Crypto Taxation

[carlzec]

The issue of cryptocurrency and tax has recently become popular. States may want to derive a tax income from this situation. But this is not a simple matter. How will they get the tax as bitcoin? This is a very complicated issue. I don't think it's possible for now.

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[el kaka22]

There a lot of people who want government to do many good things but also not wanting to pay their taxes not because they are actually trying to steal from governments but because they saw that their governments take the money and not do anything good with it.

Living in first world nations will make you question if you should pay your taxes or not and I can understand that, if I was an UK citizen I wouldn't mind paying my debt, but do you guys realize how many third world countries have governments that take insane amount of taxes from you and basically asks 2x of what stuff cost and then do absolutely nothing with that money?

They literally steal from you and fill their own pockets with it, so of course we all want governments to provide stuff for us and we should pay our taxes for it but if our taxes goes to waste then I am sorry but I will try to find ways to not pay my taxes until government actually spends it on good stuff.

[abhiseshakana]

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.

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.

Please do not use the crypto system with its anonymity and decentralization to legitimize your reluctance to pay taxes. If the government gives you the freedom to make a self-declaration of the tax value that you must pay without having to know the source from where, will you calculate and report your crypto assets?

Don't say the government is corrupt as an excuse not to pay taxes, because where have you been all this time. The one who serves in the government and represents your interests in the legislature is your choice, and even then if you use your voting rights. If you do not use your suffrage correctly, it can be said that you participated in the formation of a corrupt government.

We are cryptocurrency users and we have faith that cryptocurrency will make the world better. So it never hurts us to proactively socialize that the legalization of cryptocurrency can bring more tax revenue, in terms of trade, in the digital world the volume is usually 10 times that of trading in conventional markets. Meaning greater tax potential.

Be a critical and curious citizen to drive tax revenue, digitally make everyone well connected, use digital media to eradicate corrupt practices, so that taxes are used properly and on target.

[Abiky]

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.

Exactly. That's how governments work. As long as they're able to collect taxes out of anything, they'll consider it legal. This makes me wonder if privacy-oriented coins like Monero, Grin, and even Beam will be able to survive in the long run? Because the way they're designed will make it impossible for governments to tax them properly. This could render these coins "illegal" in the long run. Only a select few privacy coins like Dash and Zcash will survive in the mainstream world as they do not enforce privacy like Monero or Grin. While crypto taxation will be quite a challenging task to achieve from worldwide governments (due to the decentralized nature of crypto), they could easily require centralized exchanges to comply with KYC/AML regulations to make the process easier than ever. Transparent coins like Bitcoin, Ethereum, and Litecoin will survive for a long time as it's possible to track & trace each transaction to require users to comply with their taxes.

It's still today, yet many people don't know how to comply with their crypto taxes accordingly. This is largely because there isn't a proper framework from worldwide governments to tax this new kind of money. The industry being only 11 years old, has a lot to go through before it's legalized in every way. As long as we do our part to comply with governments' regulations, they'll give the green light for crypto's growth within the mainstream world. Otherwise, you could expect adoption of crypto and Blockchain tech to decrease over time as the industry is declared illegal by worldwide governments. No one would want to use something that's illegal, even though they can still access it. Time will tell us what will the outcome of crypto taxation will be within the mainstream world. Just my opinion

[wxxyrqa]

Of course, I am not a supporter of the fact that the government levied taxes on me for everything that got.  Especially considering the laws the Supreme Council adopts in my country, people will soon have to pay taxes even for fruit trees.  Nevertheless, in all this there should be common sense, because by logical reasoning all state institutions exist at the expense of the state budget, which is filled by taxes, because the states no longer have their own industries that would support the economy and constant income in  State treasury.  After all, all social guarantees, as well as any structure, practically exist at the expense of taxpayers.

[EdvinZ]

The cryptocurrency paradigm assumes your full control over your finances and, in some cases, complete anonymity of ownership of funds and anonymity in transactions. This model clearly does not fit into the structure of the state, which in its essence must control all the processes that occur in it. From the state's point of view, taxes should be paid, but this violates the anonymity of using cryptocurrencies. I think the state will continue to fight anonymous cryptocurrencies. However, the state normally treats non-anonymous cryptocurrencies if their owners comply with all laws adopted in this state.

[Japinat]

Government would not allow us to just enjoy bitcoin as investment and a payment system without them interfering for their control and to tax us, I think that's the way the world goes, as long as we have the government to govern its people, tax is compulsory and they need to monitor us to ensure that we are paying taxes and to spy on us, that's how they work.

in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.

[breathlessz]

The cryptocurrency paradigm assumes your full control over your finances and, in some cases, complete anonymity of ownership of funds and anonymity in transactions. This model clearly does not fit into the structure of the state, which in its essence must control all the processes that occur in it. From the state's point of view, taxes should be paid, but this violates the anonymity of using cryptocurrencies. I think the state will continue to fight anonymous cryptocurrencies. However, the state normally treats non-anonymous cryptocurrencies if their owners comply with all laws adopted in this state.

