Officials are getting into cryptocurrencies — but not in the way you’d like. Many countries are trying to implement regulations to regulate the use of digital assets, along with various taxations.
Here are some examples of how crypto is being regulated by some:
European Union (EU) Crypto Tax
The EU is proposing a special regime for crypto-assets and correlated financial services through MiCA regulation. Only licensed parties will offer crypto-related products like exchanges and other financial goods.
The draft limits the use of decentralized stablecoins and can affect decentralized exchanges and other non-regulable financial products.
The MiCA paper expanded from 187 to 405 pages — you can check the document here.
Under MiCA, widely used assets shouldn’t do more than 1 million transactions per day and can have up to €200 million in value. But how are they going to limit the market’s growth, anyway?
Regulators aim to force off-chain transactions to be included in the government’s control.
United States (US) Crypto Tax
Like EU, they don’t have (at least not yet) a very clear regulation over crypto-assets and correlated products. But there’s no denying that most government officials don’t like crypto and prefer the dollar’s sovereignty above all else.
Joe Biden’s Infrastructure Deal, which can be read here, provides numerous cryptocurrency taxes. However, its implementation remains unclear for the most part.
Long story short, Biden’s government aims to get a large sum of money through crypto to make it’s initiative a success.
For now, there are lots of gray zones inside its regulation that’ll probably be studied in the future. Stablecoins are something that bothers US officials: they’re responsible for expanding decentralized and centralized crypto businesses worldwide with low-volatility assets backed on dollars.
The bottom line
Regulators will not be able to ignore cryptocurrencies — and they’re aiming to do a lot of monitoring and taxation into crypto assets. At least in most countries.
The reasons are many: money laundering, risk of high volatility, scammers all around and some guarantees to protect customers are the main pretexts to implement legislation regarding crypto.
However, most texts aren’t clear and leave a lot of legal gaps. Those must be filled with comprehensive and just laws that will not create problems for users.
Meanwhile, why don’t you go pay a visit to CoinShopp to go shopping on crypto? There’s a 15% discount waiting for you!