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Regulators are beginning to institute more KYC and AML rules. They want to tax every little thing possible. Decentralized is not something that governments will enjoy to appreciate.
The recent infrastructure bill was very obvious to see the senate fail to correct its own mistake. This mistake is poised to bring more harm to the cryptocurrency space. Congress did not include the amendment as required by the cryptocurrency industry.
The congress was hoping to raise $28 billion in new revenue through the expanded reporting requirements for any cryptocurrency firm that is deemed a “broker.” Thus, it changes how the IRS taxes “digital assets.”
Thus, digital assets exchanges and brokers will have set reporting requirements, and they will have to pay their taxes on the capital gains. As seen by the cryptocurrency industry, the problem with the bill is that it will cover every participant in the cryptocurrency space. Everyone, ranging from miners, validators, software developers, and node operators.
There was an outrageous response from the cryptocurrency community as congress got it all wrong. There was a fundamental misunderstanding of how this technology works and how to regulate it best.
The problem is that none of the entities, whether miners, validators, or decentralized exchanges, will be able to comply with this law.
Validators do not have the process in place to screen the identities of participants like miners. Miners do not hold data about the identities of participants.
Decentralized exchanges are distributed, and they do not have a central authority to identify and report individual transactions on the network.
War between enemies is not a big deal; however, the war between the state and its enlightened citizens can get stubborn and unacceptable. Tax haven countries do not like underground economies or alternative economies developing beyond their control.
Several elements are connected in the digital assets economy. First, an educational campaign is required to ensure there is a clear understanding of the internet of value in the economy. There is a lot of work in terms of policy and advocacy that needs to happen before the voting can happen.
In terms of Bitcoin (BTC) price, analysts have to state, once the last level of resistance is flipped, the upward price action will be crazy. It is not possible to make huge profits with little capital. Investing little and making more profits is a scam. Getting rich is a gradual process, and the returns always happen proportionately.
