Have they been correctly addressed and analyzed?

There are some countries that want to impose stricter rules on the cryptocurrency market and for those users who are called "tax evaders". However, this may not be the best way for you tax virtual currencies and users in the cryptocurrency market.

In some cases, encrypted taxation tends to be very complex. One of the things worth mentioning is that virtual currencies must follow the rules that have already been applied to other activities such as actions. For example, while individual exchanges in the stock market could be taxed very simply, cryptographers have some problems with this. In a single day, it may be possible for people to make transactions several times in a virtual currency because of the low commissions that the exchanges have.

On December 4, the Japanese government decided to set up a system to track people who refuse to pay tax on profits from transactions in virtual currency. The information was released by the Japanese newspaper The Mainchi.

Although it is clear that the Japanese government could receive a substantial amount of funds from virtual currencies during the upward years, it also sends the message to the population that the encryption traders are criminals.

However, it is also necessary to see the impact of a simpler tax code that would regulate virtual currencies. At the same time, the community of cryptocurrency is also a promoter of libertarian values ​​and how legal currencies damage populations.

Instead of calling cryptic scammers, tax evaders and criminals, the best you can do is create a simple and clear tax system that would allow investors to understand how to be taxed. Asking the market participants to follow every transaction in the market is not the best way to adjust the space.

With a clearer tax system, investors would feel more comfortable exchanging virtual currencies and would be more willing to pay taxes. Without this approach and calling fraudulent investors, the government is losing an important amount of funds that users are willing to pay with a clear system of taxation.