Crypto Taxation

[Ronaldcoin2017]

Crypto is really amazing and so many people really believe on it and there are so many ways to earn in crypto, such us trading, investing,etc,.that is why there are so many people that is now using crypto and some of them are really earning millions of dollars. That is why some government wanted crypto to be taxed but i think if crypto will be taxed it will maybe affect the crypto community. I dont think crypto taxation is a good idea since so many people use crypto for so many years without tax.

[1714507149]

1714507149

[1714507149]

1714507149

[1714507149]

1714507149

[1714507149]

1714507149

[Antinass]

cryptocurrencies are transformed from being a paying way to traditional methods to investments where you pay some taxes because you are making some profits.
If everyone stops using centralized exchanges serve as gateways from crypto to Fiat (or vice-versa) and use such forums, will find that trading will be unknown and it will become impossible  to impose more taxes.
It is a race, and he who knows how to turn laws will gather a lot.
use our methos and gov have methosd

[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.

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.

Well, they can't really control bitcoin that is why they will just decide to put a tax on it or ban it in which I am sire that they will be putting a tax on it. They will be having an additional way of taxing people and the problem here comes with how to tax a decentralized crypto currency, that is why I thought they might indicate each person with their own wallets where the government would get a tax from. Still, people can evade that.

[Text]

Well, they can't really control bitcoin that is why they will just decide to put a tax on it or ban it in which I am sire that they will be putting a tax on it. They will be having an additional way of taxing people and the problem here comes with how to tax a decentralized crypto currency, that is why I thought they might indicate each person with their own wallets where the government would get a tax from. Still, people can evade that.

The government cannot tax a decentralized exchanger because they have no control over it. If they restrict the use of crypto in the country and they cannot come up with ways to tax decentralized platforms, then it is possible to simply ban its use. However, as we know the importance of centralized exchanges for traders, it has been part of the industry ever since it was opposed to being anonymous and having privacy.

[FlightyPouch]

Well, they can't really control bitcoin that is why they will just decide to put a tax on it or ban it in which I am sire that they will be putting a tax on it. They will be having an additional way of taxing people and the problem here comes with how to tax a decentralized crypto currency, that is why I thought they might indicate each person with their own wallets where the government would get a tax from. Still, people can evade that.

The government cannot tax a decentralized exchanger because they have no control over it. If they restrict the use of crypto in the country and they cannot come up with ways to tax decentralized platforms, then it is possible to simply ban its use. However, as we know the importance of centralized exchanges for traders, it has been part of the industry ever since it was opposed to being anonymous and having privacy.

I guess even though they can't control crypto currency or bitcoin in our country, they are still not planning anything to ban it, in fact, they are taking care of the users here in our country which is discussed in this thread.

https://bitcointalk.org/index.php?topic=5260318.0

I guess if bitcoin became mainstream, we should really be expecting them taxing bitcoin or other crypto currencies in the country. I will not be thinking how will they that but for now, it is good that they are taking care of the crypto users.

[Heart18]

I agree with you...though some other countries refuse to accept Bitcoin because of their traditional beliefs in managing finances. But now, I guess they tend to saw the importance of Bitcoin and its great features and useful  ways especially that we are now facing a severe crisis. And mostly now, we are into virtual transactions to avoid the contact of virus, a lot of necessary things will be done digitally.
And as the growing individuals learned to earn and invest in Bitcoin now, the Government thought that they could also benefit from it.
On the other hand, if the Government persists on putting tax on it, we can't really control it because Bitcoin definitely became a mainstream now. Probably, the taxes could help the Government reviving the dying economy at this time.

[Abiky]

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.

Due to crypto being decentralized, it's still possible to "bypass" KYC-oriented exchanges and services in the industry. But for the sake of your liberty, it's often best to comply with the law. I'd prefer to pay taxes on my crypto instead of evading them. I'm sure many people will do the same thing in order to avoid facing jail time (or fines). Of course, KYC greatly defeats the purpose of crypto since it introduces the middleman to the system. But for the industry to be as legitimate as possible, complying with government regulations is a must these days. Given that many cryptocurrencies are often traded at centralized exchanges, it's a whole lot easier for governments to collect their taxes.

