How the government view Bitcoin

[TheUltraElite]

The government where I live is only interested in giving out freebies and buying votes, so they did whatever that fuels this engine, higher taxes, they imposed a 30% taxation on crypto trading and are living happily on it while people are using P2P to exchange their bitcoin to fiat and vice versa.

To the politicians who dont understand much about bitcoin because they did not clear the 8th standard, whatever the ruling party is saying, they if aligned with them they will speak like that and if they are against it, they will say the opposite.

What I would like to see is that government maintains a neutral stance on bitcoin, take taxes but nominal.

[Awaklara]

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

Bitcoin is traded on local exchanges that allow buying Bitcoin with fiat or vice versa. The government gets a share of the transactions we make on the exchanges. They see a good opportunity to increase the country's revenue from those taxes. Something that might have been overlooked in the past, and now they know how much they can make each year from crypto taxes on the exchanges.

[reagansimms]

Each government views Bitcoin from a different perspective, so far governments view Bitcoin in 4 different ways. China, Algeria, and Morocco are either very anti-Bitcoin or have banned it completely. These countries' reasons are fears of money flowing out of the country without central bank monitoring, Bitcoin's volatility causing crises, and numerous scams involving crypto. Meanwhile, the stance of the United States, the European Union, India and Indonesia, positions Bitcoin (legally) as a commodity asset (not legal tender), but is monitored.

El Salvador considers Bitcoin a friend, they continue to adopt Bitcoin as the country's reserve, Bitcoin becomes legal tender and the government creates its own wallet to store all the country's Bitcoin. Some other countries choose to stand in the middle (Neutral), their regulations are clear, but their direction is towards Business, their goal is to attract blockchain companies and exchanges to move to their country because they are facilitated by low taxes.

I feel fortunate to live in a country that neither prohibits nor encourages Bitcoin. It is permissible to use Bitcoin, but users must be careful and always obey the rules.

[Lembo69]

The government of each country sees Bitcoin differently, some countries see Bitcoin as illegal, and some countries consider it illegal. But in countries where Bitcoin is legal, such as El Salvador, they know that Bitcoin is a legal currency and the people of their country will benefit from it. To be honest, I also think that people benefit from Bitcoin, but why does the government prevent it? Of course not for tax reasons. Basically, the Bitcoin trend is so that no illegal money is circulated from their country. However, apart from Bitcoin, people are circulating their money in other countries in various ways, which are illegal, so why is the government only thinking like this in the case of Bitcoin?

[Smack That Ace]

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.

Government use Islamic finance or religious scripture only for their own benefit! In high volume religious country like Nigeria or Middle East, scholars initially wanted to ban Bitcoin with a fatwa on pretext of volatility and gharar (ambiguity), and the same thing is happening in our Pakistan now.

But when the govt of Middle East counties saw that millions of dollar were being cashed out on P2P, leaving the public traditional banking system then suddenly the big Islamic banks came out with crypto zakat calculator!

Religion is a great shield for politic and tax board here. Whenever central bank sees money flowing out of the national currency, the government often tries to create panic by appealing to religious sentiment.

Duke

[PERtua]

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.

I think that decentralization is one of the top reasons why governments are hesitant to embrace Bitcoin. But I'd like to believe that avoiding taxes is not the only issue. The governments also are concerned about money laundering, consumer protection. Capital flight and control over monetary policy. Meanwhile several nations have discovered that it will be more effective to regulate and tax Bitcoin than to outlaw it. That's why we're seeing various strategies adopted internationally. Some governments consider Bitcoin as property. Others as an investment asset. And a few governments are little by little introducing it to their monetary frameworks rather than fighting against it altogether.

[Israelgogo]

-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?

