How the government view Bitcoin

[Israelgogo]

The view of some government on Bitcoin as not a currency but taxable property or a commodity is tremendous outspoken especially in a countries with religion and high volume of Crypto transactions, the government monitored the inflows and payments made through this digital assets like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet but some others saw Bitcoin has added value assets like US where they delegates part of funds from government treasury bill was invested to boost the economy of the country through solid digital assets like Bitcoin. But now different changes has occurr in many of this country's perspective of crypto as a taxable investment.

[Ambatman]

Nigerian government ban via bank then using same flawed reason most countries do
That it can be used to finance terrorism and illegal activity. 
And the US didn't invest in Bitcoin from their personal fund but turned seized Bitcoin to their treasury.

On tax, the worse I have seen is that of Netherlands with their plan on introducing compounded tax.

[Hypnotizer]

The view of some government on Bitcoin as not a currency but taxable property or a commodity is tremendous outspoken especially in a countries with religion and high volume of Crypto transactions, the government monitored the inflows and payments made through this digital assets like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet but some others saw Bitcoin has add value like US where delegates part of funds from government treasures was invested to boost the economy of the country through solid digital assets like Bitcoin. But since the inception changes has occurr in many of this country's perspective of crypto as a taxable investment.

You should improve your writing and formatting style… I couldn’t really understand your post by reading it just once, I had to read more than twice.

The Government view towards bitcoin and other cryptocurrencies differs and while countries like El Salvador have at a point even made Bitcoin a legal tender there are still countries like China that have even banned bitcoin and Yes most countries view Bitcoin as an investment asset rather than a currency since that’s what even most people also consider Bitcoin to be.

As Ambatman have already clarified, the United States didn’t invest in bitcoin from the government treasuries..

[savetheFORUM]

Most governments have never been in favour of Bitcoin and allowing it to operate without any problems. At the beginning, when Bitcoin started to gain traction and more and more people were getting involved, countries tried to ruin its reputation using the mainstream media and calling Bitcoin a currency that is used by criminals or it is a scam or a bubble that will burst very soon and anyone investing in it will lose money. However, none of the tricks really worked, and Bitcoin kept developing and reaching new milestones, but then some of the governments started banning it outright, like China, where people couldn't use Bitcoin be involved with it in any way or they would face legal trouble.

Despite all the efforts of the governments and countries around the world, Bitcoin kept progressing, and eventually, they realized that there is no other way than going with the flow, and then they decided that even though they can't control everything, since they can't have any sort of control over the blockchain or non-custodial wallets, etc., they decided that they are going to impose regulations and regulate all the centralized platforms, wallets, and tax every user for their capital gains or holdings so that they can also benefit from it. This is still in progress, some countries have already done it, some are working on the regulations and the overall legal framework, but the point is, that the governments are now compelled to let Bitcoin reign, whether they like it or not, because they don't really have a choice anymore.

[Ojima-ojo]

The view of some government on Bitcoin as not a currency but taxable property or a commodity is tremendous outspoken especially in a countries with religion and high volume of Crypto transactions, the government monitored the inflows and payments made through this digital assets like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet but some others saw Bitcoin has add value like US where delegates part of funds from government treasures was invested to boost the economy of the country through solid digital assets like Bitcoin. But since the inception changes has occurr in many of this country's perspective of crypto as a taxable investment.

Just wondering what role do religion plays in Bitcoin and government interactions, and the thing with cryptocurrency regulations is, the personality of the political office holder plays an important role to how the policie makers take an treat bitcon, Bitcoin/cryptocurrency volatilities and uncertainty, is from beginning to gain new attention the countries leaders have th responsibility to first guide and protect the citizens before implementations there are a lot of cryptocurrency fraud around but tht not the situations.

[Israelgogo]

The view of some government on Bitcoin as not a currency but taxable property or a commodity is tremendous outspoken especially in a countries with religion and high volume of Crypto transactions, the government monitored the inflows and payments made through this digital assets like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet but some others saw Bitcoin has add value like US where delegates part of funds from government treasures was invested to boost the economy of the country through solid digital assets like Bitcoin. But since the inception changes has occurr in many of this country's perspective of crypto as a taxable investment.

You should improve your writing and formatting style… I couldn’t really understand your post by reading it just once, I had to read more than twice.

