Key regulations governments need for crypto

What are the key regulations that governments should nail down regarding crypto? Like, take taxation on crypto gains for instance. If the rules aren't clear, it could lead to all sorts of problems, like mismanagement or even manipulation. Without a solid framework, the tax treatment of crypto gains could end up being inconsistent and unfair. Then there's the issue of how governments can protect their citizens from scams in the crypto space. They need to outline what falls under their jurisdiction and what citizens can actually count on them for. Nowadays, legalizing crypto involves a lot more than just accepting it as payment, and I get that some governments might need more time to figure this whole thing out. So, what do you guys think should be the main policies that governments need to focus on when they start adopting crypto?

The government has already started regulating crypto. For example, in big countries like the US, there’s already capital gains tax, that’s the taxation side of it. On top of that, for consumer protection, they only allow licensed platforms to operate. Having a license means the platform is monitored by the state, so at least there’s some layer of protection for users. And if you’re asking how they do it, aside from regulating the platforms themselves, they also require users to go through KYC. That way, they know who’s actually using the platform, and it helps minimize money laundering which was pretty rampant back when crypto wasn’t regulated at all.

What about DEXes in that regard? Or P2P through someone operating not through a centralized entity?

If you get paid in crypto, you will be taxed with income tax. If the country still don't have a specific taxes for crypto, they will use taxes for short term/long term investment. If you broke their regulation, you will get the same punishment that applies to other assets. I don't see we have to make it complicated, I will ask you then, are your government taxes your cryptocurrency with different rates?

If it's with the taxes, there should be a clear thing about it based on the ruling of the government on how the crypto profits are taxable. I think that there's a need for an individual who have earned in crypto based on how much and how long they've held that asset and for example, in Bitcoin. Not all that holds it are in profit and those who have decided to sell are not all profitable and those that are not have probably sold due to some needs. That's the hard part for those people that have sold not in profit and yet, they're still taxable for selling. So, to clarify it, one has to look at how their tax bureau views situations like that.

The goals of governments and citizens are completely different. The government always wants more control and citizens more freedom. Government policy will always increase control over everything, but this does not mean that you will be safe. I watch the scammers' schemes in my country and I am interested in what is happening in others. Usually, scammers exchange money for cryptocurrencies, and then the trail disappears. Maybe blockchain analyzers will help find the criminals later, but the victim will definitely not get their coins back.

If an exchange isn’t regulated by the government, then technically it can be considered an illegal operation. Sure, there are DEXs around now, but are they really popular? Not really. As much as some don’t want to admit it, we can’t deny that regulation gives users confidence. When an exchange is licensed and monitored by the government, people feel safer using it. Of course, the trade-off is that once an exchange is regulated, KYC becomes a basic requirement.

Governments will eventually tax crypto in whatever manner they can. Currently the might work on framework for this to function seamlessly but in future it might be running robustly. If they cannot ban something they will tax it and because people use it and some criminals will always try to use crypto to get into money laundering, governments will not sit idle. For now we should focus on collecting the bitcoin, maybe we will be able to sell coins and give tax at the same time, or maybe governments will force use to declare capital gains and pay taxes.

It's is easier for the government to protect their citizens from scams when the citizens gives them there money by putting it in the bank, but the price to pay for that security is to much because the government can easily also control your money in the bank. What the government can do for their citizens who want to use Crypto-currency is support messages that enlightens people about the dangers and scams on crypto-currency and also punish any expose crypto-currency scammers to discourage others.

They are not popular, but they would be an option once the other side becomes unbearable to stay on, if such a time comes CEXes are just more convenient and go a long way to stay like that..

In fact the government only desire regarding crypto is to control the inflow and outflow of funds. As long as they can obtain data from exchanges, they can operate under supervision. For the government everything must be transparent they don't want even a single cent to escape their supervision. Exchanges will follow these rules, starting with crypto income tax and value added tax on transaction activities.