Well, I don't know what is true and what is not true, I was going through crypto daily news and I saw most views of countries about crypto, yes Nigeria initially wanted a ban on crypto, I don't want to doubt you if is because of control but I remember when this crypto was seriously delegated at national assembly, that most Nigeria leaders said crypto should be ban because money no longer stay in the hands of bankers, and a bill was passed that if you're caught transferring money from crypto wallets to your bank, your bank account will be suspended. Most local wallets partners with major online banks for transactions or peer to peer methods.

Also thank you for throwing more lights what you explain I can relate more better than I do before.

[Zlantann]

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.

Countries are beginning to understand that banning or restricting the use of cryptocurrencies causes more harm than good. First, since some cryptos are decentralised, the goverment lacks the necessary tools to monitor transactions. Several reports show that crypto adoption increased drastically in Nigeria even after the restriction placed on banks. There was an increase in informal crypto platforms, which aided crypto users to evade the restrictions.

Second, strict crypto laws will simply make people seek foreign alternatives to local service providers. Creating a harsh condition for crypto businesses also has its consequences. The government would lose tax and license fees and job creation opportunities. Crypto businesses will slowly migrate to other friendly countries, which will cause a loss of job opportunities.

Apart from countries like El Salvador and Bhutan, I have not heard of any country that is committed to buying or mining Bitcoin. However, there have been some notable positive changes in the approach of some goverment. Although they are making laws that promote centralization, they are also creating a more viable business environment for crypto businesses. They are now aware that they cannot stop adoption. So they are making laws that will make them profit from the industry. Even Nigeria has opened up to crypto businesses.

Well, I don't know what is true and what is not true, I was going through crypto daily news and I saw most views of countries about crypto, yes Nigeria initially wanted a ban on crypto, I don't want to doubt you if is because of control but I remember when this crypto was seriously delegated at national assembly, that most Nigeria leaders said crypto should be ban because money no longer stay in the hands of bankers, and a bill was passed that if you're caught transferring money from crypto wallets to your bank, your bank account will be suspended. Most local wallets partners with major online banks for transactions or peer to peer methods.

Also thank you for throwing more lights what you explain I can relate more better than I do before.

Adding references to your post would have helped your arguments.

[Bluedrem]

The government doesn't want to legitimize assets that it doesn't control. Since the government can't control Bitcoin, meaning it's decentralized, Bitcoin is an asset that helps a person hide their wealth. Many people often convert their assets into Bitcoin to hide their wealth from the government. I also hear people say that terrorists sometimes use Bitcoin to trade assets. I think that's why the government doesn't want to legitimize Bitcoin, but if you ask people in government positions outside of government work whether they like Bitcoin, they'll probably say that they personally like Bitcoin.

[Jaycoinz]

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.

Countries are beginning to understand that banning or restricting the use of cryptocurrencies causes more harm than good. First, since some cryptos are decentralised, the goverment lacks the necessary tools to monitor transactions. Several reports show that crypto adoption increased drastically in Nigeria even after the restriction placed on banks. There was an increase in informal crypto platforms, which aided crypto users to evade the restrictions.

The trend is shifting very fast, especially for governments that understand the importance and the benefits of utilizing the taxing of Bitcoin rather than putting a complete strict ban on it. An example of what I mean is the Kazakhstan government; they have literally just made one of the friendliest mining environments for miners, and they also get to benefit from the opportunity as percentage of mined coins get to be sent to the countries National reserve.  if you ask me, I think it's just a matter of time before other nations start changing their narrative towards Bitcoin restrictions and Bans.

Government changing .

[Livingleged]

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.

I think the bitcoin tax In most countries is often categorised as capital gain tax and that should only be done when you sell after buying and probably making profit from it than tasking your when you just Hold. Buying bitcoin and Holding it should not be taxable event.

But again it really depends on your country and its tax system, some countries tax property and if they consider your bitcoin as a property asset, then they will likely want to tax you from it. Similarly for someone earning bitcoin as salary can also be tax as income tax by some government. This whole Tax has more to do with the tax system of your country and what you’re doing with the bitcoin.

