Regulation against Rektalation
Feb 23, 2023. Reg Crypto Weeklies
Dang! Dang!! Dang!!!
(tapping an imaginary drum with a foot)
Dun dun… dun dun dun!
Yeah, that’s right. If this was a song, that’s how this tune… and beat would go!
The only thing is this isn’t a song.
But the pace
Of this race.
I mean, check out these tweets
(bringing out a phone and reading out loud)
Krak-e-ing stakes shut with a $30m pen
Busd-t-ing tokens down with a securities slap
(whistles)
The more I gaze
It feels like a haze.
Let’s step back one moment right
Think of this…
What are the likely consequences…
Well to begin with, high stakes are brought low – for sure
Good or bad – could be less centralized and more decentralized
Just saying!
Or rather, just calling it as I read it
(as an after thought)
In the comments section that is…
Comments indicating that fiat backed stablecoins may peg to other currencies other than USD
Whao!
Protests explaining that no one expects a profit when buying stablecoins
So technically they’re not securities…
What a craze!
We’re in a maze!
So I kind of get it
(pondering pause)
In a way right…
Given the face
Of this space
There was bound…
To be retaliation
After the rektalation
That caused desolation
Having said that though…
(shifting in sways)
Done in a way right…
Regulation should bring
Legislation to spring
Innovation with minimal
Trepidation and less
Argumentation.
Done in a way right.
Just saying!
Okay – now to minding my busyness on other matters.
There seems to be some silver lining on this side of the pond…
With the EU working on MiCA – that could clarify some questions under contention
Let me see what do we have here…
(opening a labelled folder)
Covers third-party crypto asset custody and administration as well as operations of crypto trading platforms.
Exempts the sensationalism of NFTs unless they become divisible and hence fungible.
Ha! Divisibility and fungibility of NFTs – what!
Anyway, that’s another topic for another day.
Which reminds me of the debate around true IP ownership of NFTs on certain blockchains.
You might want to hear it now, but…
Like I said, that’s a whole hullabaloo for another day.
But certainly, one to watch as club BAY is currently tiding over that torrent.
(shuddering with delightful anticipation)
Other exclusions from MiCA are DeFi and DAO operations that are fully decentralized.
Hmmm interesting.
Talking of interest, I got whiff that
The UK plans to become a fertile ground for crypto companies.
Some recent ranking placed London as the top global crypto hub
Above Dubai, Singapore and Zug – all three of which have a capital gains tax of 0%.
Very interesting…
Sounds like a good thing, eh…
(laughing heartily)
The good ole Brits, let’s see how long they live up to that commitment…
I mean I might consider relocating if I didn’t already kind of live here…
(peering forward curiously)
Oh hold on one moment
(with a cupped hand over an ear)
did anyone whisper anything about rising taxes around the corner…
(with a feigned look of surprise)
You don’t say! Not sure they mentioned that bit, right?
(sniggering)
Haha… smug, funny peeps…
Anyone looking to move here –
The more the merrier!
Anyway, what’s the key takeaway from all my rumbling today?
Two major things
1st – Regulatory compliance for the industry is here to stay.
Fair or not, informed or not; it is here and the level of misunderstanding shows that the stakeholders on all sides
(counting fingers)
Crypto players, regulators, market consumers
Need to get together around some virtual table or IRL – whatever!
Conversations need to be had.
2nd – Planning crypto affairs in the EU…
(pushing the folder forward)
Familiarize yourself with MiCA and start preparing for it.
Let’s see how long things hold up in this environ before the next tweet storms!
Just calling it, as I read it. And sometimes, just saying!
