KYC Requirement Getting Stricter Under the umbrella Of Tax

[Ambatman]

So the Crypto-Asset Reporting Framework (CARF) has set a rule that exchanges should record how much users make from sales of their cryptocurrency.

The first group of 48 countries is expected to begin recording transactions in 2026, with automatic information exchanges starting in 2027. Another 27 jurisdictions, including Canada, Australia, Mexico, and Switzerland, have until January 1, 2027, to begin collecting data, with exchanges scheduled for 2028

48 is quite something and others would like join in as time goes on
They can't turn a blind eye to it now they planning on finding a way to profit.

HMRC has been concerned for some time about high levels of non-compliance among crypto investors,” said Dawn Register, a tax partner at BDO,

And not surprising the UK are leading the front
And the statement of non compliance reminds me of privacy.

Source: https://www.mexc.co/en-NG/news/391751

Ms Register warns that anyone who made crypto gains in the 2024-25 financial year may have to file a tax return before 31 January, through a new dedicated section in the self-assessment form.

"HMRC is also looking to encourage voluntary disclosure where people have unpaid tax in earlier years and want to correct their affairs," she says

This Wowed me.

https://www.google.com/amp/s/www.bbc.com/news/articles/ckgl2je65klo.amp

We don't need a crystal ball to realise that

1. Privacy even while been fairylike is becoming mythical

2. Things or tools that can help with privacy maybe seriously attacked to prevent any unturned stones

3.AML is going off the roof and cypherphunk mindset would be proudly tagged Villains

4. Centralized reporting creates more risk to data breaches and makes exchanges fat cows for hackers

5. Tech developers could be 'regulated' to create compliance for such rules


What are your thoughts on this?

[PrivacyG]

Here is the thing.

When every single thing becomes so excessively regulated, rebels will appear.  People like Cypherpunks.  People who knew the world before the regulations and the world after will understand there is no real change other than how much information we have to give and how much Privacy we have.  We used to give up little information while having a lot of Privacy.  Now it is the opposite and yet the crime does not stop.  In fact, it seems to some how almost get worse while regulations get tougher.  There is some thing that does not make sense at all.

They can end up punishing people for simply being Developers only because they had the IDEA of making some Privacy oriented Wallet or Exchange or what not.  But the more they fight against Privacy, there will be a point where things will become irreversible enough that Anonymous Developers will start appearing.  Open Source will probably start getting more popular and developed than ever before and it will cause some kind of 'war' between Governments and Anonymous entities who want their rights back.

This can not and will not work for ever.  I believe we are still in a stage of disbelief where Developers still do not want to believe that simply being a code writer may end you up in jail.  But when this starts happening often, they will have no choice but to start hiding their faces while continuing their work.

[Charles-Tim]

Yes, although there is a similar discussion about it already:

48 Countries Begin Crypto Tax Data Collection in 2026 Ahead of CARF Launch in 2027

Do you know the most funny thing, it is that most people are moving away from privacy means to centralized exchanges, which will make the registrations easier for the government.

But for those that still need privacy will still have it with bitcoin if the right direction about it is followed.

[Dunamisx]

What are the crypto assets regulators regulating when all they do is to infiltrate into ones privacy and also demand some payment charged in form of tax from us leaving users vulnerable to confidential information.

Its now high time that we realize the use of a decentralized exchange henceforth, because i see no reason to why people are much devoted to centralized exchanges, when we can easily make use of a decentralized one and be free with almost all of these challenges.

[CryptoHeadlineNews]

Ms Register warns that anyone who made crypto gains in the 2024-25 financial year may have to file a tax return before 31 January, through a new dedicated section in the self-assessment form.

"HMRC is also looking to encourage voluntary disclosure where people have unpaid tax in earlier years and want to correct their affairs," she says

So how about people who made loses in crypto investments during those same period, are they also going to be compensated by the government? Because if not, then I can boldly say that this policy is abruptly not fair in anyway to the crypto community, despite the fact that government have never for once liked Bitcoin, simply because they wanted to be in full control over all the money, and Bitcoin came to make us independent and have full control over our assets. Because with this policy where taxes are looking like a priority to most centralized exchanges who holds our KYC, then a think an urgent need for a massive switch to decentralized exchanges where we have full control over our assets is definitely needed.

[I_Anime]

This is not surprising at all . With CARF and 48 countries moving in sync , crypto is clearly being brought into existing tax and surveillance system ( something that was meant to promote decentralization) . Back then when crypto currency haven’t gain much attention in the outside world , governments ignored it but now is gaining more adoption and people are beginning to see the beauty and value  of cryptocurrency, now government now sees revenue opportunities , so the blind eyes is gone .

