Cryptocurrencies will survive regulation but will not remain what we have known so far - it's impossible to ban Bitcoin but unfortunately it's possible to discourage people from using it

TLDR; It seems like they are looking for the worst possible way to regulate cryptocurrencies and their fiscal monitoring

The proposed regulation law in the EU and the fact that in the US even what you get with Coinbase Earn is a taxable event (not to mention staking and defi in general) seem to be just the beginning of the wave of shit that will hit us.

Reminder: The European parliament has proposed the madness of regulating exchanges by forcing them to apply a sort of kyc for customers' private wallets.

I am not among those who say that cryptocurrencies must be 100% invisible to the tax authorities or that we must not pay taxes on earnings; it is obvious that this is a gain that must be taxed for fairness.

The problem here is that laws are made by people who are not very interested in understanding what they want to regulate or maybe they can't even understand it. Not to mention the conflict of interest. At this rate, most cryptocurrencies will simply become tokenized stocks on different blockchains.

So yes, that's right, no government can ban Bitcoin but it can create such an oppressive and unnecessarily complicated procedure that can keep many potential investors away. In this scenario the CEXs offering integrated financial advisory will be more successful but decentralization will be further and further away.