When Bitcoin was still deeply buried in the world of unknown technology and black cloth, it was at hardly perceived as a threat, even legitimate by those in power. However, he quickly proved that many people were in the wrong and that popularity and price were skyrocketing.

These two factors led regulators and government institutions to sit down and become aware. But more than that, they were forced to act in response. Regulators are catching up with Bitcoin, as more and more uncompromising approaches are starting to get around to them. It now seems that the tax authorities of some countries are also beginning to attack this monetary system and their rapidly expanding and especially anonymous assets.

Just like death and taxes

It's hardly confusing to know why the tax man would want to come knocking on the door of the Bitcoin community . The power of this digital currency, along with others, has transmitted enormous amounts of growth and prosperity to investors, the prosperity that has so far been largely discarded from the network.

The sum of money, growth and returns on investment mean that governments have the opportunity to claim their rights, but their methods are much more difficult in the gray area of ​​cryptographic revenues. Under normal circumstances, banks and other centralized financial institutions are required to disclose their finances to the tax authorities. However, the same can not be said for Bitcoin. Stock exchanges are currently not required to disclose user information. In fact, it is unconstitutional in most contexts, as the United States Internal Revenue Service (IRS) discovered when they requested data and were rejected by the courts.

In addition, Blockchain offers a transparent window transactions, but with anonymous identifiers, these are not good for anyone trying to hunt down fund owners and their respective growth. This is also why there is a widespread fear of money laundering in the Bitcoin world.

How Do They Make – From United States to Australia

Given the difficulty in locating Bitcoin assets, different nations are trying different ways to try to claim the # 39, tax on profits made by Bitcoin investors. The IRS, for example, tried to ask people to properly report their tax, and only 802 listened. The reset is simply mocked and stayed in the shadows.

In Australia, the government has considered that cryptocurrencies are "a form of property", and therefore: "All financial gains made by the sale of Bitcoin will generally be subject to the tax on most -values ​​(CGT) and must be declared to the Australian Tax Office, said a spokesman for the tax office.

Although it still acts From a gray area, a warning has been issued.The Australian Tax Bureau has warned that it will look for telltale signs of crypto-fiscal dodgers living beyond their means:

"The Australian Tax Office is here to help those who are really trying to meet. However, when people deliberately try to avoid these obligations, we will take drastic action.

This includes the use of "a whole range of existing powers" that are used to deal with "unexplained riches and ostentatious consumption that may arise from profits made from the". cryptocurrency investment.

The South African Revenue Services (SARS) said last December that it would investigate ways to track cryptocurrency transactions in the hope of settling taxes avoidance. In the meantime, he seeks to provide his own advice to citizens on the tax treatment of cryptocurrencies, his first foray into controlling the gains made. Asheer Jaywant Ram, Lecturer at the School of Accountancy of the University of the Witwatersrand, states:

"I think there is enough interest and of possibilities for SARS to look into this space, but now the question becomes, will they really accept that taxpayers declare their earnings as capital gains tax or will they simply say that everything has come back into Nature? "

Income or Capital?

This is a key question that many nations will have to put over the sword because, if it is imposed as a income, as opposed to capital, it will be at a higher rate.Prove that it was indeed a long-term investment, and therefore subject to the tax on gains , is much more difficult in the rapidly evolving ecosystem than is Bitcoin. Ram adds:

"This kind of debate about the nature of Bitcoin – I think that happens – and I think it would be very interesting to see the result of these debates"

C & # 39 is the very nature of crypto-currencies which, as they emerge more in the mainstream, will be subject to more control and regulation. While blockchain and cryptocurrencies are a disruptive force, scary long-standing institutions such as banks, it is doubtful that they will be able to avoid taxes forever. It would be more relevant that a resolution be found between tax authorities and crypto investors, lest there be bigger problems down the line.