Just as you’re about to get a cup of coffee brewing, the crypto industry takes a massive hit from regulators. Either a massive party foul or a long-overdue clean-up, depending on who you ask. However, it is evident that the game is undergoing rapid changes. Go here to get most interesting topics!

For starters, know your customer regulations are becoming more stringent. No longer can you open an exchange account with nothing more than your email address and some positive energy. Check your identification, take a selfie, and maybe even provide proof of address; this is the new normal. Aside from its stated goal of reducing fraud, this measure weakens the anonymity benefits of cryptocurrency. People who value privacy, listen up.

Real taxes are also on the horizon. The new reporting rules oblige you to reveal all of your financial transactions, including the meme coins you traded for pizza, as well as your earnings and losses. You can’t pretend to be unaware because the IRS is cracking down. You should probably contact that friend of yours who is an accountant and get your spreadsheets in order.

Can we talk about stablecoins then? Examined closely. Discussions are underway regarding audits, complete asset backing, and possible bans. Governments are concerned that digital dollars may be based on nothing more than a logo or a good feelings rather than true currency.

Protocols that use DeFi are also under scrutiny. Code audits, more openness, and perhaps even emergency shutdown capabilities are on the horizon. Is that farm offering an annual percentage yield of 4,00%? There may be more paperwork than just your whitepaper in the near future, including a user manual, legal disclaimers, and regulatory disclaimers.

Zcash and Monero are examples of privacy coins. Their misbehavior has been formally documented. It might not be long until there are restrictions or complete prohibitions.

Oh, sure, some liberties will be curtailed, but what about the benefits? We can only hope for increased confidence, wider acceptance, and less underhandedness.

Can we call this regulation a godsend or a buzzkill? What you perceive is relative. In any case, you should read the small print so that your crypto strategy remains intelligent, secure, and prepared for the future.