Governments should be encouraging crypto staking particularly through regulated exchanges

In the UK there was speculation that the tax authority may class the conversion of ETH to ETH2 as a taxable event, subject to capital gains tax. However they clarified that it wouldn't.

Odd for a government not to capitalise on an opportunity to tax, however it's not clear if it was deliberate but it's probably a genius move.

Taxation of crypto can vary hugely depending where you are in the world however generally their is a trend for mining or staking income to be taxed as income.

When it comes to Proof Of Work the country with the most mining companies have the greatest ability to tax mining income. When it comes to PoS the country with the most stakers will have the greatest ability to tax staking income.

The UK has a very small population of miners due to the cost of entry but a high population of eary crypto adopters. By allowing investors to transition from ETH 1 to ETH 2 without penalty they've essentially crated a better opportunity to generate additional taxation from staking income. Deliberate or not, it's a genius move.

On this note countries should be encouraging/ assisting their citizens to stake, particularly through regulated exchanges which they should also be encouraging.

The US has been looking to attack miners and exchanges failing to realise that embracing crypto is not only a massive opportunity for the hodlers but also the taxers… Crypto isn't going anywhere soon, the early moving governments that embrace it will prosper from it the most.