Following the regulatory threats on bitcoin and cryptocurrencies from China and South Korea, France and Germany have draft a regulatory proposal at the last G20 meeting.
Better blowing in the wind….
France’s Finance minister has said ; “We want a stable economy, we reject the risks of speculation and the possible financial diversions linked to bitcoin”.
I don’t know what he want to say and how he intended to regulate the market.
But have you ever seen a market without speculations?
People have already forget the 2008 crisis due to bank speculations with the fall of Lehman brothers bank.
I will have to ask him what is a financial diversion. I try to translate it in french to better understand but without any success.
But let’s begin by China bitcoin ban:
China government want to be able to control their people, keep in mind that Facebook is personae non grata in China, and you cannot control P2P network….
Just after Bitcoin ban, we have heard about negotiations between Neo blockchain and the chines government….We don’t know yet South Korea proposal and a lot of people are talking about the effects of this threats on the market.
Don’t forget that many investors are also taking this opportune to sell their cryptocurrencies, they take their profit and the market plunge. Business as usual for day to day traders. This investors are professional traders and banks.France and Germany will not be the latest who want to make a change.
Now that banks and others financial institutions can invest in crypto and put them on their balance sheet, every government worries. They just want one thing tax cryptocurrencies’ owners.
Their big problem is how they can tax crypto ‘ owner.
Cryptos are not real currencies like dollars, euros and others, and governments will never admit that people considers bitcoin the same as dollars or euros.
Cryptocurrencies are assets:
An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Assets are reported on a company's balance sheet, and they are bought or created to increase the value of a firm or benefit the firm's operations.
Governments should be able to tax the future benefit cryptos will bring to their owners but how they will done that?
We always forget that we are a few guys to know about bitcoin in comparison of the majority of people who just heard about it and just don’t care.
The real threats for governments are their friends the banks. they can evade trillions with cryptos and put their loss in their balance shit.
They put a lot of money apart and they don’t pay tax because of their loss in the market.