Government Taxing Bitcoin? Here's the Answer

[darkangel11]

Here in our country our wallet is regulated by the government in some ways so there's a fees behind that like the permit or license of our wallet but not every transaction then i think that's really a little only like very affordable so no problem at all then if your account is regulated but not good like with KYC and high fees then better to find other

wait what? your country government has actually a way to monitor all of your bitcoin transactions? How is that done and which country do you live in? In my opinion, it's a crime to do such things by the government because every person should have the right to privacy. It is crazy how governments themselves do not respect the peoples rights.

Privacy is long gone. Please read about Huawei, Google home and many other private companies that were gathering private data and listening to you through their devices. What about that spyware that allows the government to turn on the camera in your phone and record you? It's very much a real thing. There's no privacy and what is legal is decided by the lawmakers and lawmakers listen to the government.

The idea won't work because of how much some governments want you to pay. If the tax was 5% all around the world than maybe but 20-30% is too much to add it as a permanent tax to every transaction. Nobody would use such cryptocurrency.

[oktana]

Here in our country our wallet is regulated by the government in some ways so there's a fees behind that like the permit or license of our wallet but not every transaction then i think that's really a little only like very affordable so no problem at all then if your account is regulated but not good like with KYC and high fees then better to find other

which country has succeeded in such a complicated regulation?

I think you are talking about the exchange market, not the crypto wallet in person. There is one provision where taxes are also reported manually, cannot be accessed by the government transparently, if it is true it will be far more terrible than the tax provisions for citizens who use fiat.

[marcous]

actually for tax issues, especially in the crypto world, an exchanger is under the auspices of a company. and certainly, the company must be registered and legalized. If so, the exchanger already represents to pay taxes. while regarding personal income generated from cryptocurrency for example trading results. we can see that trading results are not always profitable, and the tax is imposed on an income that does have a fixed income every month.

[kro55]

Tax collection is one of the most difficult things about bitcoin and one of the core reasons why authorities are against bitcoin and other anonymous cryptocurrencies. The only way the government can keep track of crypto is through crypto exchanges and bank withdrawal. If you keep crypto in your wallet and never disclose them there is no way the government can track your crypto assets.

[JeffBrad12]

Tax collection is one of the most difficult things about bitcoin and one of the core reasons why authorities are against bitcoin and other anonymous cryptocurrencies. The only way the government can keep track of crypto is through crypto exchanges and bank withdrawal. If you keep crypto in your wallet and never disclose them there is no way the government can track your crypto assets.

not really difficult considering country like korea and japan have succesfully taxing people with cryptos there and it's just a piece of cake for US. it's just the decentralized nature which is not yet understood by the people that have the authorities there that makes them misleaded into thinking that bitcoin could be used to launder money easily which is actually quite the opposite. most of people are transferring fund converted from bitcoin to bank account from exchange and the government could get information from that.

[HarmonyA]

I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.

For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.

Yea, the reason why some person want to boycott tax payments is by investing in crypto, and doing their financial transactions with crypto.
No matter how we may criticize government policies,  it in someway protect us from the dark web of frauds.
In my country,  when you buy are sell crypto,  tax is deducted from the transaction. That's how crypto is taxed

[Wintersoldier]

Yea, the reason why some person want to boycott tax payments is by investing in crypto, and doing their financial transactions with crypto.
No matter how we may criticize government policies,  it in someway protect us from the dark web of frauds.
In my country,  when you buy are sell crypto,  tax is deducted from the transaction. That's how crypto is taxed

And basically that is the way how local exchangers work, they can't actually run and be tolerated by the government if they aren't coordinating well enough, to sustain taxes. We might not know but in the world of decentralization, we think that we've successfully escape taxes but no, though, what I don't like to these system is to provide the freedom for people to avoid paying taxes that is in fact, isn't true at all. In short, we've just made our currency more secured and efficient using blockchain and cryptography.

[Cimmy_revenger]

I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.

For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.

This kind of thing already exists in my country, who has an exchange business, both crypto and fiat, there will be taxes incurred.
service providers usually charge it to their customers.

[ajeef]

I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.

For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.

This kind of thing already exists in my country, who has an exchange business, both crypto and fiat, there will be taxes incurred.
service providers usually charge it to their customers.

