Crypto & Governments

Little or more, everyone heard the name of cryptocurrency in this current world. In some countries, cryptocurrency is legal where most of the countries are still banned by the government. There can be many possible reasons behind banning cryptocurrencies in a country.

Crypto came to us to give us full access to our financial assets. As people are getting updated and learning about cryptocurrency, They are trying to take full control of their financial assets. Unfortunately, still very few have good knowledge about cryptocurrency. But the government is already trying to dominate those persons because somehow the governments are afraid of cryptocurrency.

For some reason being afraid of cryptocurrency is logical. If people start to use cryptocurrency, the government may not be able to track the movements of assets. Nobody wants to be noticed for to their financial issues but it brings an unwanted risk. The transactions of drug dealing, murder, fraud issues, and all illegal things cannot be detected if people start to use cryptocurrency. Because of money laundering, of one can steal money from one country and it's indeed a matter of concern.

Again at the same time, the government doesn't want to lose control of the assets of people. And government controls the assets of the general people through the banking system. Still, many people trust on bank blindly. But I believe that it's just a matter of time all governments will accept cryptocurrency after a certain time. In fact, in that time there will be no scope to deny cryptocurrency instead of having some disadvantages. It's because all the technologies have some disadvantages and with proper moderation, those can be used for good purposes.

Some governments already understand that it's impossible to stop people from using cryptocurrency and they will have no way except accepting cryptocurrency. So they legalized the crypto and they added a high taxes on cryptocurrency. You might be thinking about where they will get the information about our asset and the answer is the exchanger. Do you know that in recent times in India, people can't use Binance, Kucoin, and some other exchangers? Do you know the reason behind it? it's because those exchanges didn't provide the data of users. The issues will be resolved when will send the data to the Indian government. So this is the way how one government is using the exchangers as the data provider like banks and indirectly trying to control the uses of India. I think the tax in India for Cryptocurrency is very high approximately 30%.

Again some governments are very much crypto-friendly and they are trying to take the best advantage of cryptocurrency. They are performing better and in my eyes, the governments of Hong Kong and the Philippines both are crypto-friendly countries as well as governments.

Honestly, I think doesn't matter government wants it or not, People will be involved with cryptocurrency, and the users of cryptocurrency users will increase rapidly within a short amount of time. If the government bans it, people use it even if it's illegal and the government can't stop all people as there exist many escape ways from the government. High tax is also not a solution because it demotivates users to pay tax. I think setting a moderate/low tax may inspire general people to encourage paying tax for crypto and it would be best if there is no tax for the crypto.