The SEC is Attempting to Reclassify CryptoCurrencies as "Securities" - May lead to Americans being unable to participate on Crypto Exchanges

submitted by WarmPotato from (helplbrysavecrypto.com)

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[–]hennaojichan 7 insightful - 1 fun7 insightful - 0 fun8 insightful - 1 fun -  (5 children)

Japan has banned Monero. There is probably a way around it but if you openly declare where you live, you can't buy it. I'm wondering if this will become a trend among other cryptos.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (4 children)

What about buying some other crypto and trading it for XMR? I'm sure they can do that?

[–]hennaojichan 1 insightful - 2 fun1 insightful - 1 fun2 insightful - 2 fun -  (0 children)

Thanks. I am not a crypto expert but learned a bit when BTC crossed $20k.

[–]goatmeal 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

the problem appears when you have to submit KYC to buy the traceable crypto and then it ends up on a banned exchange. they will be able to tell that you are trying to trade it for XMR.

[–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

What is KYC? Only XMR is untraceable?

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Know Your Customer. Banking laws for proper taxation of customers, really.

[–][deleted] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (9 children)

I don't see the SEC classifying cryptos as securities as NECESSARILY being a problem. I trade stocks, they are securities, it works. Of course if I make a profit, then guverment wants a slice of that pie. I like that cryptos have remained unregulated, but who really thought they would remain so forever?

[–][deleted] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (8 children)

Cryptos are already taxed as property, short/long term capital gains depending on if you hold it a year or not. The IRS has been wanting their crypto taxes since 2016. This year is the first year the question if you own crypto will be on the irs form, and it's illegal to lie.

[–][deleted] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (5 children)

Wait, you only take a capital gain (and taxes) if you sell, right? That's the way it works in Canuckistan. I think it will be on the form here too.

[–][deleted] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (4 children)

Sales, gains not realized during trades (the particularly shitty one), and staking are all taxed in the US. You don't have to report cryptos bought with usd you hodl. Stablecoins are treated like any crypto.

[–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (3 children)

So if you hodl a coin for more than a year, you are taxed on its appreciation regardless of whether you sold it or not? If so, that is absolutely totalitarian and insane. ESPECIALLY given the upcoming extreme inflation.

[–][deleted] 5 insightful - 1 fun5 insightful - 0 fun6 insightful - 1 fun -  (2 children)

No. If you hold a year you get taxed a lower %, long term capital gains tax, than if you sell --or day trade obviously -- less than a year at a higher % (short term capital gains tax). But not till you sell. And Losses offset the taxes.

You get taxed on any paper earnings from trades which is the big sticking point. For example, if you trade ETH for ADA and if your ETH was up you pay taxes on that profit even though you never actually realize any profit.

[–][deleted] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (1 child)

Very scummy.

[–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Yeah it makes absolutely no sense, why do I pay taxes on something I see no money from!?

You get taxed on the earnings from staked coins too, also without realizing any profit.

That's the tax code as I understand it though.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

This year is the first year the question if you own crypto will be on the irs form, and it's illegal to lie.

Oh shit, that's heavy. I certainly hope there's more qualifiers than that in the final question. At any rate, there's always the possibility of holding crypto outside of your registered name and country and KYC laws.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

You don't have to report if you just bought, only trades and sales. I think. This is brave new territory.

[–]whistlepig 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Interesting.. I guess this means that those tickets the ski ball machines pump out are also going to be securities now?