Dealing with tax and crypto ban

[tippytoes]

Zimbabwe has notorious up and downs with their currency. At one point even having a 1 trillion dollar note being worth 40 US cents. So obviously they need to get ahead and what is the future of our world economics? Crypto.

Is bitcoin exclusively for the poor? There is something eluding my understanding.
When El Salvador made bitcoin a legal tender, it was said that they need to get ahead because of their financial situation. Perhaps, they have no currency of theirs but depending on US dollars.
Now that Zimbabwe what to make provisions for paying taxes with crypto, it is said again that need to get ahead.

...But even if there was tax evasion, my guess is that having a lot of people engaged in mining and other crypto activities is helping the economy in an indirect way.

I was actually of the opinion that people having alot of mining activities in China was helping the country. Not until when they banned bitcoin mining and there was no effect in their economy.
I would rather pray that every country adopt bitcoin averagely than for a particular country to politically monopolise it.

In time, the government will see the benefits to its citizens. For those who can earn money via this industry, they will not be a burden of their government and I hope, someday these countries banning the use of crypto will be enlightened that somehow this market is helping their citizens to uplift their standards of living. Because most people are not receiving any benefits from their government so they need to find ways to survive.

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[mia_houston]

Mr. Putin only shy away from a total ban on Crypto currencies because he knows that Russia is becoming a mining stronghold and a possible monopoly over Bitcoin mining, will put him in a position of strength.

That's what I can't understand about this whole thing with Russia moving toward a crypto ban, unless all those Russian miners are somehow putting a burden on the nation's electrical grid--or if there's a whole lot of tax evasion going on.  But even if there was tax evasion, my guess is that having a lot of people engaged in mining and other crypto activities is helping the economy in an indirect way.  People are paying for that electricity to mine, and they're either buying things with crypto or converting it to rubles and then spending it.  Either way, I don't see how a total ban on crypto would be a good thing for Russia.

Maybe it has something to do with the political situation, i.e., the impending invasion of Ukraine (or at least the tensions resulting from the anticipation of the same)?  I'm not a politician and I could never figure out the way they think, so I'm at a loss.

Recently, the Russian bank has issued a call for the Russian government to completely ban both mining and the use of crypto in Russia, for reasons that are quite classic as in other countries, namely as money laundering, consuming energy resources and also damaging the stability of the use of fiat money later.
However, it is reported that Vladimir Putin does not fully agree with the central bank ban on crypto, and he invites the central bank and the government to take a consensus to make the right decision regarding cryptocurrencies in russia, I think if a consensus is held later, maybe at least the russian central bank will get enlightenment related to the benefits that can be obtained from cryptocurrencies for the people economy and also the Russian state.
I think not only in Russia, but almost all over the world, indeed we will find it very difficult to understand the words that have been issued by politicians so far, they ​play in the name of the people  interests, many of them continue to say that all decisions are only for the interests and benefits of the people, but instead they make decisions by pressuring the people and taking personal advantage .

[andriarto]

Zimbabwe has notorious up and downs with their currency. At one point even having a 1 trillion dollar note being worth 40 US cents. So obviously they need to get ahead and what is the future of our world economics? Crypto.

Is bitcoin exclusively for the poor? There is something eluding my understanding.
When El Salvador made bitcoin a legal tender, it was said that they need to get ahead because of their financial situation. Perhaps, they have no currency of theirs but depending on US dollars.
Now that Zimbabwe what to make provisions for paying taxes with crypto, it is said again that need to get ahead.

...But even if there was tax evasion, my guess is that having a lot of people engaged in mining and other crypto activities is helping the economy in an indirect way.

I was actually of the opinion that people having alot of mining activities in China was helping the country. Not until when they banned bitcoin mining and there was no effect in their economy.
I would rather pray that every country adopt bitcoin averagely than for a particular country to politically monopolise it.