What I’m not sure is if using the decentralised exchange should make one’s bitcoin tax free, because I know that the blockchain transactions can actually create public records that authorities may potentially analyse if need arise, but I don’t think governments have that time to dig deep just because of tax except it the figures involved are outrageous.

[Mahiyammahi]

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.

Thank god our gov still refuses to accept Bitcoin as a legal tender. If it's approved  by our govt then we would have needed to pay our taxes on bitoin. Since btc is a asset , don't know if we could not generate a 10% profit yearly then how we will pay a 10-30% tax on our holdings.
In our region btc mostly saw as gambling fund , that's why it's still prohibited on our country.

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.

Since you would  have provided your Income tax and your source of funds, the government can easily track you down. There is also a thing  called chain analysis. Nothing can be unseen if they do chain analysis; remember, Bitcoin is not truly anonymous. It's psydonomous, so it's traceable. Although still a lot of people use btc in a way so gov can't impose tax on them. I have a friend in India , since they need to pay 30% tax on crypto, he always finds a workaround to trade his BTC into fiat.

[Ojima-ojo]

The government where I live is only interested in giving out freebies and buying votes, so they did whatever that fuels this engine, higher taxes, they imposed a 30% taxation on crypto trading and are living happily on it while people are using P2P to exchange their bitcoin to fiat and vice versa.

To the politicians who dont understand much about bitcoin because they did not clear the 8th standard, whatever the ruling party is saying, they if aligned with them they will speak like that and if they are against it, they will say the opposite.

What I would like to see is that government maintains a neutral stance on bitcoin, take taxes but nominal.

the major problems with bitcoin adoption, taxation and the general regulations around bitcoin as an asset is that majority of the government official shown they ignorance in the part by not really understanding bitcoin and the concept around it regulations, the few politicians who own bitcoin are using it to store funds that they want to keep out of the radar, while the rest few don't even border to study the concept around bitcoin and rather be on the offensive side when bitcoin is the policy discussions, this have created a lot of uncertainty in most countries approach to bitcoin regulations and adoption.

[Floxynice]

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 wish to know how religion affects Bitcoin. Do some religions condemn Bitcoin as something harmful? I am just curious to know.

Even as governments are beginning to recognise Bitcoin as something meaningful, the government will rather see it as taxable property than as a form of money. All of these regulations are not with the intention of making Bitcoin an alternative means of payment, but as an avenue for the government to generate income through taxation and through reserves. There is no point in restricting Bitcoin usage when people still use it despite government bans and restrictions, as it still is in some countries. More countries will join the trend, including Nigeria, but the aim will still be to tax Bitcoin whenever it is being spent, definitely not a currency that will compete with the country's local currency.

[MainIbem]

Since Bitcoin is an asset that gains value, some government see reasons for it to be taxable, well the best way people can avoid constant taxation of their assets is by holding cause when you hold you don't sell and they won't have access to tax you from your wallet, so a capital gain tax as it's called can't be triggered. I'm not sure if it's implemented in Nigeria yet but I know of US, UK and I think Canada. If people follow the government's view on Bitcoin, they'll be discouraged to own it but that shouldn't be an issue infacts it indirectly encourages people towards holding so they won't be constantly taxed.

[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.

Thank god our gov still refuses to accept Bitcoin as a legal tender. If it's approved  by our govt then we would have needed to pay our taxes on bitoin. Since btc is a asset , don't know if we could not generate a 10% profit yearly then how we will pay a 10-30% tax on our holdings.
In our region btc mostly saw as gambling fund , that's why it's still prohibited on our country.

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.

Since you would  have provided your Income tax and your source of funds, the government can easily track you down. There is also a thing  called chain analysis. Nothing can be unseen if they do chain analysis; remember, Bitcoin is not truly anonymous. It's psydonomous, so it's traceable. Although still a lot of people use btc in a way so gov can't impose tax on them. I have a friend in India , since they need to pay 30% tax on crypto, he always finds a workaround to trade his BTC into fiat.

