Crowdsourcing Clarity: Familiarizing Myself with The Laws Regulating Cryptocurrencies in Various Countries (1 SBD Reward for Most Helpful Info)
These cats are just gonna tie themselves up, ultimately, with all their regulations and violence.
I forget what episode of Crowdsourcing Clarity we are on now, but suffice it to say, this is the latest one! Crunched for time, and still wanting to learn, I appeal to you, informed Steem-Os!
Questions 1 and 2:
Cryptocurrencies, if I am not mistaken, are currently regulated via the capital gains tax system in the United States. It is my understanding that in order for something to be taxed via the capital gains "system," the asset has to be held for at least a year. Is this correct?
What regulations (or lack thereof) exist in other countries/regions? How are cryptocurrency regulated (or not regulated) where you live?
I recently wrote an article on why Japan's new system for taxing/regulating crypto is both disturbing and laughable at the same time.
Question 3:
- In light of the current regulatory climate, do you think "privacy coins" such as Monero, ZCash, Bytecoin, etc, will see an increase in market share? I have my own thoughts on this but am interested to hear yours!
Thanks in advance!
~KafkA
Graham Smith is a Voluntaryist activist, creator, and peaceful parent residing in Niigata City, Japan. Graham runs the "Voluntary Japan" online initiative with a presence here on Steem, as well as Facebook and Twitter. (Hit me up so I can stop talking about myself in the third person!)
Answering the second question, I'm from Nigeria and cryptocurrency is not directly regulated here on individuals in my country, but it is regulated on the exchange platform.
Answering the third question. The privacy coins you mentioned will surely see increase in market share, at least 70% sure @kafkanarchy84
Thanks for the input, @stevearticlepro. I was unaware of the situation in Nigeria.
contradiction with the development of crypto technology is a political resistance about monetary. The current monetary ruler who monopolizes the circulation of paper money will feel anxiously losing the source of income when most of the world's countries agree on new regulations on crypto implementation. it is currently going on a regulatory war of the monetary revolution that is cryptocurrency. Prepared monetary rulers are currently bankrupt, because in the crypto printing industry system paper money will be reduced or maybe there will be no more paper printing industry.
In Macedonia, Bitcoin is banned from the law, I hope that the new government will change this law
I had no idea. Wow. Thanks, @dobartim, for sharing.
The central bank of Israel, took the easy way out, and they treat cryptos as a commidity. This means that any deal in which the payment is done in cryptos, is considered a barter deal. The head of the bank of Israel said she will reconsider this regulation every once in a while. I hope that with cryptos becoming more popular she will change her mind and start treating them as money.
Thanks for the info, @orenshani7. I was not aware!
Whelp, not sure if this is all accurate and updated, but Wikipedia gives a whole lot information about many countries.
https://en.wikipedia.org/wiki/Capital_gains_tax
For my country, the Netherlands, it says:
However, you start paying wealth tax if your total amount of currency + assets exceed 20,000 euros. But yeah, good luck enforcing that law with crypto. I suspect the only way they can know is when you cash out for fiat. On the other hand, there's a 4 year prison sentences for not filing your taxes :/
I can tell you of a different kind of regulation in a few places: Completely criminalized and banned in Venezuela, Morocco and Nepal.
And yes we will most definitely need PIVX, DASH & Monero and others to protect our privacy.
I was unaware it was illegal in Morocco and Nepal. I could have guessed Venezuela, but wasn't sure of that, either. Thanks for the info.
I am also in the Netherlands, and wish to add to @rvanstel input. I discovered Steemit a couple of month ago, and just in case it explodes, I investigated the tax issue here. As he said, the tax office can be pretty harsh on forgetting to declare stuff (fines up to 300 or 400%...)...
Cryptos are considered like assets and enter what is called BOX 3. You take all the money or cryptos or shares you have, deduce around 25kEuros, and then you are taxed about 1.2% per year. So if for example you have 25kE cash in the bank, and 100kE in crypto, you have to pay
1200EUro/year.
The system has changed this year, it's much more complicated, but it leads to a similar tax due. I understand It can go up to 1.6% for the larger sums.
https://www.orangetax.com/2016/09/box-3-tax-2017-no-1-2/
So in absolute, if the crypto grow massively, well, it is a small price to pay compared to other countries, because it is not based on profit but on capital. On the other hand, if you lose, the tax office will make you lose more ( the sum to declare is [sum on Jan 1st + sum on Dec 31]/2 )
A system based on capital would at least be able to be reported somewhat accurately (though I beleive all taxes are illegitimate and criminal). The system here in Japan however, is literally impossible to abide by if one wishes to report accurately. Thanks for the valuable information about the Netherlands!
I am in Pakistan and our government has declared the trading of crypto illegal. The main reason State Bank gave is that it can’t be regulated by a centralized authority. Many people in my country are still trading in cryptos and no serious action has been taken by the authorities yet, we are hoping that our government will reconsider its decision and we will be able to trade freely.
Wow. I had no idea crypto-trading was illegal in Pakistan. Thanks for this informative comment.
In the Province of Quebec, no matter how many Crypto you own, no matter how long, although a small amount isn't something they will bother with too much... If your crypto gains, it is considered as a, what's it, similar to salary thought not quite your salary, and you can be taxed on it. There is a way to bypass this, if you put money in your RRSP, which sucks, but in Quebec, if you put money in your RRSP, it is removed from your income and assets, therefore Frank is going to put the amount he would have been charged into his RRSP. They will take that instead of taxing him that very same amount.
I'm not sure if it's the same in the rest of Canada.
Thanks, @binkyprod.
for Question 1:
I do not understand about the taxation of crypto in US, because I stay in INDONESIA.
for question 2 :
I stay in Indonesia, in our country cryptocurrency is set only to the extent of digital currency, may not be done in general transactions in buying and selling in the market and shops or in the mall. but crypto may be done in the internet market. while in the banking crypto still can not do the transaction because it is still considered crypto as a currency that has not been recognized as the world currency.
For question 3 :
I think all types of crypto having different price different depending on the needs of crypto, as it his monero, zcash and others have market price always increase. this proves that crypto very popular in the market as investment assets and needs. price each crypto currently exceed of price first time they launched, there has reached 1000% in fact exceed it all, like xrp recent in a few days increased exceed 150% of the price before. this was the one that lead to the entire crypto that exist in the market definitely will continue to increase the price.