What happens when you are the heir of a Binance account holder who died recently? Imagine that the person who died had 200k worth of tokens on the day of passing away.

It says on Binance that the crypto assets can be retrieved when you can prove that you are the heir, and you have the correct documents.
But which documents are these exactly? One should avoid that documents are missing and the funds are lost. I don't know if that can ever happen.

Does Binance deposit the actual tokens into a crypto account of the heir(s)? Or are the tokens converted to cash, and the cash is paid to the heirs?
I can imagine that most heirs don't have crypto accounts.

Also, what happens when the account holder who passed away still has to file their tax return of trades (taxable, but no taxes paid) that were made just prior to passing away?
This now becomes the responsibility of the person who inherits the tokens?

So I sell strawberries in summer time, and someone pays me $10 for a bucket.

Before he paid me, he got the $10 note from the cashier at the supermarket.
Before the supermarket, it was at the hair dresser.
Before the hair dresser, it was used at the gas station.
Before the gas station, it was used at an Italian restaurant.

But at that Italian restaurant, a gang member used this $10 that came from a drug trade.

I don't get in trouble for accepting $10 that was previously used in a drug trade though.

My point is that it is impossible to follow the entire trail of money, whether it is bitcoin or fiat currency. In this example there are only 5 exchanges, but in real life it has been exchanged thousands of times before you receive it.

People can trace all bitcoin movement on the blockchain, but not every transaction can be linked to an ID.
Banks will fail in their efforts of tracing every single BTC transaction, linking it to the ID of their customers, and subsequently trying to tax every single transaction.

In fact sucking value out of every transaction to keep their fiat currency ponzi scheme from collapsing.

In my opinion what we are witnessing are the early stages of real money (bitcoin) outperforming their dying fiat currency scam.
Soon I expect them to take extreme measures, trying to prevent their customers to invest in crypto currencies. Unless of course it happens on their platforms, of which they own the keys and they will never let you keep your bitcoin in self custody.

They want complete control over this market and forbidding self custody wil be a key issue for that.
I expect them to use terrorism and fraud as the excuse to forbid self custody.

I just wonder who wins in the end

I'm sorry if I am making a bad analogy.
But why is this any different than paying for groceries in cash, and your cash payment being refused unless you can prove that your $20 bill did not come from illegal activities? That is not sustainable for banks to keep verifying.

I am the person who first bought the bitcoin from an exchange, so I can choose to show them where I got it from.
But I can pay my jeweler in bitcoin to receive a bar of gold for example.

If the jeweler has to declare the bitcoin on his balance sheet, and banks ask him where it came from, he can show them that it came from a customer.
That customer could have done something illegal like not paying taxes, or getting it from selling drugs.
But that does not mean that the jeweler did something illegal. He received bitcoin as payment and converts it to cash.

A $20 bill in my pocket could have passed through the hands of criminals, but that does not make it any less valuable or useful.

More and more banks keep asking for your entire crypto transaction history when you want to convert it to fiat currency.
This is to make sure that all taxes are paid, and that the person who converts crypto to fiat did not get it from criminal activities.

Let's say that Frank (USA) bought bitcoin in 2015, swapped for altoins a few times, made profits but never declared those to the IRS.
Now when Frank wants to withdraw his crypto funds and spend the money, he is worried about receiving a huge tax bill or even facing criminal charges (tax evasion). He chooses not to cash out.

So Frank travels around the world and is now dating Sonya from the Philippines.
Frank donates his bitcoin to Sonya by sending it to her BTC address.

Sonya now goes to her bank in the Philippines and wants to convert her BTC, received as a donation, to fiat currency that she can spend with Frank.

The bank is asking for a transaction history, but she does not have one because it was a donation.

What happens then?

In the future, I think it's gonna get much more difficult for banks to trace where exactly the BTC came from.
For most people it just sat there in a hardware wallet and the link to the original purchase is not hard to demonstrate.
But that will change over time, especially when BTC is regularly exchanged between people in different jurisdictions.

