source
Would you move if your crypto was suddemly worth millions? I know I would and wouldn't hesitate.
Today I was reading how the South Korean Government has changed it's mind on crypto currencies and the taxation of them. Up until now Bitcoin and the alts have been seen as a hobby and have been tax exempt. Obviously Bitcoin surpassing the $50 000 mark may have changed their views and have changed their tax laws stating crypto is a financial asset thus a 20% tax will be applied from January 2022. This highlights how topsy turvy this world is with some countries banning it, others treating it as a normal asset and some don't classify it so it is tax exempt.
Not much of a threshold either being $2300 and stating that gains made by trades and holding do apply. The holding part I find wrong as for instance Bitcoin went up from $4000-$50000 in one year and if you had a few would have to find 20% of $46 000 ($9200) for each coin you were holding if I understand this correctly. I find this unfair and believe only when you cash out should one be liable.
think of the airdrop that happened with UNIswap and how many headaches that could cause as they state an airdrop is pure profit so for receiving it you are liable to pay the taxes immediately. This would force many to sell immediately instead of holding and we all know what happened thereafter.
Having an asset like Hive or Leo that you grow every day is something I find special and will protect at all costs. No one can trace it to you thankfully unless you send earnings to an exchange and possibly leave a trail.
I have always said it is very important to have multiple bank accounts around the world and still need to organise one more so I have 3 dotted around. There is going to be loopholes and I am in no rush to hand over my hard earned gains to anyone.
Luckily there are still some safe havens around the world who don't see crypto as a financial asset. The individual is safe in these places and anyone owning a business like a trading company dealing in crypto will pay normal business taxes.
My worry is that these countries will start shrinking as they review their policies like South Korea have leaving us with only a few. I know Portugal, Malta and Belarus look on it favorably right now, but will no doubt have to buy property in that country to jump through the loopholes at some point. I suppose that is a small price to pay if your digital currency becomes valuable enough to move around. 1 Bitcoin in a few years time could buy you a beautiful apartment somewhere which could end up saving you hundreds of thousands in taxes.
I actually look forward to these problems as it means we are all making money and who knows maybe all living in the same country.