What cryptocurrency regulations might we see in the near future?
Board Member, Advisor, Executive Coach in Software, Self-employed
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 Education, 5,001 - 10,000 employees
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 Biotech, 1,001 - 5,000 employees
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.
Manager in Manufacturing, 10,001+ employees
We will probably see more around security and taxation.Solutions Architect in Software, 501 - 1,000 employees
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VP of Engineering in Software, 51 - 200 employees
It's quite difficult for regulations on crypto itself, however I think they might go after businesses and hostings doing crypto exchange and wallets. These still need a business license most of the time in the parts of the world where the users might "trust" these companies.Earlier CIO in Manufacturing, Self-employed
Regulations would be around the following:a. Bringing transparency to find out who owns the crypto. This would be to eliminate money laundering and terrorism especially cyber terrorism
b. As we know central banks manage money supply to keep including many things under control. So regulation would be around how to manage availability of crypto currency
c. Generation of new cryptos would come under a regulatory process so that additions can be regulated
Director of Engineering in Services (non-Government), 2 - 10 employees
Cryptocurrency regulation will take a number of forms: first of all a legal definition of what a cryptocurrency actually is. Since there are a myriad ways in which these currencies can be minted - mostly in a variety of techniques, many of whom may require more or lesser amounts of 'effort' to generate value.More often than not, the definition of these techniques and their standardisation are left to the likes of IEEE, ISO or CEN/CENELEC. While crypto has its origins in tech, its impact on value exchange sees the regulation of the currency come out of the OECD or the World Bank. But it may also come from an unexpected place like UNESCO.
These secondary regulations / legislations are likely to be developed:
1. Storage
2. Transmission
3. Exchange
4. Consumer rights
Much of the current technical work is aimed at circumventing centrally regulated elements of the financial system and in a way represents the return to being able to take cash out of your account and put it under the mattress.
Broader society has come to realise that a return to the cash economy would render many processes that generate revenue for the government unworkable. And that in turn would have detrimental flow-on effects on public infrastructure.
And a final note should consider the environmentally unsustainable methods of value creation and value exchange. Indirectly, this may well be the first place where regulation and legislation catches up with crypto.
Co-founder & CTO in Finance (non-banking), 51 - 200 employees
Regulation of cryptocurrency is a standard issue in any country. Very few countries have accepted cryptocurrency as a standard. In the future, if any nation, especially India, chooses to regulate cryptocurrency properly, the regulations shall be in and around the following areas:1. Taxation
2. Security
3. Governance
4. Privacy
5. State access to information for national security
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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.