I believe that if a government imposes a tax on crypto, it should explain how the tax is used, and there should also be a clear statement about the tax calculation. This is all about transparency, as I believe the public should be informed to avoid misunderstandings. Furthermore, I believe that if a government is involved with crypto, it should have strong regulations to foster a positive relationship with its citizens, especially crypto users. One of the things I highlight most is the regulatory protection. We know that not all cryptocurrencies are completely safe, some carry significant risks, and there is the potential for collapse, like a previous cryptocurrency that made big news (which also had an exchange). When something like that happens, there should be follow-up action from the government, and preferably, there should be preventative measures before a similar incident occurs. This is what I mean by strong regulations. I remember a few years ago, my country's government regulated local cryptocurrencies. However, when the major news events as I mentioned occurred, the government seemed to turn a blind eye and ignore them. They should have taken preventative measures before they happened, or even if they had already happened, that was the government's responsibility. However, directly or indirectly, they were involved in allowing this potentially scam-like cryptocurrency to exist, and it was already on local exchanges. Shouldn't they have been keeping a close eye on that? Well, what I'm referring to as a scam cryptocurrency is someone with the initials SBF.

Do we really need more rules? At this point it just feels like the government is slowly killing the little privacy we still have left. What they’re already implementing is more than enough. The funny part is, we don’t even get real protection anyway. Exchanges can run scams while they’re active, take money from users, and nobody from the government steps in. They only start acting once the exchange is already bankrupt, hacked, or about to shut down. By then, it’s too late. And even if they do get involved, it drags on for so long that you’ll end up thinking you shouldn’t have reported it at all.

I do think that as tech progresses, privacy is going to suffer more and more: it's inevitable, there is always something to snatch out of it (if possible).

I think the most important thing is for a government to adopt the use of Bitcoin and other crypto for its citizens first, once such announcement is made, what will follow it is the formulation of the policy to fit into the current realities of the country. The announcement itself is a policy but it needs to be properly reviewed and documented by experts, this will include the scope and limitations in use, the explicit explanation of the guidelines of use of the digital assets, the official domestic value to be placed by the government which includes subsidies if any and the regulations attached to the use of the assets among other things which will be contained in the policy document. In curating the policy document, each government will have what is unique to them and works best for them as far as the end users are considered, however there would be general regulations which will be included in the framework. Issues like taxes, mode of transactions, etcetera will be contained in the policy document as its regulations.

What i want them to be clear on is to allow people to use what they want alternatively for their financial economic transaction and allow bitcoin to remain as it is. Nobody that will know what they are doing and also aware of what they want in bitcoin and expect that the government should be fair in their regulations towards bitcoin, we should know that had it been bitcoin was not decentralized, they would have fight it and take the whole cryptocurrency down. Don't even expect for these, because they are not going to be in favour of us, one of the reasons to why we have bitcoin as an alternative currency is this, so that we can be free of all regulations affecting our financial economy progress, we have been under their slavery for long and bitcoin is now here to serves as a decentralized digital economy no one can control or regulate.

This is provably what's going to happen here especially if they see that lots of platforms are operating under jurisdiction and they would see that lots of people are on it then they implement a taxation on the income made by people maybe base on what they are depositing on withdrawals on their regulated platforms. Provably that they won't think about it banning it, since for sure they receive lots of protest especially if there are lots of people in their country using Bitcoin also other crypto. For sure taxation would be the nearest thing would gonna happen here. Yeah this is more better rather than thinking about those things which didn't happen yet, but we should follow the updates happening on our country so that we could get the latest news about what they are newly implemented rules about this industry.

Taxation is already here. Countries like U.S. which treats crypto as property makes it subject to capital gains tax, South Africa treats crypto as a financial asset and also makes it subject to capital gains tax, in Australia capital gains tax is also applied, Nigeria and Czech Republic are not left out. Do the government understand what transparency truly is. The government isn't interested in any transparency, all the want is to sell to the public their blatant lies and force the people to believe them. Exchanges has no choice but to follow any rule laid by the government, not because they are right but because their business will be at risk if they try to act rebellious.

One world - control. You either follow through or get left out of the picture one way or another.

So for me, the age requirement is going to be an area that government or different government is going to grapple with if they want to regulate bitcoin as legal tender. Fiat has no restrictions for who will hold or use it for investment and so you see little children having their different save boxes that they put gift monies given to them by parents, uncles, aunty's, parents cronies etc. As it stands now, bitcoin use or investment is restricted to 18 years old in different countries like US, also in exchanges. So if bitcoin is going to be regulated by government , how would they take care of the restrictions bearing in mind that fiat has no age barrier and bitcoin becoming in use as alternative currency. We can read up on bitcoin restrictions from the link below: https://coincub.com/how-old-do-you-have-to-be-to-buy-bitcoin/#:~:text=Bitcoin%20is%20for%20Everyone.,on%20local%20laws%20and%20regulations.