Cryptocurrency capital gains is unrealistic and countries that impose it are slowly destroying their own economies.

If you owe CGT you should report and pay it..

The problem is not the fact you owe money as most people are willing to pay what they owe (most people) just so they can sleep better at night. However the problem with CGT in crypto is that it's near impossible to track and report and calculate meaning even when you are trying to do the right thing you are likely to still be on the wrong side of the law. From forks to defi to staking to gas fees to farming yield to DAOs to streaming money etc etc its impossible to calculate record and report CGT events on every single action and transaction made within the crypto space. Crypto is an asset class where you can unknowingly have 20 CGT events in a single day that all require record keeping and reporting on your taxes.

In other words CGT within crypto makes otherwise hard working innocent law abiding citizens tax frauds by default.

The only answer is to set up your life so you do not owe CGT. If you are from or live in a country that has CGT on crypto then MOVE to a country where there is no CGT on crypto, this way there is nothing to report and therefore you can't accidently end up on the wrong side of the law.

This is exactly the reason so many bitcoiners are moving to Dubai / Singapore / Portugal / Cayman Islands etc, it's not because they are trying to save 22% its because they want to be able to use and experiment with all this new and exciting technology without having the tax office knocking on their door for not reporting some pancake swap that resulted in some staking yield from a DAO they overlooked.

CGT suffocates this space by making record keeping and reporting next to impossible to comply with, so MOVE to a country that does not tax crypto so you can breathe and not have to worry about the tax office imprisoning you just for experimenting with new technologies. Not only will your life be so much better but you will be living in a country where crypto will flourish. No companies are going to set up in countries with tax laws that make operating requirements impossible to comply with, they are all going to set up in Dubai and Singapore.

Imposing CGT on crypto is the equivalent of imposing taxes and reporting requirements on visiting websites and sending emails back in 1995.

Crypto is flourishing in countries that do not impose CGT, move their now not just to simplify your own life but to enjoy living in a city where crypto businesses will flourish making life in those cities heaven for crypto users.

Submitted November 26, 2021 at 02:47PM by slvbtc https://bit.ly/32FB5Mp