The one thing I still don't get about crypto and Tax

[Crypt0Gore]

Tell me if this is the wrong section for creating this thread I will move the to the right section, thank you.

The government warned all crypto investors, both new investors and old investors about how fraud cases are increasing in crypto space and yet many do not care and they lose money but some made a lot of money and some even made life changing money.. Yet till this day crypto still remain unregulated.

But why the hell are the government taxing people on their profits when they aren't ready to take responsibility for their losses to fraud and theft?  Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

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[Beparanf]

Tell me if this is the wrong section for creating this thread I will move the to the right section, thank you.

The government warned all crypto investors, both new investors and old investors about how fraud cases are increasing in crypto space and yet many do not care and they lose money but some made a lot of money and some even made life changing money.. Yet till this day crypto still remain unregulated.

But why the hell are the government taxing people on their profits when they aren't ready to take responsibility for their losses to fraud and theft?  Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

Taxing and Regulating the safety of consumer is 2 different thing. The government has the right to tax anything that involves fiat investment like cryptos. While the regulating all the projects in crypto space is different scope it needs to have guidelines on how to regulate them. Crypto taxation already has a bill which most law maker prioritize in their respective country.

I believe regulating all the projects in crypto space will take some time to implement.

I believe this question is ok here or in the economics section. It’s up to you on who’s audience do you want.

[NeuroticFish]

Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

  next time a politician comes asking you to vote for him, as him exactly this.
You will most probably get a non-answer consisting in 1000-words of utter bullshit, but it should be fun.


My answer is: because politics is one, reality is another and all governments need money, no matter what.

[rat03gopoh]

Idk which country you live in, there are some countries that don't (yet) regulate crypto specifically, but they classify ownership as an investment instrument in general (eg as shares). Then the tax can be taken from the growth of that value.

Any crime from any space will usually still be processed and you're entitled to law protection, but it should be noted that the government (through law enforcement) is only responsible for catching thieves and scammers, not compensating for losses.

[fadhilz123]

Tell me if this is the wrong section for creating this thread I will move the to the right section, thank you.

A topic like this seems more appropriate in the Economy > Economics section. Because you are discussing the circulation of money among investors through investment which is very related to the economy of the investors themselves, so I think this topic is more suitable in the Economics section, but you also don't need to make a decision based on what I said because you still have to hear some other people's suggestions on this.

The government warned all crypto investors, both new investors and old investors about how fraud cases are increasing in crypto space and yet many do not care and they lose money but some made a lot of money and some even made life changing money.. Yet till this day crypto still remain unregulated.

But why the hell are the government taxing people on their profits when they aren't ready to take responsibility for their losses to fraud and theft?  Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

Maybe this has something to do with state regulations which oblige citizens to pay taxes to the state through the amount of income that has been determined by the government in state regulations so that citizens still have to pay this burden even though what they do is not regulated by state law.

And the government's warning of fraud cases that have occurred in the crypto space actually also has a very positive value because it is for the safety of investors even though some investors don't care about this warning, but at least they have started to be careful with their investments.

[jrrsparkles]

Tell me if this is the wrong section for creating this thread I will move the to the right section, thank you.

The government warned all crypto investors, both new investors and old investors about how fraud cases are increasing in crypto space and yet many do not care and they lose money but some made a lot of money and some even made life changing money.. Yet till this day crypto still remain unregulated.

But why the hell are the government taxing people on their profits when they aren't ready to take responsibility for their losses to fraud and theft?  Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

FYI, regulating anything won't stop from getting scammed because most of the market regulated all around the world for example stock still the individuals manages to find the loopholes to make billions and they keep doing it.

I believe the first step of regulation is taxing, when people start doing it the government will give more guidelines about how the assets should be used and not, for now the leaders and people in the administration don't have any knowledge about blockchain, decentralization or even internet so eventually it will take time atleast few more decades from now to have better system.

[mk4]

But why the hell are the government taxing people on their profits when they aren't ready to take responsibility for their losses to fraud and theft?  Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

I mean, that's how taxes work in general in most countries regardless if it's cryptocurrencies, stocks, or running a business — and regardless if whatever the thing they're taxing is regulated or not.

[stompix]

But why the hell are the government taxing people on their profits when they aren't ready to take responsibility for their losses to fraud and theft?  Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

So wait, is the government taking responsibility when you're mugged on the street, when you get scammed by a Nigerian prince or when you get one ounce less of weed than agreed from your dealer? Does the government somehow reimburse you if you lose your money in a stock market crash? Cause I've never heard of that!
You get taxed for any kind of profit, the government doesn't regulate walking dogs' schedules not does it emit licenses for it but if you earn 100$ a day from doing so you have to pay taxes because there are earnings and profits involved just like any other business!

[sujonali1819]

But why the hell are the government taxing people on their profits when they aren't ready to take responsibility for their losses to fraud and theft?  Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

The power of government. If you have money or you want to invest they will ask for the tax. And you have to pay it. It's normal for every country. They don't care where you are investing, whether you are in loss or you are in profit.

[m2017]

Tell me if this is the wrong section for creating this thread I will move the to the right section, thank you.

The government warned all crypto investors, both new investors and old investors about how fraud cases are increasing in crypto space and yet many do not care and they lose money but some made a lot of money and some even made life changing money.. Yet till this day crypto still remain unregulated.