How it could be detected when people are trade it with fiat anonymously ? i mean if we cash out not from exchange but from each person doing transaction with escrow and without any exchange services. I think people still can hide their wealth and avoiding tax as long as the coin that they trade is decentralized

[bangjoe]

only transaction tax and that even happens to intermediaries from local exchanges, my government has not specifically directed it there. All still needs to be researched in calculations, if crypto users in each country are no more than 3%, then income tax cannot be imposed, the most important thing is how regulation can fully function, because tax is a form of systemic recognition.

[BlackFor3st]

I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.

For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.

Yes local exchange is one of the factors that can be tax by government if in case fiat will be replace by crypto in the future. And I believe the government will not stop from taxing local exchange only if crypto will be the main currency as they will surely look for other way on how they can earn because one of the main source of income from the government is the tax.

If tax will be lowered then the government resources will be limited, yes we love to be exempted from tax but let's face the truth also that without tax our government will run or effective.

[sisule]

I don't worried if government taxing bitcoin but they have use tax correctly and never use by some one else to make their assets, how ever my country bad regulation of tax where many institution from tax become richest and they look take many benefit from tax, I think better transparent with our tax from bitcoin donation to some institution need help.

[Warkop]

Here in our country our wallet is regulated by the government in some ways so there's a fees behind that like the permit or license of our wallet but not every transaction then i think that's really a little only like very affordable so no problem at all then if your account is regulated but not good like with KYC and high fees then better to find other

If there is a wallet that is better and safeguards our identity is also good.  why don't we try it.  but until now we have not seen a wallet like that and the cost is very expensive not necessarily safe for us to use then.  if there is a loss of who will be responsible.

[Eclipse26]

It's just normal for the government to add tax in Bitcoin. We cannot escape tax because that's where the government gets money for the whole country. If adoption takes place on a country, there's higher possibility that the government will regulate and add tax with it. They can't just let us to do what we want without paying taxes. Though my country doesn't have regulations and tax yet with crypto, sooner they might add taxes.

[angrynerd88]

Why still government ignore the power of crypto,Most of countries like dubai,canda,ukraine already in the game of crypto and encourage the technology of blockchain.Recently Iranian authorities issued 1000 licenses for cryptocurrency mining source by cointelegraph.
Pro active approach governments realized the crypto is source can generate record revenue in form of taxes to support the stable economy.

[btccashacc]

As long as you're holding bitcoin on your wallet then it can't be taxed, here in our country if you use local exchange and do trade or withdrawal then those transactions will be taxed. But this could be different if you use outside exchange the amount of tax will be taxed based on the regulation of the country where that exchange is running. I personally don't have any issue with taxing, it's good for supporting your country.

[target]

As long as you're holding bitcoin on your wallet then it can't be taxed, here in our country if you use local exchange and do trade or withdrawal then those transactions will be taxed. But this could be different if you use outside exchange the amount of tax will be taxed based on the regulation of the country where that exchange is running. I personally don't have any issue with taxing, it's good for supporting your country.

This is also the case in my country and this is why it makes sense for IMF to ask our government a data of cryptocurrency users and I mean who else will they ask for these information. Although many of us will take it a breach of contract to us users, its going to be easy for IMF and any financial authorities to watch out for people who engage in crypto.

Its really not easy to maintain a privacy when in all of the websites you got into will ask for KYC documents. And these KYC documents will allow them to check out backgrounds and financial status.

[tartibaya]

States have noticed the returning money in the bitcoin economy. However, they are not equipped enough to make moves. Claiming taxes from Bitcoin can lead to major economic damage. The informal economy can be triggered.

[robelneo]

I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.

For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.

I should feel guilty if that is not the case, but I just have this thinking that my local exchanger already deducted the tax that should be due to me, since they are deducting a big fee from my trade and all my other transactions I'm getting from $1 to $5 from my transactions, so I guess that is the case.

[FanatMonet]

On the one hand, various taxes on cryptocurrencies are not very good, because this is additional pressure from the government on people.
On the other hand, if the government thinks out some kind of policy regarding cryptocurrencies, makes them a legal means of payment, then you can think about this.