The Government view towards bitcoin and other cryptocurrencies differs and while countries like El Salvador have at a point even made Bitcoin a legal tender there are still countries like China that have even banned bitcoin and Yes most countries view Bitcoin as an investment asset rather than a currency since that’s what even most people also consider Bitcoin to be.

As Ambatman have already clarified, the United States didn’t invest in bitcoin from the government treasuries..

Thank you for the correction but I was only trying to point out what the government of different countries view Bitcoin, like Nigeria government ban the use of it or transaction during the regime of former President and its really affects traders but today's view, government see crypto as a taxable property or business to generate revenue base on the inflow of Transactions being carried out by citizens, that's my point. But I will improve my writing as pointed

[ColdLava40]

The view of some government on Bitcoin as not a currency but taxable property or a commodity is tremendous outspoken especially in a countries with religion and high volume of Crypto transactions, the government monitored the inflows and payments made through this digital assets like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet but some others saw Bitcoin has added value assets like US where they delegates part of funds from government treasury bill was invested to boost the economy of the country through solid digital assets like Bitcoin. But now different changes has occurr in many of this country's perspective of crypto as a taxable investment.

The US? Treasury bill was sure not how they acquired the 328,000 BTC( can't recall but I guess this figure sits in my head).they only recently decided to use it as a strategic Bitcoin reserve for the state. If we come to think of it, would the US government had actually put in some budget to create their own bitcoin reserve if they had not got the seized Bitcoins?

I think this is something worth considering. Like other countries, they still fear the capability of Bitcoin. the government either doesn't want a technology they can't control or a technology that would give people freedom from the old system ( banks).

[Spaceman1000$]

The view of some government on Bitcoin as not a currency but taxable property or a commodity is tremendous outspoken especially in a countries with religion and high volume of Crypto transactions, the government monitored the inflows and payments made through this digital assets like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet but some others saw Bitcoin has added value assets like US where they delegates part of funds from government treasury bill was invested to boost the economy of the country through solid digital assets like Bitcoin. But now different changes has occurr in many of this country's perspective of crypto as a taxable investment.

I am still in limbo when government say they want to tax crypto especially Bitcoin, given the decentralized nature of Bitcoin, if I decide to hold for a long time, how possible will it be for government to be able to tax my crypto especially when it's not on centralized exchange. What really tickles my fantasy in this discussion of taxing crypto is the fact that, this is an asset that has a liquidating ability, and I bear the risk alone as an investor, so at what point does the government have the right to tax me when we don't share risk.

[lionheart78]

But now different changes has occurr in many of this country's perspective of crypto as a taxable investment.

It is no news that governments see Bitcoin as a source of income.  The first thing a government considers when they are adopting certain things is how it can profit from its activity.

You see government has lots of expenditure, plus the tendency of some officials to pocket money from the government funds.  This is also one of the reason why the government allows mining in places where the natural environment should have been preserved.

There is actually no changes from the beginning at all when the government first laid its eyes on Bitcoin, and that is how it can extract money from Bitcoin transactions.

[Alphakilo]

The view of some government on Bitcoin as not a currency but taxable property or a commodity is tremendous outspoken especially in a countries with religion and high volume of Crypto transactions, the government monitored the inflows and payments made through this digital assets like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet but some others saw Bitcoin has added value assets like US where they delegates part of funds from government treasury bill was invested to boost the economy of the country through solid digital assets like Bitcoin. But now different changes has occurr in many of this country's perspective of crypto as a taxable investment.

I am still in limbo when government say they want to tax crypto especially Bitcoin, given the decentralized nature of Bitcoin, if I decide to hold for a long time, how possible will it be for government to be able to tax my crypto especially when it's not on centralized exchange. What really tickles my fantasy in this discussion of taxing crypto is the fact that, this is an asset that has a liquidating ability, and I bear the risk alone as an investor, so at what point does the government have the right to tax me when we don't share risk.

The government doesn't tax you while you hold your Bitcoin in a cold wallet but it is only when you swap, sell or spend the Bitcoin, that you get taxed. You are definitely using the cash system of the country which is why it would be hard for the fiat system to be eradicated.
As long as you are holding for long term, on a wallet, there isn't a realized profit and no government can tax your asset at that moment.

