Crypto Taxation

[clickerz]

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.

I don't agree with the taxation of crypto. Exchanges paid taxes on their permits and income and I think they should spare the users. Though taxes are important to the government, I think it should not on the individual clients but for the exchanges as a whole and it depends on exchanges how they will pass this to their clients.

[webtricks]

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?

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?

Cryptocurrency itself is not taxable. As you said government can't fully control or ascertain cryptocurrenices hold by individuals, so it can't tax the cryptocurrencies. I may have $500K lying on my Eth Address but who gonna know it belongs to me.
So the only way which government gonna tax your crypto income is when you convert the same to fiat money and withdraw it to bank. Only this way government gonna know you made money. It can be your earned income (can be said freelancing income if you earned via activities like signature campaigns, etc), long-term or short-term gain (if you first bought cryptocurrencies from your bank and now withdrawing relatively larger amount to bank) or business income (if you doing crypto-related business and making profits). More specific treatment differs from country to country basis.

[viananda2525]

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.

I don't agree with the taxation of crypto. Exchanges paid taxes on their permits and income and I think they should spare the users. Though taxes are important to the government, I think it should not on the individual clients but for the exchanges as a whole and it depends on exchanges how they will pass this to their clients.

actually taxation in crypto market will bring many positive think to us as investors. Before government attract taxes , they have to prepare the regulation for it.  Some of them maybe about protection our fund in exchange. Not all taxation will have negative side, we must think clearly not based on our emotion only.

[1Referee]

actually taxation in crypto market will bring many positive think to us as investors. Before government attract taxes , they have to prepare the regulation for it.  Some of them maybe about protection our fund in exchange. Not all taxation will have negative side, we must think clearly not based on our emotion only.

Regulations haven't ever protected anyone's funds. In the history of the us stock market there have been multiple multi billion dollar scams that the regulators didn't protect investors against, and that while it's their main reason of existence, so they say. Isn't that ironic? All regulators are doing is actively block innovation.

They sporadically hand out approvals for instruments to no longer care about them afterwards, and that while they should be on top of everything they have given approval to operate or trade. The world would be a better place if these shitty regulators actually did what they have been designed for to do, but what can we expect from a government body? All they care about is control and the rest is not of importance.

[enhu]

If the government will accept cryptocurrency as tax payment, its as if they admit cryoptocurrency like BTC is real money. My government isn't yet taxing cryptocurrencies but will the government sets in to impose tax after I exchange my coins to fiat or how do they calculate it?

Because if the government will not tax me if its in the crypto form, then I will not exchange my coins to fiat.

[STT]

Basic take i go with is that anything can serve as money but some things are more naturally competent in this capacity then others.   Nobody forced BTC to become money, it just retained some value naturally seems like and that accumulated.    How well it fairs vs every other possibility is still unknown to us.    What is obvious is the worst governments forcing horrible monetary standards on their people to result in inflation that favours an elite is very poor money and by contrast BTC does well as a replacement.  
     Taxing every alternative to your governments choice for money can be unfortunate and even result in total loss in the worst countries and examples of inflation, I dont believe in capital controls but its natural every citizen must pay the taxes agreed by law in that nation.   I disagree that inflation when used as an enforced tax, thats a sad situation and I hope the 'good' nations of the world never try to force inflation on their people as a deliberate tax.

[supercanada1]

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.

Taxation has nothing to do with crypto currencies. This is one of the reasons why investors started buying bitcoin, to get freedom from all such formalities. Taxation is essential for the improvement of a country but with a corrupted government, it becomes pain in the neck for common people. With decentralized coins, finally we can enjoy freedom of control over our own assets and economy.

[fiulpro]

Actually one should understand that taxation is essential , if thing aren't taxed people never fail to misuse it therefore this is why government have to do it and also they are earning a lot from it but that's also going in the pockets from where it's gonna be reused for the public and this is the same as stock market shares and all , it is essential because it also gaurentees it a legal status somehow not just anything which is deep and now at the surface .

[Brunus]

Governments and institutions in general are rather scared of bitcoin, and have done everything possible to stop it from advancing.
It is clear that the idea of being able to pay and accumulate money without control and anonymously does not like those who are used to treating citizens as slaves. Perhaps we will be able to rebel, maybe not. But at least we're trying.

