Crypto regulations
Although crypto and blockchain technology have the potential to enhance many aspects of our lives, there are some people out there who would like to clamp down on the nascent technology.
Each country has a different attitude toward cryptocurrencies. For example, China has gone as far as imposing an outright ban on cryptocurrencies. It was even reported on social media that some politicians were being threatened with the death penalty for having violated crypto-mining laws.
Meanwhile, in Switzerland, the sentiment is much more welcoming and open to the technology. The country’s government encourages entrepreneurs to create crypto companies and further develop blockchain technology.
So, why is there so much apprehension regarding cryptocurrency?
Cryptocurrencies worry regulators for myriad reasons, the two most prominent of which are:
1. Governments are fearful of cryptocurrencies being used for illicit goods, such as narcotics, weapons, and other contraband, since crypto is the preferred payment method on these dark web platforms.
2. Taxation. Regulators are fully aware that blockchain technology permits people to handle money outside the government’s purview. Therefore, governments are attempting to pass stricter taxation laws to force people to comply—and pay taxes.
The taxation landscape will be in flux for the foreseeable future; however, we still recommend you read your country’s crypto tax laws before investing!
