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Silver Linings in the Age of Policy: 5 Examples of Crypto Regulation Favoring the User

The general sentiment in the crypto community about the governmental regulations in this space is quite negative. Unfortunately, we all know that this ship has sailed: while the crypto world has been evolving and launching new projects, such as trading tools and apps, wallets, exchanges, even exchange aggregators — regulators haven’t been asleep, and more laws, orders, and bills are coming, whether we like them or not. So, let’s review some of the latest ones and try to find some examples of the policymakers playing nice in the gloomy and anxiety-ridden regulatory climate of the past couple of years. Here are 5 of them:

  1. A proposed US bill to exclude the crypto transactions under $50 from taxes

This one is a no-brainer. It is said that the taxes on crypto are a nightmare to deal with, so this proposition is an obvious step in the right direction by the regulators. Of course, it would be better if the ceiling was a bit higher — but still, if it passes, it’s a nice gesture towards the little guy.

  1. Various governments investing in the metaverse development

Recently, the Spanish government announced that it will issue a series of grants to support projects dedicated to the metaverse. Earlier this year, the government of South Korea entered the metaverse space with direct investments. Those examples signal strong interest in the field that goes hand in hand with crypto — as well as belief in its future profitability.

  1. EU regulatory plans for crypto

The inclusion of MiCA (Markets in Crypto Assets) in the list of good things to happen to crypto may feel controversial, as this bill can be seen as tightening the screws around the crypto space. However, there is an argument for regulation, as the EU has the potential to become one of the leaders in the industry and as such, needs a clear set of rules to protect crypto users and investors.

  1. The UK relaxing its stance on self-custody crypto wallets

After initially requiring crypto businesses to collect information on any wallet involved in a transaction, UK regulators changed their tune. Now, the data will be collected only on those involved in suspicious transactions that may be tied to illegal activities. This decision, which will come into force in September, will make the UK a friendlier place for crypto — and, again, shows its government’s belief in the crypto future.

  1. El Salvador adopting Bitcoin as legal tender

No list of crypto-friendly regulations can ignore this one: the event that made quite a wave last year, the El Salvador government’s decision to make BTC legal tender in the country. Crypto winter may have spoiled the results, as the market sentiment soured, but it’s too early to call this interesting experiment a failure — and in any case, this is a great learning opportunity for other regulators.

As there’s mounting regulatory pressure on crypto from all sides, it’s important to remember that some regulations can protect crypto users and investors and even enhance their presence in the financial system — and it might be a good thing since neither crypto nor traditional policymakers are going away anytime soon. Some of the examples above show that there are steps being taken to reconcile the two, which will hopefully make this brave new world a little less scary for crypto users.

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