Crypto Exchange Binance Launches Tax Reporting Tool

[Rikafip]

Not really an option. If you use Binance, then you should fully expect that Binance will be reporting your taxable activities to your government, who will come knocking at your door soon enough if you haven't paid your taxes.

Binance could do that if they want even before they implemented this feature, so I don't see that something changed in that regard. None of the people I know that are using Binance changed their mind after this; those that were already reporting taxes will continue to do so, while others that are taking their chances will ignore it and continue with their business as usual. Well, they will ignore it until enough people get rekted by Binance.

Using centralized exchanges with KYC while evading taxes is a monumentally stupid thing to do.

If we are talking about big amounts I would agree, but people here in Croatia that are not dealing with big amounts are generally willing to risk it. They made it so complicated here to report crypto tax (while tax is not too big, 10%) that people are willing to take their chances rather than go through all that hassle.

[1714968832]

1714968832

[1714968832]

1714968832

[1714968832]

1714968832

[slaman29]

It's not real crypto of course but only people like us know that, but most people don't know and frankly don't care.

Yeah, so when you say it's not "real crypto", I assume you mean you can't actually withdraw the bitcoin from those apps to your own wallet, send them to someone else, spend them, use them, etc? In that case, then you're right - such apps will always be easier and more user friendly than any real bitcoin wallet. If you remove seed phrases, private keys, addresses, transaction signing, and everything else, then all that remains for the app to do is display a balance updated from a centralized server.

If you want to actually own bitcoin and be your own bank, then there is a certain level of technical features that must be present in an app. We can only simplify things so far. I'm not sure how we overcome that hurdle for the most technophobic people in the world.

Yup, no wallet address, not even blockchain interacting. You can send them to someone else with the same app account, like sending anyone any other "digital money" and even you can send to their phone number, it will credit their account and debit yours. Which is basically how it works for everything there, even "gold" or "silver" which of course aren't real but people think it is, and call themselves gold investors and Bitcoin investors:)

I know it's pointless to explain to them why this isn't going to work long term but I have hopes. I mean now you can use Bitcoin with QR codes and not addresses and set your wallet to auto determine fees. I have seen Ethereum apps that are on chain and off chain mixed... you send ETH but in dollars, and it's instant because it's off chain, and even fees are from a separate balance so you don't confuse yourself with ETH. I think BTC apps if they start to also use Lighting like this, and devs take a page or two from ETH could make it more user friendly. I understand there are security concerns of course but I have hopes things will look better in future.

[cryptoaddictchie]

Sure, you can choose to ignore their new tax reports, but that doesn't mean Binance won't generate them or send then to your government.

Provided that they do that. What if the country hasnt have any regulation about crypto during the time this was impelemented. Let say, now in our country there is no clear regulation about taxes. Then they cant impose tax on our earnings and transacted money with crypto during that time right. Like hey, you earned a lot from these years without tax so they will now asked for it now new law implemented. Just asking if this possible.

[o_e_l_e_o]

If we are talking about big amounts I would agree, but people here in Croatia that are not dealing with big amounts are generally willing to risk it.

Then you must have a much nicer tax agency than the IRS. Not only will they come after you for trivial amounts, but they will hit you with big penalties and fines for those trivial amounts.

-snip-

If people only care about price exposure to bitcoin, and don't actually care about it being decentralized, or trustless, or censorship resistant, or any of the other things that are core to bitcoin, then such easy to use custodial apps will always win. At least, until they scam the people in question or lock them out of their accounts.

Just asking if this possible.

No civilised country would pass laws retroactively punishing people, but I also don't know what country you live in. Nothing stopping them passing something similar to a "wealth tax" for your crypto holdings though, which they will receive detailed information of from Binance.

[tvplus006]

Provided that they do that. What if the country hasnt have any regulation about crypto during the time this was impelemented. Let say, now in our country there is no clear regulation about taxes. Then they cant impose tax on our earnings and transacted money with crypto during that time right. Like hey, you earned a lot from these years without tax so they will now asked for it now new law implemented. Just asking if this possible.

"The law is not retroactive," which means that until the relevant laws are adopted, you should not be held responsible. But in this case, there are generally recognized rules for paying income tax. That is, after receiving a profit, you must declare this income in your annual declaration. And in this, Binance can provide you with significant assistance in calculating this income

[wxa7115]

Binance are really going hard with the whole "regulation" thing over the last few days. First they slash non-verified daily withdrawals from 2 BTC to only 0.06 BTC. Then CZ comes out and says he would be happy to step aside for a more "compliance background CEO" to show Binance's commitment to obeying regulations and compliance. And now they say they will start automatically calculating your tax liabilities, and I'll eat my hat if they don't then start sharing that information with various governments and tax agencies around the world.

Binance are obviously trying their hardest to be allowed to maintain and scale up their operations in as many countries as possible. All about the profits. Just a shame that all their users will be the ones paying the price as Binance sells them and their data out to governments and associated agencies. If you got involved in bitcoin because you didn't like the government sticking their nose in to your finances and dictating what and when you were allowed to spend your money on, then it's long past time to abandon Binance.

