Crypto Taxation

[atjiat]

The government has always wanted to control the income of its citizens and receive interest on the profits of each person.  That is why there appeared the possibility of cashless payments in different areas of human activity, while advertising the improvement of services for each person, but at the same time using bank reports to control each person.  Thus, the state understands how large the volumes of the financial turnover of the cryptocurrency market are and therefore they want to purchase another article for the taxation of their citizens.  At the same time, they do not want to legalize cryptocurrencies, but nonetheless try to tax each user of cryptocurrencies, possibly even hiding behind the fight against crime financing or laundering money obtained by criminal means.

[mamahdedeh]

In my country, no, Bitcoin was taxed. There is one that pays the tax who has the mining farm, and he rents a room.

When you rent a room, definitely you are in paper works and you have to pay for the place. That has nothing to do with bitcoin taxation. But if the person is being taxed because he or she is owning a mining farm, then this could be in one way called taxation of bitcoin. I am curious that just mining has been taxed or transactions as well. Government shall not put taxes on mining because it is already very hard on the pocket of a miner.

for the time being what actually happened has been taxed, even though the government hasn't ratified it. when we are going to exchange currency fiat at a local exchange, then right away we will be taxed. the official exchange of course requires legalization from the government, so the government can impose a tax rate on that exchange

[Hallmader]

In my country, no, Bitcoin was taxed. There is one that pays the tax who has the mining farm, and he rents a room.

When you rent a room, definitely you are in paper works and you have to pay for the place. That has nothing to do with bitcoin taxation. But if the person is being taxed because he or she is owning a mining farm, then this could be in one way called taxation of bitcoin. I am curious that just mining has been taxed or transactions as well. Government shall not put taxes on mining because it is already very hard on the pocket of a miner.

for the time being what actually happened has been taxed, even though the government hasn't ratified it. when we are going to exchange currency fiat at a local exchange, then right away we will be taxed. the official exchange of course requires legalization from the government, so the government can impose a tax rate on that exchange

If you are using a centralized exchange or a registered site for conversion, you are already paying taxes through the site or exchange you are using. That is right. It is already taxed in that way. Each and every registered and therefore legal business are paying regular taxes. But if you use decentralized exchanges or P2P conversion of your cryptocurrencies you are not taxed at all. You are not paying any fee for that matter.

[BartS]

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?

That is the nature of governments, as long as you are getting some profits of whatever you are doing they want a cut, believe me they would like to make cryptocurrencies illegal but what argument can they use? In the case of drugs they can argue it is bad for your health and they want to protect you but they cannot use that argument against cryptocurrencies.

As such they are trying to slow it down and one perfect way to do this is by taxation, they will impose all kind of laws and contradictory regulations so companies refuse to deal with it and the rest have to pay huge taxes to them.

[assa1979]

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?

That is the nature of governments, as long as you are getting some profits of whatever you are doing they want a cut, believe me they would like to make cryptocurrencies illegal but what argument can they use? In the case of drugs they can argue it is bad for your health and they want to protect you but they cannot use that argument against cryptocurrencies.

As such they are trying to slow it down and one perfect way to do this is by taxation, they will impose all kind of laws and contradictory regulations so companies refuse to deal with it and the rest have to pay huge taxes to them.

You put it like taxation is a simple scam to steal your money.
Govs taking a cut because it provides us a community, good laws and etc.
If we want cryptocurrencies to be a part of current world - we gotta sacrifice something to govs
Other way we shouldn't pay taxes AND should build new decentralized type of society

[abhiseshakana]

That is the nature of governments, as long as you are getting some profits of whatever you are doing they want a cut, believe me they would like to make cryptocurrencies illegal but what argument can they use? In the case of drugs they can argue it is bad for your health and they want to protect you but they cannot use that argument against cryptocurrencies.

As such they are trying to slow it down and one perfect way to do this is by taxation, they will impose all kind of laws and contradictory regulations so companies refuse to deal with it and the rest have to pay huge taxes to them.

Your views like this that increasingly make the government think that bitcoin/cryptocurrency can be used as a tool to avoid or violate government regulations. Come on, if you want the cryptocurrency world to be more advanced, synergy with the government is needed not to eliminate the decentralized nature of bitcoin but rather to become

One citizen like you demands the government to provide employment, improve education and health facilities, and create a safe and crime-free environment. But when the government asks for your contribution to the country, you refuse on the grounds as if the state wants to rob your property.

