The society also needs to be seeded with instability. There has been a great amount of work and almost all political parties in Finland are thoroughly infiltrated, to achieve some racial mix in the populace to destabilize the country. Still it is among the most stable (that's why they need to work so hard here
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Any kind of new tax or reporting requirement would be socially acceptable here, but the society is not sick enough to allow militarization of the police for example. The conscription-based army of Finland is also totally useless for the militarists, people (who make up the army) just are not into torture and terror killings.
Compare to the U.S., there all the above is commonplace. In a third country, the rulers terrorising citizens is the norm, but paying taxes is not. And possibly there is the fourth type as well where regulations can be voted down and there is no need to fear in the streets. Maybe Switzerland.
How this is tied to the potential for explosive adoption of XMR as a result of HNWI buying?
I think the battle line from people's perspective is "privacy", but the government is twisting it to be "taxes". It is easier to rally the sheeple against people who "evade taxes" than the ones who "protect their privacy". For this reason, tax laws are made extremely intrusive, leaving no privacy. This raises the stakes for the privacy advocates because to uphold what they need (privacy), they must break the tax laws, exposing themselves to harsh penalties, and also doing harm to the privacy movement as it is too readily associated with tax "crime" by the lapdog media.
Catch-22. Merely by keeping your privacy, the bankstercamp gets more ammunition to smudge all the privacyists as criminals! Sheep say "baa".
Very clever from them.
The regulations do have a big role in the adoption of crypto, but the question is not simply legal = good, illegal = bad. The bankster goal is to keep people in bondage, and allow them some freedom, so that the people would not team up in rebellion. Bitcoin is something they probably already majority own, so it is soon becoming a possible choice to replace the current debt money system. (in power politics, only the relative share matters - if banksters own 30% of all dollars valued at $1,000,000,000,000,000, but 40% of all BTC, it is in their interest to pull the plug and let BTC become the major currency)
As for XMR, making it illegal would probably not be the optimal way. All illegalized things tend to grow much stronger (see drug trade, prohibition). Regulating it to death (or surprise-world-domination, which is still a possibility with BTC) is more likely. The important thing is to see that regulation makes the essential attribute, privacy, illegal.
The banksters, and their tools, the governments, need to keep the number of "enemies" (people who want to live a peaceful life and have at least some capability to do so) contained and prevent them from banding together. Making looots of laws that regulate every aspect of XMR use is the way to go, this allows whacking the people who dare even to speak publicly about it as they probably have something to hide as well.
Child porn, drugging politicians in the "bilderberg parties" and photographing them doing illegal things serve the same purpose. Tyranny is evident when laws are so numerous, so vague, so contradictory, and enforced so selectively that regardless of the uprightness of character, any person can be made guilty of any number of crimes. This keeps them from doing or even saying things that might damage the system, and in general, keeps them in a depressed state of mind, unable to break free in other areas of life either.
The more people want to break free, I envision, the more XMR will gain hold. There just are not that many alternatives. In the short term, I think almost anything that could happen, is positive.