Bitcoin Forum

If the government still doesn't know how to put down all cryptocurrencies(or maybe they're still figuring how to tax users), why wouldn't they create an exchange and get some profit from it?

We know how B.S some exchanges are, they needed KYC but in the end, you won't be able to withdraw your funds.

Instead of spreading FUD, I hope government from all over the world knows that running an exchange can add funds for their country, and their pockets! ;D

I know it will be making cryptos centralized but look at those exchanges asking for our pretty faces and names just for their KYC/AML purposes.

Yes , this will give them a kind of confidence in the system. In fact, not really owing an exchange house but to support the existing exchanges like what the government of India is doing in zebpay by putting an eye on them.

Governments doesn't have to make exchanges them selves, other companies will do that and government will just tax them. I guess they would rather control crypto, but with decentralized system like this they don't know how to approach it, at least not yet. They see potential and that is why they are so interested in it, also they see profit. Profit from crypto could benefit any country, and that is why crypto will live long life. Time of regulations are on our doorstep, its just a matter of time when it will enter our lives. Also, you should no that there is no way of centralizing something that is decentralized in its core.

and right. here the government only needs to control every exchange that exists by imposing taxes on a standing company, with which the state will mengantogi 5-15% of the income they get,, with it any state would have gained a considerable profit .. this is one of the advantages that can certainly be obtained by the state of bitcoin growth

I don't know for your country, but in my country government find the way to make a profit from cryptocurrencies. They enforced a tax! :)Every time you withdraw money from cryptocurrencies to your account they tax you and make a profit from nothing.... :D

Governments are likely very cautious about cryptocurrencies due to the anonymous aspect of it. There have been claims of ties between bitcoin and terrorist groups, so just by that piece of information alone, it seems like governments will and should be a little more cautious when they think about supporting an anonymous currency. This could easily affect alliances between countries as well.

I do see the profit idea though, and I think that's why there are so many current exchanges. All of them reap the profits. If governments did support exchanges and crypto, it might be easier for people to evade taxes and whatnot as well.

For me, kyc are just for formality for the certifications an ico had to comply. I don't give a damn on those kyc because it is also for the protection of the ico from the scammers. Though tracing their customers is hard but at least they will have a hint on where one who they are.

Govt is taking all precautionary steps to centralize the Bitcoin and cryptocurrency so that they can control it and stop illegal use of Bitcoin. Govt never support a decentralize anonymously currency but they are not banning it as it may become official currency for illegal purposes like drugs trading, tax evasion, money laundering, terrorism etc because of its anonymous payment nature.

The government should think more advanced as op said or perhaps they have been eaten by their own words or pretend to be stupid. Eventually, they feel it has more prestige to adopt crypto to be made as one of the tools for creating economic growth.


True as you say, I personally have a certain suspicion towards that they are one of the actors behind the tragedy of the decline that has occurred. In addition to spreading FUD, they have also been manipulating the price of crypto as has happened lately.

Governments will never be able to 'centralize' or control Bitcoin, that's something people should stop worrying about. The only thing governments can do, and that's already happening, is control the centralized part of our ecosystem. Most noticeable change is how exchanges more and more have to force people to fully verify themselves in order to make use of that platform. I wouldn't even be surprised if exchanges at some point will be forced to submit user information to the tax authority of each country they are registered in. It's not for nothing that the local markets have started to boom at the same time exchanges were subject to KYC/AML policies -- people aren't cool with that. Personal information on third party servers can get comprised and abused, which is the main concern for people. I haven't seen ANY exchange explain how data gets stored and encrypted, who has access to this information, etc....

Even if the government creates an exchange, I would be very wary of helping it: who can know what he will invent in the future?

How lucky are you, son. Your government's way of thinking very advanced levels are apparently, I believe your country will progress and be a prosperous one. If having such a government, for me the imposition of the tax is not a problem. The most important is the status of cryptocurrency in your country to be legal, safe and comfortable.

The profits from digital encryption have attracted the attention of the government, and many governments are starting to levy taxes on digital encryption.

