Thank you, government regulations. Privacy here we come.
The first of many, as with the recent news of South Korea regulating the removal of anonymous virtual accounts from exchanges and the implementation of the taxation of cryptocurrency on traders [source], we all see where this is going. Governments around the world are soon going to follow suit. They are intending to earn taxes from everyone in the crypto space, sure sounds like bad news for exchanges and traders. All those profits, privacy anyone?
With every down, there is an up
People were anticipating what the governments would do to regulate cryptocurrencies. Imposing a ban looked like the only out. But instead, with governments implementing taxes on cryptocurrencies, do you know what this means?
Cryptocurrencies are actually getting the acknowledgement it deserves and they’re here to stay. Governments aren’t stupid to implement a tax on something they believe would fail (or maybe they are).
Verge: It is time for you to shine
But wait, there’s more. How can they tax you if they can’t trace your transactions? If this trend to tax cryptocurrencies is adopted by other governments, we may see a huge influx of interest for privacy-centric coins. Will people then be stocking up on privacy coins like Verge before tax laws come?
Place them in a wallet. Hidden away from the government.
Let’s Wraith Things Up
Taxing you based on your total coin value? How can one even determine a coin value after it’s off the exchanges and traded anonymously? Verge (XVG) seems like it was made precisely for this outcome. Need to comply with government regulations for a transaction? Make them public. Prefer to keep your transactions private? Turn on Wraith Protocol anytime.
Once people start realizing this, we might witness a shift towards the offline storage of privacy coins. Cryptocurrencies that are untraceable, and globally accepted? We’ll take that any day.
With government regulations, do you think Satoshi’s dream can still be accomplished with Verge? What are your thoughts on this?