Will Investors Be Crushed by Looming Cryptocurrency Regulation?

Whether cryptocurrency investors like it or not, regulation is helping to shape the direction of the budding crypto industry. The question is whether or not regulations will have a detrimental effect on investors. In many places in the world, cryptocurrency sits in a legal gray area, either lacking regulation, or inheriting rules pertaining to stocks, commodities, or securities.

However, cryptocurrency might sit in an asset class of its own. Michael Novogratz, CEO of Galaxy Digital believes that crypto does constitute its own asset class. The reason is that existing frameworks fail to account for the nuances embedded within cryptocurrencies of all kinds. Hard forks, airdrops, staking, and block rewards are all novel financial concepts that require careful attention and new legal definitions.

Are there currently any examples of countries that have implemented regulations to the detriment of cryptocurrency investors? India comes to mind. After flip-flopping on a concrete stance for several years, in early 2022, India settled on a 30% capital gains tax, with a 1% tax on every cryptocurrency transaction.

Source Fool.com