Do you really expect legal clarity for the crypto market?

[KryptoBull]

The cryptocurrency market is a dynamic and rapidly evolving landscape, offering immense potential for innovation, economic growth, and financial inclusion. As governments recognize the significance of this burgeoning sector, they are increasingly seeking to establish clear regulatory frameworks to foster responsible development and protect investors.

While regulatory clarity is crucial for the long-term viability of the crypto market, it is essential to strike a balance between fostering innovation and ensuring responsible taxation. While some governments have implemented relatively moderate tax rates on crypto gains, others have imposed significantly higher taxes, approaching 30-45% of investor profits^[1] 

The debate surrounding crypto taxation is complex and multifaceted. Proponents of higher taxes argue that governments need to generate revenue to address national issues exacerbated by inflation. However, critics maintain that such high tax rates could stifle innovation and discourage participation in the crypto market, potentially hindering its growth and overall economic impact.

In my country, the regulatory status of cryptocurrencies remains somewhat ambiguous. While there is no explicit ban or encouragement, the government has not yet implemented a comprehensive legal framework or imposed taxes on crypto transactions. This presents both advantages and disadvantages. On the one hand, it allows individuals to fully utilize their crypto profits without immediate taxation. On the other hand, it creates a lack of clarity and potential risks for individuals and businesses operating in the crypto space 

I would like to hear from you regarding your experiences with crypto taxation and regulation.

• Has your country enacted a crypto tax and regulatory framework?
• If yes, what is the current tax rate?
• Are you satisfied with the current tax structure?
• Do you believe the tax rate is reasonable or too high?

References:
[1] Crypto Tax Free Countries 2024

[debra]

Has your country enacted a crypto tax and regulatory framework?

Yes, our government already applies the tax for crypto. They got the tax from each trading we do in our local exchanges. Our local exchanges support the tax applied by the government. I am not really sure about how much the tax we pay to our government for each trading activity, but I have paid it for sure.

Are you satisfied with the current tax structure?

So far, the tax seems quite reasonable. I don't mind to pay tax as long as it is reasonable. But if the tax seems too expensive, I think we must complain the the government.

[UNIVERSE]

I would like to hear from you regarding your experiences with crypto taxation and regulation.

• Has your country enacted a crypto tax and regulatory framework?
• If yes, what is the current tax rate?
• Are you satisfied with the current tax structure?
• Do you believe the tax rate is reasonable or too high?

Actually, I'm sure not everyone expects this, but it seems that it is because we live under a country and that country has rules that are legal, however, clarity is sometimes quite necessary to make our position easier in the crypto world.

 1. Crypto in my country is legal as a commodity asset but not legal if used as a means of payment. There are already certain bodies or government institutions that supervise or have authority over crypto businesses. and this provides some rules and regulations to all of us part of crypto. In this case, if we trade on a local exchange in our country, the tax that is paid to the government will automatically be deducted.

 2. I'm not quite sure of the nominal amount, but it's only a certain percentage

3. As long as it doesn't go up and up continuously or as long as it's a politically rational number, it doesn't really matter, as long as it doesn't go up regularly, because after all, even though it's only a little present, if you multiply it by the transactions we make every time we trade, it's actually quite good.

[MrSpasybo]

• Has your country enacted a crypto tax and regulatory framework?
• If yes, what is the current tax rate?
• Are you satisfied with the current tax structure?
• Do you believe the tax rate is reasonable or too high?

1. In Vietnam, we still do not have a legal framework for crypto.
2. Therefore, crypto income is not taxed.
3. I am a cautious investor, I do not fall into fraudulent projects, I have no need to sue anyone, so I am satisfied with the current situation because I do not need to pay a huge tax.

But ourr government is also monitoring, learning and planning to promulgate laws to manage this market. I believe Vietnam will also have a crypto law, I hope the tax will not be too high 😅

[Dr.Bitcoin_Strange]

Well, in my country, cryptocurrency does not have any serious attention from the government, and its citizens are just doing their thing and being faced with no taxation on their cryptocurrency investments and transactions. Meanwhile, my country has a high rate of cryptocurrency users, and I think everyone is happy that they are not being monitored and taxed by the government. Although even if cryptocurrency users were taxed by the government, I know it would definitely not be a very high amount.

