There are basically two risks:
- the gov will tax you for selling / owning the coins at some point of time
- if your exchange gets hacked, bad actors will know you own the coins and may extort it from you
The only way I know to go non-KYC is to sell your KYC coins for fiat and then buy it again p2p.
Very helpful. Thanks!
You can also do a coin join which will make the Bitcoin non kyc, they won't be able to trace it back to you. Look up coin joins
Not good enough, unfortunately. Yes, you gain forward-looking privacy on those transactions, but the centralized record of your KYC purchase exists forever and governments or hackers will still assume it’s an accurate reflection of your net worth in Bitcoin
Buy p2p to avoid this entirely.
Coin join does not get rid of kyc, in a hypothetical fight with the government you will probably lose.
The government cannot prove you are currently holding the Bitcoin even if you don't coin join, you can just claim you gave it away, spent it, or lost it. It's literally impossible for them to prove otherwise. I agree buying p2p is the best but it's extremely difficult to buy p2p in the UK for example. Also if you're never planning to sell your btc like I am then they can't tax you on it, and again if they try to make an unrealised gains tax just say you lost it or gave it away
Look what happened in 33 I certainly wouldn't trust. 🤙
Yeh but again it's not like gold yk they can't just take it, they can't prove you've got it. I see your point though and like I said I do agree with you p2p is obviously best
I was curious, why is it difficult to get p2p in your region?
I don't know of anywhere I can get p2p Bitcoin in the UK🤷🏻♂️🤷🏻♂️
Same in the US. There are Bitcoin ATMs but they charge crazy high premiums.
I learned a lot from your comments. Thank you guys very much!!
The gov will not need to prove anything. YOU will need to prove that your bitcoin is now in other hands. And, believe me, many of your proofs and statements will be just disregarded and you will be taxed.
They can give you a fiat denominated wealth tax bill based on how much bitcoin you bought back in the day.
Bitcoin , at least in the US, is treated as an asset similar to a stock. When you sell it and get a capital gain, you must declare it and pay the tax.
As I am aware, there is no separate bitcoin ownership tax, excluding cases where you own a lot of stuff and are subject to the wealth tax.
I meant on chain transfers to addresses you control. Then pay capital gains taxes. Now it's not tied to you anymore. You sold it. And you did it before government required doxing the sale.
Stuff like chain analysis is bs imo. It's based on things that don't hold up at all in a p2p world. So just do p2p when you can and fake p2p when you can't.
