Those are good points. Acknowledgement of government have its pros and cons. The pros is of course that they will be welcoming it and there won't be any news related to banning. But at the same time, the reason for why the cons is there because of the taxes, the KYC should be implemented for the supported exchanges and even more. The regulation will be at its finest and that's going to make them confident that people will just follow their lead and rules set by them even if they don't want to because there is no option and the government had adopted it.
People have this idea that if it is not acknowledge, that there will be no KYC or taxes but this is not correct. Just because they don't recognize it, that doesn't mean you don't owe taxes. The tax men are usually not that easy to trick. If they knew that you had made profit, they would demand it in any case. KYC rules come from a higher level than national governments.
Yeah, as long as profits are made and wherever it came from, the taxation is still applicable to it. Unless, that profit came from illegal and it won't be declared.
Yes good part is that official acceptance means it is seen as real and can not be banned making things more stable and possibly leading to wider use. But bad part is that this acceptance usually brings taxes required identity checks means KYC for trading and lots of rules. Worry is that once government steps in they will have much of control and people might have to follow their rules even if they do not like them because there can not be another choice. It is really balancing act between being widely accepted and keeping personal freedom.
That is the counterpart of acceptance by the government. I guess that we all will agree about the government that doesn't have a clear stance on Bitcoin and so no taxation will be applied. But capital gains and income are always been taxable filed to the tax bureau. Before, many likes the idea of it but now that it's there, we're starting to think of the negative impacts of it.
This makes sense. Government acknowledgement of Bitcoin has both ups and downs.
It's good because it means less risk of bans and more support for adoption.
The downside is more rules, like taxes, KYC, and heavy regulations.
It can feel like we lose some freedom, which is the main goal or purpose of Bitcoin, right?
Right but we have no option and it's safer that the government won't look at banning it.