They don't create exchanges because they have to issue their own paper money!

An exchange managed by the government would solve many things, but the concept of freedom and anonymity of bitcoins would be completely lost. I do not like.

I don't think the government makes an exchange is an efficient solution, I believe there is a better way to track their people for taxing.


which is a contradiction with the nature of cryptocurrency who is the user is seeking and aiming for anonymity and privacy. So, Its really a bad idea.

In some way, this wouldn't be benefiting, because most times anything that get involve with the government needs up with greed. Apart from regulations, I don't think government have anything to contribute. And besides if this ever happens; most people will not patronize these exchanges because they will feel that they are been monitored by their government.

But wouldn't they be able to regulate cryptocurrency better if they ran an exchange themselves? They'll be able to keep track of the transactions to check out whether there is money laundering or other illegal activity done through the use of bitcoin or other cryptos. There is a risk in it since bitcoin is anonymous and decentralizes, so they have no total control over it and they may be held accountable. If a government regulated exchange is created, people may feel more 'secure' and safe using it since it won't be illegal.

It is true that the government makes overall arrangements and follows the right rules and paths for me to succeed in the future, not only in controlling exchanges but all related to cryptocurrency, where of course a few percent will go into the coffers of state income . add to every year where tens of thousands of people use cryptocurrency, this potential cryptocurrency should be the current state of the conversation.

Despite the good intentions of developers, exchanges and blockchain engineers, there are concerns about the illegal use of cryptocurrency.

Many years have passed since the silk road and many black markets closed, but state leaders have raised concerns about the illegal use of virtual currencies.

Global government agencies have shown a willingness to continue or begin to regulate cryptocurrency.

yes, perhaps by making government-managed exchanges a solution to policy on crypto for now. because for now the government has not found the right way to make crypto currency as a financial asset with a centralized banking system and perhaps from some of the advice you mentioned can be an alternative for the government to give more policy on the crypto currency system and of course there will be benefits to be gained by the government.

I think not only the government that will have a positive impact but also its citizens, because I think the tax on the results of the crypto world is big enough and can advance a nation.

I would never use a government exchange directly , that's like risking your money because a single made mistake could to your accounts in a freeze mode and they would track you and tax you as they, would never recommenced or use one myself

I would like to tell you a secret. Government will already have an access to all your transaction details. The exchange will easily provide it on demand. At this point you are not losing anything.
The only good usage for gov exchanges that I see is that they may easily create a strong fiat pairs. Traders won't have to use all those stablecoins that are supposed to fail by design. But ofc it depends on the country. Nigerian gov exchange still won't be trustworthy. As I remember Switzerland was going to create something like that.

Some countries already implemented such regulation to tax every transaction from local exchanges they can't tax wallets that you own the private keys as it defeats the very purpose of bitcoin, mostly the one that they taxed is the cash-out option based on my experience, it is already indicated on your request whenever you do a cash-out option plus the middlemen fees to receive the physical converted fiat, some Governments will not even miss the chance to earn from cryptocurrency by taxing them though some of the countries already studying how the hell they are going to tax them.

I understand what you want say here but things doesn't work like that. If government wanted to have some share of profit then they could have made the changes already. However, in the long run they know that people's choice is what matters a lot when we consider about the decentralised blockchain. I mean government will not be able to implement any changes if people start recognising that government secretly launching their own exchangers and pulling the investment of their people to profit themselves. Its like creating the public services for the people but its not always possible for government to deal with the all public services and when its decentralised then they could end up in bad way. They have tax as option to get most out of the crypto currency investment. Thats my thought on this.

government recently declared Bitcoin and other cryptocurrencies illegal tender within its borders which has since seen crypto exchanges all over the country scrambling to create a plan of action.

In certain countries it's not possible, like some part of the Saudi Arabian Peninsula (not UAE because they are different), because they have a chieftain their that prohibits them from engaging in crypto investments. The fact they can give a huge impact in the market capitalization because their country is very rich.

