Dealing with tax and crypto ban

[Dunamisx]

In recent times, the Russian governments go against the proposition made by it Central Bank to place a ban on Bitcoin mining while the financial institution calls for regulation rather than placing ban restriction on it, also you could recall that Russia is ranked third in line of the world bitcoin mining as United States come first and Kazakhstan the second according to the University of Cambridge’s Center of Alternative Finance.

Russians government understand that halting any mining activities of cryptocurrency could place a hold on it technological advancement in the country while before the introduction of cryptocurrency, theft and other social vises have been in existence and that is not a yardstic to place a ban on crypto and president Vladimir Putin want the discrepancy between it Central bank andfinance ministry to be in concession toward Bitcoin mining.
From this stance, i strongly believe that the president himself is in support of mining crypto with the mindset to boost the economy and technological development of his country, else the dispute between his parastatals be settled.

From the other side of the story in Africa, Zimbabwe Signs Agreement Enabling the Collection of Taxes From Crypto and E-Commerce Entities

With this recent developments in Zimbabwe i think it a step closer to adopting and legalizing cryptocurrency in the country, but one thing keeps a bone of contention in this regards which makes governments not to "give in" (Support) a massive adoption of cryptocurrency although to me its a new development with a step up since crypto firms were identified and paying of tax is what government can enforce as to regulation, In such regards Zimbabwe now uses a third party tax receiving agent (Daedalus World Limited).

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, 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.

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[hugeblack]

I don’t know what the relationship is between the different topics.

Bitcoin mining in Russia is related to electricity and political relations. There was news about Russia’s intention to ban currency trading, including the ban on mining, but the policies change dramatically. However, when China banned Bitcoin mining, the currency continued to grow.

Regulating taxes is subject to the fact that they are assets and not currencies, and therefore governments try to benefit from them and make some profits from them.

[fiulpro]

Well the correlation between the topics is that both countries have fluctuating currencies.
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.
Russia on the other hand has many Bitcoin mining facilities that produce a lot of pollution, so if Putin wants more influence on the world stage he will need to address the concerns of other world leaders. But if Russia aim to be a global leader again then I only see the regulations and tax benefits going to Moscow

[paxmao]

Crypto is on the end an economic activity. Most nations that are adequately informed - more or less anyway - and have given it some though have come to the conclusion that their economies and citizens may profit from such activity and generate growth. There is a clear upside on allowing crypto, including levying taxes on whatever concepts they decide (activity, profit, transfer,... you name it, they tax it).

Now, why would a country ban crypto? Most likely reasons are to exert a tight control on the population (China) or avoid people bypassing the monetary policies (Nigeria, Iran, Turkey,...)

That is the balance that most economies are now weighting. The more open and strong, the less intimidated they are by crypto.

[doomloop]

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.

[Quidat]

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.

They do mind off about that so-called environmental issues thats why they do came up into that decision and i dont know on whats the basis on that and speaking with taxation
then they could really impose such thing but i dont know on why they dont have that kind of consideration but instead they do ban it right away and having those
unclear reasons and just doing it for their personal point of view specially into its government and theres nothing we can do about it.

[CaptainCrapper]

In recent times, the Russian governments go against the proposition made by it Central Bank to place a ban on Bitcoin mining while the financial institution calls for regulation rather than placing ban restriction on it, also you could recall that Russia is ranked third in line of the world bitcoin mining as United States come first and Kazakhstan the second according to the University of Cambridge’s Center of Alternative Finance.

Russians government understand that halting any mining activities of cryptocurrency could place a hold on it technological advancement in the country while before the introduction of cryptocurrency, theft and other social vises have been in existence and that is not a yardstic to place a ban on crypto and president Vladimir Putin want the discrepancy between it Central bank andfinance ministry to be in concession toward Bitcoin mining.
From this stance, i strongly believe that the president himself is in support of mining crypto with the mindset to boost the economy and technological development of his country, else the dispute between his parastatals be settled.

From the other side of the story in Africa, Zimbabwe Signs Agreement Enabling the Collection of Taxes From Crypto and E-Commerce Entities

With this recent developments in Zimbabwe i think it a step closer to adopting and legalizing cryptocurrency in the country, but one thing keeps a bone of contention in this regards which makes governments not to "give in" (Support) a massive adoption of cryptocurrency although to me its a new development with a step up since crypto firms were identified and paying of tax is what government can enforce as to regulation, In such regards Zimbabwe now uses a third party tax receiving agent (Daedalus World Limited).

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, 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.

They just trying to make a new rules not its not possible to ban from any country case lots of people invested hare and lots of country already invested hare so I think it will recover everything as soon as possible.

[Kakmakr]

Let's not beat around the bush here...

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. We know western countries are threatening with extreme sanctions if he invades the Ukraine, so he needs some tool to evade restrictions on money transfers...and Crypto currencies will provide that to him.

The tax income from Crypto currency trades and mining is also a very good boost and something that will fund his war efforts.   

