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Crypto is used to circumvent capital controls: In other words to create a free market in foreign exchange for countries that ban it. Crypto is also used to eva
by nroets 3y ago
Crypto is used to circumvent capital controls: In other words to create a free market in foreign exchange for countries that ban it.
Crypto is also used to evade taxes. I'm not saying it's a good thing, but it's not as bad as dealing drugs or scamming people.
- siwatanejo 3y ago> Crypto is also used to evade taxes. You know what, this narrative is funny, because 99.999% of the time in which "crypto" is used to evade taxes, it's the kind of taxes that would need to be paid because of capital gains on the crypto assets because their value increased. But most of the time, they are unrealized gains, which means that tax evasion didn't actually happen. But anyway, let's now think of the cases where the person sold the crypto back to fiat: how easy is to evade taxes at that moment? Not very, because most exchanges report trades to authorities. And anyway, the fact that their crypto balance increased is due ultimately to politicians doing QE! So they tax us in a hidden-way via money-printing, and after the scarce assets increase in value because of this, they want to tax us again.
- nroets 3y agoI've never owned any crypto. I'm changing my tax residence for legitimate reasons. (Hardest thing I've done in my life!) But I suppose some crypto owners are changing their tax residence without declaring their crypto i.e. no deemed disposal and exit tax.
- kahnclusions 3y agoThe big problem comes when they want to use their crypto horde to buy real world stuff. Want to buy a house? Now you need to convert your crypto into fiat and a deed transfer. People will start asking where your funds are coming from. This is where you tend to get caught.
- ethbr0 3y ago> People will start asking where your funds are coming from. This is a weird statement. If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it. If it's a mortgage down payment, then the bank is more interested in if your assets are going to disappear (e.g. are they actually a loan from a third party?). I've never had a mortgage bank inquire about my tax situation. If you're talking about IRS audits... then yes, they might be curious how you purchased a giant asset without any declared income. But that's similar to any unreported income situation.
- taffronaut 3y ago>> People will start asking where your funds are coming from. >This is a weird statement. Not in the UK. Here there's a legal obligation on the conveyancing practitioner - which you have to use - to confirm the source of funds for the purchase. They "will ask questions about your salary, request bank statements and ask you to give details of any family inheritances"[1]. [1] https://www.bannerjones.co.uk/your-property/services/buying/online-conveyancing/pages/source-of-funds-check https://www.bannerjones.co.uk/your-property/services/buying/...
- pyrale 3y ago> If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it. Yes, but your bank and the bank of the seller both have strict KYC/AML rules to respect. And the seller probably doesn't want to accept a pile of bills that requires laundering.
- cycomanic 3y agoWhy is evading tax not as bad as scamming people? Isn't it really just scamming the public (i.e. everyone)?
- nroets 3y agoTax evasion is rife: How many tradesmen fixing stuff around your house for cash will report that income on their return ? Governments can get most of their revenue with little economic distortion by taxing stuff where evasion is much harder: Fuel taxes and property taxes.
- ryan_lane 3y agoTax evasion is people stealing from you, just in an indirect way. Just because some people already steal from us doesn't mean it's OK for other (richer) people to steal even more from us. You may believe there's a better way for the government to tax us, but that's not how the system works currently. Crypto being used for tax evasion is a good reason for it to be regulated out of existence.
- elzbardico 3y agoTax is the burden of the middle class. If you are Donald Trump or Nancy Pelosi, other rules apply to you, because they are the ones who write the rules or lobby for them.
- nroets 3y agoYou can make the same argument that governments should ban physical cash.
- ryan_lane 3y agoCrypto scales a lot better than cash, and allows for considerably larger amounts of fraud, and not just locally, but also internationally. I also think that businesses avoiding tax by not reporting cash are putting themselves into an unfair position against businesses that are legally operating, and I'd have a preference that businesses doing this should be shut down. If you're running a thin margin business and your competitor is able to price themselves better by committing tax fraud, then you need to also commit tax fraud to compete, and that's a race to the bottom that's not good for anyone.
- water554 3y agoWhy is dealing drugs bad? Bringing hard to obtain product to customers who want and will pay for it.
- zirgs 3y agoDealers on darknet markets sell hard drugs to children. Even if drugs were legalised - selling them to minors would be illegal.
- nroets 3y agoA friend of mine got hooked on something really bad. We could all see his health deteriorate month by month. He's probably dead right now. Even his parents don't know where he is. He's son will grow up without a father. I never met his dealer, but I'm sure the dealer saw the decay and did nothing.
- hiatus 3y agoThe fact that the dealer saw the decay and did nothing is related to the drug's illegality. If the drug were available in a dispensary where you had to go out in public and get your drug, there would be more opportunities for intervention. We already make it illegal to serve alcohol to someone visibly drunk. You can't apply rules like that when the transactions are occurring in the dark.
- George83728 3y agoIs this a joke? There isn't a gas station in this country that will refuse to sell booze to a homeless broken down and busted up alcoholic that begs for change right in front of the gas station. Except of course, the gas stations that legally aren't allowed to sell booze to anybody in the first place. Dealers have no morals. Even the law that bartenders aren't allowed to serve drunk people is an absolute farce. Walk into any bar in this country and you'll find drunk people being served alcohol.
- mrguyorama 3y agoWhich is why Australia has no problem with gambling addiction, right? Maybe there is more to it than whether something is legal or illegal.
- flangola7 3y agoWhat the real hell? I would report most well off people for dodging taxes, I would never report someone for drugs.
- zirgs 3y agoWhat if that person was selling drugs to children?
- siwatanejo 3y agoYou give enough money to your children to afford drugs?
- flangola7 3y agoDepends on the drug and the age of the child.
- FabHK 3y agoYes, that’s the crypto use case. Make a ledger a billion times less efficient than an ordinary ledger, so that you can circumvent regulations (until the regulator catches up).