[Spaceman1000$]

The view of some government on Bitcoin as not a currency but taxable property or a commodity is tremendous outspoken especially in a countries with religion and high volume of Crypto transactions, the government monitored the inflows and payments made through this digital assets like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet but some others saw Bitcoin has added value assets like US where they delegates part of funds from government treasury bill was invested to boost the economy of the country through solid digital assets like Bitcoin. But now different changes has occurr in many of this country's perspective of crypto as a taxable investment.

I am still in limbo when government say they want to tax crypto especially Bitcoin, given the decentralized nature of Bitcoin, if I decide to hold for a long time, how possible will it be for government to be able to tax my crypto especially when it's not on centralized exchange. What really tickles my fantasy in this discussion of taxing crypto is the fact that, this is an asset that has a liquidating ability, and I bear the risk alone as an investor, so at what point does the government have the right to tax me when we don't share risk.

The government doesn't tax you while you hold your Bitcoin in a cold wallet but it is only when you swap, sell or spend the Bitcoin, that you get taxed. You are definitely using the cash system of the country which is why it would be hard for the fiat system to be eradicated.
As long as you are holding for long term, on a wallet, there isn't a realized profit and no government can tax your asset at that moment.

If the government is taxing me because I'm using the government payment system then is understandable, this is because the government gave the approval for that platform to exist in their country especially centralized exchanges, such kind of fees are usually not much as is always little. But if the tax is based on the existence of my crypto and probably the gain it has accumulated, then it is arguably because I bear the risk alone and shouldn't share my profit in the name of tax to the government.

[Hamza2424]

Yep, that's the reality. Governments will first classify the type of cryptocurrency, like whether it is a currency, stock, asset, or commodity, so the respective agencies can manage it. At the end of the day, the only thing that matters to them is taxes and revenue by bringing investors from all over the world. But taxes can't be the only benefit. As I said, investors would love to invest in US based companies due to transparent regulatory rules. Trump also got a lot of support from the crypto community in the elections by supporting crypto.

Nigeria is also now changing its framework because the number of cryptocurrency users has increased, and they can now collect taxes to generate some real income. These countries could have imposed taxes a long time ago, but they always wait for the right time.

Not every country is like El Salvador or Dubai.

[Churchillvv]

What the heck? Bro almost all the lines has some level of inaccuracy in it, I don’t know how you get your information or how you research you information before putting out the thread but I suggest you do more work and of course you’re still young in terms of the forum but however good news is that Ambatman already countered all the inaccuracy.

Furthermore, Religion has nothing to do with government labeling of crypto or bitcoin. It’s use by criminals or gangs who are demanding ransom was the excuse most governments used against bitcoin.

[snowpega]

The view of some government on Bitcoin as not a currency but taxable property or a commodity is tremendous outspoken especially in a countries with religion and high volume of Crypto transactions, the government monitored the inflows and payments made through this digital assets like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet but some others saw Bitcoin has added value assets like US where they delegates part of funds from government treasury bill was invested to boost the economy of the country through solid digital assets like Bitcoin. But now different changes has occurr in many of this country's perspective of crypto as a taxable investment.

This is not the real fact that they don't like it because it is currency or an asset. The main reason why governments dislike bitcoin as a currency and asset is that it is decentralised, which differentiates it from escaping the traditional finance system. People who are experts in this really know how to escape the traditional finance system so that they don't have to pay taxes. People use DEX platforms so that they can make sure that they are not exposing too much information and their identity to authorities. That is the main reason many governments oppose it. Well, this is only a single fact that I share with you; there are some others too.

[Vaculin]

They will most likely follow the same standard used in the US, where Bitcoin is treated as property rather than currency.

I do not know if it is just me, but I think it is better for Bitcoin to be treated as property because we only pay tax on the gains. That means we pay tax only when we make a profit, similar to capital gains tax on real property in our country. I do not see a problem with that as long as we understand the regulations. It also allows us to hold Bitcoin peacefully for the long term and sell only when the price becomes high enough. That could save us from constantly filing taxes.

I am not sure how this applies to Bitcoin day traders, though. If every trade is treated as a taxable disposal of property, then they may have to deal with taxes constantly.

Can anyone here who is day trading Bitcoin in a country with similar rules share their experience?