I am interested in the latest review, which in the end issued a country will make regulations that must be obeyed by its citizens. and of course the policies taken will benefit the country, but we must obey them because otherwise we will certainly not deal with applicable law

[Karmakid]

Government would not allow us to just enjoy bitcoin as investment and a payment system without them interfering for their control and to tax us, I think that's the way the world goes, as long as we have the government to govern its people, tax is compulsory and they need to monitor us to ensure that we are paying taxes and to spy on us, that's how they work.

in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.

It will help bitcoin to attract more people to use it or invest in it because if the government order a regulation about cryptocurrencies then it is an obvious sign for the citizens that the government are acknowledging the use and purpose of cryptocurrency to their country so it is a win-win situation for the enthusiast and also for the government who will get more taxes for their future projects.

[Abiky]

Government would not allow us to just enjoy bitcoin as investment and a payment system without them interfering for their control and to tax us, I think that's the way the world goes, as long as we have the government to govern its people, tax is compulsory and they need to monitor us to ensure that we are paying taxes and to spy on us, that's how they work.

in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.

Exactly. Taxation is required in order for governments to function properly. Without taxes, governments won't have a "reason to live". It's interesting to see them tax crypto, when they've declared the same is not legal tender. It'll be difficult for citizens to comply with taxes on something that's decentralized by design. Not to mention, prices are volatile which greatly defeats the purpose of taxation. As long as worldwide governments tax crypto in a fair manner, there should be nothing to worry about. It's best to comply with taxes than evade them. If you go against what's already established by the government, you could be facing jail time. So you would have to choose between freedom (sort of) or jail time. In this case, it's best to cooperate with worldwide governments in order to maintain the legitimacy of crypto and Blockchain technology in general (and avoid going to jail, of course )

Crypto taxation becomes easier to enforce by worldwide governments, if the industry continues to rely on centralized exchanges. These services are required by law to comply with KYC/AML regulations to properly tax crypto from everyday people. The real deal would be decentralized exchanges and P2P trades, as it's nearly impossible to keep track of every citizen for proper tax compliance (decentralized solutions require no ID verification to use them). Imagine what would've been for the crypto/blockchain industry if everything was completely decentralized. By now, governments would've declared crypto illegal for mainstream use.

Nonetheless, time will tell us the outcome of government regulations whenever they'll impact the growth of the crypto industry within the mainstream world. As long as people cooperate, the industry will obtain legal recognition by the government. Otherwise, there will be a full crackdown on crypto and Blockchain technology. Just my opinion

[Twentyonepaylots]

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.

Sad to say, it's just how things go most of the time. Even I am a critic of taxing cryptocurrency transactions since after all it defeats the purpose of cryptocurrencies being decentralized in the first place. But if you consider the fact that it'll allow cryptocurrencies to be much more accepted and accredited by your local government almost outweighs the feeling of being taxed. Until we can find a way to ensure cryptocurrency transactions safer and a bit more convenient than what it is now we might need to put up with what the government wants

[DevilSlayer]

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.

Sad to say, it's just how things go most of the time. Even I am a critic of taxing cryptocurrency transactions since after all it defeats the purpose of cryptocurrencies being decentralized in the first place. But if you consider the fact that it'll allow cryptocurrencies to be much more accepted and accredited by your local government almost outweighs the feeling of being taxed. Until we can find a way to ensure cryptocurrency transactions safer and a bit more convenient than what it is now we might need to put up with what the government wants

It is decentralized, so how thr governement implement taxation in the cryptocurrency market. That's why it said that it is a threat from fiat currency because the government have no control over it. There is no tax in cryptocurrencies, it is one of the unique characteristics that attract many people in order to adopt it. I'm aware that taxation is important but it is hard to see that they will also require tax in cryptocurrencies.

[Janation]

The issue of cryptocurrency and tax has recently become popular. States may want to derive a tax income from this situation. But this is not a simple matter. How will they get the tax as bitcoin? This is a very complicated issue. I don't think it's possible for now.

I don't think we should even think about it but there are countries that already taxed Bitcoin.

This depends though on how they are using Bitcoin. If they are using Bitcoin in a company and they are accepting it as a payment or salary, they would be under the law of income tax and that would obviously be taxed.

[Mahanton]

The issue of cryptocurrency and tax has recently become popular. States may want to derive a tax income from this situation. But this is not a simple matter. How will they get the tax as bitcoin? This is a very complicated issue. I don't think it's possible for now.

I don't think we should even think about it but there are countries that already taxed Bitcoin.

This depends though on how they are using Bitcoin. If they are using Bitcoin in a company and they are accepting it as a payment or salary, they would be under the law of income tax and that would obviously be taxed.

When we do talk about directly on Bitcoin then its not really taxable but if it already involves 3rd party service then thats the time it would really be taxable.

This will depend on countries jurisdiction when it comes to crypto earnings if they would decide to recognize it as a taxable thing but on most cases that would really
be done.

[imstillthebest]

The issue of cryptocurrency and tax has recently become popular. States may want to derive a tax income from this situation. But this is not a simple matter. How will they get the tax as bitcoin? This is a very complicated issue. I don't think it's possible for now.

