More Crypto Regulations Are Around The Corner!

The bad crypto weeks seem to be gone as the crypto market is slowly turning into the greens and is noting some gains again. This small euphoria might be ending soon because the next bad news are waiting around the corner. More and more countries are starting to design changes to their laws and installing restrictions towards crypto. The latest nations could be the United Kingdom and South Korea after Estonia announced that they will be proposing a new ruleset in regard to crypto.

Tax Announcement

Lets start with some recent tax announcements. While in most countries inherited and gifted assets are in general not taxed the South Korean Government is proposing a la that would allow to claim taxes on inherited and gifted crypto. This law is supposed to be passed this year. On the other site the same government is delaying their 20% tax on any crypto gains that are more than 1000 dollars which is good news indeed. Just look over to Thailand where there is a 15% capital gain tax on any crypto. Saying that, I don’t think that it is a bad sign that the government wants its share of the profits, I just think that a lot of people are concerned about the amount of the taxation.

Staying with some restricting news, the US government will start tracking any transaction which is worth more than 600 dollars on payment apps like Paypal or Venmo. Before this rule the transaction price threshold was 20 thousand dollars which indicates a big jump downwards. The obvious is reason is probably because a lot of people are using those payment apps to deposit their fiat funds on centralized crypto exchanges. By doing this tracking, the government will have a better opportunity to control the outgoing payments of its citizens, so they don’t miss out on the tax. Furthermore, it will be very interesting to see if this law will include exchanges in the future which will make the job for the tax people a lot more easier. On this note, it will be also required to report any crypto transaction by the exchanges which is worth more the 10 thousand dollars or more. This rule is already passed in the infrastructure bill which will come into effect in 2023.

UK Crypto Crackdown

From one big global country to another one: The Great British Empire or how it is called now: United Kingdom. Here, the regulators have found their targets against the movement of crypto in crypto adds. More specifically the most recent target was “crypto.com” which is very famous for their marketing campaign. In this case some amount of the “crypto.com” advertisements were forbidden because they were too misleading according to the regulators. The argument that is being made is that the promotion purchasing crypto using the “crypto.com” credit cards gives the impression that users might earn higher interests on their staked assets than advertised. As we all know there is a possibility to earn bigger rewards by additionally staking the CRO token but this would be outside the spectrum of this article. Fortunately, the company did not chose violence and took down their advertisements for the current moment. But it is being said that this company is already working on a new set of advertisements that they can put out on the British market.

Furthermore, British politicians seem to go into the direction against crypto. The reason for that is a more curios one because the main projects that are being criticized are fan tokens. More specifically, fan tokens of football clubs. The reason why this is so obscure is that Britain considers itself as the motherland of football and a lot of people are feeling attacked by these new fan token projects. The hope is that this will remain their only problem and that more serious crypto projects might be ignored or at least more tolerated which would be a good signal towards the crypto space.

Conclusion

While more and more countries seem to marsh against crypto, some of the claims might be even correct and in order to protect the everyday consumer from scams and losing their money. This has of course two sides with the negative being that seeing high yield and 100x returns will become rarer. On the other hand, this will open up the crypto space to the public more and we could see more institutional investors coming in as they see more compliance and therefore more safety. It will be interesting to see how it all plays out over the next few months and how the crypto market will react to this.

Published by ga38jem on LeoFinance On 13th January 2022

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