Several countries, Japan included have decided to impose more protocols and regulations in a bid to catch the “Cryptocurrency tax evaders” according to reports from EWN earlier today. This approach of taking slanderous action on different investors is a wrong one which will ultimately go wrong for the administrations that pass them.
It is essential to take note of the fact that the process of Cryptocurrency taxation is very complicated. Different media channels have been publishing the terrible rates of Cryptocurrency customers that pay taxes without taking into account the complexity of the recent tax code. The number of crypto investors who have paid taxes is less than one percent of the population of Cryptocurrency investors.
The trading of Cryptocurrency in a single year, over a thousand trades can be carried out by a typical user does not have the same penal tax code as individuals trading in the stock market.
Announcing The New Cryptocurrency Tax
Yesterday, December 4th, the Japanese government announced a new Cryptocurrency tax initiative. This initiative will enforce Cryptocurrency taxation and track down tax evaders with the system developed. Cryptocurrency appreciation will lead to significant taxes, and the government is willing to collect these taxes.
This taxation initiative, however, sends the wrong message to investors and traders that they are criminals rather than respected traders. The simple tax code on Cryptocurrency has yet to make an impact. Crypto traders are watching to see if it will make an effect on the recent unfavorable low tax rate paid on Cryptocurrency earnings.
The Cryptocurrency community has been under a lot of examination in recent times with its decentralized nature and other features. The governments have tried many times to control this coin as they do with fiat currency with no success. So it is clear why the tax services of the government view crypto traders and investors as criminals who are attempting to avoid tax and operate outside of the conventional system.
This complex ridiculous tax code introduced has crypto investors jumping through hoops which do not send the good message. This complicated code only shows that the governments are not willing to reach a compromise with these investors.
Most crypto investors have little interest in complying with this code, but it is less out of vindictiveness and more out of paralysis. There are only a few investors that are happy to pay taxes, especially those gained through practical investing.
The government should look for a more straightforward way of collecting tax on crypto gains rather than painting the whole crypto community as criminals.
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