Hi!
I'm a cryptocurrency newbie and have very basic/dumb questions about regulation. Here goes..
1) What does regulation mean in practice? Is it like they want to register people who invest or something? Is it all about taxes?
2) Why does governments want to regulate crypto?
3) I see "securities" a lot when googling regulation. Are only coins/tokens that governments deem to be securities in danger of regulation?
4) What are the drawbacks (& advantages?) for an investor who discovers his/her crypto investment is to be regulated?
Thank you for your time & patience
I'm a cryptocurrency newbie and have very basic/dumb questions about regulation. Here goes..
1) What does regulation mean in practice? Is it like they want to register people who invest or something? Is it all about taxes?
2) Why does governments want to regulate crypto?
3) I see "securities" a lot when googling regulation. Are only coins/tokens that governments deem to be securities in danger of regulation?
4) What are the drawbacks (& advantages?) for an investor who discovers his/her crypto investment is to be regulated?
Thank you for your time & patience
Regulation is all about law and policy created by the government so that there is a rule to comply by their citizens in a certain situation and they can be apply to digital currencies including bitcoin to ensure that bitcoin is cannot be use in illegal activities such as money laundering, smuggling and ICO scam. If the regulation is in effect the government can now monitor every transactions during their local exchanges transactions and also they could now impose tax on every investors in which for me is one of the advantage of the government would get if they legalized bitcoin.