In the end, crypto will be taxed as long as it's recognized as a commodity by governments in the mainstream world. They don't want to classify it as a "currency" as they'll lose the opportunity to tax it. Ultimately, governments will be unable to tax every citizen using crypto because of its decentralized and open source nature. With privacy coins, atomic swaps, and decentralized exchanges in play, taxing every single person will become unfeasible by the government in the not-so-distant future. Just my thoughts

[hunter7519]

The term cryptocurrency is generally used to describe a digital asset in which encryption techniques are used to regulate the generation of additional units and verify transactions on a blockchain. Cryptocurrency generally operates independently of a central bank, central authority or government.

The creation, trade and use of cryptocurrency is rapidly evolving. This information is our current view of the income tax implications of common transactions involving cryptocurrency. Any reference to 'cryptocurrency' in this guidance refers to Bitcoin, or other crypto or digital currencies that have similar characteristics as Bitcoin.

If you are involved in acquiring or disposing of cryptocurrency, you need to be aware of the tax consequences. These vary depending on the nature of your circumstances.

Everybody involved in acquiring or disposing of cryptocurrency needs to keep records in relation to their cryptocurrency transactions.

If you have dealt with a foreign exchange or cryptocurrency there may also be taxation consequences for your transactions in the foreign country.

[Japinat]

I think because of the popularity of cryptocurrencies in many countries the taxation will be happen.

There is a growing adoption on crypto, and that adoption was possible because there are platforms would made it possible to buy bitcoin from our fiat, or in short, we exchange it to bitcoin. In other words, crypto exchanges do exist and they are growing, and that's where the government will get tax from their revenue of operation, and along with taxing it, they would also need to regulate the market through exchanges so they can do their function such us the Anti Money Laundering which can be detected if there's a KYC and other measures impose in a certain platform.

[iv4n]

"South Korea Could Issue a Crypto Capital Gains Tax as High as 20%" Source: https://cointelegraph.com/news/south-korea-could-issue-a-crypto-capital-gains-tax-as-high-as-20#:~:text=Crypto%20taxation%20in%20South%20Korea,to%2020%25%20for%20capital%20gains.&text=South%20Korean%20private%20sector%20members,rise%20as%20high%20as%2020%25.

Today I read about taxation in South Korea, well as we all know they are few steps ahead from many others, and it's what they plan to do, I believe others will follow that path, with some changes of course! We can expect some countries to have more strict laws, while some countries will stay financial heavens as they were until now.
I don't know about you guys, but when this comes in my country I will probably hide all my crypto, and I will start using vpn, and probably I will switch to some privacy coin! We will see how will that go, I just don't plan to pay any tax on my crypto!

[Abiky]

"South Korea Could Issue a Crypto Capital Gains Tax as High as 20%" Source: https://cointelegraph.com/news/south-korea-could-issue-a-crypto-capital-gains-tax-as-high-as-20#:~:text=Crypto%20taxation%20in%20South%20Korea,to%2020%25%20for%20capital%20gains.&text=South%20Korean%20private%20sector%20members,rise%20as%20high%20as%2020%25.

Today I read about taxation in South Korea, well as we all know they are few steps ahead from many others, and it's what they plan to do, I believe others will follow that path, with some changes of course! We can expect some countries to have more strict laws, while some countries will stay financial heavens as they were until now.
I don't know about you guys, but when this comes in my country I will probably hide all my crypto, and I will start using vpn, and probably I will switch to some privacy coin! We will see how will that go, I just don't plan to pay any tax on my crypto!