In time, the government will see the benefits to its citizens. For those who can earn money via this industry, they will not be a burden of their government and I hope, someday these countries banning the use of crypto will be enlightened that somehow this market is helping their citizens to uplift their standards of living. Because most people are not receiving any benefits from their government so they need to find ways to survive.

from the government's point of view I think they will just look for a new source of income from this business. besides that if a trader goes bankrupt, it is as if the trader himself bears it. Of course the government wants state income and in this new business, the government is starting to look for opportunities, although not directly of course the exchange has an official permit that must be recorded in the government bureaucracy

[Similificator]

Seems to me that all this fuss is something that the president of Russia want to happen in an attempt to cover ulterior motives. Currently, he has a lot on his plate which is why he does not want to been seen as entirely pro or against crypto so that he doesn't get too deep in any hole and take advantage of any good side of the coin. I reckon that he already is rooted on crypto and has plans for it in the future. Banning it is completely impossible at the moment unless the world leaders unute to ban it entirely.

[bitgolden]

Recently, the Russian bank has issued a call for the Russian government to completely ban both mining and the use of crypto in Russia, for reasons that are quite classic as in other countries, namely as money laundering, consuming energy resources and also damaging the stability of the use of fiat money later.
However, it is reported that Vladimir Putin does not fully agree with the central bank ban on crypto, and he invites the central bank and the government to take a consensus to make the right decision regarding cryptocurrencies in russia, I think if a consensus is held later, maybe at least the russian central bank will get enlightenment related to the benefits that can be obtained from cryptocurrencies for the people economy and also the Russian state.

The thing about money laundering and illegal activity is that, the criminals acted like that before the invention of crypto as well. Pablo Escobar became one of the richest people in the world way before crypto, which shows you that there is no need for crypto for them to continue their operations.

So, if you are banning crypto because of this reason, you are looking for the bad people in the wrong places. What should happen instead is the method that people should be KYC'd very well and you could predict who is doing what and you could keep their names off it. Obviously they will find puppets but they can't keep using puppets forever, and not for that much money. They would be caught if it was too obvious.

[TribalBob]

Although dealing with crypto and Bitcoin and their related industries such as exchanges, mining farms, and so on is not just purely about a question of tax or ban, the fact that the government would not only be embracing what's latest in financial technology but also profits from it in more ways than one, makes it more inclined to accept it than not.

However, there are countries which are focusing more on the possible negative effects of Bitcoin rather than the positive ones, and they give more weight to this than the revenue that they could potentially gain.

until this moment I still don't know what the negative impact of bitcoin itself is, hasn't bitcoin so far provided many advantages for its owners, especially financial freedom,
but if one country bans bitcoin why is there still a tax? what is the tax for?

[Darker45]

Although dealing with crypto and Bitcoin and their related industries such as exchanges, mining farms, and so on is not just purely about a question of tax or ban, the fact that the government would not only be embracing what's latest in financial technology but also profits from it in more ways than one, makes it more inclined to accept it than not.

However, there are countries which are focusing more on the possible negative effects of Bitcoin rather than the positive ones, and they give more weight to this than the revenue that they could potentially gain.

until this moment I still don't know what the negative impact of bitcoin itself is, hasn't bitcoin so far provided many advantages for its owners, especially financial freedom,
but if one country bans bitcoin why is there still a tax? what is the tax for?

The impacts of Bitcoin are not just limited to its owners. Bitcoin has an impact to the government and its agencies, to the banking industry, to the business sector, and so on. It has its impact to law enforcement agencies, to monetary and financial agencies, to regulatory agencies, and so on. So what may be good to Bitcoin holders may not be the same to the police, for example, or to the central bank or to Western Union. A decentralized currency has a negative impact to a highly centralized government system.  

Anyway, is there a country that bans and taxes Bitcoin at the same time?

[AicecreaME]

I do not understand the need for countries to send crypto miners away, China did it, and that was a big mistake. Imagine a whole lot of business, where people pay you tons of electricity, maybe hire some staff, and then earn a lot of money all within your nation. Is it possible for them to take that money out of the nation and into some other nation? Of course, but that is up to you to convince them to spend it there.

All in all, they are a business and you should be happy to have as many business' as possible all around the nation. That's how you make money as a nation, you get taxes and the more you get taxes the richer your nation will become and sending these companies away only drops the taxes you can collect, makes no sense.

