I get your point sir, So does it mean that whenever you invest on some cryptos you will not get taxed right? Only when you sell your funds right? Thanks for the help sir, highly ppreciated.

I they don't know you have the money, they can't tax it. If you managed to get money into certain address years ago before regulations have been implemented and you haven't touched that since, it's unlikely they'll find it. As for what you keep in exchanges now, they can track that. Thankfully though for now they seem to be content on charging only when you cash out.

There is no difference between Crypto currencies and other commodities that are being traded on a open market. When you trade a commodity and you made a profit, you should pay capital gains on that profit. The US see that as trade income and they define Bitcoin as a commodity.

You should just keep good records of all your trades to see if you made a profit or a loss at the end of the financial year. <Some of the regulated exchanges have some reporting options for you, if you want to export that data  to a spreadsheet.>

I think we are still far away from the taxation of crypto currencies. Why do I say this, it is because that we dont have a single committee that is willing to commit and fix the regulation system of crypto currencies. We need to see first how things would be regulated before we can focus on the taxation system that would be put into place.

I think tax of cryptocurrency is normal thing, but that government which that asks for taxes should be legalize cryptocurrency too.
Because that like not balance if government not legalize Cryptocurrency but they ask for taxes.
and if this happen, I think that will bring good effect for cryptocurrency in future, because more peoples will use cryptocurrency. And that will backing crypto price and make it stable, maybe can reach high price.
And about taxes, user of cryptocurrency will not feel awkward to pay tax, because this is profitable both sides, that is User and Goverment.
This is like Win Win Solutions and Win Win solutions is the best solutions in my mind. and I hope the best for cryptocurrency later.

Thank you sir. I think we got the same point, all the best for bitcoin. Everything will materialized when everybody is well inform and there will be a system that can maximize the benefit of both parties the cryptomarket and the government.

since you said you read it in New York times, didn't it already mention that taxes on cryptocurrencies have been in place ever since 2014ish by the IRS and people have been paying their taxes whenever they have bitcoin and other cryptocurrencies and make a profit?
so what is the difference now?

Actually sir since I am knew in this forum I am getting the opinions of everyone to become a better crypto user someday. What I understood regarding taxation is far beyond those who are already long time users of it. That is why I am asking for your positive insights.

I think we got the same point sir, What I understood is that whenever a government body shall enforce laws on taxation of trading bitcoin it simply means that the government intrudes bitcoin. Thanks sir.