About regulation
We tell you on this page why this regulation news is so important, what the causes and consequences are of current and future regulations, and of course the latest news about the regulations of cryptos. This allows you to be completely informed and you can make better -founded decisions/investments.
Why is regulation news important?
Nowadays the regulation of cryptocurrencies is not as extensive as for other assets. This means that although crypto coins are not illegal, they are not supported as a normal Fiat currency. For example, especially in the past, if someone has stolen your coins, you would be confronted with the extra problem that your government could not (cannot) help.
After Bitcoin came up a few years ago, many countries noticed that they had to regulate it, and now some countries have a slight regulation framework. Regulation News regularly appears in the media and usually informs about the development of regulations at home and abroad.
Regulation outside the Netherlands
There are countries that have banned crypto. An example can be Bolivia, Morocco or Pakistan. In most cases, however, most countries have nothing against the crypto coins themselves, at least officially, but against the money laundering possibilities that the coins offer. For example, if you follow the regulation news of the European Union, you will see that money laundering is usually the main subject.
The regulation news with regard to cryptocurrencies and money laundering usually affects the supporters and wallet providers than end users. It is the companies or organizations that provide services that must check the identity of users and comply with new regulations.
The conflict of interest of the supervisors
Something interesting to keep in mind when reading regulation news is the conflict of interest that the governments have in this respect. In the end, crypto coins were decentralized and they are not dependent on a central bank. For now, money laundering is a nice excuse for the government to at least keep the movements of cryptos under control. In the regulation news, let’s see which other obstacles the governments come across over time.
What is the advice in Europe?
For the time being, the European Banking Authority is advising banking not to allow cryptocurrency transactions to their customers insofar as there is no good regulations for it. When reading regulation news, pay attention to former regulators who join consultants. Josee Nadeau and Rick McDonell, former members of FATF (Financial Action Task Force), for example became a member of the Advisors Council of Shyft Network, Inc. So they first gave advice by countries that subsequently regulated the subject and later worked as advisers to meet the regulations.
What about taxes?
You must know that the regulations of your country apply when it comes to taxes; And if you earn money with cryptos, you ultimately have to pay taxes on that profit. Most likely you must include the profit in the annual income tax return. How much you have to pay depends on the amount of profit you receive and the layout that your country has in different cryptocurrency.
Regulation news about risks and warnings
Everyone who follows regulation news about cryptos already knows that we are talking about something with enormous volatility. In Finance, volatility means risk. For example, from time to time you see news about a financial authority from every country that warns of the high risk of cryptos. Another typical warning in regulation news is about the ICOs (Initial Coin Offering). Some countries have regulated crypto-oo’s, but in practice it is really difficult to have the founders of the ICO meet the regulations.
What is the future with the regulations of cryptos?
We believe that blockchain technology has a future. Governments have started regulating elements. Ultimately, they will have to regulate more to give a more stable framework to the activities related to cryptocurrencies.
A lack of regulations will not prevent users from changing the currencies, but will generate more opportunities for scammers and hackers. On the other hand, good and efficient regulations can take a while until they come because governments are usually not the most technologically stated entities.
Source: https://newsbit.nl/eu-dreigt-x-van-elon-musk-met-miljardenboete/
