What cryptocurrency regulations might we see in the near future?
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Board Member, Advisor, Executive Coach in Software2 years ago
If you look back at the end of 2021, we heard about banking regulations related to money transfers from not only the White House, but the IRS as well. Cryptocurrencies were roped into that as a part of money transfers. They're putting the onus on banks for traceability and tracking so that payments can be managed. Some of that is because of issues around ransomware payments, but it is also the US government's push to start regulating cryptocurrencies. So while it might not be technically feasible from a policy perspective, there have been actions that have already started to take hold, which will then create liability for banks if they're not reporting that stuff or don’t have the ability to control it.Chair and Professor, Startup CTO in Education2 years ago
I don't think the government will be able to regulate cryptocurrency effectively. There are only a handful of countries who has supported the use of cryptocurrency in their country as an alternate to their official currency as as the official currency. Very few companies, except for Tesla, who would accept cryptocurrency in exchange for goods or services. Currently, cryptocurrency is treated like investment by most people who owns it. If they change dramatically in value at any time, how can you treat it as a real currency? But I think the government can regulate the exchange (buy and sell), and charge tax on the proceeds. Chief Technology Officer in Healthcare and Biotech2 years ago
Ultimately we are going to see governments - particularly tax and anti money-laundering / fraud departments - setting up regulations that require crypto accounts be fully identified when established, and transaction records being provided to government.I expect we will also see governments requiring crypto holdings be taxed at the highest rates unless coin repositories collect and submit identifying taxation details.
Largely, regulations will require crypto accounts be de-anonymised for the purposes of taxation and also to minimise fraud and crime - but no doubt with taxation as #1.
Solutions Architect in Software2 years ago
For businesses:- Licencing and certifications to operate
- User records security and gov. access
- Audits
For clients:
- Taxation
It’s interesting because Bitcoin is not considered a wash trade for Ethereum. You could theoretically take a loss on Bitcoin and buy Ethereum and it would not be considered a wash trade. It’s a crazy component to this discussion when you realize that these cryptocurrencies are more linked in their overall direction than perhaps regulators understand. And strategies like dollar cost averaging were one of the big targets for the entire discussion on unrealized gains. The idea was that if you had an unrealized gain of $30K in Bitcoin that went to $70K Bitcoin, you would have to pay tax on that, which becomes a fascinating conversation. But that's why I think it's important to move funds off to a personal wallet.