Dealing with tax and crypto ban

[paxmao]

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.

Regulation has to be there, it is inevitable and up to a certain point it is desirable. As I have mentioned a number of times, the devil is in the details. The fine print of the regulation may mark the distinction between a ban, a regulation that restricts trade and use, a regulation that simply protects the users or one that simply taxes and provides zero value for the investors.

I am interested in regulations that protect users.

[usekevin]

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.

Regulation has to be there, it is inevitable and up to a certain point it is desirable. As I have mentioned a number of times, the devil is in the details. The fine print of the regulation may mark the distinction between a ban, a regulation that restricts trade and use, a regulation that simply protects the users or one that simply taxes and provides zero value for the investors.

I am interested in regulations that protect users.

People invest with their knowledge. The profit is shared by the mean of taxes. I had strongly disagreed with the concept of taxation. The crypto earnings is our hard work, how the government had a right to keep a taxes on us. This is not a good enough for the investors. All the indian people who had crypto investment are not happy now. I had read the article about that one. The crypto investors of India have to pay of 30 percentage of their earnings. This was huge drawback to investors of India.

[KingsDen]

<snip>

Regulation has to be there, it is inevitable and up to a certain point it is desirable. As I have mentioned a number of times, the devil is in the details. The fine print of the regulation may mark the distinction between a ban, a regulation that restricts trade and use, a regulation that simply protects the users or one that simply taxes and provides zero value for the investors.

I am interested in regulations that protect users.

I am agreeing with you totally. I am never an advocate of non crypto regulation.
Every government no matter how corrupt has the duty of securing the properties of her citizens. We should not expect any reasonable government to accept in totality what she does not control or regulate as the case may be.
Regulations would be there to protect users;
Regulation would be there to curb excesses;
Regulation is a product of adoption.
You cannot regulate when you do not adopt. We should see regulation as a tool to appease ban.
Then, every country should regulate according to how bitcoin affects or effects her economy.

[Alisha FR]

The Zimbabwean government recently said it had entered into an agreement with the British Virgin Islands-based Daedalus World Limited wherein the latter is expected to collect taxes from companies that offer “betting, gaming and cryptocurrency services to persons and organisations within the territory of the Republic of Zimbabwe.”
https://news.bitcoin.com/zimbabwe-signs-agreement-enabling-collection-of-taxes-from-crypto-and-e-commerce-entities/?utm_source=thecryptoapp

Going by this i want to believe that tax payment goes along way to regulating restrictions and ban challenges by many countries

but in this case zimbabwe looks like chasing the future excessively, and even then because of its financial condition that can't be saved because the exchange of money they have is very bad.
so it's only natural that now some of the income from crypto proceeds is also taxed to improve their financial cycle slowly and regardless of the risk that will be obtained later. even when they talk about regulations, they are still very confused about what to do with cryptocurrencies that are not their currency. for me they are just beneficiary and not wise.

[sana54210]

People invest with their knowledge. The profit is shared by the mean of taxes. I had strongly disagreed with the concept of taxation. The crypto earnings is our hard work, how the government had a right to keep a taxes on us. This is not a good enough for the investors. All the indian people who had crypto investment are not happy now. I had read the article about that one. The crypto investors of India have to pay of 30 percentage of their earnings. This was huge drawback to investors of India.

Without taxation the world would not survive, all the people who need help will be ignored and there will be poverty beyond measure. You may consider that you should be doing whatever you can and if you can't then you should be eliminated by a Darwinian situation.

However, that will be death and misery everywhere around the world and we can't just say "let people die if they can't succeed". Some people will be in terrible position all their lives and yes taxpayers do pay for them to not die and live with bare minimum via welfare. That is just one side of it, from police force to firefighters to teachers and hospitals there are many things that our taxes go to.

The problem is not "taxing is a bad thing", it is "corrupt politicians use our taxes to enrich themselves". They may end up doing the right thing, but they will pay double the amount to their friends to do it.

