Why cryptocurrencies aren't considered assets sometimes

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Archived
Joined
Sep 2020
From
Singapore
I have had this debate with may different people from different walks of life. In many parts of the world, cryptocurrencies are considered an asset and most of us might be well aware of this too. However, there are many reasons it is still not considered an asset, many( especially regulators ) believe it to be mainly due to the lack of legal rights. This can probably change completely in the future when serious regulated players like Banks get involved. Governments surely see value in it, but they are still skeptical. I think this will change over the due course of time once crypto starts gaining more mainstream traction.

Another interesting approach I came across is trying to introduce a layer by leveraging Blockchains like Concordium which claim to have regulatory compliance and Identity verification at a protocol level. Attempts like this sure might give more confidence among banks to start cryptocurrency custodianship/ interaction.

With the advent of such practices, cryptocurrency may start being viewed more seriously in the legal world and smart contracts can be legally enforced too. So cryptocurrencies can probably finally be seen as an asset even according to local laws of that particular country.

It isn't going to happen overnight, it sure will be a tough battle,but I see it as a sensible way forward. Is cryptocurrency legal in your country? What are your thoughts?
 
Joined
Aug 2020
From
Hungary
I've thought about this too. Where I live there is no regulation involving cryptos, and taxes are imposed on a case-by-case basis. This makes things somewhat complicated. And I still meet a lot of people who don't really know what cryptocurrencies are or consider them a fad. Internationally more and more central banks and governments are starting to be more open to cryptocurrencies, which is good. But it makes me wonder how this will affect different parts of the world once cryptos start becoming more widely accepted. Will it widen the gap between first and third world, or between countries of different political situations, or will it be beneficial? What do you think?
 
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Archived

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