Because they share information with the EU.
I have done nothing illegal for now, and I am not going to.
But the extent to which Europeans are taxed on crypto assets is a grey zone (amateur, semi pro, pro) and I do not want to have that debate with a tax man whose aim is to bend the rules and to tax citizens for the last penny they have. I don't want him to find me, and on Binance he certainly will.

Which is my intention, but it seems difficult.
I don't want to make mistakes in this and lose all my funds. I have been in this market for 18 months now and I have not signed any transaction once.
My funds were moved away from a CEX via customer service of my hardware wallet provider.

The man said that his company had good experiences with changelly as a DEX. So I read reviews about them and found similar horror stories to KuCoin.
Lots of people said that transaction fees turned out higher than expected, or transactions were put on hold.

Customer service of my hardware wallet provider said that these issues arise because the middle man at changelly can be confronted with KYC pressure when he swaps my token for a different one. I've checked on the changelly website and they actually ask to complete KYC with them to resolve these problems.. On a DEX! 

I'm currently in doubt whether I should complete KYC there or just go elsewhere to prevent future problems.

I considered using KuCoin (based in Singapore) because a friend told me that they have a KuCoin card and they do not share information with foreign governments.
I have done nothing illegally, but I do value my privacy.

So I read into KuCoin and found reviews on trustpilot.
It gives them a score of 1.5 out of 5 and there is a huge list of traders who lost their funds.

What are your experiences with this place?
I am looking for smart ways to cash out in Q4 of this year, but it seems very difficult.

I've held positions for 2 years and have to take profits soon.
But I want to avoid KYC when I am going to sell. At this point there is a chance I don't owe any taxes, but I want to avoid KYC for privacy reasons.

Which non KYC platforms are the easiest ones to use? I heard about changelly, but nowadays they seem to require KYC for larger transactions. Transactions can be put on hold, which is a disaster when markets are volatile and you have to sell quickly. If KYC is required, I don't see how our privacy is guaranteed on changelly. The excuse is always that governments have to prevent money laundering, but this will end with governments knowing entire transaction histories of every single user.

I need to sell BTC, XRP, HBAR and 3 other altcoins in Q4 of this year. I may have to be fast.
I just have no idea how to do that non KYC. Suggestions are friendly

Amen.

The essence of the problem is that governments are going to extremes to figure out exactly what you own that has value, so they can take it from you with taxation.

Real estate --> can't move, easy to value and to tax. Property tax, municipal tax, exit tax, cadastral income tax. Pass on property to your children? Inheritance tax, on property that was already taxed your whole life.
Salary in your bank account --> direct oversight by banks, automated taxation up to 50% in my country. Lies about inflation which is not 2% a year but more like 8%. Inflation is the highest tax, and they lie about it to hide how much you are losing.

I've often wondered what you can own that 1) holds value and 2) can't be taken from you (forced registration, taxation, debasement).
The only answers I came up with are precious metals (jews hoard this because they figured out it was a way to stop their assets from being stolen by governments), bitcoin, some pieces of art, and drugs. Maybe expensive wine bottles that you can store in your cellar.

My wife is a non EU resident. Because she comes from what is considered a third world country, her government is a bit more slow with crypto regulations and they do not have huge man power to knock on doors and go after your assets. They have other issues to resolve. I'm hoping I can find some loopholes. My wife owns a bank account there, and stopped working there 6 years ago but never gave up tax residency. Technically she is only a tax resident in the EU because she works here, but officially she has 2 tax residencies even though there is a treaty against double tax.

I wonder if she, as a Latin American citizen, can access something like bybit.com (not EU, where MiCA regulation applies).
If her national government demands tax, we can say that she works in Europe and get them to back off.
European tax authorities would not come looking for her on the .com platform.

You nailed it with that last sentence.
Next week, I have a half hour session with the most experienced crypto lawyer in my country. His specialty is international tax law, and he has written many books about it. What I picked up from them is that the IRS in my country is leaving almost no options for crypto holders. Our socialist nation ran out of other peoples money and is now looking at crypto holders like 10 hyenas look at the carcass of a dead horse. They want it. All of it.

I believe that this crypto lawyer will advise me to limit taxes to 20% by buying the crypto assets with my company balance sheet. I know one of his clients who does that. Obviously I prefer to pay no tax, but I can live with the 20% tax if I know that it ends there.

