Cryptocurrency and Taxation

[Josemendez]

Naturally , taxation has been a means government generate money from businesses and organisations . The world of cryptocurrency then being a source of business to some individuals and companies ,has been a subject of debate. Companies now escape taxation on investment because they engage in cryptocurrency investment.

Governments on their own are reluctant to adopt cryptocurrency because ,they will not be able to benefit from it ,if they are not supported to collect tax.

The question is ,if taxation is to be implemented , what will be the fate if small investors ? , can they be able to cope with like the top companies that invested in it.

 

[Sherman198]

The cryptocurrency industry sector is currently more than 1 trillion dollars globally and I think it doesn't make sense for government to overlook the sector especially countries that are yet to
adopt or legalize the use of cryptocurrencies it will be better if it is being regulated so that the players in the sector can be taxed more available be generated to the government.

Literally, if government can tax cryptocurrencies, then don't you think they can control it. Tell me one thing that the government can tax and can't control. Apparently, the government has power over all things they govern, that's why they are the government. If government starts taxing crypto, they may decide when to trade and when not to. And all these counter the doctrines of Bitcoin or cryptocurrencies generally.

 

[Wisdom01]

Thats the problem and one thing is that most countries runs a regressive form of taxation which have negative effect on the long run and its a big disadvantage to the investors that have small investment for investing. The thing is that if the profit to be less and taxation is more i doubt if more crypto users would liken to invest in crypto

 

[Ahmedo24]

Currently, Binance is facing a lot of issues in many countries. It has either been banned or is facing lawsuits. The issue is related to taxation. Binance has been operating in many countries without taking permission from the authorities. While taxing individuals for cryptocurrency transactions may not be possible, it is possible to tax the exchanges.

If this is true then Binance should check it ways because it doesn't make sense taxing or charging it members for most transactions in his platform while evading taxes of authorities where it members originate from. Binance is big enough not to allow minor issues to crack it down because everyone in cryptocurrencie are highly sensitive to changes. The negative review index is growing for Binance which is not good.

 

[Mika]

Currently, Binance is facing a lot of issues in many countries. It has either been banned or is facing lawsuits. The issue is related to taxation. Binance has been operating in many countries without taking permission from the authorities. While taxing individuals for cryptocurrency transactions may not be possible, it is possible to tax the exchanges.

 

[Josemendez]

That's just the fact , if such regulations are in place it gives government more confidence in the system because the rate at which government raises concern on the use of cryptocurrencies to commit illegal activities is on the high side which can easily discourage a lot of people from Investing in it but if regulated it can also be taxed. I hope countries could reason it out.

The truth of the matter is that cryptocurrency can be used for illegal activities ,due to it's annoymous but then isn't Fiat currency used for same purpose? . That cryptocurrency own used to be annoymous doesn't mean that it is still annoymous. Presently , transactions are trackable.
The main struggle here is that cryptocurrency is DECENTRALIZED.

 

[Good-Guy]

Since cryptocurrencies are decentralized digital coins, it will be hard for the government to tax people on crypto earnings. I do not think that traders should be taxed for trading crypto because governments do not own crypto unlike fiat currencies that are issued by the governments. Moreover, not all the traders are able to make huge profits on crypto trading because they do not have enough capital to invest.

 

[Ahmedo24]

The regulation will go a long way in reducing the rate at which fraudulent activities are being carried out through cryptocurrency,because there will be a notification to government when large amount of cryptocurrency is transfered from Fiat currency to cryptocurrency or vice versa . They just need to avoid any thing that will affect small Investors

That's just the fact , if such regulations are in place it gives government more confidence in the system because the rate at which government raises concern on the use of cryptocurrencies to commit illegal activities is on the high side which can easily discourage a lot of people from Investing in it but if regulated it can also be taxed. I hope countries could reason it out.

 

[Josemendez]

Definitely if government is ready to tax cryptocurrencies there will be more money coming from this sector to the government colfer and if government must taxes then it must also regulate it which personally I don't see to be a bad idea because it is only the activities around it that can be regulated not the price nor the volatility.

The regulation will go a long way in reducing the rate at which fraudulent activities are being carried out through cryptocurrency,because there will be a notification to government when large amount of cryptocurrency is transfered from Fiat currency to cryptocurrency or vice versa . They just need to avoid any thing that will affect small Investors

 

[Ahmedo24]

I see your points and I respect it.....I don't tent to conflict people's opinions because everyone has an entitlement to it.

However, taxing cryptocurrencies may eventually occur if the government don't see a way to ban it or control it. Taxing it maybe their last resort, which may favour the price and value of major cryptocurrencies generally.

Definitely if government is ready to tax cryptocurrencies there will be more money coming from this sector to the government colfer and if government must taxes then it must also regulate it which personally I don't see to be a bad idea because it is only the activities around it that can be regulated not the price nor the volatility.

 

[Sherman198]

The current reality about cryptocurrencies now is that they can exist independently because we can see how crackdown effects but different countries and even government policies I've been dragging down the files of cryptocurrencies so I believe regulation and taxation or cryptocurrency won't be a bad idea and I don't think it can be control because it's roles of block paving which is autopilot but can be regulated.

