Lets Talk Cryptocurrencies And Tax.

So earlier today, I was reading a bit on different countries and their tax rates and was quite amazed at the information I found. Although I had known a few countries with very little to no taxes on incomes but knowing countries that had high taxes are quite important for a few of my future decisions and so I had to take a look. I realised EU countries were wild when it came to taxes and as someone from a low tax country and have witnessed how developed a country can also be without taxes, I felt the tax rates weren't friendly. But then, these taxes seems to have been helpful making these nations some of the most attractive countries to live in lately.

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My issue however was with tax on crypto income, and to be honest, I felt it was too much in certain countries like the US with over 40% tax on crypto gains. You may ask how do the government in these countries know you own crypto when crypto isnt directly associated with your name. Well, from my understanding, you can't be taxed when you buy cryptos in most high tax countries. You aren't also taxed when you hold for a long time. However, when you make gains on your assets, you have to declare these gains most especially when you're changing your cryptos to cash. Then the cryptos are taxed. I'm not 100% sure how it works buy I honestly don't like the sound of that, and perhaps this is a reason why we selling your cryptos isn't an appealing thing in many parts of the world.

I think if cryptos were taxed this high in many countries, many people would actually prefer holding for decades and making realy great gains before deciding on what to do with those gains, perhaps relocate to Dubai (tax free) to retire and live the dream. To be honest, the idea of crypto tax doesn't sit well with me. What are your thoughts and how do you handle crypto tax in your country(if it exists)?