However, I am very convinced that it will not end there in the long run.
The reason why Satoshi invented bitcoin was to protect society against the constant debasement of currency by central banks, keeping people poor for centuries.
He wanted to give people an opportunity to leave that vicious cycle of enslavement.

Mayer Amschel Rothschild, the founder of the infamous Rothschild dynasty once said:
"Give me control of a nation's money supply, and I do not care who makes its laws".

I thoroughly understand how that enslavement works, but I believe that most people who own bitcoin do not. I think they see it as an investment opportunity without understanding the long run.

For now my country only has tax on income, and bitcoin can be a part of that. But a neighbouring country already has a tax on total asset value and unrealized gains.
That is outright theft, and they will want to tax you for life just for owning bitcoin. If we let them succeed, by giving up private custody and by registering crypto assets so that governments can tax them with impunity, the little people will never get out of the vicious cycle of enslavement by debasement.

Jews understand this, and they have been hoarding gold for centuries. It's why so many jews are rich.
I believe that bitcoin is the new gold, but we will only succeed if we keep it away from CeFi and governments with their totalitarian tax rules.

I went from a KYC purchase to self custody in a coldwallet.
I think that there are ways to avoid tax problems. What matters the most for me at this point, is not to sell on KYC exchanges because this is taxable.

At the moment I am in a grey zone. I bought my first crypto (20% of savings) 18 months ago. There were no clear tax rules at that stage. Meanwhile our government made vague rules to categorize investors as either amateurs (no tax), semi pros (33%) or professional traders (50%)

You are considered an amateur (taking profits tax free before 2026) if you:
- have not invested a "large amount" (ideally under 25% of savings)
- don't take "many risks" (not many trades, and not many small cap altcoins)
- use a buy and hold strategy, in which it is not defined how long you should hold the position.

All of this is very vague and open to interpretation of the tax man, who clearly wants the maximum cut he can get. While I think I should be able to legally cash out tax free, I am not going to cash out on the same CEX inside of Europe where the tax man will find me. I have moved my purchased assets into coldstorage, and from here I consider sending them to KuCoin (CEX based in Singapore, and not communicating with foreign tax agencies)

If the tax man finds out, which I don't see happening soon, I still qualify to cash out tax free and I have not committed crimes other than not declaring a foreign bank account.

I'd probably convert the KuCoin balance to stablecoins, and send those back into coldstorage.

A next phase of my plan is to file a police report before 2026, in which I declare that one of my coldstorage devices is either lost or stolen, including the balance on it. They keys are reported as gone with it. This is in order to prevent future tax on assets. For them to be able to tax me, they first have to know what exactly I own.

Also at this point buying a real privacy coin like Monero is not illegal.
Doing that would probably close the door back to CeFi forever, but that is a choice I am willing to make.

A trade for a different crypto currency (such as USDT) is seen as purchasing that other token, which is a transaction.
Buying a golden necklace for your wife on november 7th of 2025. They want to know when you bought the BTC (let's say in 2021), calculate the price difference and tax you for it, on top of the BTC value of that necklace. First of all that requires loads of work for each purchase (calculating it, let alone declaring the difference and paying it) and secondly they couldn't even do it if they wanted to.

If Albert is a drug kingpin with 120 BTC and he wants to buy a golden bar from his jeweler for 1 BTC, it's not up to the jeweler to find out if the BTC he received was clean. For what price Albert bought it and how much tax Albert owes to the government. Albert probably used a mixer, or Monero to erase these traces. But that doesn't mean he can't buy the golden necklace with BTC.

I'm not sure what you consider as a transaction. I mean swapping and purchasing goods and services.
Moving from one wallet to another I do not consider a transaction. That is a transfer.

This is what is happening in Holland. Citizens have to declare their assets in "box 3" of their tax declaration.
Real estate can be a part of this. In a recent video I saw about an exit tax launched in Holland, it says that if you leave the country the government will assess your entire balance sheet including your real estate. Unrealized gains will be treated as realized when you leave. If you had bought a house for 250k in the year 2000 and it is worth 500k in 2025 (real estate typically takes 20 years to double in price) they will tax you on the "added value" of 250k. But there is no real added value because all other houses have also doubled in price. Your real estate only protected you from serious currency debasement, and the government falsely portrays it as if you gained value so they can steal from you.


