KYC Requirement Getting Stricter Under the umbrella Of Tax

[wiss19]

Excellent insights. Honestly, I feel that it was inevitable. Crypto was largely anonymous because governments didn't see it as a threat in its initial days. Now that the market is big, they are obviously trying to control everything because they want taxes on it. They have been doing it for decades. Sites like Liberty Reserve were a good example. They let it become big enough to be worth taking over. I'm not sure what happened with BTC-e, but it might be the same.

Good thing that DEX exist but unfortunately, even they can't stay unregulated for long. Once the government sees that it's a thorn for them, they will easily take over. Honestly, anything that exists on the web is controllable for them, so how far can you really run?

[Abiky]

This is just how it is.

The government will do anything to put KYC requirement for tax purpose because they know crypto has huge volume and most of the activity are taxable event.

They are most likely to pursue it until you're fully compliant about taxes, right now it's cex, in the future maybe dex that supposedly non KYC. So, expect more to come.

Some countries even already require you to write the self custody addresses you used for tax purpose.

Non-KYC DEXs becoming KYC-compliant? Good luck with that. If there's a DEX that does such a thing, it can't be called a true DEX. More like a hybrid exchange combining centralized and decentralized infrastructure. I understand governments want to prevent tax evasion. But too much regulations will ultimately hinder the growth of the industry as we know it. Privacy and freedom will be literally non-existent in crypto.

Thanks goodness we have truly-decentralized and private alternatives to almost everything. With Monero and atomic swaps, what more can we ask? It'll be impossible for governments to mess this up. I hope more people get to use non-custodial and decentralized solutions to help tackle governments' attempts to ruin privacy and freedom. We'll see what happens in the future.

[Satofan44]

Privacy is already a mythical for most people. We just did not notice because the transition was slow, but then all at once. CARF is the all at once part. 48 Countries starting in 2026, another 27 in 2027.

It is not due to the absence of options and tools, it is primarily due to the ignorance and stupidity of the majority. That is the cold truth, you are probably surrounded by many stupid people like most of us are.

This is just how it is.

The government will do anything to put KYC requirement for tax purpose because they know crypto has huge volume and most of the activity are taxable event.

They are most likely to pursue it until you're fully compliant about taxes, right now it's cex, in the future maybe dex that supposedly non KYC. So, expect more to come.

Some countries even already require you to write the self custody addresses you used for tax purpose.

These kinds of generic statements of acceptance are completely worthless and serve no purposes. Things are not "just how they are", things develop due to many complicated reasons. One primary reason for which things are "how they are" is due to the ignorance and inaction of people like you. The issue with humans in general is that a huge portion of the population is very dumb and is unable to learn lessons from abstract thinking, instead they may only learn that fire is dangerous if someone throws them into a big fire pit. The dark side of democracy is that others will suffer the consequences because of the stupid majority, but hey don't let that stop you from telling yourself that you're a good person and that democracy is great. 

Non-KYC DEXs becoming KYC-compliant? Good luck with that. If there's a DEX that does such a thing, it can't be called a true DEX. More like a hybrid exchange combining centralized and decentralized infrastructure. I understand governments want to prevent tax evasion. But too much regulations will ultimately hinder the growth of the industry as we know it. Privacy and freedom will be literally non-existent in crypto.

You are being too specific and are completely missing the point. All DEXes that currently exist operate mostly through a centralized interface. There are 2 reasons for this:
1) UX. Using it through CLI tools, or having to develop your own interface is too costly, slow and difficult.
2) Lack of technical skills. 99.9% of the users would not even be able to manually craft a transaction to interface with the exchange, let alone to develop some tools.

This is the part that will be under attack, and it does not change anything about whether the DEX itself is decentralized or not. Just by getting rid of the GUIs since they are centralized, the governments would reduce the traffic and usage of these exchanges by 99%.

Thanks goodness we have truly-decentralized and private alternatives to almost everything. With Monero and atomic swaps, what more can we ask? It'll be impossible for governments to mess this up. I hope more people get to use non-custodial and decentralized solutions to help tackle governments' attempts to ruin privacy and freedom. We'll see what happens in the future.

Either you are joking or you are just shitposting. Very few people use those things, they are very rudimentary and not suitable for the wider population at all.