I think I've also read somewhere in my country that there are some tax placed on crypto, But I'm not sure how it works, however I feel it is an abuse on the side of the government to use such laws, especially when they want to categorize taxing crypto as income tax when you make gains. In as much as i understand the analysis you made concerning these, My problem still remains that the government is not supposed to tax crypto as income tax when you make gains, because you bear the risk alone. However this kind of situation makes me to ask, is the government only interested in my gains, what if the asset is liquidates in my hay days of investment, how helpful will the government be in recovery my assets, or are they just interested in what they have to gain regardless of how the the market affects me.

[Zoomic]

The thing is different governments have or have had different views and priorities about Bitcoin in the past.

While some were totally putting different restriction measures because they saw it as a threat to their local currency as well as something that's risky to allow their citizens participate in, others saw economic opportunities in it.

Overtime, the ones that were against Bitcoin began to see big institutional investors becoming part of the project and how the Bitcoin market became very big, so they joined and by so doing, they added regulations.

Bitcoin didn't change, it is the level of adoption and how the governments are now exposed to it's technicality which wasn't common in it's early days that changed.

[Bitcoin Smith]

~
I think I've also read somewhere in my country that there are some tax placed on crypto, But I'm not sure how it works, however I feel it is an abuse on the side of the government to use such laws, especially when they want to categorize taxing crypto as income tax when you make gains. In as much as i understand the analysis you made concerning these, My problem still remains that the government is not supposed to tax crypto as income tax when you make gains, because you bear the risk alone. However this kind of situation makes me to ask, is the government only interested in my gains, what if the asset is liquidates in my hay days of investment, how helpful will the government be in recovery my assets, or are they just interested in what they have to gain regardless of how the the market affects me.

If income tax doesn't fair for the profits/gains you made, then when you feel it will be?

Taxing crypto on capital gains is fine but that becomes unfair when they don't allow offsets to loss, or have high tax rates with no exceptions, like it doesn't come under the regulated excepted limits for zero income tax. That is exactly what happens in my country, where the government applies a 30% tax on gains and 1% on source for every crypto trade then, finally, you will be exempted from zero tax limits when iut comes to crypto earnings.

[impulse709]

The government of each country sees Bitcoin differently, some countries see Bitcoin as illegal, and some countries consider it illegal. But in countries where Bitcoin is legal, such as El Salvador, they know that Bitcoin is a legal currency and the people of their country will benefit from it. To be honest, I also think that people benefit from Bitcoin, but why does the government prevent it? Of course not for tax reasons. Basically, the Bitcoin trend is so that no illegal money is circulated from their country. However, apart from Bitcoin, people are circulating their money in other countries in various ways, which are illegal, so why is the government only thinking like this in the case of Bitcoin?

Different countries have different perceptions of Bitcoin. Some view it as illegal and some countries look at Bitcoin as illegal. However in countries where Bitcoin is legal they know it is a legal currency and people in their country will benefit from having it. I do believe people benefit from Bitcoin, but why is it that the government is stopping this? Of course not for tax reasons. In a nutshell, the purpose of the Bitcoin craze is that they do not allow any unlawful money to circulate in their nation. However, apart from Bitcoin, people are circulating their money in other countries in various ways. Which are illegal, so why is the government only thinking like this in the case of Bitcoin?

[salad daging]

There are governments that view bitcoin as friendly, there are also those who are "anti" It depends on the officials, I am sure there are countries that consider bitcoin negative and their past leaders to be replaced with new ones, especially those who are pro bitcoin are sure the rules will change.

In my country bitcoin is considered a commodity asset, it is regulated in such a way, several exchanges continue to grow and appear, which indicates a good increase, and then the government gets taxes from bitcoin and crypto.

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

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

Yep, including my country where there is a Ministry of religion banned from being a medium of exchange and legally a commodity asset.