But why the hell are the government taxing people on their profits when they aren't ready to take responsibility for their losses to fraud and theft?  Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

Because governments want to get extra money from the people, under whatever pretext it may be. Crypto is a new phenomenon, which means they are can get new taxes. If you lose money invested in foreign cryptocurrency, then the government will not compensate you in any way and will not help you, but if you make a profit from this, then you will hear "pay taxes here quickly." This is how they have double standards and how they care about us. Nothing personal - just pay taxes here. If they can find a way to regulate this industry, they will definitely do it. The most surprising thing about this is that until you withdraw crypto into fiat, they will have almost no effect on you.

[pixie85]

Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

  next time a politician comes asking you to vote for him, as him exactly this.
You will most probably get a non-answer consisting in 1000-words of utter bullshit, but it should be fun.


My answer is: because politics is one, reality is another and all governments need money, no matter what.

This is a good way of showing people that life is unfair.

The government will ask you to pay for healthcare but when you get cancer they will charge you saying they don't have enough money. Then why didn't you ask me for more money when you were charging me for the last 20 years?

The government will nor recognize bitcoin but demand money for profits you get from it. It used to be like this in 2013 and 2013 that most countries didn't even see bitcoin as property and the police would ignore you if you said it got stolen from you but they'd want a share of profits.

The government will always try to make running a business harder for you and make you do all this unnecessary paperwork but then if you make money they'll want some of it.

[Z390]

You don't pay taxes on your loss trades or fraud cases, that's all that matters, people have been paying taxes for many years ago it is now a normal practice, in my country I believe the reason why the government legalised Bitcoin and crypto is because they can tax people, it is already in work and they will announce it very soon.

Like seriously tax payment is why some countries allow crypto to function, its the reason why some even lifted ban on crypto in the past, the government and money are like magnet to each other.

[cryptoaddictchie]

Tax and death the only two that will come to you forever and these governments are not concerned whether the money you get from is regulated or not even scope of their providence as long as therr are money that will get from it. We can assume that this kind of situation will continue whichever countries you are.

[darkangel11]

Death and taxes, as they say, the only 2 sure things in this world.
Truth is, the government will run you to the ground, they don't care if you get scammed. All these commissions that are supposed to get to the bottom of fraud cases are there just to make politicians popular. Same thing will be done with FTX, they'll do big speeches, take the money and do nothing, because they don't care about your well being.

I'm against paying taxes, but you can be sure that if you don't fill their pockets and use their fiat money they'll come after you. That's why I almost don't use banks these days. I'm all in cash and crypto.

[Asiska02]

But why the hell are the government taxing people on their profits when they aren't ready to take responsibility for their losses to fraud and theft?  Why the hell are they using the word " its unregulated " as an excuse but still take money from people?

It's really a matter of thought. This government is only concerned with its own interests and is unconcerned about your losses. I don't blame them because taxation is one of a government's basic responsibilities to its citizens, but the way and manner in which they deny and tax people using cryptocurrency is unusual. This is just another example of how government is political, and politicians are not always trustworthy and loyal to be dependent on.

[drwhobox]

Death and taxes, as they say, the only 2 sure things in this world.
Truth is, the government will run you to the ground, they don't care if you get scammed. All these commissions that are supposed to get to the bottom of fraud cases are there just to make politicians popular. Same thing will be done with FTX, they'll do big speeches, take the money and do nothing, because they don't care about your well being.

I'm against paying taxes, but you can be sure that if you don't fill their pockets and use their fiat money they'll come after you. That's why I almost don't use banks these days. I'm all in cash and crypto.

Well said, the government only cares about the tax. No matter how hard it is for you to make money you have to pay the government tax and you are a good citizen.

I'm against paying taxes, but you can be sure that if you don't fill their pockets and use their fiat money they'll come after you. That's why I almost don't use banks these days. I'm all in cash and crypto.

Though I am against banks too, but they strangled us in a way that we have to use them in one way or another if we have to live our life. But I only use banks when I need to, otherwise I avoid banks.

[jackg]

Most government authorities treat theft and fraud as non taxable events (mainly because the insurance payouts for theft isn't taxable either iirc).

There's a lot of arguments that could stem from this sort of thinking too (such as why don't governments try starting up lots of companies if they expect people to do it - such as out of schools/universities) but I think it's ultimately because they don't need to. They're likely expecting you to section off an amount of your income to handle standard tax bills as they arise or have someone liable for holding those funds if you can't do it yourself.

[Darker45]

Well, perhaps tax is more important that regulations. I don't know where you're from but it seems to me governments would rather miss on important regulatory policies than taxes.

Tax is rather general. It is imposed on all kinds of income, unregulated or not, legal or not. As a matter of fact, you're even asked to declare income from illegal drug sales, robbery proceeds, and whatever.

Also, this might not be a priority to them because they're probably unaffected by this. Usually, they're only reacting to things when they're affected in one way or another.

But perhaps the main reason is that while they have already heard of crypto, they don't understand it yet. They probably don't know how to make the right approach.

[Solosanz]

Can you give me an example which country ban Bitcoin usage (to buy, sell and hold) but they're taxing the Bitcoin earning made by their citizens? AFAIK there's no country which ban Bitcoin and taxing Bitcoin at the same time, because I only know there are countries which declare Bitcoin is legal and they taxing the Bitcoin and there are countries which ban Bitcoin and not taxing Bitcoin.

Usually in most of countries when they confiscate the valuable illegal stuffs, it's not actually belong to the government, it's either they destroy it or launch an auction.

[Vyeon11]

when it's a loss, they are reviled and ridiculed, but when it's a profit, the government asks for taxes!
if the government tells crypto investors that crypto investment has not been regulated or is irregular, the government should not have the courage to take taxes from investors, but strangely, they even provide taxes for crypto investors.

the government shouldn't interfere, if they haven't legalized bitcoin and crypto.