[DrBeer]

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

Not everything is clear here. On the one hand, I do not rule out that Putin and his clan have deposits in cryptocurrencies - having huge amounts of free funds. On the other hand, he is hiccups afraid that it will be used:
1. To withdraw funds from Russia, past his hands.
2. "To finance the opposition that wants to overthrow him"
The person is mentally unstable, all nonsense in the head

[wxa7115]

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

The Russian economy was in problems due to the pandemic, however now that the US is making a point about Ukraine then they are facing even greater problems, Putin probably realizes that he cannot really ban an industry that is bringing economic activity and taxes to the country.

However I do not think we should expect a huge deal of support from Putin towards bitcoin, to him bitcoin is only a tool that he can use for his benefit, and the moment that is not the case then a ban will most likely take place.

[Flexystar]

Accepting the crypto taxes does not necessarily mean that government or central banks are actually accepting them as legit assets. Remember that tax acceptance could be Trojan horse situation where Government is saying that they are in favour of it but deep inside they could be plotting big arena battle. The recent case with India, where budget stated that they will levy 30% taxes on the crypto earnings. Just imagine the situation of those who are in India right now. I mean they may be happy but they may not be really happy!

It’s not full ban at all, but it’s indirect ban because who would pay 30% of their income straight in taxes? That’s sorrowful and they can’t just deal with it.

[dezoel]

I think it is usually best For a country to accept tax for Bitcoin, instead of banning it from their country. That way they are going to benefit from it instead of losing. Whenever the government bans Bitcoin, it’s just like they are losing, because they can’t actually stop people from making use of cryptocurrency. Some people in the country will still continue to make use of cryptocurrency because they know that they would be able to use decentralized platforms and go free with it.

The only platforms that are affected by the government ban of cryptocurrency is just CEX. So people still continue using it, and the government are the ones who are losing. But by embracing cryptocurrency and allowing people to make use of it, they can decide to be collecting a little tax from it, which stands to benefit the country in one way or the other.

[SquallLeonhart]

On the one hand, I do not rule out that Putin and his clan have deposits in cryptocurrencies - having huge amounts of free funds. On the other hand, he is hiccups afraid that it will be used:
1. To withdraw funds from Russia, past his hands.
2. "To finance the opposition that wants to overthrow him"
The person is mentally unstable, all nonsense in the head

He wouldn’t be the first to have such a thought, that is the regular thought that most people in power do have, they always think that somehow that there would be people who are making use of cryptocurrency as a way to fund illicit activities against their government and their country. So, it is nothing new at all and they have been saying it right from time.

But, so far, I have not seen such activities take place, where people are using Bitcoin to fund terrorism or illicit activities or anything at all against the government. Moreover Bitcoin is not that too anonymous to the extent that you wouldn’t be able to know what it is being used for. If such things are going on there is the possibility that it will be uncovered.

[molsewid]

I think it is usually best For a country to accept tax for Bitcoin, instead of banning it from their country. That way they are going to benefit from it instead of losing. Whenever the government bans Bitcoin, it’s just like they are losing, because they can’t actually stop people from making use of cryptocurrency. Some people in the country will still continue to make use of cryptocurrency because they know that they would be able to use decentralized platforms and go free with it.

The only platforms that are affected by the government ban of cryptocurrency is just CEX. So people still continue using it, and the government are the ones who are losing. But by embracing cryptocurrency and allowing people to make use of it, they can decide to be collecting a little tax from it, which stands to benefit the country in one way or the other.

This is probably one of the major taking actions of a government of a certain country if would going to legally adopted bitcoin as a legal tender but so far even liking the idea that they might get a profit from the tax of crypto user still governments of many countries didn't want to give a try to allow the circulation of bitcoin in their economy. Well, with that being said, this is not the losses of bitcoin because bitcoin became more valuable even without this kind of privilege.

[wxa7115]

Accepting the crypto taxes does not necessarily mean that government or central banks are actually accepting them as legit assets. Remember that tax acceptance could be Trojan horse situation where Government is saying that they are in favour of it but deep inside they could be plotting big arena battle. The recent case with India, where budget stated that they will levy 30% taxes on the crypto earnings. Just imagine the situation of those who are in India right now. I mean they may be happy but they may not be really happy!

It’s not full ban at all, but it’s indirect ban because who would pay 30% of their income straight in taxes? That’s sorrowful and they can’t just deal with it.