China has to stop crypto mining for environmental reasons. It could be a mistake from others' perspectives, but I think it is not really a loss to them if they are really after the welfare of the planet. Although economically speaking, crypto mining and all other things related to crypto that has been banned have a really big impact on the economy. The taxation of crypto in the centralized exchangers in China is a great loss for them. Although I bet they already thought of this before implementing the banning, hence, they pushed through with it despite the possible repercussions. After all, it's not all about money every single time. Maybe some of their officials have this set of beliefs and principles that they uphold which weigh more than just the satisfaction and money they will generate from crypto mining. Because knowing mining, it consumes a lot of energy which is known to be non-renewable. With that, a lot of energy are being consumed, therefore, a lot of coals are being used as well, resulting in more pollution. I've read as well that the country China is planning to be carbon neutral by the next 18 years which is 2060. So, maybe they really are taking the small steps right now so that withdrawal by then won't be as hard.

[maydna]

Although dealing with crypto and Bitcoin and their related industries such as exchanges, mining farms, and so on is not just purely about a question of tax or ban, the fact that the government would not only be embracing what's latest in financial technology but also profits from it in more ways than one, makes it more inclined to accept it than not.

However, there are countries which are focusing more on the possible negative effects of Bitcoin rather than the positive ones, and they give more weight to this than the revenue that they could potentially gain.

until this moment I still don't know what the negative impact of bitcoin itself is, hasn't bitcoin so far provided many advantages for its owners, especially financial freedom,
but if one country bans bitcoin why is there still a tax? what is the tax for?

If one country bans bitcoin, the tax comes from the other businesses and not from bitcoin but I am not sure if they apply tax for a crypto user because they ban bitcoin while their people can't use bitcoin freely. I don't think much about the negative impact of bitcoin because I only see the positive impact of bitcoin for me, my friends, and people around me who use bitcoin. We hope that if the government applies taxes for crypto users, they will use normal taxes amount and not too high because not all crypto users are a whale and many of them are still struggling to earn money from crypto.

[wxa7115]

In time, the government will see the benefits to its citizens. For those who can earn money via this industry, they will not be a burden of their government and I hope, someday these countries banning the use of crypto will be enlightened that somehow this market is helping their citizens to uplift their standards of living. Because most people are not receiving any benefits from their government so they need to find ways to survive.

They do not care, politicians pay lip service about caring about their citizens but do they actually care about them? Of course not, they care about the benefits they can get to themselves and nothing more.

So when they see bitcoin, they do not see a tool for their citizens to use and try to improve their lives, they see a tool that reduces their power and their ability to control their population, and when we think of things this way it is understandable that many politicians still have a very negative view about bitcoin and this market in general.

[dunfida]

In time, the government will see the benefits to its citizens. For those who can earn money via this industry, they will not be a burden of their government and I hope, someday these countries banning the use of crypto will be enlightened that somehow this market is helping their citizens to uplift their standards of living. Because most people are not receiving any benefits from their government so they need to find ways to survive.

They do not care, politicians pay lip service about caring about their citizens but do they actually care about them? Of course not, they care about the benefits they can get to themselves and nothing more.

So when they see bitcoin, they do not see a tool for their citizens to use and try to improve their lives, they see a tool that reduces their power and their ability to control their population, and when we think of things this way it is understandable that many politicians still have a very negative view about bitcoin and this market in general.

Fact!

This is why it isnt surprising that government would be always be having that kind of views and perception or impressions towards crypto since they couldnt really see things that would benefit them but instead they would really be losing off total control when it comes to financial matters specially into its citizens.

You would really able to expect on what they would potentially do which if you do go on bigger picture then its not really shocking anymore and how to deal with it?

With having that decentralized market then you could still able to deal with it not minding much about this matter.

[Vaskiy]

Although dealing with crypto and Bitcoin and their related industries such as exchanges, mining farms, and so on is not just purely about a question of tax or ban, the fact that the government would not only be embracing what's latest in financial technology but also profits from it in more ways than one, makes it more inclined to accept it than not.