I see your points and I respect it.....I don't tent to conflict people's opinions because everyone has an entitlement to it.

However, taxing cryptocurrencies may eventually occur if the government don't see a way to ban it or control it. Taxing it maybe their last resort, which may favour the price and value of major cryptocurrencies generally.

 

[Ahmedo24]

Literally, if government can tax cryptocurrencies, then don't you think they can control it. Tell me one thing that the government can tax and can't control. Apparently, the government has power over all things they govern, that's why they are the government. If government starts taxing crypto, they may decide when to trade and when not to. And all these counter the doctrines of Bitcoin or cryptocurrencies generally.

The current reality about cryptocurrencies now is that they can't exist independently because we can see how crackdown effects different countries and even government policies have been dragging down the activities of cryptocurrencies so I believe regulation and taxation of cryptocurrency won't be a bad idea and I don't think it can be control because it's roles of blockchain which is autopilot but can't be regulated.

 

[Ahmedo24]

When a business is not paying taxes then it is either illegal or very small and informal in nature. If the crypto is illegal then the government can ban it or can levy a tax. Now it is a wonder why such an industry is existing without the regulation of the government. Maybe there are connections somehow.

The cryptocurrency industry sector is currently more than 1 trillion dollars globally and I think it doesn't make sense for government to overlook the sector especially countries that are yet to
adopt or legalize the use of cryptocurrencies it will be better if it is being regulated so that the players in the sector can be taxed more available be generated to the government.

 

[Alexandoy]

When a business is not paying taxes then it is either illegal or very small and informal in nature. If the crypto is illegal then the government can ban it or can levy a tax. Now it is a wonder why such an industry is existing without the regulation of the government. Maybe there are connections somehow.

 

[Ralphjoe]

The thing is that my government has already devised a means to tax me of my Cryptocurrency earning by means of what they called stamp duty, they remove a certain amount of money from my account when I receive some amount of money in my account. This has always been the way the government has been dubiously deducting money from my account, there is no money that I receive through my bank account that isn't reduced in one way or the other.

 

[Bookwormlux]

Naturally , taxation has been a means government generate money from businesses and organisations . The world of cryptocurrency then being a source of business to some individuals and companies ,has been a subject of debate. Companies now escape taxation on investment because they engage in cryptocurrency investment.

Governments on their own are reluctant to adopt cryptocurrency because ,they will not be able to benefit from it ,if they are not supported to collect tax.

The question is ,if taxation is to be implemented , what will be the fate if small investors ? , can they be able to cope with like the top companies that invested in it.

Of course small investors in crypto currencies would find it hard coping with taxation, especially when the government does not make their policies in such a way that would target only top companies and businesses.
Despite this, I do not really think it would be possible to impose taxes on crypto currency transactions. They are decentralized and so any tax laws would only be possible if the heads of all countries decide to agree with this decision, if not it would be near impossible.

 

[Ahmedo24]

I do tell peoole that the only reason why governments of various countries have not adopted cryptocurrencies is because of the inability of the government to tax the users. Government don't support what won't benefit them.
But let assume government starts racing people as your post implies, then there may be increment in the price of bitcoin the more because bitcoins will have to be legalized before it is taxed and if it is legalized, there will be many people involving in it.
This means the price will increase because government will want to be making money from it. So it will pay the investors so far government introduces progressive tax system.

Government is not ready to tax people or Crypto currency earners, it is a very simple process to follow because the Crypto currency traders and earners eventually Exchange their coins in Exchange platforms so through the government will tax the exchangers and the Exchangers tax the members of the platforms so the government doesn't need to follow individuals. The fact is that if government begin to tax Crypto currencies then they are already in support of the project. It a big source of revenue.

 

[btaliat]

I do tell peoole that the only reason why governments of various countries have not adopted cryptocurrencies is because of the inability of the government to tax the users. Government don't support what won't benefit them.
But let assume government starts racing people as your post implies, then there may be increment in the price of bitcoin the more because bitcoins will have to be legalized before it is taxed and if it is legalized, there will be many people involving in it.
This means the price will increase because government will want to be making money from it. So it will pay the investors so far government introduces progressive tax system.

 

[Yugocean]

Well, with new thought, I can say taxing on crypto is also possible, however governments and tax agencies have to deal with lots of changes. Unless the time based changes are accepted by government, they will only jeopardize their revenue. This blockchain and crypto can be useful to curb corruption; Govt and people and judiciary all will come to know if a corrupt Minister try to steal the crypto and send it to his/her wallet. Corruption is easy with fiat, but difficult if government accept crypto; they need to accept the changes..

 

[Ahmedo24]

The Banks in my country are seriously lamenting that money no longer stay as it used to be because people now look for better investment which they don't pay taxes on so very likely the banks are sensitive to Crypto currencies activities as it now affect them so very likely the banks may make moves to go in to Crypto currencies so they can serve as Exchangers to enable them get more source of revenue either through charges or taxes. Government can tax Crypto Investors if properly some