A 20% tax on crypto gains is insane, in my own opinion. This will stifle the growth of crypto and Blockchain tech within South Korea. Imagine if other countries around the world started doing the same. People will think twice before using cryptocurrencies for mainstream transactions. Only a small minority will be using crypto "under the table" in order to avoid paying taxes to the government. With a decentralized design, it becomes more difficult to tax every person using crypto worldwide. That is to say, if the person uses decentralized exchanges and non-custodial wallets. Otherwise, crypto taxation becomes an easy task. Ultimately, people will decide whenever they'll support crypto taxation or not. If people don't protest about government's actions, they'll continue with the endeavor. We have the power in our hands to either allow governments to continue taxing crypto or all the other way around.

Nonetheless, let's hope the crypto/Blockchain industry and the government collaborate in order to make our world a better place. Regulations need to be balanced in order to pave the way towards the growth of the entire crypto/Blockchain industry. If regulations are too strict, they will scare people and companies away from the industry. Crypto taxation should be done in the fairest way possible, in order to avoid a negative impact in the adoption of Blockchain technology worldwide. Just my thoughts

[FlightyPouch]

Whether or not crypto is determined to be money or not it is still personal property which has value and can therefore be subject to taxation, anything which produces a benefit can theoretically be taxed. The important distinction after a government does deem it taxable is if crypto is a currency or a commodity as there are different rules, store of value, fungibility, unit of account and so on

But how will they levy tax on crypto currencies if they doesn't know who to tax? They can't actually tell whose using Bitcoin and whose holding them. Even if they write a law making these holders pay taxes for their cryptos, they can evade that tax whenever they wanted since they don't have a proof that they really have bitcoin.

I know not all of us would be doing that but I know that will happen if that is the case. There are a lot of taxpayers that evade taxes, how much more when if its bitcoin.

[n0ne]

Whether or not crypto is determined to be money or not it is still personal property which has value and can therefore be subject to taxation, anything which produces a benefit can theoretically be taxed. The important distinction after a government does deem it taxable is if crypto is a currency or a commodity as there are different rules, store of value, fungibility, unit of account and so on

But how will they levy tax on crypto currencies if they doesn't know who to tax? They can't actually tell whose using Bitcoin and whose holding them. Even if they write a law making these holders pay taxes for their cryptos, they can evade that tax whenever they wanted since they don't have a proof that they really have bitcoin.

I know not all of us would be doing that but I know that will happen if that is the case. There are a lot of taxpayers that evade taxes, how much more when if its bitcoin.

Agreed, and myself used to think the taxation in my country. For what we pay we aren't getting anything perfect from the government. The government wants the people's money, and they never think of the people. They work for the rich and the corporate. Then why should I pay tax, and this is how the mind of people change and tries to evade tax.

When it comes to cryptocurrency, why people should pay when government hasn't got anything to do with it. As it is anonymous it is hard to collect data for taxation. Anyhow it is the interest of each ans every government.

[jademaxsuy]

Whether or not crypto is determined to be money or not it is still personal property which has value and can therefore be subject to taxation, anything which produces a benefit can theoretically be taxed. The important distinction after a government does deem it taxable is if crypto is a currency or a commodity as there are different rules, store of value, fungibility, unit of account and so on

But how will they levy tax on crypto currencies if they doesn't know who to tax? They can't actually tell whose using Bitcoin and whose holding them. Even if they write a law making these holders pay taxes for their cryptos, they can evade that tax whenever they wanted since they don't have a proof that they really have bitcoin.

I know not all of us would be doing that but I know that will happen if that is the case. There are a lot of taxpayers that evade taxes, how much more when if its bitcoin.