[aardvark15]

Ever since Bitcoin and other cryptocurrencies became a hit within the mainstream world, governments have been quite skeptical about them. Despite the promise of crypto to bring trustless payments to the world in a frictionless manner, governments have taken every effort to try to prevent its growth worldwide. As of now, centralized exchanges dominate the space where they're subject to KYC/AML laws. There's literally no way to prevent government surveillance except for P2P trading (like Local Bitcoins, etc).

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?

Of course I don’t want to pay taxes in cryptocurrencies, but if governments can get some taxes from it, then they are less likely to try to ban them. In other words, taxes may not be an entirely bad thing for the health of the Bitcoin economy.

[Serco]

Ever since Bitcoin and other cryptocurrencies became a hit within the mainstream world, governments have been quite skeptical about them. Despite the promise of crypto to bring trustless payments to the world in a frictionless manner, governments have taken every effort to try to prevent its growth worldwide. As of now, centralized exchanges dominate the space where they're subject to KYC/AML laws. There's literally no way to prevent government surveillance except for P2P trading (like Local Bitcoins, etc).

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?

Of course I don’t want to pay taxes in cryptocurrencies, but if governments can get some taxes from it, then they are less likely to try to ban them. In other words, taxes may not be an entirely bad thing for the health of the Bitcoin economy.

whybwe should worry if government attract taxes in cryptocurrency market. Actually we get many benefits if government do it , atleast they will not banned crypto exchanges and it give us certainity in our Investment. No more when we get this , investor will put more their money  and market capitalization recovered again.

[barabarian1]

Ever since Bitcoin and other cryptocurrencies became a hit within the mainstream world, governments have been quite skeptical about them. Despite the promise of crypto to bring trustless payments to the world in a frictionless manner, governments have taken every effort to try to prevent its growth worldwide. As of now, centralized exchanges dominate the space where they're subject to KYC/AML laws. There's literally no way to prevent government surveillance except for P2P trading (like Local Bitcoins, etc).

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?

Of course I don’t want to pay taxes in cryptocurrencies, but if governments can get some taxes from it, then they are less likely to try to ban them. In other words, taxes may not be an entirely bad thing for the health of the Bitcoin economy.

whybwe should worry if government attract taxes in cryptocurrency market. Actually we get many benefits if government do it , atleast they will not banned crypto exchanges and it give us certainity in our Investment. No more when we get this , investor will put more their money  and market capitalization recovered again.

yes i agree with you i think it doesn't matter if the government imposes a tax on cryptocurrency. because indeed most countries rely on taxes as the country's main income and taxes used to develop the country. the important thing is the tax that must be paid is not high and the crypto tax payment process is not complicated so I'm sure crypto investors will be willing to pay crypto taxes using fiat money.

[Aying]

Governments and institutions in general are rather scared of bitcoin, and have done everything possible to stop it from advancing.
It is clear that the idea of being able to pay and accumulate money without control and anonymously does not like those who are used to treating citizens as slaves. Perhaps we will be able to rebel, maybe not. But at least we're trying.

For my own opinion government is really wanted bitcoin to control and own big taxation through it, but they don't know what action that possible to do and in that case no one will help them because everyone know what they aim if they control everything that's why they are afraid that the time come. everyone will not follow them and everything what they want is no longer enforceable.

[GideonGono]

I think that the government taxing cryptocurrency is when you are earning through it then taxes follows as what it is though I hope that only those who earn massively in crypto are taxed or just companies. Small time crypto users are normal people who are trying to earn money in the online world is nothing compared to those companies in cryptoworld where they earn a lot of money. There is nothing wrong with taxation as long as it is reasonable. I'm curious as how will they implement this in a decentralized platform of Bitcoin.

[JC btc]

I think that the government taxing cryptocurrency is when you are earning through it then taxes follows as what it is though I hope that only those who earn massively in crypto are taxed or just companies. Small time crypto users are normal people who are trying to earn money in the online world is nothing compared to those companies in cryptoworld where they earn a lot of money. There is nothing wrong with taxation as long as it is reasonable. I'm curious as how will they implement this in a decentralized platform of Bitcoin.