[Leviathan.007]

These two cases, banning cryptocurrencies and taking take from people who use cryptocurrencies is maybe not related together for many people if they look deep inside, but in my own idea soon many countries will have generally two options to take tax from people who invest and use bitcoin and make them somehow pay tax for the money they invest or they have to ban bitcoin because if the government doesn't choose one of these two options, many people can easily use cryptocurrencies to do tax evasion and don't pay even one cent as tax to the government.

[crwth]

It's the country's decision towards what they will do with the different aspects of their tax and what to do in cryptocurrencies in general. Suppose they don't want to collect taxes in the form of crypto. In that case, it's still up to them, Still, as part of the cryptocurrency enthusiast, I would like to have more applications to it, and if that is for tax dealings of countries and collection of it, it's going to be great and good for the community.

[jrrsparkles]

One who says they are banning Bitcoin, they aren't actually stopping anything they just stop the revenue for the government and how many times China banned cryptocurrency and mining operations but still its operating their right even if they are monitoring everything completely the miners will move to the country where they favor the cryptocurrency related activities and collect optimal taxes for that.

[wxa7115]

Let's not beat around the bush here...

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. We know western countries are threatening with extreme sanctions if he invades the Ukraine, so he needs some tool to evade restrictions on money transfers...and Crypto currencies will provide that to him.

The tax income from Crypto currency trades and mining is also a very good boost and something that will fund his war efforts.   

I think along the same lines, Russia is going to need a way to evade the sanctions that are coming and bitcoin seems like the perfect way to do so, so while I think that Putin as a politician may be against them he will accept them as a necessary evil, however I think that he will try to limit the average person from using it while allowing the government the ability to use it as much as they need.

So I would think that miners will have a few years where they will be able to mine in Russia legally, but after that it is difficult to see what could happen and they may need to move out of the country and look for yet another location with cheap electricity.

[whyrqa]

In any case, the government will not be able to ban cryptocurrency and will have to adopt appropriate laws so that I can only regulate the circulation of cryptocurrency, but also protect companies that will work with the blockchain in their country.  In addition, society is moving towards cashless payments using platforms such as Crat d2c, which is an e-commerce platform with its first digital utility token.  thus, cryptocurrencies only legalize this issue.

[Fatunad]

In any case, the government will not be able to ban cryptocurrency and will have to adopt appropriate laws so that I can only regulate the circulation of cryptocurrency, but also protect companies that will work with the blockchain in their country.  In addition, society is moving towards cashless payments using platforms such as Crat d2c, which is an e-commerce platform with its first digital utility token.  thus, cryptocurrencies only legalize this issue.

Government could able to ban crypto? How you would take about China crypto ban? Of course they would really have the capability in doing so if they wanted to even if you do talk about being dumb
on not to consider taxation with those businesses attached to it but its their choice to make.Its true that we are going cashless society but to think off sensibly on where fiat had already
been existed for a while when it comes to this manner.Lets just accept that adoption couldnt really be possible on every corner but somewhat at least we do still have
few countries does have these kind of jurisdictions.

[Natalim]

One who says they are banning Bitcoin, they aren't actually stopping anything they just stop the revenue for the government and how many times China banned cryptocurrency and mining operations but still its operating their right even if they are monitoring everything completely the miners will move to the country where they favor the cryptocurrency related activities and collect optimal taxes for that.

They can stop people to join crypto as they will find a way to make it happen as it was their well. yeah, the people from China had flown away from their country for that sake. I'm not sure this will connect to taxes but probably this was because some governments had made their own digital currency and they just want to protect it. But I think this is not enough to stop the freedom of the people, it is supposed they just let it go, they'll somehow find their living unless that is illegal.

[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.

[palle11]

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.

I think that is selfish acts by some few in government that feels because there huge financial benefit by hodling bitcoin and they want to destroy it. They want the usual root to wealth where you only work 8 - 5 job and still tax payers money, convert what belongs to generality of people into personal  own but bitcoin is proving that you can be rich by being wise to invest wisely.

[The Sceptical Chymist]

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.

[KingsDen]

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 want 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.

[Ozero]

Crypto is on the end an economic activity. Most nations that are adequately informed - more or less anyway - and have given it some though have come to the conclusion that their economies and citizens may profit from such activity and generate growth. There is a clear upside on allowing crypto, including levying taxes on whatever concepts they decide (activity, profit, transfer,... you name it, they tax it).

Now, why would a country ban crypto? Most likely reasons are to exert a tight control on the population (China) or avoid people bypassing the monetary policies (Nigeria, Iran, Turkey,...)

That is the balance that most economies are now weighting. The more open and strong, the less intimidated they are by crypto.

It can be seen that the cryptocurrency is legalized and almost freely circulates in a society where the rights of citizens are respected, where the economy develops freely, without pressure from the state and its government. Therefore, they do not worry that with the help of cryptocurrency, capital will leave such a state, because the conditions for doing business there are very good and capital, on the contrary, tends to such states. Problems with the circulation of cryptocurrency are observed in states with an authoritarian form of government. Judging by the fact that Russia has adopted one of the worst laws regarding cryptocurrency, not everything is in order with the rights of citizens there. Everything else is derivative and contrived. When they treat their citizens with respect there, then the legislation in relation to cryptocurrency will change for the better.