I don't think we should even think about it but there are countries that already taxed Bitcoin.

This depends though on how they are using Bitcoin. If they are using Bitcoin in a company and they are accepting it as a payment or salary, they would be under the law of income tax and that would obviously be taxed.

When we do talk about directly on Bitcoin then its not really taxable but if it already involves 3rd party service then thats the time it would really be taxable.

This will depend on countries jurisdiction when it comes to crypto earnings if they would decide to recognize it as a taxable thing but on most cases that would really
be done.

bitcoin are currencies too but  the currencies are the ones that arent taxable right ? but its the goods or the service , or the property you own.  when you use your bitcoin for any of those things that i mentioned above ,  it must not be exempted by tax because that is inapropriate already  . there was a case against that if i remember and tax is one of the case that are popular because big time people tend to avoid it

[Faxmate]

The issue of cryptocurrency and tax has recently become popular. States may want to derive a tax income from this situation. But this is not a simple matter. How will they get the tax as bitcoin? This is a very complicated issue. I don't think it's possible for now.

I don't think we should even think about it but there are countries that already taxed Bitcoin.

This depends though on how they are using Bitcoin. If they are using Bitcoin in a company and they are accepting it as a payment or salary, they would be under the law of income tax and that would obviously be taxed.

When we do talk about directly on Bitcoin then its not really taxable but if it already involves 3rd party service then thats the time it would really be taxable.

This will depend on countries jurisdiction when it comes to crypto earnings if they would decide to recognize it as a taxable thing but on most cases that would really
be done.

bitcoin are currencies too but  the currencies are the ones that arent taxable right ? but its the goods or the service , or the property you own.  when you use your bitcoin for any of those things that i mentioned above ,  it must not be exempted by tax because that is inapropriate already  . there was a case against that if i remember and tax is one of the case that are popular because big time people tend to avoid it

Yes bitcoin itself is not having any tax issue but the things or the properties that we buy with bitcoin will surely be taxation. Crypto is independent and it has no legal connection with government taxes so just relaxed and keep holding the more you buy to hold the more you will earn from it and stop being trapped by any fake news related to crypto.

[criza]

in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.

If that would be the case, the main purpose of bitcoin would be dissolve: its decentralization and anonymity. We can't really say that it is what is happening, maybe it is on the manner of use of bitcoin transactions. It is on how the two party decided on how to transact using bitcoin, might it be for buy and sell, or as a payment in the workplace that are a subject for government laws and regulations.

[petuel]

in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.

If that would be the case, the main purpose of bitcoin would be dissolve: its decentralization and anonymity. We can't really say that it is what is happening, maybe it is on the manner of use of bitcoin transactions. It is on how the two party decided on how to transact using bitcoin, might it be for buy and sell, or as a payment in the workplace that are a subject for government laws and regulations.

Does taxation have something to do with privacy anyway?
I mean there are some ways to tax crypto market without getting private data of each user and their transactions

[Abiky]

Sad to say, it's just how things go most of the time. Even I am a critic of taxing cryptocurrency transactions since after all it defeats the purpose of cryptocurrencies being decentralized in the first place. But if you consider the fact that it'll allow cryptocurrencies to be much more accepted and accredited by your local government almost outweighs the feeling of being taxed. Until we can find a way to ensure cryptocurrency transactions safer and a bit more convenient than what it is now we might need to put up with what the government wants

Couldn't agree more with you, mate. It's best to comply with government's laws in order to maintain the legitimacy of the crypto industry. As long as people do their part, governments will take care of the rest. Otherwise, you could expect a full crackdown on crypto and Blockchain technology. I'm sure that mainstream businesses and companies will find out ways to properly collect taxes from their clients. There are several Blockchain analysis tools (Chainalysis is one of them) that will serve their purpose well in helping governments track & trace cryptocurrency transactions for proper tax collection.

Personally, I wouldn't mind cooperating with the government in order to continue using my hard-earned crypto funds. It's best to do this, instead of going against government rules and facing jail time. Most people will comply with crypto taxes in the long run, just to avoid having any troubles with the authorities. But we all know that crypto taxation, greatly undermines the purpose crypto was created for. Taxing crypto brings back the middleman one way or another. Sadly, this is the way to go for the sake of the crypto and Blockchain industry in general. Just my opinion

[Vishnu.Reang]

in the early stage, bitcoin was created to give us privacy or anonymity but it doesn't work like that anymore because of government intervention.

If that would be the case, the main purpose of bitcoin would be dissolve: its decentralization and anonymity. We can't really say that it is what is happening, maybe it is on the manner of use of bitcoin transactions. It is on how the two party decided on how to transact using bitcoin, might it be for buy and sell, or as a payment in the workplace that are a subject for government laws and regulations.

Does taxation have something to do with privacy anyway?
I mean there are some ways to tax crypto market without getting private data of each user and their transactions

If the transactions remain anonymous, then the chance of tax evasion will increase and it will become easier to hide your income. The authorities don't want that and they want to extract whatever they could from the hard working individuals. On the outside, they will say that KYC and all that crap is needed to prevent terrorism and crime. But the real intention is to increase the tax collection.