Even if also I think of the example you are giving as an indirect ban, most people are not going to be that dumb and pay that tax, I remember that after the Great Depression on the US the government made possession of gold illegal and ordered all of their citizens to give their gold to the government, and what happened next? The government devalued the dollar against gold and earned a lot of money because of it since they were the ones now holding way more gold than before.

However it is believed that roughly half of the population did not gave their gold away, and taking into account that thanks to the technology people are more informed than at any moment in the past, I doubt people will pay a tax that high and will simply ignore it.

[n0ne]

Accepting the crypto taxes does not necessarily mean that government or central banks are actually accepting them as legit assets. Remember that tax acceptance could be Trojan horse situation where Government is saying that they are in favour of it but deep inside they could be plotting big arena battle. The recent case with India, where budget stated that they will levy 30% taxes on the crypto earnings. Just imagine the situation of those who are in India right now. I mean they may be happy but they may not be really happy!

It’s not full ban at all, but it’s indirect ban because who would pay 30% of their income straight in taxes? That’s sorrowful and they can’t just deal with it.

What we see with India is different. They should give the governments stand on cryptocurrency usage and further about the tax. What has happened is straight opposite, they've taxed heavily and then said just because cryptocurrency is taxed it doesn't mean it is legalized. So what does this people do, whether they can make use of it or not. For such a situation it is good to have a clear view as China. If I'm not wrong India won't make a conclusion statement, because it looks like more politicians invested into it.

[Westant]

Accepting the crypto taxes does not necessarily mean that government or central banks are actually accepting them as legit assets. Remember that tax acceptance could be Trojan horse situation where Government is saying that they are in favour of it but deep inside they could be plotting big arena battle. The recent case with India, where budget stated that they will levy 30% taxes on the crypto earnings. Just imagine the situation of those who are in India right now. I mean they may be happy but they may not be really happy!

It’s not full ban at all, but it’s indirect ban because who would pay 30% of their income straight in taxes? That’s sorrowful and they can’t just deal with it.

What we see with India is different. They should give the governments stand on cryptocurrency usage and further about the tax. What has happened is straight opposite, they've taxed heavily and then said just because cryptocurrency is taxed it doesn't mean it is legalized. So what does this people do, whether they can make use of it or not. For such a situation it is good to have a clear view as China. If I'm not wrong India won't make a conclusion statement, because it looks like more politicians invested into it.

I think the people of India will not be sad much because I check about their income tax on normal currency and they are also taxing the normal income up to 30%. The income tax starts from 5% and reach to 30% with the ascending of Indian citizens income. The only difference is that the tax on normal income starts from 5% and reach to 30% while the tax on crypto is fixed 30%. Those who already paying normal income tax will find it familiar but those who are new to taxes will find it a little hard. 

[bhooscream]

People invest with their knowledge. The profit is shared by the mean of taxes. I had strongly disagreed with the concept of taxation. The crypto earnings is our hard work, how the government had a right to keep taxes on us. This is not a good enough for the investors.

Actually, it depends on the laws or regulations of the country. In my country, there is a tax for total income or earnings, but there is no specific tax for crypto industry.
If it is about the investment, there are also taxes that are for some property and also including investment that we have, but not for crypto yet.
Even we don't agree with taxation, if the government has decided, we can do nothing.

[Oasisman]

~snip~

~snip~

People invest with their knowledge. The profit is shared by the mean of taxes. I had strongly disagreed with the concept of taxation. The crypto earnings is our hard work, how the government had a right to keep a taxes on us. This is not a good enough for the investors. All the indian people who had crypto investment are not happy now. I had read the article about that one. The crypto investors of India have to pay of 30 percentage of their earnings. This was huge drawback to investors of India.

Well, as much as we don't want our hard earned money to be taxed, but it's the law.
The law maybe harsh but it's the law. Same goes to the big business men, they worked hard for it and you'll be surprised of how much taxes they paid annually to keep their business running. Besides, It is our duty to pay our taxes as a citizen of a country.
Now, don't be too worry about crypto regulations and taxation, especially Bitcoin. They cannot impose a fixed amount of tax when you're earning Bitcoin because they had no control over it and they don't know how much you're earning. They cannot make an audit to your crypto earning.