This is something not possible even governments want it because there is decentralized exchange models that are directly between two party, and shapshift etc.

I think governments area already in the process of collecting taxes from crypto traders and we may see a different approach. If you try to look which coin is closely related to banks like XRP, this is where the government are going to implement their system to tax us. Banks are also working with governments of course which banks are also working with XRP.


They did? G20 didn't say that as far as what's been said they consider BTC as asset.

If governments do this, that means government approved cryptocurrencies, which has a very bad impact on the government's view. In most countries, the government don't want to lose control over money. Still, fiat is the only option a Govt. can control and maintain. Think about the taxes not an exchange fees.

Every government have their different opinion.
My government decide to forbid bitcoin because it can be use for criminal attempt and cause inflation. So although apply tax for bitcoin transaction will generate revenue doesn't mean my government want to earn " profit " because the real government work for people not for profit !

I think a government exchange would convince a lot of crypto curious people to begin adopting cryptocurrencies.
Even if it's heavily regulated, at least you know there's a strong chance that you will get your money back stored in your exchange's account. The more government aidded exchanges, means the less scams you have to worry about.
  This may raise an interesting debate, as many will be against any type of centralized authority.

To anticipate the transparency of transaction crime is indispensable nowadays where many criminals use bitcoin as money laundering or terrorism financing, it is important to control every transaction so bitcoin is acceptable to the government, it is one of the government's concerns over crime in the name of rampant bitcoin.

Yes you are right, it will really convince a lot of people as they will prefer to to see the truth in the government than in some people since a lot of people are also afraid to take risk, which we cannot blame them as there are lot out there who will do everything just for them to fool people.

Cryptos aren't that really "fully-trusted" by the government. Nobody really knows what they're planning about it right now. Bans could still happen and we shouldn't feel really safe right now. Japan has become stable already in their full utilization in cryptocurrency and I believe taxes are now being imposed there. Until a law code regarding cryptocurrency are established, then we still shouldn't still feel safe in our utilization of crypto coins, like scams in investment or ICO are still happening and it could raise an alarm for the government making them think twice on supporting cryptos.

That should be one of our aim, how we are going to convince countries such as Saudi to be involved in cryptocurrenty too, right now they are still not opening their eyes on this matter, but let us just do our part as an investor so that some countries will finally have time to review crypto again.

That is if the government can adapt and understand crypto very well. However, this might have a bad impact on crypto and might even result to some political issues since cryptocurrency is decentralized, transactions maybe transparent, yet user are anonymous. What if an exchange handled by a crypto gets hacked, it can ruin government budget or can result to mistrust.

Even if we assume that the government will keep some of its assets in cryptocurrency, they will not do it on the stock exchange. They will store the assets in a standalone wallet. But that will never happen. The state has never kept the Treasury in risky assets. There are States that buy their enemies ' securities because it is more secure.

Ouch! That wont be good idea man and if they do publish one then also I will not use it as they will be able to track every other moment of mine and off course as you said they will be able to tax me too. This gets nerve wrecking even if I think about it, just imagine what will happen if I start using it lolz. Plus I dont want to give away my money to the government just like that as they are already taking lots of taxes from us. I dont just want to make fuzz about that one. I will be more than happy to exchange over the normal exchangers and pay extra fees. Come on I do need some attitude here.

the concept of bitcoin was that it is the first decentralised currency in the world. if government opens its own exchanges then the meaning of decentralisation will change to centralised. many countries don't want cryptocurrency  in their country because it is a bit risky investment and at the end governments don't want to take the headache of people losses.
use of cryptocurrency will also affect the value of trade and the fiat currency.

Because if they could have done this they already would have. They can't setup exchanges because then people would worry about whether or not they are rigging prices, or whether or not their information is safe or being used against them. Believe me, if they could have set this up already they would have. It won't work and they know it, that is why they look to make money elsewhere in this space.

They look like monkeys in a zoo, throw a banana, and everyone runs a banana, but only one grabs, and the others look, just like with crypto-currencies, everyone is waiting for the first one to do everything for them, then watch his successes or failures, but only after that they will set up an exchange in their own country.