That last part is very true. And although it may seem like putting BTC on your company balance sheet is doing the right thing in the short run, I think this is voluntarily putting your head under a government guillotine in the long run. What it accomplishes is that 1) all banks now have their eyes on you as an investor into something that threatens their business, and 2) now that governments know your assets, they are free to tax them to the percentage that they want. I also believe that it is only a matter of time before governments will launch a campaign against self custody "because terrorists use bitcoin" while in reality it is purely about them having 100% control over the market. And if you do not comply, they will threaten you in the most horrendous ways. Think of how truckers were unbanked when they protested against the covid measures.


I think so too.
Next week I have an advisory call with the best tax lawyer of my country, who only handles crypto cases.
I am very curious about his advice. I think he will strongly advise against decentralisation and trading anonymously without paying the predatory taxes.
Not long ago I spoke with an ex highschool classmate who made it as a banker. I always found him a snob.
We got to talk about crypto (which he absolutely hates) and he said that it's his authority at the bank to close bank accounts when crypto investors can not show a 100% accurate transaction history that explains where all their crypto currency comes from. He also said that guys who left the country for a tax friendlier alternative, are ambushed by banks using their homes as collaterals. Banks and governments are literally threatening crypto holders into giving up their privacy, by stealing their real estate.

To me it just proves that banks are organised criminal cartels.

So in my country (EU) if you own a significant amount of crypto and sell it on a CEX as a person, it gets added to your gross annual income. It is likely to put you in the highest tax bracket and taxes can run up to more than 50% on realized profits. It is a part of progressive income tax scheme that covers social security for the entire nation. It basically makes life impossible for investors.

There is an option for citizens to launch a company (not expensive nowadays) and buy/sell bitcoin on your company balance sheet. I think that this is what Michael Saylor does too. If your company has realized profits by selling, no matter if this is from revenue or from bitcoin, these realized profits are taxed at a 20% rate. Which is not low tax, but not as disastrous as the 50% income tax for the normal working class.

At this point I am in doubt whether I should set up a company and register all my crypto holdings with the IRS, or keep DeFi away from CeFi and never convert crypto to fiat. Converting to other coins, like stablecoins, is also a taxable event. But at least there are ways to keep stablecoins in a hardware wallet out of reach from tax authorities.

Taxing crypto transactions is like putting a 20% conversion fee between euro and dollar. I do not find it fair, but I can live with it if I have to.

I do have a different concern. Registering all my crypto holdings with tax authorities is like voluntarily given them an opportunity to tax the hell out of me in the future just for owning crypto. There is a neighbouring country that taxes citizens for unrealized gains in crypto.
Both of our countries have also launched an exit tax for citizens who become tax residents in other countries. Governments will look at your entire balance sheet and tax you on unrealized gains when you leave. In my opinion that is outright theft.

The concept "not your keys, not your crypto" does not apply in my opinion when you hold the keys but the government knows about all transactions and can even tax you just for owning something. It's not your digital property if they are free to tax you for the amount the want.

Would you register all your crypto assets with the IRS, or trade to stablecoins and keep them away from them?
I just think it's sad that not giving up your privacy is considered a criminal offense.

What is your personal preference for stablecoins?
I am reading into it, and it says that the genius act is a serious threat to USDT because of non compliance reasons.

My personal belief is that bitcoin will top out in oktober of 2025.
When that moment arrives, I have to cash out my BTC and all altcoin positions.

This moment is pretty good timing because 2 months later by january of 2026, new tax rules apply in my country and the IRS will direct access to all funds on any CEX. I would like to remove all assets from the exchange by that time, so my balance is exactly 0.

I could do this in 3 ways:
1) convert all assets to stablecoins, specifically to Tether. And keep these in coldstorage.
2) Sell all crypto for fiat and leave the fiat on the exchange. It says that my account is protected until 100k.
3) Sell all crypto for fiat, and transfer it from the exchange to my regular bank. This would make the bank flag me and ask serious questions. Not because I did something wrong, but because I have gained a serious amount of money from a competitor they absolutely despise. Some banks even want to suspend accounts of crypto holders here. It gets worse every year.