However, there are countries which are focusing more on the possible negative effects of Bitcoin rather than the positive ones, and they give more weight to this than the revenue that they could potentially gain.

until this moment I still don't know what the negative impact of bitcoin itself is, hasn't bitcoin so far provided many advantages for its owners, especially financial freedom,
but if one country bans bitcoin why is there still a tax? what is the tax for?

The impacts of Bitcoin are not just limited to its owners. Bitcoin has an impact to the government and its agencies, to the banking industry, to the business sector, and so on. It has its impact to law enforcement agencies, to monetary and financial agencies, to regulatory agencies, and so on. So what may be good to Bitcoin holders may not be the same to the police, for example, or to the central bank or to Western Union. A decentralized currency has a negative impact to a highly centralized government system.  

Anyway, is there a country that bans and taxes Bitcoin at the same time?

Taxation, big thing that makes governments think much about the usage of cryptocurrencies. Till date more countries have regulated the usage and has taxed cryptocurrency purchase. But, to what extent this is found to be effective is unknown. From my understanding governments isn't getting any big revenue out of it, which makes way for such bans.

Some governments have added it along with gold. Some have imposed taxes, but there will be always a way to skip it. So crypto ban and taxation of cryptocurrency isn't going to be effective now and forever. Only the cryptocurrency developers need to think of some blockchain to streamline the taxation based on holdings.

[gantez]

Although dealing with crypto and Bitcoin and their related industries such as exchanges, mining farms, and so on is not just purely about a question of tax or ban, the fact that the government would not only be embracing what's latest in financial technology but also profits from it in more ways than one, makes it more inclined to accept it than not.

However, there are countries which are focusing more on the possible negative effects of Bitcoin rather than the positive ones, and they give more weight to this than the revenue that they could potentially gain.

until this moment I still don't know what the negative impact of bitcoin itself is, hasn't bitcoin so far provided many advantages for its owners, especially financial freedom,
but if one country bans bitcoin why is there still a tax? what is the tax for?

I really not seeing the negative side of bitcoin and the countries coming against it are doing that for selfish reasons. Bitcoin is talking of financial freedom for everyone both the people and the government. The government can transact fast and monitor theft through blockchain. The corruption in fiat will not be there in blockchain and this is why they don't look at using bitcoin.

[24Kt]

Although dealing with crypto and Bitcoin and their related industries such as exchanges, mining farms, and so on is not just purely about a question of tax or ban, the fact that the government would not only be embracing what's latest in financial technology but also profits from it in more ways than one, makes it more inclined to accept it than not.

However, there are countries which are focusing more on the possible negative effects of Bitcoin rather than the positive ones, and they give more weight to this than the revenue that they could potentially gain.

until this moment I still don't know what the negative impact of bitcoin itself is, hasn't bitcoin so far provided many advantages for its owners, especially financial freedom,
but if one country bans bitcoin why is there still a tax? what is the tax for?

I really not seeing the negative side of bitcoin and the countries coming against it are doing that for selfish reasons. Bitcoin is talking of financial freedom for everyone both the people and the government. The government can transact fast and monitor theft through blockchain. The corruption in fiat will not be there in blockchain and this is why they don't look at using bitcoin.

Some government are against with it because it is decentralized, meaning, they won't have full control of what's going on in the crypto market. This is why most governments are sticking to their fiat system because it is centralized. But for some governments, they are open to accept the crypto market. They can regulate it by charging taxes on crypto businesses. They may not see the whole picture of the market under their jurisdiction but at least they can get something out of it. But for some, they are totally banning it and not allowing their constituents to deal with crypto. But are they sure that the total ban will make their crypto users not deal with crypto? There are so many ways now how to get around the total ban.

[Anonylz]

I really not seeing the negative side of bitcoin and the countries coming against it are doing that for selfish reasons. Bitcoin is talking of financial freedom for everyone both the people and the government. The government can transact fast and monitor theft through blockchain. The corruption in fiat will not be there in blockchain and this is why they don't look at using bitcoin.