That's what we wanted too, but most of the time the government really wanted to take almost a large sum of profit of the people especially those who are doing business, here in our country income taxation is really a burden as it will range up to 25% of your income which is not a good one for a family who has only 1 earning and has kids, the 25% is really big enough money for all of us here.

[abhiseshakana]

I think that the government taxing cryptocurrency is when you are earning through it then taxes follows as what it is though I hope that only those who earn massively in crypto are taxed or just companies. Small time crypto users are normal people who are trying to earn money in the online world is nothing compared to those companies in cryptoworld where they earn a lot of money. There is nothing wrong with taxation as long as it is reasonable. I'm curious as how will they implement this in a decentralized platform of Bitcoin.

Tax can be called the most effective instrument in fiscal policy. To increase state development, the government can regulate state revenues in the form of taxes by raising taxes with the aim of limiting consumption, providing subsidies to the community so that economic inequality is reduced, and reducing taxes with the aim of increasing people's purchasing power.

If the government implements a contractive fiscal policy, I think they will impose taxes on everyone, including individuals, not just corporations and business people. Individual taxes may be small in number but if the number of individual taxpayers is large it will be a significant input for the country.

Income tax systems in some countries are imposed on all additional economic capabilities, from any source. That is, the provisions of tax legislation do not 'limit themselves' only to income that is legal and legally recognized. Although the characteristics of digital currencies are unique, they do not justify the existence of special provisions. The government always prioritizes the level playing field principle by considering whether administrative breakthroughs are needed to ensure the compliance of business people who earn income from the presence of cryptocurrency.

[Cherylstar86]

I think that the government taxing cryptocurrency is when you are earning through it then taxes follows as what it is though I hope that only those who earn massively in crypto are taxed or just companies. Small time crypto users are normal people who are trying to earn money in the online world is nothing compared to those companies in cryptoworld where they earn a lot of money. There is nothing wrong with taxation as long as it is reasonable. I'm curious as how will they implement this in a decentralized platform of Bitcoin.

Having a tax is already on our side especially we purchase on the different establishment around us since it is mandated to our government. Likewise, here in crypto currency community in which they want a tax in order to have a share for their own income. I definitely agree that there is nothing wrong having a tax but to the fact the it should be valid.enough to be good of many.

[Findingnemo]

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?

People see crypto currencies as the best way to avoid taxes that is why governments also targetting crypto users and asking for high taxes.We have to pay the right taxes for the real adoption happens or the government will push ourselves not to use the crypto currencies by any extreme.

[Oilacris]

I think that the government taxing cryptocurrency is when you are earning through it then taxes follows as what it is though I hope that only those who earn massively in crypto are taxed or just companies. Small time crypto users are normal people who are trying to earn money in the online world is nothing compared to those companies in cryptoworld where they earn a lot of money. There is nothing wrong with taxation as long as it is reasonable. I'm curious as how will they implement this in a decentralized platform of Bitcoin.

Having a tax is already on our side especially we purchase on the different establishment around us since it is mandated to our government. Likewise, here in crypto currency community in which they want a tax in order to have a share for their own income. I definitely agree that there is nothing wrong having a tax but to the fact the it should be valid.enough to be good of many.

Taxation can be the solution to all economical problems if spend for the improvement of country and betterment of people. But this is not the case in real. Governments collect the taxes and use that money to fill their pockets only. Even if they do not take away all of the amount, still some amount is taken away. Te only solution to get rid of such corruptions is bitcoin and the blockchain technology.

Main problem on some countries that do have corrupt government where these funds isnt used on the right path or on the right thing this is why we do see
a certain progress of said country.

Development and progress will vary on how its being used correctly and knowing that Tax is a must for a citizen on such country. Crypto taxation? possible but when its already converted to fiat.

[drlukacs]

In fact, the tax on cryptocurrencies is formed because the government wants people not to participate in transactions there. It's quite risky and dangerous, because there will be money laundering factors and lots of scam components. High forms of taxation indicate that the government is paying more attention to the people. In many Southeast Asian countries, the majority of governments do not allow the use of cryptos to trade and to minimize the fact that people give up their main jobs to depend on "virtual" assets. After all, they do not prevent us from making money so well, we are free to make money and pay taxes like ordinary people.