Right from time am not a big fan of kyc , now privacy slowly getting reframed as suspicion and the tools that maintain it will likely be treated as red flags rather than rights. Now hackers would be more eager to target centralize exchanges due to the collected data’s (though is already a target of hackers now that’s why DEX is the best).

[Ivystar5]

I usually sound like an enemy to whatever that deals with government regulations of crypto because I know at the end they will begin to sneak in different rules that is will be a threat to our privacy and decentralisation, what they have never like they will never like but only try to claim government friendly untill it becomes obvious that they want to tax the users since it's another money that they can't task from the beginning untill this days, so the best way is to make it friendly then becomes a bone in the throat of those who have welcomed the developments.

Now after all the  wow, the governments are becoming crypt friendly and it's good news to bitcoin community, now it's becoming a bad news to the bitcoin community only to those who are concerned even though some guys will still find an excuse for the government.

[Ambatman]

Its now high time that we realize the use of a decentralized exchange henceforth, because i see no reason to why people are much devoted to centralized exchanges, when we can easily make use of a decentralized one and be free with almost all of these challenges.

Most because of convenience
Many love doing things that looks easy and neglect the cost.
You can check the link and would see that decentralised exchanges were included.

Yes, although there is a similar discussion about it already:

48 Countries Begin Crypto Tax Data Collection in 2026 Ahead of CARF Launch in 2027

Thank you. Just seeing this since I don't really frequent that board

Do you know the most funny thing, it is that most people are moving away from privacy means to centralized exchanges, which will make the registrations easier for the government.

Easy paint those that want Privacy as criminal
While advocating that regulations help to protect the users
ETFs having some tax advantage doesn't really help matters.

So how about people who made loses in crypto investments during those same period, are they also going to be compensated by the government?

They won't and stocks are also taxed
Imagine how it would be exploited If the government did such
People can choose to intentionally make losses knowing they would be reimbursed
Not to mention, They are in large debt
So they need more from you to reduce how much they print (on a lighter note)

[Amphenomenon]

When every single thing becomes so excessively regulated, rebels will appear.  People like Cypherpunks.  People who knew the world before the regulations and the world after will understand there is no real change other than how much information we have to give and how much Privacy we have.  We used to give up little information while having a lot of Privacy.  Now it is the opposite and yet the crime does not stop.  In fact, it seems to some how almost get worse while regulations get tougher.  There is some thing that does not make sense at all.

Privacy will remain but it won't be at this rate nor will it be really feasible for many, only those who are aware and knows the risks will continue to fight by all means to continue holding a level of privacy. The common man might be ignorant of this or may fall to the ironic statement some individuals make which is, "Privacy is a myth".

Everything Governments has been pushing for ETF's and the likes this is to it, being able to identify each address to their owners and this inevitably will increase crypto crimes, and even putting some individuals life's at risk.

[nakamura12]

This simply explains that government will always find a way to earn money from something that they can't control like Bitcoin so they will create or force a platforms to do KYC and later on get tax from it. In my opinion, the government is clearly wanted to lessen the decentralized platforms that's why many people have no choice but to complete KYC rather than having to use different methods and isn't easy compared to using centralized exchange platforms which is not hard to use.

[khiholangkang]

Its now high time that we realize the use of a decentralized exchange henceforth, because i see no reason to why people are much devoted to centralized exchanges, when we can easily make use of a decentralized one and be free with almost all of these challenges.

Most because of convenience
Many love doing things that looks easy and neglect the cost.
You can check the link and would see that decentralised exchanges were included.

Then freedom no longer exists? privacy is an illusion that we always dream of? this is sad.
If the decentralized bursda is also targeted this will create a different trading direction, at first glance it will look the same as CEX and there is no difference it should just be different management, CEX is registered in a country with a centralized office while DEX in an official building may not exist, and that should be the only difference when DEX is targeted too.

It's not progress but it's a setback, the regulations are suffocating people who want to live with fair economic activity but have privacy, but with that what should we do?

[Odusko]

Yes, although there is a similar discussion about it already:

48 Countries Begin Crypto Tax Data Collection in 2026 Ahead of CARF Launch in 2027

Do you know the most funny thing, it is that most people are moving away from privacy means to centralized exchanges, which will make the registrations easier for the government.

But for those that still need privacy will still have it with bitcoin if the right direction about it is followed.

Crypto users moving from privacy to centralization is mainly because of the flexibility that comes with using an exchange account as compared to using your self custody wallet for storage, exchange give wider options for coin holders, what we should know is that people interest will always shift in that direction until we get something that make them have a rethink about privacy and the advantage that comes with it, may be that tax law can be a wake up call to take privacy custody seriously.

[Cryptomultiplier]

Its now high time that we realize the use of a decentralized exchange henceforth, because i see no reason to why people are much devoted to centralized exchanges, when we can easily make use of a decentralized one and be free with almost all of these challenges.

