There is talk of the limits of the new cryptocurrency regulation in the European Union (EU), which was introduced in September 2020. While the regulations aim to provide legal clarity for crypto-related businesses, they also have significant drawbacks.
First, the regulations fail to address the issue of classification. Different cryptocurrencies have different functions and purposes, which must be taken into account when determining their regulatory status. However, the regulations provide a broad definition of “cryptocurrency”, making it difficult for businesses to comply.
Second, the regulations do not provide guidance on how taxes should be calculated for cryptocurrency transactions. This creates confusion for businesses and individuals who are unsure how to comply with tax laws.
Third, the regulations require businesses to collect identifying information from their customers, including their names and addresses. However, this goes against the principles of privacy and anonymity that many cryptocurrencies were designed to uphold.
Finally, rules are limited in their scope. They only apply to businesses operating within the European Union, meaning that non-EU businesses do not need to comply with them. This creates an uneven playing field and puts EU businesses at a disadvantage.
Overall, while the new EU cryptocurrency regulations are a step in the right direction, they still have a long way to go in providing comprehensive and effective guidelines for the crypto industry.
-
Table of Contents:-
Bitcoin Soars to $28,380: 72% Increase Since January 1st
