# Stage 4: Regulation and Normalization

Entry into the formal financial system brought with it a new relationship with regulatory frameworks. Bitcoin ceased to be a subversive technology to become a regulable object.

Main regulatory elements:

* Application of KYC (Know Your Customer) and AML (Anti-Money Laundering) norms.
* Tax oversight on gains and losses from buying and selling.
* Legal classification as a digital asset, intangible good, commodity, or security, depending on the jurisdiction.

Relevant examples:

* In the United States, the SEC and CFTC debate its classification as a security or commodity.
* In the European Union, the MiCA (Markets in Crypto-Assets) regulation establishes guidelines for its issuance and commercialization.
* In Latin America, frameworks are disparate: some countries legalize its limited use; others restrict it completely.

This normalization process poses a structural paradox: to achieve mass adoption, Bitcoin must integrate into rules that, in part, were designed to control or neutralize it.

BSV navigates this regulation while maintaining the original decentralization, with a focus on simple and scalable transactions for everyday users.


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