Crypto Taxation

[Abiky]

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.

Then it's best to never cash out your crypto unless you need to (like in emergency situations, etc). As long as you keep your crypto in a wallet without converting it to Fiat, you may never need to pay tax out of it. You need to be careful not to disclose your crypto balances to the public, or the government will be on your tail for tax compliance. Considering that most exchanges in the crypto industry are centralized, they'll require identity verification to process Fiat withdrawals. Your best bet would be to trade crypto to Fiat in a P2P manner. And when I say P2P, I'm referring to trading crypto in person for physical cash.

Other than that, you'll be subject to paying taxes once you exchange crypto to Fiat in a centralized exchange. I know that paying taxes on a volatile currency seems ridiculous, but that's what most governments (like the US and the EU) have imposed nowadays. If you want to comply with the law and be okay with the government, then it's best to pay tax off crypto instead of going to jail. I'm sure that most people would do this, since they have no choice after all. What's odd is that governments are requiring taxes from crypto when it's not considered as money or legal tender worldwide. With the regulatory uncertainty and lack of guidance within the crypto industry, most people have been unable to fully comply with crypto taxation in every way.

Nonetheless, time will tell us whenever governments will be successful at taxing crypto or not. If they become largely successful at the task, crypto will be here to stay. Otherwise, expect to see a massive crackdown on the entire crypto industry as we know it. Just my thoughts

[Maslate]

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.

I believe the goverment has still good heart for the people but i don't understand why they put taxes in crypto when in fact they cannot legalize bitcoin as a currency.

[Taskford]

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.

I believe the goverment has still good heart for the people but i don't understand why they put taxes in crypto when in fact they cannot legalize bitcoin as a currency.

Maybe it's just a sort of humor for those people who want to carry out the legalities of bitcoins and altcoins but unfortunately I don't really think that this time will be happen since for sure the certain market condition nor  the volatility will create a confusion to the authorities to trust the relevance of it. But also it cross on my mind  maybe they can't really legalize it due to the fact that they can't trace out the users because of its anonymity.

[Driggers95]

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.

Although the government is looking for a way to collect taxes from crypto when the sector hides too many people who launder money and evade taxes but to the best of their ability, the only measure they feel extreme and can prevent this situation and force people to pay taxes, it is off the internet. And this measure obviously brings more losses, rather than benefits, until now, the problem of taxation on crypto has not yet taken measures, perhaps in the future it will have but it is too late.

[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.

Although the government is looking for a way to collect taxes from crypto when the sector hides too many people who launder money and evade taxes but to the best of their ability, the only measure they feel extreme and can prevent this situation and force people to pay taxes, it is off the internet. And this measure obviously brings more losses, rather than benefits, until now, the problem of taxation on crypto has not yet taken measures, perhaps in the future it will have but it is too late.

No its is not too late to avoid the tax implementation for the right cause because only a small amount of people using cryptos for now so governments have to take measures as soon as possible so they also could make benefits rather than tax evaders.

[EdvinZ]

From the point of view of the government, they are right, because they tax traders in their favor. From your point of view, they are wrong because they encroach on your money. I think that when the government taxes something, it should give equal value rights, insurance funds and legal protection. Otherwise, it's just a robbery.

[BitHodler]

I think that when the government taxes something, it should give equal value rights, insurance funds and legal protection. Otherwise, it's just a robbery.

Unfortunately, it's flat out robbery. All they care about is to have their pockets filled, and whenever you want to pay your taxes and make a mistake, they will threaten you with hefty fines and possibly even prison time.

The sad part is that when you are eligible for a tax return, it could take months to actually receive it (complaining will not work), while if they think you owe them money, they want it right away and you can't even be a day too late.

[bitvestorhacked]

KYC is really one of  the worse things that hit btc, even localbitcoin has made it seriously mandatory without KYC you can't trade, almost all the platforms now, P2P or not. Taxation now depends on where you live some places in Europe take 40% that is when the govt really comes out to get you, i know from experience, some EU states will paint it good for you to come in only or them to rip you off when you start getting stable, i just think that this is just the govt scheme to oppress the weak to abandon crypto.

