Why must cryptocurrency pay tax?

[Delgboke]

IRS has send letter of warning to the US cryptocurrency owners urging them to pay their tax that may have accumulated and the agency has said that they have sent letters to 10,000 taxpayers and mailing of those letters since on Friday telling them to participate in the ongoing exercise to pay pending tax and take it serious.
Why tax paying has become a must for cryptocurrency industries?
Check in For more details.
https://www.cryptoinformers.info/news/221-irs-says-its-sending-warning-letters-to-us-cryptocurrency-owners

[Zed0X]

Why tax paying has become a must for cryptocurrency industries?

It depends on the country. Usually, it's the income derived from investing or trading cryptocurrencies that is taxable. You don't get taxed for simply holding a crypto.

Whether in crypto or not,  any good citizen is expected declare his/her income and pay proper taxes.

[kent47400]

It is a company that exists in a country that has a strong and sophisticated system, America.
Because America is very strict in regulating its citizens about the law, cryptocurrency will also have a tax bill as mentioned in the article that the OP gave.

Maybe the tax is more appropriate for the welfare of the other people and this is a must in all countries throughout the world.

[MUGNIA]

I think it's legitimate if the income from cryptocurrency is taxed, because taxes are one of the income of one country for the welfare of its people
but hope can be reviewed about crypto tax for each country

[ZionRTZ]

It is only normal for government authorities to require its citizens to pay proper taxes from profits/income they got from salaries, business, or investments. We all know by now that government are also aware that many are now investing into cryptocurrencies.

[vegasus]

We all know by now that government are also aware that many are now investing into cryptocurrencies.

This is as a factor to lead the government makes a regulation for the tax of crypto users. Moreover, some crypto users can gain big profits from crypto investment or trading. This should attract the government to make a specific regulation for crypto business' tax. 

[Fenix]

For any income-generating activities, the government is entitled to tax it. Therefore, such a requirement is completely legal. As for the question of whether cryptocurrency owners should pay such a tax if they can hide the amount of income from the government, it should be borne in mind that public authorities are still able to establish the total amount of income to be paid, and if citizens refuse to pay it, this could be the reason to limit circulation or even prohibit cryptocurrency in a particular state.

[corr]

You must understand that in the US, all citizens are forbidden to declare their incomes and income from crypto too. So they fight illegal income and monitor whether the citizens have gained their profit.10K users who they sent letters is very small. I think it is not even 1% of the total number of users who make a profit from crypto.Maybe their data was passed to exchanges that own their personal data.

[Stalky]

I also believe that if crypto is taxed one day the government will also recognize the existence of crypto currencies, so I think cryptocurrency will also be more developed.

[masterrex]

IRS has send letter of warning to the US cryptocurrency owners urging them to pay their tax that may have accumulated and the agency has said that they have sent letters to 10,000 taxpayers and mailing of those letters since on Friday telling them to participate in the ongoing exercise to pay pending tax and take it serious.
Why tax paying has become a must for cryptocurrency industries?
Check in For more details.
https://www.cryptoinformers.info/news/221-irs-says-its-sending-warning-letters-to-us-cryptocurrency-owners

Tax is an individual obligation in the government so no questions about it. our tax was used in various government projects and services thats why we must pay our taxes due so for me nothing is new about it.

[aiviaa485]

Not all cryptocurrency is taxing because if we play with decentralized estate like ForkDelta, IDEX, TRONscan, WavesDEX is taxable.
I see that taxes on cryptocurrency are like centralized exchanges, such as Binance, KuCoin and Bittrex. IMO.

[sirty143]

Why tax paying has become a must for cryptocurrency industries?

It depends on the country. Usually, it's the income derived from investing or trading cryptocurrencies that is taxable. You don't get taxed for simply holding a crypto.

Whether in crypto or not,  any good citizen is expected declare his/her income and pay proper taxes.

You are correct, bruh. It's entirely depending in the country's government where one live. I know in the US they're very strict when it comes to tax, but I don't know if they're taxing retired government employees/pensioners, especially disabled military personnel who served and fought in war in Vietnam and the Middle East.

[zilzylian]

The government has different regulations for those who hold crypto and I think there will always be a way for every government that wants to refuse crypto with taxpayers or types of income tax on crypto, this is very strange because in some countries I know it is wealth or income tax and all of that will be one to pay income tax.

[Alcor]

In order for the state to legalize cryptocurrency, we need to pay fixed income taxes on this type of activity. If we do not pay the tax, the state will tighten the rules for circulation of cryptocurrency up to its prohibition. If we do not want the state to do this, then we will have to pay taxes.

[Alter]

I think that it is not for all that we must pay tax for cryptocurrency. It depends on what countries and companies that make the cryptocurrency with certain regulation. So far, crypto is still anonymous for several coins and activities/ But if talking about tax, in my country it is still not applied.