While many countries are actively discouraging investments in cryptocurrency, others are making it easier to do. In the most recent development, the government of Austria has decided to levy taxes on crypto and treat them like stocks. If crypto investments are treated as stock investments, they automatically become legitimate. On top of that, any investment in crypto-related sectors now comes under regulations. There are both merits and disadvantages to this, but it seems to be a positive action for the most part.
Austria’s federal ministry of finance made their statements official last Tuesday. Officials from the ministry stated that the problem of imbalance between regular investment assets and digital assets is continually growing in Austria. As a result, many people are either avoiding investments in crypto or doing so through unscrupulous means.
It is interesting to see a global move towards legislating crypto. The conundrum of regulating cryptocurrencies continues to plague the mind of purists, but it is good news for the general crypto enthusiast. However, what is more alarming is governments’ tendency to squash innovation in the sector. If cryptocurrencies are brought under regulation, many innovative projects might be forever lost. On the other hand, the problem of not regulating is also looming around the corner. It will only be a matter of time before governments prohibit their use if they feel it poses a challenge to the traditional monetary sector. Cryptocurrency is both a disruptive technology and a practical method of carrying out smooth transactions. How governments around the world deal with it will be interesting to see, as we witness groundbreaking innovation and advancement.