[Assface16678]

From the point of view of the government, they are right, because they tax traders in their favor. From your point of view, they are wrong because they encroach on your money. I think that when the government taxes something, it should give equal value rights, insurance funds and legal protection. Otherwise, it's just a robbery.

In the real world, the word tax is existing. This is a method that a person who wants to buy or sell something of their things has an additional cost as a payment for the transaction. To be more related common example is just buying a fruit in a grocery store the fruit has a lower price and then the by exporting the price of the fruit has an additional cost because of the transaction to deliver, and you will buy a fruit now with a tax those are like a service fee, today there is no free by just doing anything you need to play. Like in cryptocurrency the websites or the software you are using has a converter to different coins to earn also they getting an additional fee for using their software as your conversion for your needs that the tax runs out.

[judaspriest]

From the point of view of the government, they are right, because they tax traders in their favor. From your point of view, they are wrong because they encroach on your money. I think that when the government taxes something, it should give equal value rights, insurance funds and legal protection. Otherwise, it's just a robbery.

absolutely true if they only regulate crypto for tax alone I think it's something funny and there is no protection at all,
but the positive is bitcoin and the crypto currency is recognized

[1Referee]

KYC is really one of  the worse things that hit btc, even localbitcoin has made it seriously mandatory without KYC you can't trade, almost all the platforms now, P2P or not.

It didn't hit Bitcoin. It hit centralized platforms providing a service to people. It was bound to happen because the easiest targets are centralized platforms.

I honestly expected regulators to step in sooner, but it seems that they either didn't take this space serious enough in the past, or they just didn't know how to deploy their regulatory framework covering everything related to crypto. If I had to guess, it's probably the latter because governments in general are super slow to catch up to new developments in the internet/tech field.

It won't take long before Yobit is one of the last standing centralized non-kyc exchanges. 

[huige007]

I think that when the government taxes something, it should give equal value rights, insurance funds and legal protection. Otherwise, it's just a robbery.

Unfortunately, it's flat out robbery. All they care about is to have their pockets filled, and whenever you want to pay your taxes and make a mistake, they will threaten you with hefty fines and possibly even prison time.

The sad part is that when you are eligible for a tax return, it could take months to actually receive it (complaining will not work), while if they think you owe them money, they want it right away and you can't even be a day too late.

Taxation can be a very beneficial system for improving lives of common people and their economical standards but the problem is corrupted governments who do not care in the least about the citizens. Politicians are common people like others before they join politics, but afterwards become landlords by robbing national banks. All the existing methods have failed and only bitcoin and altcoins can resolve financial problems.

[jrrsparkles]

Its true that they were afraid of people will not pay their taxes if they adopt cryptos that is why they are taking regulatory measures on every centralized crypto related platforms so that they can record 90% of crypto transactions and ask taxes based on that.Its not a bad idea to ask taxes for cryptos because governments needs taxes from every citizen that is how they maintain expenses of their nations but they have to mark cryptos as legal tender not as an asset so people will pay less than the current value which encourages more people to use cryptos as currencies.

[shield132]

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?

Governments weren't skeptical about bitcoin, no, they know pretty well what's pros and cons of it. Do you really think that in government people look world in different colors? And they are stupid enough to not understand what's bitcoin and how/why it's used? They know it well but want to benefit themselves, not you, that's the problem. Despite the fact that some country don't consider bitcoin as a currency, taxes are welcome for that. They say different thing and do different thing, I think it's 100% clear, at least elections are pure example of it.

[Getmon]

Its true that they were afraid of people will not pay their taxes if they adopt cryptos that is why they are taking regulatory measures on every centralized crypto related platforms so that they can record 90% of crypto transactions and ask taxes based on that.Its not a bad idea to ask taxes for cryptos because governments needs taxes from every citizen that is how they maintain expenses of their nations but they have to mark cryptos as legal tender not as an asset so people will pay less than the current value which encourages more people to use cryptos as currencies.