Unfortunately this is the fate of all of those centralized institutions, the only other option will be to close the exchange and refuse to comply with the governments and just accept that they had a good run, but we know this is never going to happen, it is obvious that binance wants to maintain its monopoly and they are going to do whatever they can to try to do it, it is understandable and it was easy to foresee that this will happen but obviously I do not agree with it.

So it is about time that every single person that cares about their privacy abandons that exchange and never comes back to it, after all it is not as if the binance exchange is the only one where you can make your trades.

[Rikafip]

If we are talking about big amounts I would agree, but people here in Croatia that are not dealing with big amounts are generally willing to risk it.

Then you must have a much nicer tax agency than the IRS. Not only will they come after you for trivial amounts, but they will hit you with big penalties and fines for those trivial amounts.

If by nicer you mean way less competent, then you are right, they are very nice indeed.  If our tax agency is as efficient and vigilant as IRS, no one would fuck around either, but these are some of the rare perks of living in a less developed and organized country. They will eventually start going after us, that's for sure, but it will take some time before they figure things out.

[slaman29]

If people only care about price exposure to bitcoin, and don't actually care about it being decentralized, or trustless, or censorship resistant, or any of the other things that are core to bitcoin, then such easy to use custodial apps will always win. At least, until they scam the people in question or lock them out of their accounts.

I think there problem is maybe even more important to think about for Bitcoin, is people still don't know enough to care about these things (decentralized, censorship-resistance etc.). For better or worse, people can't learn about the importance of these things the way they are mainly presented. And they can't because states won't teach them this either.

Custodial apps always win and we seen that even though years of scams and "hacks" have stolen people's money, because they do not know better (and education prevents them from knowing better).

[o_e_l_e_o]

So it is about time that every single person that cares about their privacy abandons that exchange and never comes back to it, after all it is not as if the binance exchange is the only one where you can make your trades.

But as you rightly point out, these kind of regulations and tax reporting requirements will come to every centralized exchange sooner or later. Moving from Binance to another CEX is just delaying the inevitable. If you want to avoid this invasion of your privacy, then you need to move to a DEX.

I think there problem is maybe even more important to think about for Bitcoin, is people still don't know enough to care about these things (decentralized, censorship-resistance etc.). For better or worse, people can't learn about the importance of these things the way they are mainly presented.

Such things are never discussed in the news sources that the average person reads. It's all "Bitcoin crashes by 20%!", and never "Bitcoin continues to allow transfers of billions of dollars worth which cannot be intercepted or prevented by any person, state, or entity."

[slaman29]

Such things are never discussed in the news sources that the average person reads. It's all "Bitcoin crashes by 20%!", and never "Bitcoin continues to allow transfers of billions of dollars worth which cannot be intercepted or prevented by any person, state, or entity."

Even when they are discussed, they fail to garner as much attention. All the top reads on any media website are the price predictions, without fail. Even if the writer keeps getting it wrong, he keeps his job and continues to write, I guess because in the end, traffic makes the site money.

Write a thoughtful discussion piece and people doze off after the first paragraph.

Write about Bitcoin's censorship resistance and point out failure of countries to prevent it. Lol US sanction for example, and they go after you and close you down.

Anyway, enough rant for Friday:)

[o_e_l_e_o]

Even when they are discussed, they fail to garner as much attention. All the top reads on any media website are the price predictions, without fail.

Lowest common denominator. People who are interested in the tech, development, use cases, etc., are discussing bitcoin in this forum or github or similar, and are not reading click bait news articles. The people who are reading these trash articles are the same people who are commenting "When moon?" and cashing pump and dump shitcoins.

Even if the writer keeps getting it wrong, he keeps his job and continues to write, I guess because in the end, traffic makes the site money.

The more ridiculous the price prediction, the more clicks you get. No one cares if you predict the price will move by 1-2%.

[slaman29]

Lowest common denominator. People who are interested in the tech, development, use cases, etc., are discussing bitcoin in this forum or github or similar, and are not reading click bait news articles. The people who are reading these trash articles are the same people who are commenting "When moon?" and cashing pump and dump shitcoins.

The more ridiculous the price prediction, the more clicks you get. No one cares if you predict the price will move by 1-2%.

I think for most of us, we've already accepted the fact that most people talking about Bitcoin (or crypto) online are either paid to do so (shillers) or speculators that want everyone else to pump the bags they're holding. And that includes for BTC.

What just gets me is they fall for their own traps and then never learn, piling back in on the next hype cycle.

The funny thing is IF only more people understood that the real point of hype are all those things you mentioned earlier (network usage up, security getting better every day, more features like privacy being developed, more adoption, etc), they would realize it's better to talk about these things. Then people would get so much more interested I think, and learn more, and then there'd be a real market demand that shilling and when moon videos can never achieve.