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Gabriel Jones Comment On Regulatory Notice 22-08

Gabriel Jones
N/A

Increased levels of regulation (and individual restrictions) of personal finances and investments may seem like the correct answer to protect consumers in today's landscape.

Unfortunately, many well-meaning (but overreaching) restrictions will be pursued. While not apparent at first, these regulations and restrictions will certainly have the opposite of their intended effect.

Regulators and lawmakers will only push digital asset investments & cryptocurrency traders further into the shadows. These shadows are far from a tax-enforcement friendly zone, and occupy the same areas that scammers and fraudsters operate freely in.

The truth is Politicians and lawmakers are ignorant to how cryptocurrencies, web3, and blockchain technologies work. If they were knowledgeable, they would understand that these digital asset networks are extremely decentralized, to the point that they cannot be controlled or halted by any central body or governing entity.

Compliance cannot be forced, compliance in a distributed network, for the most part, is done only by those willing.

Do not stifle technological innovation, do not classify who can and can not invest in these misunderstood assets.

Instead promote an environment of cooperation and voluntary compliance, while pursuing criminal convictions for any persons involved in deceit and fraud.

This is a thin line, crossing it will lead to less taxes being collected and more fraud running rampant in the industry.