There is no clear definition of cryptocurrency even for now. Bitcoin was created few years back but it does not have the right classification of this (digital currency, asset or properties). However taxing cryptocurrency is easy for the government to implement but they too provide security for the consumers and in this case it is not possible due to scammers, hijacking and phishing sites. This is a lot of work for the government and this is the reason why cryptocurrency is not yet accepted or still in the observation period. I know that some of the government had allowed few apps or echanges to operate in their jurisdiction but only to those few crypto. This is the reason for the high transaction fee of these app that are being regulated for crypto fiat exchange because the government had tax the app or exchange to which higher fee to be deducted compared from other exchanges

[soxxx]

Bitcoin does not need to be a currency for them to be able to tax it. If you sell a house and you make a profit of say $100 000, the government

would take their share of the gains you made in the form of "Capital Gains" taxes. (Each country has it's own guideline and tax exemptions) So what

most governments are doing is to class it as a commodity and thus having you paying "Capital Gains" on the profit when you sell it. The main reason

why they are not defining it as a currency is because they do not want it to compete with their local reserve currency.    Some countries tax

Bitcoin as a currency (VAT) and a commodity (Capital Gains)  

Heres where the problem lies for me, how do you pay taxes in fiat if you don't have any fiat? If I trade my Ethereum for Bitcoin, and am now holding Bitcoin, how am I supposed to pay taxes on that if I don't hold any fiat? Can I pay with Bitcoin? In most places NO.

Also when it comes to swapping, lets say I have a beer in my hand, and my friend has another beer, but I want his beer so we swap beers..............do I have to pay taxes because his beer is cheaper than mine? Swapping Crypto is no different.

Personally ill continue to follow the Tax laws and pay my taxes to the best of my ability, but its almost impossible to keep track of this, because you need to know the price of both currencies of when you swapped them, however that price can be subjective. An exchanges price is the price that exchange has deemed as the price. That doesn't mean thats the price im following, as the prices of Crypto are different depending on the exchange, country etc.

[chikading2016]

Tax is helpful to government and it is really good if the tax is big because the country will have more funds to provide some projects for the developement of the country, tax is helpful and it can really have a good effect in our country, but if we talk about cypto taxation i don't think that it will become posible beause crypto is fully decentralized and we are all using crypto without tax for a long time.

[Janation]

Tax is helpful to government and it is really good if the tax is big because the country will have more funds to provide some projects for the developement of the country, tax is helpful and it can really have a good effect in our country, but if we talk about cypto taxation i don't think that it will become posible beause crypto is fully decentralized and we are all using crypto without tax for a long time.

Making huge taxes would really be a problem.

Some of the users even said that they are using Bitcoin to be able to avoid paying taxes, making it bigger means many more will evade paying taxes. Despite that, I don't mind paying tax as long as they are doing their job of not corrupting those money and putting it all on their own pockets.

[The cure]

Because the government sees that bitcoin or other cryptocurrency is doing well specially today that we are facing a pandemic and digital transactions helps a lot for us to prevent from getting infected of the virus, so they want to impose tax even though bitcoin is decentralized. But if it's really necessary,they should just impose it fairly and correctly.
 

[atjiat]

I noticed that each country has different approaches to taxation and legalization of cryptocurrency, and one way or another this is related to the government's views on this situation. Liberal laws are rarely adopted in relation to cryptocurrency, but nevertheless there is some progress. At least in my country, there is no specific tax on the storage of cryptocurrency, but every user who will transfer cryptocurrency in the equivalent of $ 1,500 will have to provide passport data. And the tax will be paid by those figures who carry out transactions in larger amounts.

[Axelseseclevz]

It's funny how governments want to fight tax evasion by declaring strings of letters illegal. What if people decide to start sending only numbers and letters to one another without wallets or similar platforms while having copies of very simple and lightweight ledger of their transactions?

Well, I think tax is very important if you use government stuff. Otherwise you don't need to pay anything. The best way to avoid governments stuff is to use nature or go natural. The only tax we pay the CREATOR or OWNER of our world & nature is good behavior. Good behavior includes taking care of HIS creations.

I think government will put crypto tax base on the amount you are going to cash out and exchnge into fiat money. If through crypto wallet to wallet government can't put taxes on it. Only if you cash it out to different remittances or banks on which they will have access in your account because of KYC.