I was watching a news clip today where US Treasury Secretary, Janet Yellen had some bright ideas about taxation. especially with crypto. Her idea is to tax your gains even if you haven't sold into FIAT. That is purely ridiculous to even have that as a thought as it shows ignorance in the extreme. I have thought maybe they are saying these things to create some FUD and panic as people cannot be this stupid and maybe they are being smarter than what you and I think. Nah maybe not as maybe that is giving them too much credit and they are way thicker than what we could ever imagine.
Can you imagine investing into something that does 10 x or 100x and then hits a dip losing 50% within a week. You could be in for some serious losses with the receiver if this was a genuine tax ruling. Your investment may have been up $100k but now it is only 40K. We saw that with Hive not so long ago as it was only just over 3 weeks ago that this kind of thing played out.
$1.48 became less than 80c and in theory could be paying tax on the difference but we know that is never happening as we are decentralized and they have no clue who @cryptoandcoffee or any of us really is. Not so lucky on the exchanges though if they are talking to your respective Governments handing over your KYC information.
Surely sense has to prevail at some point as logic should be when you withdraw you pay taxes on the profits earned on that particular crypto. If you invested $100K everything over that amount you must pay tax on if and when you withdraw. taxing somehting that could go up or down as that just doesn't seem really fair and is a one way street.
Would they reimburse taxes if you had some bad trades where if you owed them for example $50K and after some volatility you were now in the negative. That would never happen and why the way they are even thinking is purely wrong and angled to screw everyone.
Thankfully I am not in The States but what I have noticed especially with Crypto is other Governments are just as clueless so they are happy to follow. One Government says something like we are doing this for your protection and that is all we here from other governments around the World. This type of tax law just cannot even make it to discussion as for them this is marvelous and a huge money spinner.
When you see news clips and stories like this appearing all it is going to do is make countries who are crypto friendly look even more enticing. I have no qualms having another Nationality as I already have 2 passports so would happily add another if it comes to it. Over the next 2-3 years we will see loopholes appearing as there will be grey areas or safe havens that are legitimate and above board. I have always said once I have a clear head I am going to investigate this thoroughly and will be traveling sometime next year doing just that. Maybe the @leofinance team or community has some ideas on what is possible as there has to be some.