The trend currently now is Crypto taxation. Will Crypto taxation bring further adoption or it will bring down the adoption? The answer may be yes or no.
Crypto currency is just like any other monetry asset the difference is in Digital comparison. Crypto currency are digital. If non-tangible and tangible goods and services are taxed why not tax Crypto? It's been a great worry for Crypto traders and investors.
The Government have been looking for ways to get revenue from Crypto spenders and exchanges. So how do they tax users of crypto currency?
From Goods and services bought with Crypto via Transactions
Withdrawing your Crypto by converting to cash.
Exchanging Crypto for other Crypto currency ( this can be taken from swap dex)
Via p2p mechanism.
With this taxation polices, can this make investor not get their self investing again? But on the long run it will help develop the society the tax can also have impact on everyone on a large scale positively or negatively. In the past week, the Indian Government did not ban crypto in the country but imposed a tax of 30% on crypto transaction. Indian Crypto traders and other crypto traders were worried even being an adoption the tax rate was too high.
So technically, this has effect on traders because exchanges will have to increase fees for Withdrawal in order to cover up those taxes.
EFFECT OF NEWS LIKE THIS
It market price of assets may go down for a short term.
Traders may loose money because news fud.
It can also bring mass adoption on the main stream other countries trying to key in to the new technology.