I am sure that if the government knows the tax potential of cryptocurrency/bitcoin, many state officials will rethink to legalize bitcoin. If it is legalized, the state will create an instrument of monitoring (not controlling) cryptocurrency transactions. The ultimate goal is to increase foreign exchange.

[jameshugo17]

Give up your enthusiasm for taxing Bitcoin. If you officially bring a tax on bitcoin, you'll officially recognize it. People make trading with Bitcoin more common. States can lose control over the economy. Unexpected results may occur.

[BartS]

That is the nature of governments, as long as you are getting some profits of whatever you are doing they want a cut, believe me they would like to make cryptocurrencies illegal but what argument can they use? In the case of drugs they can argue it is bad for your health and they want to protect you but they cannot use that argument against cryptocurrencies.

As such they are trying to slow it down and one perfect way to do this is by taxation, they will impose all kind of laws and contradictory regulations so companies refuse to deal with it and the rest have to pay huge taxes to them.

Your views like this that increasingly make the government think that bitcoin/cryptocurrency can be used as a tool to avoid or violate government regulations. Come on, if you want the cryptocurrency world to be more advanced, synergy with the government is needed not to eliminate the decentralized nature of bitcoin but rather to become

One citizen like you demands the government to provide employment, improve education and health facilities, and create a safe and crime-free environment. But when the government asks for your contribution to the country, you refuse on the grounds as if the state wants to rob your property.

I am sure that if the government knows the tax potential of cryptocurrency/bitcoin, many state officials will rethink to legalize bitcoin. If it is legalized, the state will create an instrument of monitoring (not controlling) cryptocurrency transactions. The ultimate goal is to increase foreign exchange.

I did not made the argument that paying your taxes is bad, my argument is that governments will use taxation as a weapon against cryptocurrencies, in many countries governments want to obtain taxes out of cryptocurrencies and that is acceptable but they do not want to give a clear legal framework in which people and different businesses can operate.

This is intentional, they do not want you to feel secure when you use cryptocurrencies, also it is obvious who is the one that does not want cryptocurrencies be part of the regular economy when all kind of obstacles are put forward so you cannot cash out your coins.

[andriarto]

That is the nature of governments, as long as you are getting some profits of whatever you are doing they want a cut, believe me they would like to make cryptocurrencies illegal but what argument can they use? In the case of drugs they can argue it is bad for your health and they want to protect you but they cannot use that argument against cryptocurrencies.

As such they are trying to slow it down and one perfect way to do this is by taxation, they will impose all kind of laws and contradictory regulations so companies refuse to deal with it and the rest have to pay huge taxes to them.

Your views like this that increasingly make the government think that bitcoin/cryptocurrency can be used as a tool to avoid or violate government regulations. Come on, if you want the cryptocurrency world to be more advanced, synergy with the government is needed not to eliminate the decentralized nature of bitcoin but rather to become

One citizen like you demands the government to provide employment, improve education and health facilities, and create a safe and crime-free environment. But when the government asks for your contribution to the country, you refuse on the grounds as if the state wants to rob your property.

I am sure that if the government knows the tax potential of cryptocurrency/bitcoin, many state officials will rethink to legalize bitcoin. If it is legalized, the state will create an instrument of monitoring (not controlling) cryptocurrency transactions. The ultimate goal is to increase foreign exchange.

I did not made the argument that paying your taxes is bad, my argument is that governments will use taxation as a weapon against cryptocurrencies, in many countries governments want to obtain taxes out of cryptocurrencies and that is acceptable but they do not want to give a clear legal framework in which people and different businesses can operate.

This is intentional, they do not want you to feel secure when you use cryptocurrencies, also it is obvious who is the one that does not want cryptocurrencies be part of the regular economy when all kind of obstacles are put forward so you cannot cash out your coins.

the strategy might be carried out by the government, where without providing legal protection for the cryptocurrency legality, the government can collect taxes from crypto. we know that legitimate local exchanges stand as exchanges, of course they are taxed according to the rules

[nasipadang]

A little from my thinking. regarding crypto tax but we do not get benefits such as legalization or receipt of crypto as a means of payment, you should not pay the crypto income tax because there is no right while we have made the obligation to pay taxes.

