Governments Can Tax Legal Cryptos

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2 years ago

Every government has a legal currency.

All governments of the world have their official currency. They either have their national currency or adopt any other strong currency as their legal currency.

In many cases, countries permit different currencies as tendering currencies. Many governments accept another strong currency in addition to their national currency.

The united states dollar is accepted in many smaller nations officially. All smaller and bigger vendors accept the US dollar as payment.


Governments want to tax income and sales.

The main purpose of the government is to tax the citizens' income. They impose many ways to tax people in a variety of ways.

  • For example, when you blog on a blogging platform registered in the US, such as Medium, a default 30 percent of the income from the platform is deducted at source as tax if you don't submit government ID proof.

  • If you provide them with all your ID data, including your income tax ID of your country of origin, they deduct 15 percent tax as a non-US citizen!

It is so so simple that governments want to tax you and digitally control your digital identity even if you are not living in the governance territory of the platform (in this case it is Medium)!

That is the reason most governments want people to pay for every purchase and sale through online payment gateways.


We celebrate when a government adopts a cryptocurrency as an official tendering currency.

Big applause of celebration propagated in the cryptocurrency community when the Prime Minister of St. Kitts announced that they would be accepting BitcoinCash as legal tender from March 2023.

Screenshot source: Twitter.

It is indeed a moment of celebration for the founders of the BitcoinCash project. The community of BCH has a valid reason to be happy. The same thing happened when El Salvador adopted Bitcoin as a legal tender a few years ago.


Governments can tax income and sales using their legal cryptocurrency.

  • When a government adopts a cryptocurrency as a legal tender, they keep the right to impose taxes on people's income and sales using the legal cryptocurrency.

The essence of peer-to-peer crypto payment will be intercepted with an intermediate centralized app of the government that would keep track of people's transactions using legal cryptocurrency.

Screenshot source: Twitter.

Don't forget that making BitcoinCash a legal tender means taking BCH into the government's income and sales taxing system.


No government taxation department is a charity!

Using a government app for crypto payment means giving them permission to be tracked and taxed on the income and sales.

  • The taxing features of the governments may equally apply to registered businesses and individuals.

It will probably apply to the recently announced BCH-to-Fiat payment feature of Zapit BCH wallet using the Indian government's Universal Payment Interface (UPI) app.

  • All government wants to track income, purchase, and sales because they badly need to collect money from the people, rich or poor.


Bringing it altogether

There is some scope for elation when a government decides to adopt a cryptocurrency as their legal tender for payments via apps by the people.

But, legal means you are under complete CONTROL.

  • Governments can track transactions indirectly through their centralized app.

  • Governments can deduct taxes on purchases, sales, and transfers using crypto payments via their centralized app.

Crypto adoption by a government is like a "golden cage!"


Postscript

  • Yes, Crypto adoption by a government is like a "golden cage!"

It is my view. If you don't agree with me, please don't hesitate to write your opinions in the comment section.

  • At present, the adoption of the little "golden cage-like" option is a good choice for cryptocurrency lovers!

Let's enjoy what we get, but with utmost care so that we don't lose anything while using the facilities tracked by the governments!


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Cheers!

Unity (Debesh Choudhury)

Text Copyright © 2022 Debesh Choudhury — All Rights Reserved

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#cryptocurrencies #bitcoincash #BCH #incometax #fintech

Nov 15, 2022

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Comments

There's some advantages and disadvantages on adopting cryptocurrencies in countries. Advantage to those who uses it before his country announces as he can use it immediately, but disadvantage as tax can be deducted to it. But in some cases, it's the government right to get taxes, so give them what they demand.

$ 0.01
2 years ago

Suppose most governments accept a particular cryptocurrency as their legal tender. Then, that specific cryptocurrency may lose its freedom under government regulations and taxes in those locations.

$ 0.00
2 years ago

Yeah, that might happen. So maybe it's still better when government are not that open to cryptocurrencies, but not limiting the usage of it by blocking their country from it.

$ 0.00
2 years ago

Governments can't block a cryptocurrency; they can only block an Internet domain or domains of cryptocurrency exchanges. They can, of course, induct new laws to penalize people or organizations dealing in cryptocurrencies (if they can catch them).

$ 0.00
2 years ago

Let's assume the cryptocurrencies considered legalized in country. Now there is an ABC person in that country, who have been using Bitcoin.com Wallet or Binance or another such app. The government has launched an app and suggested or authorized the use of that app, but ABC has not been using it. My question is, whether the government is still able to track crypto transactions of ABC, while he is not using the authorized or suggested app.

$ 0.01
2 years ago

When a government support/sponsor a crypto project, it will get full cooperation from the associated crypto group(s) to track people's transactions. Bringing a government into the crypto game spoils the primary purpose, i.e., freedom in cryptocurrency.

$ 0.00
2 years ago

Which I don't want and don't love. Pleased for you details

$ 0.00
2 years ago

That is right, but our goverment is not accepting the cryptos at all! Wish one day our ones also allows to take control over that.

$ 0.01
2 years ago

Your government accepts one or more cryptos means they take the cryptos into their taxing control. It may spoil the primary purpose of cryptocurrencies, i.e., freedom.

$ 0.00
2 years ago

But it gets legal, RIGHT?

$ 0.00
2 years ago

Legal means you are under complete CONTROL.

$ 0.01
2 years ago

You are absolutely right, government adoption of a cryptocurrency, such as BCH, is not an advantage. Governments should be kept out of the system, not growing into it. It would delay mass adoption, but to what use comes mass adoption if it leads into the same slavery hell as fiat systems?

$ 0.01
2 years ago

I appreciate your recognizing the problem.

You are absolutely right, government adoption of a cryptocurrency, such as BCH, is not an advantage ... if it leads into the same slavery hell as fiat systems?

Cryptocurrency technology innovation and adoption should go side by side. But taking governments inside the loop may harm instead of helping!

$ 0.00
2 years ago

Here cryptos are super taxed as everything!!! The Tax Department have a lot of inspectors and they focus always on poor or medium class citizens curiously not on the richer people or politicians who are stealing and taking the money to fiscal paradises (proved).

$ 0.01
2 years ago

Yes, the tax departments are ruthless on the common mass. But, making a cryptocurrency a legal tender gives the government the much-needed power to track and tax the particular cryptocurrency.

$ 0.00
2 years ago