Most because of convenience
Many love doing things that looks easy and neglect the cost.
You can check the link and would see that decentralised exchanges were included.

Then freedom no longer exists? privacy is an illusion that we always dream of? this is sad.
If the decentralized bursda is also targeted this will create a different trading direction, at first glance it will look the same as CEX and there is no difference it should just be different management, CEX is registered in a country with a centralized office while DEX in an official building may not exist, and that should be the only difference when DEX is targeted too.

It's not progress but it's a setback, the regulations are suffocating people who want to live with fair economic activity but have privacy, but with that what should we do?

Privacy is a myth and taxes are the new revenue stream for the governments of the world.
The system of control must continue and that's why when initially the government can't regulate or be aware of the daily lives and earnings of their citizens, they create chaos, blame it on terrorism and money laundering financing and place heavy fines or punishment on those who don't want to bend to their legacy of controlling the masses.

Sincerely, these days I don't know which one between traditional commercial banks and CEX seems more better, because they are all now being taxed, no more privacy, much exposure to hackers and scams, loss of trust and the input and innovation of AI tech hasn't done much either to make things easier, but has made people and investors more lazy and thus fall prey to cheap scams because privacy isn't as private as it used to be and developers are interested in the highest bidder, not the consequences of their coding skills.

[Lida93]

What are the crypto assets regulators regulating when all they do is to infiltrate into ones privacy and also demand some payment charged in form of tax from us leaving users vulnerable to confidential information.

Its now high time that we realize the use of a decentralized exchange henceforth, because i see no reason to why people are much devoted to centralized exchanges, when we can easily make use of a decentralized one and be free with almost all of these challenges.

The real intent is in getting a percent of what each and everyone of us has in form of charges and tax and not that they really care about protecting us from anything in the cyber space. They see tools of decentralisation as threat to their so-called centralized system which has continued to deny people their rights to privacy, now almost creating a social construct making privacy to be accepted as illegal. But good a thing bitcoin reminds us that privacy is possible to have even in this time.

[Yamane_Keto]

I agree with stricter identity restrictions if they include stricter controlling of exchanges and compensation for hacking and scam. Detailed tax data cannot be requested without strict data about their licenses, or forcing them to compensate those affected.

[Ronsbit]

The KYC is what gives the government the audacity to come after crypto enthusiasts demanding tax, and that is only achieved through the CEX because, through them, crypto enthusiasts do their trading and also p2p transactions, and this has now become a thing of privacy breach in the crypto industry. The CEX is only trying to protect its interests while playing along with the government because the government can do and undo, so they will have no option but to play along so they could so their business without any interruption of their services.
The only thing left for the crypto community to do now is to encourage a DEX p2p platform where anyone can do their trade and go their way without any third-party interference.

[coolcoinz]

So the Crypto-Asset Reporting Framework (CARF)

I've never heard of such institution. CARF? Makes me wanna barf

So they claim that I should disclose my addresses because they will find out anyway. I dare them to prove which address is mine. I have never done KYC on a bitcoin exchange and I'm not planning to.

The best way to circumvent it for now is to transact in person either by exchanging coins P2P, using them in store, or buying store credit. As far as taxes go, thankfully we aren't prohibited from traveling.
I've heard a great expression once - to vote with your feet. When they try to force you to disclose your holdings and tax you some stupid amount for it like 30% or more, vore with your feet and move somewhere else.

[pooya87]

The worst part is that they never admit that it is only to fill their pockets with taxation (aka mafiosos with baseball bats coming to your shop saying "we want our cut"). Instead they always sell it to the population as a necessity to battle crimes like drug trafficking, money laundering, terrorist funding,... Worst part is that they do nothing about the crimes and crime rate is on the rise, not to mention all these crimes are either going through the baking system and have nothing to do with crypto-world or are state sponsored like the international drug trafficking and its money laundering that is performed by the US government and its spymasters in CIA.

[ColdLava40]

1. Privacy even while been fairylike is becoming mythical

When something does not benefit the government, it's tagged as dangerous so they try by all means to regulate or take it down completely. Privacy tools has been on the hunt for a long time and the government are not stopping there.

They know very well that if they allow such tools to exist, people would be able to hide away from tax and many of these uncalled for compliance.

Centralised system became an easy escape for them. They understand very well what the exchange holds and how much crypto investors have moved from the regular banking systems.

Since they no longer have enough to tax on peoples earnings. They are now after exchanges forcing kyc on everyone.

[348Judah]

If KYC requirements is no more stricter, how will they achieve their targets from tax collections, their regulations will not be effective as well, so when we talk about government, expect them not to be friendly in their dealings, no minding the cost it may implies on us at the receiving end, we are getting there the more, because all these could be prevented if we have our privacy achieved and avoid centralized entities with the use of bitcoin.