From what I know the government has benefited from the local exchanger business which is a gateway for crypto to fiat. like business in general, some things must be paid for and provide data to the government like KYC. it is from my knowledge that I have been involved in the government system.

[iram3130]

I feel the best way to tax crypto earnings is to put taxes on capital gains, it can be in slabs where taxes will increase as you go up. It should not matter how much a person trades rather the taxes should be put on the money he wants to take out and spend.

[diazepam666]

Whenever every year we people goes for tax filing that time we were finding the people are trying to sell the bitcoins for more number and it will be the good if the people accept the cryptocurrencies mode of payment for its taxation.
But I am not sure what is the real issue and legalization problems with me.

[Abiky]

Your views like this that increasingly make the government think that bitcoin/cryptocurrency can be used as a tool to avoid or violate government regulations. Come on, if you want the cryptocurrency world to be more advanced, synergy with the government is needed not to eliminate the decentralized nature of bitcoin but rather to become

One citizen like you demands the government to provide employment, improve education and health facilities, and create a safe and crime-free environment. But when the government asks for your contribution to the country, you refuse on the grounds as if the state wants to rob your property.

I am sure that if the government knows the tax potential of cryptocurrency/bitcoin, many state officials will rethink to legalize bitcoin. If it is legalized, the state will create an instrument of monitoring (not controlling) cryptocurrency transactions. The ultimate goal is to increase foreign exchange.

Good point. Personally, I don't have issues paying taxes on my crypto as long as the government does it fairly. After all, taxes are also deduced from traditional Fiat currencies. What I don't get is why governments still want to tax crypto when the same is highly volatile in price across the market? Prices going up and down would make it somewhat complicated for people to be able to comply with taxes. Also, the decentralized nature of crypto makes it nearly impossible to be able to tax down every user's balance. Off-chain transactions, and privacy-centric transactions are hard for governments to track them down. In the event crypto becomes "untaxable", governments worldwide would simply ban crypto and Blockchain in their entirety. I hope this doesn't happen in the long run. Governments might end up using analytical tools (like Chainalysis) to keep track of their citizens' taxable income.

With widespread approval of crypto and Blockchain tech by worldwide governments, we can expect the industry to grow for the foreseeable future. Crypto taxation might be needed in the long run, in order to keep the space as legitimate as possible. Time will tell us how successful governments will be at the task as the space becomes more mature within a couple of years from now. Just my opinion

[pixie85]

I feel the best way to tax crypto earnings is to put taxes on capital gains, it can be in slabs where taxes will increase as you go up. It should not matter how much a person trades rather the taxes should be put on the money he wants to take out and spend.

Isn't the IRS taxing capital gains already but not doing it the way yo have described?

They want you to pay for your unrealized capital gains. If you hold a bitcoin and it goes up in value by 1000 dollars they want you to pay a percentage in fiat money even when you are still holding. Next year if it goes up by another 1000 they will again demand you to pay and on and on until you sell and be done with it. This is so bad i'm happy i don't live in the US.

[bettercrypto]

Your views like this that increasingly make the government think that bitcoin/cryptocurrency can be used as a tool to avoid or violate government regulations. Come on, if you want the cryptocurrency world to be more advanced, synergy with the government is needed not to eliminate the decentralized nature of bitcoin but rather to become

One citizen like you demands the government to provide employment, improve education and health facilities, and create a safe and crime-free environment. But when the government asks for your contribution to the country, you refuse on the grounds as if the state wants to rob your property.

I am sure that if the government knows the tax potential of cryptocurrency/bitcoin, many state officials will rethink to legalize bitcoin. If it is legalized, the state will create an instrument of monitoring (not controlling) cryptocurrency transactions. The ultimate goal is to increase foreign exchange.

