cryptocurrencies Taxes and regulations in cryptocurrencies?

[Obliv0n 333]

The situation of regulations and taxes on cryptocurrencies has been a common theme in recent years, where countries such as South Korea, China or Japan have responded in a neutral, positive or negative way, but cryptocurrencies took a back seat during 2020 thanks to the crisis produced by the covid.

 

However, due to the recent bull market, where Bitcoin and other cryptocurrencies have doubled in value in less than a month, the issue of taxes came to light again.

 

This is where companies such as TaxBit come to the fore, TaxBit aims to partially or completely automate the payment of taxes generated from operations in the crypto market.

 

Firms such as Paypal, coinbase and Winklevoss capital have shown they supported TaxBit, investing unknown amounts, suggesting that in the future a regulation for Bitcoin could arrive.

1)What do you think about it?
2)Regulations and Taxes Good for Cryptocurrencies?
I am intrigued with what may happen in the future.

[ibrahim halil anaç 138]

I am curious about taxes and regulations in cryptocurrencies; When we make a profit in crypto money trading, we will pay taxes. Okay, how will the taxation be when we make a loss in crypto money trading? As a matter of fact, governments collect taxes from our time deposits in banks, on the other hand, they give us assurance for our deposits in banks when the bank goes bankrupt in the future.

[Obliv0n 333]

19 hours ago, ibrahim halil anaç said:

I am curious about taxes and regulations in cryptocurrencies; When we make a profit in crypto money trading, we will pay taxes. Okay, how will the taxation be when we make a loss in crypto money trading? As a matter of fact, governments collect taxes from our time deposits in banks, on the other hand, they give us assurance for our deposits in banks when the bank goes bankrupt in the future.

@ibrahim halil anaç The truth is that taxes, at least as far as I know, are only calculated based on the earnings you obtain at the end of the month or in the case of South Korea, the tax if I am not mistaken is equivalent to 12% of the earnings obtained by year, whether you are a trader, exchange, miner, etc.

Being a new ecosystem, it is not known exactly how they will do it, so the safest thing is that they will resort to trial and error.

[Dang3r 103]

For a system to be recognized, it needs to be within a certain margin of legality, therefore the fact that the establishment of taxes on cryptocurrencies is promoted is only a means to eliminate the prejudices that are They keep on cryptocurrencies, you know the typical thing that it only serves to scam etc, it seems to me a good decision by coinbase.

[Froshk 1828]

Taxes and regulations have been a threatening issue in the world of cryptocurrencies, government agencies try to impose these taxes to check or restrict the massive adoption of cryptocurrencies 

[Hanbal 359]

I don't there are countries who consider to accept tax in cryptocurrency perhaps in the future if countries devlope their own cryptocurrecency they have choice to impose tax to their citizen for every widthrawal they make.

[sinseoul 0]

If cryptocurrency becomes regulated, then I think it will be the fall of cryptocurrency. I can say that most people are using cryptocurrency or investing on it because it is not regulated on most cases and there isn't tax on your earnings on cryptocurrency.

[velasco19 1753]

6 hours ago, Dang3r said:

Para que un sistema sea reconocido necesita estar dentro de cierto margen de legalidad, por lo tanto el hecho de que se promueva el establecimiento de impuestos a las criptomonedas es solo un medio para eliminar los prejuicios que mantienen sobre las criptomonedas, ya sabes lo típico que solo sirve para estafar etc, me parece una buena decisión por parte de coinbase.

I also have a similar thought to yours, there is always talk of adoption and the expectations that it entails, but if the regulations do not arrive little by little then we will not be able to achieve the objective of being able to implement the use of cryptocurrencies because as you mention we need legality and clarity of this new market in the near future.

Edited January 13, 2021 by velasco19

[Khan 1414]

9 hours ago, sinseoul said:

If cryptocurrency becomes regulated, then I think it will be the fall of cryptocurrency. I can say that most people are using cryptocurrency or investing on it because it is not regulated on most cases and there isn't tax on your earnings on cryptocurrency.

I don't think it will be the fall because as the demand of the cryptocurrency is increasing the price of every coin and specifically the BTC is increasing.

[Obliv0n 333]

13 hours ago, sinseoul said:

If cryptocurrency becomes regulated, then I think it will be the fall of cryptocurrency. I can say that most people are using cryptocurrency or investing on it because it is not regulated on most cases and there isn't tax on your earnings on cryptocurrency.

There is the possibility that adoption will decrease in the short term, however with the passage of time, that legality provided by taxes and endorsed by the state, would be the shield and sword of cryptocurrencies, it is better to stay on the sidelines as @Dang3r mentioned that being in the shadows, is an undeniable reality.

[percare 3192]

Taxes are for regulated environments and for countries that have set taxation, but to be honest whenever taxation is put on any internet activity it just makes it unprofitable and a waste of time. If crypto is to be taxed for me, I would probably have to quit. I don't spend all this time to have the government take 20% and if this is what they are planning then I have plans too. No one of us makes millions we just trying to make a couple of thousands and take some risks that the governments are not our partners there. It is not a job and we have to deal with anxiety and volatility.

[tienda 8776]

If a such country if cryptocurrency will be regularized, is logic to exigent taxes for traders. But what will be happened when cryptocurrency will be regularized? Will stay profitable like before? Or will decrease its popularity because of the taxes?..