The people assigned to create policies that are perfectly tailored to fit the exact description and characteristic of crypto are failing because they are not really knowledgeable about cryptocurrency. From very limited knowledge comes bad decisions. They craft regulatory policies that will make the function of crypto limited in a way that it will lose its real purpose. Crypto is not an asset. Crypto is money. This very basic misunderstanding is enough to produce more erroneous policies such as the one related to crypto taxation.

[SummerBliss]

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?

I think governments won't allow people to escape from their taxes just because they are dealing in cryptos. There is a pretty huge economy working on cryptos. When on private key wallets it's impossible to trace out people so I don't think there will be any tax but once it goes into dealing with exchanges taxes might come in. But I am sure revenue authorities won't contact exchanges with such a vast information because such an enquiry would take place at a very extensive scale and it would be very difficult to escape if you happen to stuck in it on a later stage so we all must pay our taxes on our Incomes.

[Kevondo]

KYC is really one of  the worse things that hit btc, even localbitcoin has made it seriously mandatory without KYC you can't trade, almost all the platforms now, P2P or not. Taxation now depends on where you live some places in Europe take 40% that is when the govt really comes out to get you, i know from experience, some EU states will paint it good for you to come in only or them to rip you off when you start getting stable, i just think that this is just the govt scheme to oppress the weak to abandon crypto.

KYC is indeed troubling traders but let’s just hope for the best and definitely things will get settled with time. With taxation, no matter where a person lives, the problem remains the same. Not all the countries of the world corrupted but with non-corrupted governments, the tax rates are very high. Moreover, if we look at the main agenda of this technique, then it is just people spending money for   having services. So nothing is blessing on the end of authorities.

[Experia]

KYC is really one of  the worse things that hit btc, even localbitcoin has made it seriously mandatory without KYC you can't trade, almost all the platforms now, P2P or not. Taxation now depends on where you live some places in Europe take 40% that is when the govt really comes out to get you, i know from experience, some EU states will paint it good for you to come in only or them to rip you off when you start getting stable, i just think that this is just the govt scheme to oppress the weak to abandon crypto.

Well we can see KYC is the hindrance because people wont get into exchange that need to pass KYC because there are still some exchanges does not obeying on KYC process but once it is mandated by law we can see a good effect in the price and in regulation in cryptocurrency.

[BitcoinTurk]

Crypto coins cannot be taxed due to their nature and anonymity. Although there are some centralized crypto currencies, no one prefers these crypto currencies just because they will pay taxes, so the states cannot receive taxes from these transactions. But there is a case that states can follow our accounts in crypto money exchange services and tax us on our income here. For this reason, it would not be very accurate to say that crypto moneys cannot be taxed, but they cannot be taxed.

[Linkkoin]

Crypto coins cannot be taxed due to their nature and anonymity. Although there are some centralized crypto currencies, no one prefers these crypto currencies just because they will pay taxes, so the states cannot receive taxes from these transactions. But there is a case that states can follow our accounts in crypto money exchange services and tax us on our income here. For this reason, it would not be very accurate to say that crypto moneys cannot be taxed, but they cannot be taxed.

Most of the cryptocurrency transactions can be tracked in blockchain (besides the private mode of anonymous crypto) - the more transactions you make on a single wallet, the easier it is. And of course, they can be taxed. In many countries, they (like all other goods you can invest in) are already taxed under income tax. And if you do not present the profits on your tax form, it is often a criminal offence to hide your profits as it is a clear example of tax evasion.

The only things which may not be clear enough are:
1) when the tax obligation arises - on the moment you sold the crypto, or in accordance with their value at the end of the year/fiscal year.
2) especially in case of people who own cryptocurrencies since the very beginning it may be hard to show to taxation authorities that the cryptocurrency is coming from a legal source (as in most cases there was no bill/invoice issued)