[Sanitough]

Bitcoin won't be legalized by any country if they cannot benefit profitable income from it. Since people are into bitcoin investment, then the government will just ride with the huge demand of bitcoin as an investment. Bitcoin has been taxed significantly, which leads to the growth and progress of the country's economy, aside from those countries who are secretly hoarding bitcoin for their financial reserve.

Same thing may apply if bitcoin will be allowed to act as an alternative currency globally.

[CryptSafe]

The view of some government on Bitcoin as not a currency but taxable property or a commodity is tremendous outspoken especially in a countries with religion and high volume of Crypto transactions, the government monitored the inflows and payments made through this digital assets like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet but some others saw Bitcoin has added value assets like US where they delegates part of funds from government treasury bill was invested to boost the economy of the country through solid digital assets like Bitcoin. But now different changes has occurr in many of this country's perspective of crypto as a taxable investment.

First and foremost, religion have nothing to do with Crypto. Crypto currency is a digital financial system or services which is just like the fiat but it is mobile and flexible and on a self custodial basis which gives you control over your assets. The fiat or banking system is not so. So there is nothing as such of Crypto and religious connectivity.

The Nigerian government in the past intensified strict measures against Crypto which saw them placing restrictions on bank to Crypto purchase. However, that is not the case now as Nigerians can now trade Crypto and feel free with their Crypto transactions without the government coming after them. All what the government is now after is their tax on transactions crypto related because they realised that they could make much profit hence their interest in it.

[Sticky Bomb]

First and foremost, religion have nothing to do with Crypto.

I believe religion contributed to why some countries actually banned crypto ownership and transactions,

for example In Afghanistan, after the talibans took over, they banned crypto activities on crypto on religious and anti-fraud grounds, went ahead to arrest crypto traders and shut down local exchanges because they viewed decentralization as a violation to some Islamic laws.

Again in Egypt, Pressure from the Dar al-Ifta, their primary Islamic legislator body which has classified Bitcoin as "Haram" played a significant role in it's prohibition based on cited Islamic law. This religious stance supports the central bank's tight restriction on crypto activities within the country.

[EarnOnVictor]

-Snip-
...like in Nigeria during the former President of Nigeria, no deposit was done from your account to crypto wallets or crypto wallets to your account because of the huge transactions deviating from physical Banks to internet

First, this is a reckless and disgraceful decision from the Nigerian government; they don't even know what they are doing and why they do it sometimes, eventually, cryptocurrency won, which is the main thing.

What actually happened was not what you wrote, it was about trying to partially ban crypto, and it's not because of "capital flight" that you stated, but because of control. They couldn't trace crypto transactions, and exchanges dealing with Nigerians are not cooperating to register in the country, plus its link to NGN isuses. More of this is about tax, as usual, it's about what they want to gain, as they care about nothing but themselves.

but some others saw Bitcoin has added value assets like US where they delegates part of funds from government treasury bill was invested to boost the economy of the country through solid digital assets like Bitcoin. But now different changes has occurr in many of this country's perspective of crypto as a taxable investment.

This also, is not true! Where do you get your information?

[DabsPoorVersion]

First and foremost, religion have nothing to do with Crypto.

I believe religion contributed to why some countries actually banned crypto ownership and transactions,

for example In Afghanistan, after the talibans took over, they banned crypto activities on crypto on religious and anti-fraud grounds, went ahead to arrest crypto traders and shut down local exchanges because they viewed decentralization as a violation to some Islamic laws.

Again in Egypt, Pressure from the Dar al-Ifta, their primary Islamic legislator body which has classified Bitcoin as "Haram" played a significant role in it's prohibition based on cited Islamic law. This religious stance supports the central bank's tight restriction on crypto activities within the country.

I think it is too simple to relate crypto restrictions to religion. The government have their own several economic and political reasons concerning cryptocurrencies. For example, it can create a difficult situation for the enforcement of capital controls, challenges that might happen for the taxation and AML policies, and it can even compete with their national currency and banking system. The same situation even exists in some other countries where religion is not a significant role in terms of financial regulation.

In case of Afghanistan, the major factors behind why they implement the restriction is because of their concerns about frauds, financial stability and they are lacking regulatory control. The same thing with the religious authorities of Egypt that classified Bitcoin as haram, this implemented restriction by their government can also be considered from the perspective of monetary control and protecting its banking system.