[Sim_card]

I would like to hear from you regarding your experiences with crypto taxation and regulation.

• Has your country enacted a crypto tax and regulatory framework?
• If yes, what is the current tax rate?
• Are you satisfied with the current tax structure?
• Do you believe the tax rate is reasonable or too high?

Initially, the former CBN Governor of my country restricted banks from cryptocurrency, but this didn't stop some youth to venture into crypto. While some of the citizens were scared and thought that crypto was illegal in the country, do they stay away from it. Those of us that was into crypto were using it and it was tax free because the CBN Governor has the say on crypto at that moment. Exchanges were operating and crypto users were enjoying a tax-free transaction. Recently, the new administration just announced crypto legal in the country, and they haven't gotten any crypto tax and regulatory framework yet, but I believe that as time passes by, the government might come up with one or just allow the citizens to enjoy using crypto without paying tax.

[UNIVERSE]

Well, in my country, cryptocurrency does not have any serious attention from the government, and its citizens are just doing their thing and being faced with no taxation on their cryptocurrency investments and transactions. Meanwhile, my country has a high rate of cryptocurrency users, and I think everyone is happy that they are not being monitored and taxed by the government. Although even if cryptocurrency users were taxed by the government, I know it would definitely not be a very high amount.

Where is this? I'm surprised that your government thinks crypto isn't a serious matter. In my country, government thinks seriously, they even made a specific regulation about crypto. Sure, I am also not really sure about how much the taxes, I already explained above. However, our government allows the crypto investment and trading because we already pay taxes. It is difficult to legalize crypto if there is no taxes.

[Uruhara]

In my country the regulations regarding crypto are clear and the amount of tax has also been determined and it is around 0.11% of the value of the transactions we make. And crypto is already considered a commodity asset and not a security asset. But to be honest, everything is much more comfortable when the government hasn't made regulations about this. It's just that I am happy with the regulations that have been made so that the security of crypto users in our country has become better. Because there is a government agency that monitors it.

[Zed0X]

~
Has your country enacted a crypto tax and regulatory framework?

Tax treatment of profits and losses from crypto is still as vague as ever but there is a general clause in our tax code that citizens should follow in case there is no specific law.

The last time I checked, even our own Tax Agency are asking our legislators for clarity but nothing has been concrete so far.

Operators/Owners of crypto exchanges, however, already have policies they abide by.

[KryptoBull]

 1. Crypto in my country is legal as a commodity asset but not legal if used as a means of payment. There are already certain bodies or government institutions that supervise or have authority over crypto businesses. and this provides some rules and regulations to all of us part of crypto. In this case, if we trade on a local exchange in our country, the tax that is paid to the government will automatically be deducted.

The same is true in Vietnam and many other countries: BTC and crypto are considered commodities, and they are not allowed to be used as a substitute for fiat. Governments do so to protect fiat and control of the economy in their hands.

In my country the regulations regarding crypto are clear and the amount of tax has also been determined and it is around 0.11% of the value of the transactions we make. And crypto is already considered a commodity asset and not a security asset. But to be honest, everything is much more comfortable when the government hasn't made regulations about this. It's just that I am happy with the regulations that have been made so that the security of crypto users in our country has become better. Because there is a government agency that monitors it.

0.11% is a comfortable tax rate for everyone, I think investors will have no problem paying only a small tax on their profits, while being protected from scammers in this market 

[summonerrk]

snip

Even the very thought that I should give the state at least some of my earned money from cryptocurrencies makes me furious. Because it's not normal and it's not fair. I spent so much time studying cryptocurrencies, I risked my own money, my deposit, so many times. And the state did not compensate me for these losses. So why should I share my income?
I believe that even 5% is an incredibly large amount to give to the tax authorities.
And when I hear that in some countries the tax reaches 30 percent, I feel very sorry for the cryptomaniacs there.

