital here is not large, it is also used to generate extra income because others are unemployed or dependent on work from home. Maybe it's too close to our country to have a tax on crypto use.

Eventually everything will be tax, it's just a matter of prioritization, if a certain industry grow, the government will surely sees it and the time will come that they will impose taxes on it, maybe online selling has been increasing in transactions that's why the government wants to benefit on it.

Crypto is a big market too, so they will tax us, in fact a lot of exchanges are already regulated in our country, that means we users of the site will have to remit taxes if there's due. No clear regulation first, but eventually the government will come up with a more detailed in the long run.

So now, I wonder if I will continue online selling. My investment is small. Income is poor and not great. And even more difficult situations today. I do not want to think that what I pay in taxes will just go into their own pocket and benefit. No doubt, it's better that I just focus here on cryptocurrency, it's just hoping for free income.

If it could support the growing industry and will lift up the economy in the world, I should agree then ☺

The tax does not support the growth of the industry or the development of a country's economy until there are corrupt politicians around it. They are the impediment to the advancement of the common people, rather than the poor, but they are still the cause of poverty.

[Abiky]

I agree that crypto taxation is a debate, because the government really wants to get the benefits of cryptocurrency. But because
cryptocurrency is largely decentralized, it is difficult for governments to impose taxes on cryptocurrency users. In the end, the
government took steps to legalize centralized exchanges, especially local exchanges. Because the government sees chances are
many crypto users convert their crypto asset to fiat, to spend cryptocurrency. Then with centralized exchanges the government
can impose crypto taxation, which starts with the application of KYC for users centralized exchanges. And that is not a problem for
me, at least I can spend the crypto that I have generated from trading.

Exactly. Taxing crypto becomes a highly difficult task to achieve because of its decentralized design. The only way governments will be able to tax crypto successfully is by relying on centralized exchanges to comply with KYC laws. Once the person's identity is verified, transactions can be easily traceable for taxation purposes. Believe me, that if everyone started using decentralized exchanges more thoroughly, it would've been a nightmare for mainstream governments. My guess is that if that happens, they will declare crypto to be illegal.

Still, people are becoming more dependent on centralized infrastructure everyday. This means that crypto will continue to be taxed as long as the majority of people continue to use centralized exchanges in the industry. If you truly believe in the future of crypto and Blockchain technology, it's best that you use crypto assets directly for goods and services. This way, you cannot be taxed as you're not converting them to Fiat. Once you sell your coins for cash, you'll be subject to taxation just like it's the case with any other asset in the mainstream world today. For crypto to be truly untaxable it needs to be recognized as a currency. But governments will never allow that to happen.

The IRS taxes crypto as property and honestly, I'm not sure if they're totally off base. Bitcoin price fluctuates meaning with potential increases, you make profits. If you do the same with the stock market investing in a mutual fund, you're going to pay capital gains taxes off the profit you make so it's not much of a difference. You own a home that's increased in value over 10 years and you sell it? You pay the same capital gains tax as a stock sale.

Bitcoin is essentially akin to gold, and no one views gold as a currency.

Good point. But even if Bitcoin resembles gold, it's far more than that. Bitcoin can also be used as a currency if fees weren't that high, and prices would've been stable on the market. After all, Bitcoin was designed to be a "peer-to-peer electronic cash system". Governments will never recognize crypto to be a currency as they want a "piece of the pie". They'll want to tax everyone's crypto holdings for their own benefit. Personally, I don't have anything wrong with doing my duty as a citizen paying taxes. But taxing crypto, greatly defeats its purpose of eliminating the middleman from the system. One fact about crypto is that the same is decentralized, and largely distributed across several countries around the world. I find it odd that some governments tax crypto since the same is global. In other words, crypto is outside the jurisdiction of a single country or region. People might as well move to another country where crypto is not taxable, for their own benefit.

We'll see how everything works out for mainstream governments as they try to tax decentralized cryptocurrencies worldwide. With several privacy solutions in the industry, availability of decentralized exchanges, and the use of atomic swaps, it might become impossible to tax everyone using crypto in the mainstream world. Just my thoughts

[PavelMed]

I am definitely against taxation especially in the crypto world. What has the state done to take my taxes? Gave energy? maybe provided a laptop to work with crypto, or at least a chair? Nothing. So I will say more. There is no state at all in the cryptocurrency purchase and sale chain.

[vaultman]

Sooner or later, taxation on cryptocurrency transactions will be introduced. This will be the most reasonable form of taxation on cryptocurrencies. Since someone makes 10 transactions per day, and someone only one per year.

[FlightyPouch]

Tax is good but if the governments are ready to capitalize cryptocurrency and take taxes on transactions then it must be ready to be transparent on the where exactly the taxes go and into whose hands. The government must be accountable for that. This can only be achieve by the same utilization of Blockchain technology by the government.

Then I guess to be able to do that government will be assigning each citizen their own wallet and indicate each who is the owner. At that point, there will be no confusion about who owns a wallet. Still, there are jobs where the government will  take the tax from their salary that is directed to their ATM cards, maybe we can do that the same as taxing into crypto currencies.

[Text]

Other crypto users don't care about their privacy, they don't care if it's exposed. With the help of centralized platforms, it is undeniable that crypto taxation can be implemented whether we like it or not. I know that others here don't like it, but can we really do anything? We are governed by the government so they can be obeyed, only when we follow the rules of the law. If we violate it, we will be prosecuted and treated as criminals. Although I am not good at it I think it will take longer to come up with a law for it.

[Negotiation]

Tax is good but if the governments are ready to capitalize cryptocurrency and take taxes on transactions then it must be ready to be transparent on the where exactly the taxes go and into whose hands. The government must be accountable for that. This can only be achieve by the same utilization of Blockchain technology by the government.

Then I guess to be able to do that government will be assigning each citizen their own wallet and indicate each who is the owner. At that point, there will be no confusion about who owns a wallet. Still, there are jobs where the government will  take the tax from their salary that is directed to their ATM cards, maybe we can do that the same as taxing into crypto currencies.

If Bitcoin is controlled by the government we will be ready to pay taxes on crypto but since crypto is decentralized there is no charge for work here. However, in the case of card management crypto cards are ready to pay tax.

[Janation]

~snip

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  .

It is the nature of a human to be greedy, we can't really stop them from doing that since we are the ones calculating our taxes, people can evade whenever they wanted.

In terms of freedom, I can say that we are free. KYC may be stopping this freedom from your point of view but not all of the applications you can use requires KYC. There are a lot of alternatives you can use but this depends on how you use your cryptocurrencies. Some local exchanges do require KYCs, which I also applied since I really needed it but if I don't want to, I can use other alternatives as well. It is just that this local exchange has its convenience to me than the ones that offer you anonymity. If you want anonymity, you can use them.