[Fatunad]

~snip~

~snip~

People invest with their knowledge. The profit is shared by the mean of taxes. I had strongly disagreed with the concept of taxation. The crypto earnings is our hard work, how the government had a right to keep a taxes on us. This is not a good enough for the investors. All the indian people who had crypto investment are not happy now. I had read the article about that one. The crypto investors of India have to pay of 30 percentage of their earnings. This was huge drawback to investors of India.

Well, as much as we don't want our hard earned money to be taxed, but it's the law.
The law maybe harsh but it's the law. Same goes to the big business men, they worked hard for it and you'll be surprised of how much taxes they paid annually to keep their business running. Besides, It is our duty to pay our taxes as a citizen of a country.
Now, don't be too worry about crypto regulations and taxation, especially Bitcoin. They cannot impose a fixed amount of tax when you're earning Bitcoin because they had no control over it and they don't know how much you're earning. They cannot make an audit to your crypto earning.

Unless if you do make yourself been using centralized platform on making directly conversions from crypto to fiat then you are KYC verified then sooner or later you would really be taxed up.
Yeah its true that as a citizen on a particular country that we should pay up tax for the benefit of the economy which i couldnt really blame out some people because some countries does
really have that kind government which is really corrupt which they would really be hesitated on paying up taxes.

[FanEagle]

This government, have they really taken time to study cryptocurrency and how it works? Do they know that even if they should ban crypto currency in the country that there will still be people who are making use of these crypto currencies and be able to trade them despite whatever ban they might have placed on it?

As for cryptocurrency mining, it is quite possible that the government can stop companies from mining cryptocurrency, because it is quite easy to spot the crypto miners wherever they might be. So, it is quite possible for them to stop it, which is one way I think that they can do something that will affect Bitcoin.

And this is because Bitcoin these days is not something that you can just mine from your home with your computer. This time around it requires a big mining farm and all that. I think if it was as it used to be before, then it would be even more difficult for them to stop mining. It is good that Russia didn’t ban it, but rather accepted it.

[doomloop]

Unless if you do make yourself been using centralized platform on making directly conversions from crypto to fiat then you are KYC verified then sooner or later you would really be taxed up.
Yeah its true that as a citizen on a particular country that we should pay up tax for the benefit of the economy which i couldnt really blame out some people because some countries does
really have that kind government which is really corrupt which they would really be hesitated on paying up taxes.

It is through these centralized exchanges that the government would be able to tax crypto currency traders. Centralized exchanges are linked to the government and are being regulated by them, so if they are placing any taxes, it is going to be through these centralized exchanges.

But, I don’t think that the government would be able to charge tax when a user is making use of a decentralized exchange to trade, because these exchanges that are decentralized doesn’t have any link to the government, so they cannot be regulated at all, so meaning that there wouldn’t be a way that the government would know the traders on the platform, because they have no information about them, not to talk of taxing them.

It is up to the individual, because as far as I know there are so many people who prefers making use of decentralized exchanges just because they are trying to keep their privacy, and there also those who doesn’t mind making use of the centralized exchanges and putting up with their KYC and all that.

[Westant]

This government, have they really taken time to study cryptocurrency and how it works? Do they know that even if they should ban crypto currency in the country that there will still be people who are making use of these crypto currencies and be able to trade them despite whatever ban they might have placed on it?

As for cryptocurrency mining, it is quite possible that the government can stop companies from mining cryptocurrency, because it is quite easy to spot the crypto miners wherever they might be. So, it is quite possible for them to stop it, which is one way I think that they can do something that will affect Bitcoin.

And this is because Bitcoin these days is not something that you can just mine from your home with your computer. This time around it requires a big mining farm and all that. I think if it was as it used to be before, then it would be even more difficult for them to stop mining. It is good that Russia didn’t ban it, but rather accepted it.

It is the big mistake of the countries who think that they will ban it and the use of it will be erased from the country while in actual they are losing themselves as people can use it anonymously and people will use it because of the benefits to them and the government will not be able to take the taxes. Those who study it on time found it to better is to accept it and those who will study later will regret to lose the taxes collections.