I do not know which one of the 3 options is the best one.
If Tether loses the peg after this bearmarket and all of my assets were converted to tether, EVERYTHING is gone. I find it extremely risky. But so are the other options.

Which stablecoin is least likely to lose the peg and why?
I don't know what would have to happen for a stablecoin to lose the peg.

And does anyone see any other options than the 3 I mentioned?

Always with the running away from taxation lol… a 33% or 50% on profit is a little steep you know. Almost feel as though you shared everything all because of a policy! I understand why you would prefer a 15% and quite frankly, everyone would but, after having to make this withdrawal in your wife’s Latin American account and it gets taxed there, wouldn’t you have need of it in Europe? Wouldn’t it be taxed there with whatever rate that applies to income tax, or course they wouldn’t classify it to be of crypto origin then or you really want to leave it be in your wife’s account till 2030.

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I have invested 20% of my entire savings account in december of 2023.
BTC since 25k (expecting to cash out at 150-155k in september), XRP since 50 cents (expecting to cash out at $7 in september/oktober), and HBAR since 6 cents (expected to cash out at $0.80 in september/oktober). A few other, less significant investments.

I'm currently up 3x and if my targets are met, I can hit 5x and my crypto wallet would be larger than my entire savings account that I worked 10 years for.
We don't need this money. It just serves to reinvest in the next bearmarket, which I expect to start before the end of 2025.

For 2025 there are many regulatory changes coming to my country. If I can show that I have invested a relatively small % of my savings into these assets (XRP was 3%) and I have used a buy and hold strategy (I have done this for like 18 months) profits are tax free before 2026. It is unclear if this also applies to gains over 10x.

I'm just hoping to cash out as much as I can at low tax or no tax, and invest the entire sum again at the bottom of the next bearmarket.

Imagine 20k --> 100k (2025), 100k --> 500k next cycle, and new 5x'es from there.
If I ever get to 500k by legally avoiding mass taxation on my profits, I will probably move my tax residency before 2030.
It's a dream, but I believe in it.

1) She has a property in Brazil
2) She has an active Brazilian bank account
3) She has not given up tax residency in Brazil.
4) There are plenty of ways to hide an IP address, or put it in Brazil through VPN. I don't think that's illegal.

This is my intention. For now I don't have to do crazy things to get away with low tax or no tax.
My country has a annual 10k euro tax exemption limit per person. So I just donate 10k to 4-5 close relatives, convert it to fiat tax free, reinvest etc.

When the portfolio grows I will definitely need a tax lawyer. I have found a good one. He sets up foreign companies in countries with low taxes. Sadly it is the only way to legally avoid astronomical taxes on crypto earnings in my country. I don't see taxation on bitcoin profit as fair. I see it like a conversion fee of 50% when you convert a failing currency like the Argentinian peso, to USD or Euro. Because bitcoin is money, there should be absolutely no tax on converting it to other forms of money no matter how bad those are.

Gift taxes between partners are very low in my country. Like 1% or even exempt from taxes under a certain amount. So that is safe.

With regards to tax residency.. In theory she is now a tax resident in my country (EU) because she lives here and works here. She came here 6 years ago and was a student. In all those years she was a tax resident in Brazil, even though she did not work there anymore. But in 2023 she became employed here in Europe. She automatically became a tax resident here and her taxes are automatically deducted from her monthly salary here.

But in the mean time, she has not signed an official declaration of no longer being a tax resident in her home country. I recently read that citizens who are no longer tax residents there can either sign a permanent exit declaration, or a temporary one. We don't know which one applies, because we might move to Brazil in 5 years.
We are not very worried about double taxation because there is a treaty against double taxation between our countries, and we can prove that she is already taxed here.

But if she connects her Binance.com account to her Brazilian bank card, I don't see how Binance would inform European tax agencies. Because Binance only knows her nationality, not her tax residency. And technically she has also not given up tax residency in her home country.