Good point. Personally, I don't have issues paying taxes on my crypto as long as the government does it fairly. After all, taxes are also deduced from traditional Fiat currencies. What I don't get is why governments still want to tax crypto when the same is highly volatile in price across the market? Prices going up and down would make it somewhat complicated for people to be able to comply with taxes. Also, the decentralized nature of crypto makes it nearly impossible to be able to tax down every user's balance. Off-chain transactions, and privacy-centric transactions are hard for governments to track them down. In the event crypto becomes "untaxable", governments worldwide would simply ban crypto and Blockchain in their entirety. I hope this doesn't happen in the long run. Governments might end up using analytical tools (like Chainalysis) to keep track of their citizens' taxable income.

With widespread approval of crypto and Blockchain tech by worldwide governments, we can expect the industry to grow for the foreseeable future. Crypto taxation might be needed in the long run, in order to keep the space as legitimate as possible. Time will tell us how successful governments will be at the task as the space becomes more mature within a couple of years from now. Just my opinion

They want to tax the cryptocurrency because want it to be regulated. If there is a tax imposed by the government for every withdraws and deposits, therefore more people will think also of their loss. People wanted crypto because it is decentralized and no tax. But for me, it is good if there is a tax. Especially that most of us here is earning a large amount of money.

[slarsum]

Your views like this that increasingly make the government think that bitcoin/cryptocurrency can be used as a tool to avoid or violate government regulations. Come on, if you want the cryptocurrency world to be more advanced, synergy with the government is needed not to eliminate the decentralized nature of bitcoin but rather to become

One citizen like you demands the government to provide employment, improve education and health facilities, and create a safe and crime-free environment. But when the government asks for your contribution to the country, you refuse on the grounds as if the state wants to rob your property.

I am sure that if the government knows the tax potential of cryptocurrency/bitcoin, many state officials will rethink to legalize bitcoin. If it is legalized, the state will create an instrument of monitoring (not controlling) cryptocurrency transactions. The ultimate goal is to increase foreign exchange.

Good point. Personally, I don't have issues paying taxes on my crypto as long as the government does it fairly. After all, taxes are also deduced from traditional Fiat currencies. What I don't get is why governments still want to tax crypto when the same is highly volatile in price across the market? Prices going up and down would make it somewhat complicated for people to be able to comply with taxes. Also, the decentralized nature of crypto makes it nearly impossible to be able to tax down every user's balance. Off-chain transactions, and privacy-centric transactions are hard for governments to track them down. In the event crypto becomes "untaxable", governments worldwide would simply ban crypto and Blockchain in their entirety. I hope this doesn't happen in the long run. Governments might end up using analytical tools (like Chainalysis) to keep track of their citizens' taxable income.

With widespread approval of crypto and Blockchain tech by worldwide governments, we can expect the industry to grow for the foreseeable future. Crypto taxation might be needed in the long run, in order to keep the space as legitimate as possible. Time will tell us how successful governments will be at the task as the space becomes more mature within a couple of years from now. Just my opinion

They want to tax the cryptocurrency because want it to be regulated. If there is a tax imposed by the government for every withdraws and deposits, therefore more people will think also of their loss. People wanted crypto because it is decentralized and no tax. But for me, it is good if there is a tax. Especially that most of us here is earning a large amount of money.

I think the purpose of decentralized is to make each users control money and not one entity controls the market. Government would have to find and pay people who would actually make codes to tax this. Easy to say to add tax but it is hard to control and centralize cryptocurrency again.

[redsun114]

Yeah you’re right, the government always wants to take tax from every business and when it’s not working out for them they declare it an illegal asset and try to prevent their citizens from making use of it. That’s why they are trying to take total control over centralized cryptocurrency exchanges by regulating them, since they can’t regulate cryptocurrencies like Bitcoin directly due to its decentralized nature, centralized exchanges now serves as a gateway for them to gain access into the crypto world and accomplish their plans.

I guess for the sake of welfare of our nation, anyone will be preferring taxes but only for availing goods and services and not for the income. This is my personal opinion and everyone must be having their own view on paying taxes for building their country stronger.

[abhiseshakana]

I did not made the argument that paying your taxes is bad, my argument is that governments will use taxation as a weapon against cryptocurrencies, in many countries governments want to obtain taxes out of cryptocurrencies and that is acceptable but they do not want to give a clear legal framework in which people and different businesses can operate.

