Before the year 2024 begins, the policy makers started to talk about possible crypto regulations to " protect " the crypto investors from too volatile market conditions and the risks of thefts in the young digital and financial ecosystem.
The urge for protection is also combined with precautions to deal with the so-called money laundering and finance of illegal activities and these two reasons are the preliminaries of the upcoming regulation.
Almost all G - 20 countries are working on ways to regulate the crypto ecosystem. While they are waiting for the first step from the U.S, the U.K or from Asian countries, none of them want to miss the opportunities to bring millions of dollars with blue zone technology areas that will be allocated for blockchain - based companies. Everyone is aware of the fact that being a blockchain friendly ( by means of low taxation rates and incentives for projects) may help a country to catch the new era.
Strict Regulations & Taxation ?
In the case that the investors with a lot of money would never be okay with paying large amount of money in taxes due to the policy in a country.
If the policy makers choose to follow the harsh way, the result will be lose of potential and capital to the more friendly countries that always welcome fresh money ??
El Salvador's Congress has reportedly approved a new migration law that will grant expedited citizenship to foreigners who make Bitcoin (BTC) "donations" towards government social and economic development programs.
Finance Yahoo
As an example of welcoming countries, El Salvador and Argentina can be perfect examples.
The taxation of crypto is already a hard issue. The working mechanisms are extremely complex and the new world has very few common sides with any other technological revolutions. The ecosystem of crypto requires expertise, open- minded approach, and competence in legal knowledge.
Soft Integration or Hard Integration
The crypto products are becoming a separable part of our lives and the GATE between the real world and the crypto ecosystem will always be wide open. The initial steps were taken by the retail investors in 2017, then the institutional investors started to increase the number of Bitcoins they hold since 2020.
The last step of the integration will be unlocked when the giant banks, fund managers, and governments take part in the crypto ecosystem to adapt it to our world. Though earlier we all assumed that they would try to kill crypto, now we see that nobody is eager to turn their back on such a devastating technological revolution.
I believe the regulations will be based on keeping the reserves transparent, having a department that reports the transactions of people and paying taxes for the services in the country. In the case that there is a hard integration, we may see such demands as only the exchanges that operate in the country are allowed to be used by the citizens.
As it takes only 1 click to transfer money to another CEX or DEX, I do not think this will be the case. Also, capitals do not like risks and they may try to find ways to fly away. Going hard would only shut the doors of potential millions of dollars, new workplaces, dynamic economies.
What do you expect from Taxation and Regulations that may come in 2024? Share your expectations below ??
