How Do You Draw the Relationship Between Crypto and Central Regulatory Authority?
You want to live your life and enjoy freedom. When you are grown up, you realize there are different restrictions and you have to go through them. Whether that's fair or not, that's another question.
Do you feel something pulls you back? You found crypto and realize what crypto offers to change a lot of things in your life. That's great and you are very excited about it.
You see a huge potential in crypto. But the government might say something else. In the beginning, the central bank and regulatory authority just ignore crypto. It will not go anywhere, according to their opinion. It is just speculation, and people are expected to give up at some point on their own.
More people see the potential of crypto and how they can use crypto to make a change in their life. The central authority starts saying crypto is very risky and the crypto market is highly volatile, so you can lose your money. Yes, crypto is risky and volatile. But they do not say much about the upside of using crypto.
The central authority is more than happy to show people how bad crypto is and it is a good idea to avoid cryptocurrency altogether. The interesting thing, the central authority itself cannot avoid crypto and what's going on in the crypto industry.
Before anything goes out of control, they come up with a great idea to save people, and that is banning crypto. Banning cryptocurrency, they cannot stop its innovation and development. People are more interested in crypto than before.
When they realize banning crypto will not work, they change regulations and impose a high tax on crypto. Crypto is not illegal anymore, you have to pay way high tax on the crypto capital gain. You take the risk to invest in crypto, but you have to pay a big portion as a tax when you make a profit. It will discourage people to get involved in crypto and make investments.
The central authority wants to have more control. They come up with Central Bank Digital Currency (CBDC) that will be safe and have a lot of benefits, as they say. Big institutions are comfortable if they have regulatory clarity. Crypto platforms want to have regulatory clarity so that they do not have to go through troubles. They get threats to sue in return. And you may see lawsuits and fines.
What the central authority is doing is not enough, so you can expect more crackdowns on crypto. Everything is for, you know, investors' protection. So how do you draw the relationship between crypto and central regulatory authority?
Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