This is intentional, they do not want you to feel secure when you use cryptocurrencies, also it is obvious who is the one that does not want cryptocurrencies be part of the regular economy when all kind of obstacles are put forward so you cannot cash out your coins.

Tax object is a source of income that is subject to tax. Crypto tax for individuals is usually related to income tax. The object of the tax is income, that is, any additional economic capability received or obtained by the Taxpayer, both originating from domestic or from abroad, which can be used for consumption or to add to the wealth of the Taxpayer concerned, by name and in whatever form.

The tax officer target is not bitcoin or cryptocurrency, but the amount of our wealth in the form of fiat, other assets or in the form of bitcoin or crypto. The taxman is chasing our wealth that we might hide in crypto. The government statement was clear from the start that crypto is not considered a legal payment tool even though it is not prohibited, we ourselves choose to save our assets in the form of crypto. So the tax on crypto is not a government weapon to fight crypto either directly or indirectly.

Whereas for exchanger other than income tax there is also a value-added tax, assuming services provided by virtual currency exchange service providers cannot be classified as financial services, so if the company has passed a certain turnover limit then it must be confirmed as a Taxable Entrepreneur. In effect, every Bitcoin sale made by this taxable entrepreneur is subject to VAT.

[Webetcoins]

Your views like this that increasingly make the government think that bitcoin/cryptocurrency can be used as a tool to avoid or violate government regulations. Come on, if you want the cryptocurrency world to be more advanced, synergy with the government is needed not to eliminate the decentralized nature of bitcoin but rather to become

One citizen like you demands the government to provide employment, improve education and health facilities, and create a safe and crime-free environment. But when the government asks for your contribution to the country, you refuse on the grounds as if the state wants to rob your property.

I am sure that if the government knows the tax potential of cryptocurrency/bitcoin, many state officials will rethink to legalize bitcoin. If it is legalized, the state will create an instrument of monitoring (not controlling) cryptocurrency transactions. The ultimate goal is to increase foreign exchange.

Good point. Personally, I don't have issues paying taxes on my crypto as long as the government does it fairly. After all, taxes are also deduced from traditional Fiat currencies. What I don't get is why governments still want to tax crypto when the same is highly volatile in price across the market? Prices going up and down would make it somewhat complicated for people to be able to comply with taxes. Also, the decentralized nature of crypto makes it nearly impossible to be able to tax down every user's balance. Off-chain transactions, and privacy-centric transactions are hard for governments to track them down. In the event crypto becomes "untaxable", governments worldwide would simply ban crypto and Blockchain in their entirety. I hope this doesn't happen in the long run. Governments might end up using analytical tools (like Chainalysis) to keep track of their citizens' taxable income.

With widespread approval of crypto and Blockchain tech by worldwide governments, we can expect the industry to grow for the foreseeable future. Crypto taxation might be needed in the long run, in order to keep the space as legitimate as possible. Time will tell us how successful governments will be at the task as the space becomes more mature within a couple of years from now. Just my opinion

They want to tax the cryptocurrency because want it to be regulated. If there is a tax imposed by the government for every withdraws and deposits, therefore more people will think also of their loss. People wanted crypto because it is decentralized and no tax. But for me, it is good if there is a tax. Especially that most of us here is earning a large amount of money.

I think the purpose of decentralized is to make each users control money and not one entity controls the market. Government would have to find and pay people who would actually make codes to tax this. Easy to say to add tax but it is hard to control and centralize cryptocurrency again.

The major purpose of crypto currencies especially that of bitcoin was to provide people with a market where they have complete control over their money and earnings. I personally feel that majority will not be happy with this taxation thing. People are really fed up of corrupt governments and they want to be the sole controllers of their income. Decentralization basically appealed people about bitcoin and going against it will affect market.

I have pretty much same opinion regarding taxation and centralization of crypto currencies especially that of bitcoin. Bitcoin is something which people loved because of its decentralized nature and because it gave people an alternative way of making money without any influence from government. We simply can conduct a poll on forum in order to check whether crypto users are okay with taxation or not.

[Brunus]

Any government is constantly looking for ways to rob its citizens, often in the most unfair way possible.
Bitcoin - in Satoshi's intentions - was born precisely to defend itself from this constant thievery.
Obviously, you need to be careful, but with a little attention you can still move anonymously.