[Uruhara]

In my country the regulations regarding crypto are clear and the amount of tax has also been determined and it is around 0.11% of the value of the transactions we make. And crypto is already considered a commodity asset and not a security asset. But to be honest, everything is much more comfortable when the government hasn't made regulations about this. It's just that I am happy with the regulations that have been made so that the security of crypto users in our country has become better. Because there is a government agency that monitors it.

0.11% is a comfortable tax rate for everyone, I think investors will have no problem paying only a small tax on their profits, while being protected from scammers in this market 

Yes, the tax rate is quite low when compared to crypto tax rates in other countries such as Japan, where the tax rate is more than 5% or even tens of percent of the total assets held. Correct me if I'm wrong. Because I read the information last year. And I don't know if there has been an update or not. But this has an impact on quiet trading on local Japanese CEXs. Because citizens will definitely prefer long-term investments if trade tariffs are very high. Even in my country it's the same. Even though it's relatively small. But if we trade continuously then the accumulation becomes very large. Because there are other additional costs from the local CEX itself, the deduction becomes greater. But I still like the regulations in my country.

[KryptoBull]

Even the very thought that I should give the state at least some of my earned money from cryptocurrencies makes me furious. Because it's not normal and it's not fair. I spent so much time studying cryptocurrencies, I risked my own money, my deposit, so many times. And the state did not compensate me for these losses. So why should I share my income?
I believe that even 5% is an incredibly large amount to give to the tax authorities.
And when I hear that in some countries the tax reaches 30 percent, I feel very sorry for the cryptomaniacs there.

We always pay Value Added Tax to government. I do not object because tax is the right and obligation of the people to build the country, it's just that 30% is too high. I would be satisfied if this tax was calculated the same as VAT or less because crypto is a new industry and needs to be supported and encouraged so that the country does not fall behind in technology. The greed of governments has become greater than the wolves of Wall Street.

Yes, the tax rate is quite low when compared to crypto tax rates in other countries such as Japan, where the tax rate is more than 5% or even tens of percent of the total assets held. Correct me if I'm wrong. Because I read the information last year. And I don't know if there has been an update or not. But this has an impact on quiet trading on local Japanese CEXs. Because citizens will definitely prefer long-term investments if trade tariffs are very high. Even in my country it's the same. Even though it's relatively small. But if we trade continuously then the accumulation becomes very large. Because there are other additional costs from the local CEX itself, the deduction becomes greater. But I still like the regulations in my country.

I think taxes should only be levied when we exit a position and sell crypto to fiat and then withdraw fiat to our bank account. Taxing every profitable transaction is excessive greed. Users paid transaction fees and the exchange had to share a portion of their profits with the government. The government got a lot of money from this crypto market 

[Gurujebs]

Well, in my country, cryptocurrency does not have any serious attention from the government, and its citizens are just doing their thing and being faced with no taxation on their cryptocurrency investments and transactions. Meanwhile, my country has a high rate of cryptocurrency users, and I think everyone is happy that they are not being monitored and taxed by the government. Although even if cryptocurrency users were taxed by the government, I know it would definitely not be a very high amount.

I think the government are just calm for now. Remember that last year, the Nigerian governments allow banks to enable bitcoin transaction and now people has been liberated from the harsh policy of the central bank. Come to think of it again, the government are not as stupid as we think, they k ow there is investment heavy one for that matter that is going on in crypto space and if they allow people, it will help them trace transactions since they noticed that investors used P2P which can't be trace for bank transactions because people don't put description in their transaction.


I think one day, the government will follow crypto investment and ask people to start paying tax on their investment, it is even among the reason why they allowed banks to let people do crypto transactions so they can always get their own cut form investments and people that buy and sell crypto like the normal traders.

[electronicash]

i don't expect legal clarity for crypto. in my country i'm not sure if there is a law about it but what my fellow crypto users know is that SEC never declared crypto as illegal but they SEC was planing to block exchanges operating illegally.  i don't know how they could do this when there isn't even a legal law for crypto.

even in the US where they SEC already approved Bitcoin ETF, there isn't still crypto regulation that clearly says something real.