We all hear "regulation is coming" just like the Game of Throne's "Winter is coming". And yes a lot of nations have already started drafting and creating the regulation bills which regularly get updated to adjust with the changing crypto market. Japan, India, USA and many other nations are drafting in a rolling release. Which means any new changes comes into that asset industry, the bill will update as time goes.

So let's talk about possible things that may come under regulation.

30-45% of the Taxes

The reason this asset instrument invites more taxes is because there is no govt control over how the tokens are generated and how the money anonymously moves through borders. So many nations flat tax the crypto in 30 to 45 percent. Whether we like it or not, things are like this. They also want to tax you because they want to use tax as a means through which the movement of the funds can be tracked.

Is this number justified? You don't have to like it. But if govt wants to benefit from crypto movement of the cash around the world and improve their GDP and growth in general then sure this number is justified. Though usually money being spent in a country helps more the GDP and growth than the money paid through tax. But we will see how that too would happen in many small nations.

Crypto Tax as a Deterrent to Scams

Do you know in past Direct selling and MLMs never had to pay much taxes as they were circumventing it through various govt incentives and the rules. But as the time went on and more people did the marketing to get attention, that kind of put the specific industry into the highlight and taxman started chasing them around the world.

Anyone today can create tokens, anyone can create fake economy with influence of youth and internet influencers. But when it comes to taxes and being accountable for what they do, everyone wants to run away. And this can be controlled with taxes where the person who does the crypto earning comes under the tax radar eventually gets caught in the events of the scams.

Forex to Crypto - Bill to Regulate Money Laundering

Currently many people in crypto are also going to be using the crypto to move funds in the forex and vice versa. There seems to be not much regulation and the monitoring in this space. But I recently learned about some of the EU committees that are already in discussion on this on how the funds can be monitored and this way the funds would not be routed to the wrong parties.

Forex is how most of the world moves the funds through pairs. And also the top pairs always continue to get strong. But crypto has power to beat those pairs and so the whales in the forex would be holding assets into the crypto too. This way they would have influence for their own currency pairs. And that would mean that laundering would go on by the whales which often may not get detected, yet it's the crypto that would get regulated.

Rogue Coins

Apart from money laundering the rogue tokens will be watched too. Like those coins which are created by MLM leaders, cult leaders and many people who have means to manipulate the social groups. They can make use of the rogue coins to get funds and then exit overnight. That too would get int the light and this would mean the swap bridges would come into the big attention area.

Does that mean I like regulation? Hell No. Does that mean regulation is here to stay? You bet.

Like a lot of things in life where we can't control what other people do. This too would eventually happen. And we can't control what is about to happen. You have to understand that crypto scams are going to make it harder for society to trust a lot of tokens and blockchains and that's where the govt would jump in. Sure the middle men in govt will eat money as always.

What is your speculation on the upcoming crypto regulations around the world?