As we all know nearly all exchanges have been implementing K.Y.C. rules in the last years. So now, it is nearly impossible to exchange crypto for fiat without revealing your name, your address, your email, your shoe size (just kidding) and so on.
Beside that nearly all governments, all over the world, are searching ways to 'regulate' this billion dollar market. Whenever I read 'regulate', I understand 'taxation'. (simple mind, right?).
Talking of Europe, I understand that after the implementation of the sixth Anti Money Laundry directive (as published in April 2020), they put the light on green for all (European) countries to collect taxes on crypto after January 2022.
I imagine that by June 2022, my country will knock my door and say "Hey, we just got a list from your crypto currency exchange and guess what? Your name is on that list too. How are you going to declare your taxes for those assets?".
Now think a little logic about this. Let's assume that I have Bitcoin worth of 1000 euros. My government will say "Hey, this crypto you have over there is actually an income so we will tax it for about 30-35%". So basically that means that I have to give them about 350 euros in taxes.
If they are a little smart though (and they are, I guarantee you) they will, with the help of banks and institutions, pump my crypto so that it is worth much much more! Let's say (optimistically) they pump my Bitcoin 10x. That means that my Bitcoin right now is not only worth 1.000 euros but 10.000 euros! In that case they will collect 35% of 10.000 euros (instead of 1.000 euros). So I have to hand them over 3.500 euros in taxes. That is nice gain, isn't it?
So I believe that no matter which crypto you have, no matter which crypto you buy, they will all go to the moon (in name of tax revenues). Don't get me wrong, they will not invest in that shitcoin at rank 6000. They have the list of which coins are most owned in their country so they can decide themselves which coins are most profitable for them. I think that coins in the top 20 (maybe top 50) will be part of that for sure.
What do you think about this idea? Does it make sense or not? I invite you to share your ideas in the comments below.
Thanks for reading and I am looking forward to open a conversation in the comments section.