Our government are too selfish and always interested in what they can have control over else that thing is automatically tagged as bad, bitcoin is not the root of the problems we have in this world, even before the advent of btc, there have always been multiple of crimes of different economic and political status, but for some selfish reasons, they want to attribute majorities of these problems as a result of btc existence,
Since crypto gives a certain level of financial freedom and can prevent users from being tied to the apron string of the government, they are not so happy with that and must do everything to prevent it.

[dbc23]

Since Putin sees benefits in cryptocurrency mining and how much development it can bring about I think they would rather come to a consensus of regulating it's process and usage other than an complete ban. I just believe at some point the Russian government is trying to get involved so the actually account on how this new technology is been mined and how much of positive impact it has placed on her citizens

[justdimin]

Going by this i want to believe that tax payment goes along way to regulating restrictions and ban challenges by many countries, just as Russia sees mining crypto is a cognitive advantage to technological development of it country and Zimbabwe accepting tax payment in crypto by digital currency firms.

I do see these two different countries' stand against cryptocurrencies as a case-study to get ready for any kind of regulation even in my country. I am little worried about what kind of final outcome about cryptocurrencies that my government will take. I guess with the help of gift cards and anonymous debit cards, I may manage for some times until all hassles settle down. But, the cost associated for these are a bit higher than what I do get from my local exchange which is the only concern for me when my government goes against cryptocurrencies.

For example, for buying a giftcard from bitrefill I need to pay 8% to 12% higher than my local exchange's bitcoin rate. If my government asks only 10% tax on my bitcoin selling then I will keep using my exchange by paying tax to government if taxes are higher than 15% then I need to lead a life out of gift cards.

[el kaka22]

I do see these two different countries' stand against cryptocurrencies as a case-study to get ready for any kind of regulation even in my country. I am little worried about what kind of final outcome about cryptocurrencies that my government will take. I guess with the help of gift cards and anonymous debit cards, I may manage for some times until all hassles settle down. But, the cost associated for these are a bit higher than what I do get from my local exchange which is the only concern for me when my government goes against cryptocurrencies.

For example, for buying a giftcard from bitrefill I need to pay 8% to 12% higher than my local exchange's bitcoin rate. If my government asks only 10% tax on my bitcoin selling then I will keep using my exchange by paying tax to government if taxes are higher than 15% then I need to lead a life out of gift cards.

I would say that localbitcoins type of hand to hand could be a bit better in that case? I do not know where you live but where I live it is still legal and yet people still use localbitcoins. P2P was used in Nigeria a lot where it was looking like it will get banned and exchanges closed out of fear so people had to use P2P. That is the only way out right now for the people, many wealthy people have bank accounts in other nations as well.

If you could travel to another nation for a while, get a bank account there, get a credit card, then you could use that nations exchanges and you would use that nations credit card and you could go back and live in your nation with that nations banks card. This was done by people in Cyprus back in the day when it was banned for a short term, but it was reopened again I believe, and being done by people in Iran as well, who all travel to other nations get a bank account and then use that nations card in their own nation.

[Mahanton]

Since Putin sees benefits in cryptocurrency mining and how much development it can bring about I think they would rather come to a consensus of regulating it's process and usage other than an complete ban. I just believe at some point the Russian government is trying to get involved so the actually account on how this new technology is been mined and how much of positive impact it has placed on her citizens

They are really not that confident thats why they do have that kind of tug-of-war like kind of decision making towards involvement with crypto whether they do accept or would totally ban it because they dont like it?
I wouldnt be surprised on what are their criterias before accepting something and for the sake of testing out then they could do such thing but hopefully that there would be no total ban on this one
because for sure that would really be making some major impact once again in the market.

[kryptqnick]

Calling for regulation instead of restriction is a simple choice because regulation would mean at least some influx of money for the state, and given that crypto mining isn't anything morally questionable (unless one believes it's very harmful for ecology, but Russia's not the sort of country that takes ecology seriously anyway), it's clearly a win to legalize cryptos and operations with it.
As for Zimbabwe and tax collection, I think if taxes are applicable, it already means that cryptos are legalized in some way there. I only hope taxes will be reasonable because otherwise people will simply look for ways of avoiding paying them.