[Dang3r 103]

2 hours ago, tienda said:

If a such country if cryptocurrency will be regularized, is logic to exigent taxes for traders. But what will be happened when cryptocurrency will be regularized? Will stay profitable like before? Or will decrease its popularity because of the taxes?..

Citing the example that was given in the topic about South Korea, we can determine some possibilities, since in that country although the adoption did not decrease, the margin of operations and the volume of the same did, because Binance left the country, the regulations are necessary but must be implemented optimally.

[Jack764 1841]

The taxes in this area are low and the profits from the sites and platforms are few, and they depend on the principle of a small profit from each person with a large number of people, the profits will increase

[Ridam 7455]

If we see the positobe sides of regulation of crypto then its is good as the tax implementation helps in doing so and many governments are working to regulate for the sake of tax. We can say that,  tax implemenattion will play positive role in the regulatuon of crypto. Also as most of institutions are ibterested for shift to Bitcoin, government seems no way not go for Bitcoin regulation.

[Syedbesharat 5423]

The taxation needed some rearxh if they impose bug number like %12 of monthly income on traders then the outcome will not good because when they are asking g about the tax what are they offering to traders and crypto users. Are they gonna act like insurance policy company or get back hacked account money. The government have to come up some. Good policies for crypto adopter if they want to get tax from people because the service providers are exchanges not the government. 

[bogdanoff 3173]

Taxes depends on where you live. If you wonder what can happen when your government regulates and taxes cryptocurrency trading and profits, a good idea would be if you know how the taxes work already in other sectors.

[abohasnn9 2401]

My friend, unfortunately, the unpopular thing about cryptocurrencies is the high conversion rates in addition to the taxes imposed by some countries on everyone who trades in cryptocurrencies. Unfortunately, my friend, this matter is never liked in the field of cryptocurrencies, as these taxes imposed make the trader do not like anything in this field Thank you

[Ameralsamt 2558]

My friend,Many countries around the world place restrictions on cryptocurrencies and like them, because they can't withdraw taxes from cryptocurrencies and encryption, and they really want to regulate them in order to tax them. 

[abdullah553 1981]

On 1/11/2021 at 4:05 PM, Obliv0n said:

The situation of regulations and taxes on cryptocurrencies has been a common theme in recent years, where countries such as South Korea, China or Japan have responded in a neutral, positive or negative way, but cryptocurrencies took a back seat during 2020 thanks to the crisis produced by the covid.

 

However, due to the recent bull market, where Bitcoin and other cryptocurrencies have doubled in value in less than a month, the issue of taxes came to light again.

 

This is where companies such as TaxBit come to the fore, TaxBit aims to partially or completely automate the payment of taxes generated from operations in the crypto market.

 

Firms such as Paypal, coinbase and Winklevoss capital have shown they supported TaxBit, investing unknown amounts, suggesting that in the future a regulation for Bitcoin could arrive.

1)What do you think about it?
2)Regulations and Taxes Good for Cryptocurrencies?
I am intrigued with what may happen in the future.

I think that countries will not be able to really control the financial markets like other markets, for they will resort to imposing taxes in order to be able to collect some money to develop their economy

[Raqeebzy 6456]

On 1/11/2021 at 3:05 PM, Obliv0n said:

Firms such as Paypal, coinbase and Winklevoss capital have shown they supported TaxBit, investing unknown amounts, suggesting that in the future a regulation for Bitcoin could arrive.

The issue of regulations and taxes on cryptocurrency is not a new thing, there is just a resurgence recently. And I am not quite surprised.

In every profit making venture, under government or not, a percentage of tax due to payed to the regional tax authority. I have seen some examples like the Belgian government (https://news.bitcoin.com/belgian-tax-authority-going-crypto-investors/). 

 

[Pereira 2303]

This has always been seen in many organizations and countries, which have wanted to regulate cryptocurrencies since they came to light on the market, for this reason every time they increase, they try to justify the regulations, but it really does not have validity to make the regulations e Taxes, since cryptocurrencies are decentralized and not controlled by third parties is like a violation of the blockchain of the blockchain, but as we all know as long as there is acceptance of it at some point they will have control of bitcoin, and it is sad that.

[yonkii 3205]

I don't think that taxes will help any trader and if they are exhausting it will make traders reduce volumes and try to trade in unregulated exchanges. Taxation should be a standard one but not on every trade. How do you tax trades that have losses, doesn't losses count and sum up to a total? This is very difficult to tax this kind of market and maybe it will need to be allowed without taxation for anything bellow $50k dollars.

[Obliv0n 333]

9 minutes ago, yonkii said:

I don't think that taxes will help any trader and if they are exhausting it will make traders reduce volumes and try to trade in unregulated exchanges. Taxation should be a standard one but not on every trade. How do you tax trades that have losses, doesn't losses count and sum up to a total? This is very difficult to tax this kind of market and maybe it will need to be allowed without taxation for anything bellow $50k dollars.

@yonkii They already have it stipulated in the case of losses, basically taxes are charged only on what you convert into fiat money, that is, what reaches your bank account under the concept of transactions made with cryptocurrencies, obviously this will affect some traders, but they are measures that sooner or later will surely be applied to the largest exchanges.

[cryptovlek 2597]

I agree taxation is in the regulations and having to allow new currencies will require legal frame for them to work. It could be that taxation will be required though, only when making purchaces or sending profit to a bank but only for big amounts and not just for a few thousand dollars. The amounts of illegal money laundered by banks are billions and these should be the focus of governments, not the small profits from small traders.