Governments creating exchanges and running them to suite their regulations seems to be just a piece of the cake to them. I think the governments want to be in total control of all cryptocurrencies and anything in relation to it, the more reason for their movement on crytpcurrencies of late.

yeah im agree with your opinion. should the government think about how to legalize bitcoin instead of prohibiting. and if the government wants to collect taxes from any bitcoin or altcoin transactions, it would be better if the government makes an exchange market and charging KYC for each of those exchange users. as you say, I think it's more effective and more useful for government and bitcoin users

In order for the government to make its exchangers, they must recognize cryptocurrencies as a currency. This government will never do. They don't want to do anything but I can not look without regret as the money held by the Treasury. The state is a repressive apparatus. They will try to take money from us by force.

I agreed to what you said cause the political leader as know for their of manipulate thing to their own favour and I don't think the governments having their own cryptocurrency exchange is the best answer to tax.

Rather than legalize marijuana, governments of the world could create their own marijuana farms and sell "green gold" to the public.  :)

I would guess they choose to legalize and tax weed for the same reasons they would not choose to pursue owning and operating a crypto exchange. States, like people, may choose a path of least resistance and stick to things they have experience or competency at rather than branching out into areas they are unfamiliar with. Learning curves can be frightening things and economically it often can be better for people to invest time and energy into things they have a higher probability of being successful with based on a higher degree of familiarity.

The push in politics appears to be for banks to own and regulate crypto exchanges with goldman sachs recently buying poloniex through circle--one of the small satellite companies it owns a controlling interest in. Sectors like crypto being regulated by the private sector is fairly common and perhaps a more efficient, cost effective and reliable arrangement. In the USA many regulators like the CDC are privately owned rather than state owned and operated.

While that is a possibility, I need to ask to you will you put your money in an exchange created by a government? Because I know I won't, we must remember why cryptocurrencies were created in the first place and it was to give us independence from governments and banks, are you seriously going to give up that independence?

the better idea is that governments create their own crypto currency that allow every one to invest in it. it will assure the better transactions of business with low fees of administrations. they deserve taxes for it. But Banks will resist it, of course. why do we care about banks  ;D

If the government will create with their own exchanger, They will put their taxes in maximum capability and they implement strict compliance with that, Also the concept of cryptocurrencies will be useless coz government will control every transaction that will be made. So for the normal user like us, this is very not good.They will spy you and it leads to our privacy issue.

The government of my country is still hesitant to act, whereas the krypto currency provides a good opportunity to improve the economic sector of my country, at least the government can set tax regulations for the traders of krypto currency and who are involved in it.

Its look a good idea mate. It will help not to continue spread fud in crypto because even government accept it for any cost so many users now are free to use crypto like bitcoin or alt coins anywhere in the globe.

Government creating exchanges? They may charge outrageous prices for every transaction you make. Exchanges just like the cryptos themselves must be free from extreme external influence.

I think it depends on the level of trust of the citizens towards their government. Why not issue licenses for already existing exchanges instead? The government shouldn't be engaging into business and the creation of an exchange would be a conflict of interest. They could generate revenue from that and that would be unfair for the market because they have control. That would monopolize the business of exchanges. It's not always best to have a government owned service provider, unlike what many people think. They can just tax the exchanges if they want to generate revenue.

Which government are you talking about? The US? Yeah they won't be doing that anytime soon. And its not like crypto is a government thing, why would a government make an exchange for something that is not even related to them? Governments can make a ton of money, from different sources. And even if they do, they will ask source of funds, which is almost impossible when it comes to crypto. I mean, think about it, this isn't a good idea at all.

We know that cryto currency had greatly influenced people's lives. The fact that the government wants to involve into this kind of market is that they wanted to control the negative uses of it. Let just think for the better cryto world for the better future!

It is more difficult for the government to run a government own corporations because some of the government employees are not honest enough to serve the people that they are mostly engage or be tempted in doing some corrupt activities. Therefore the best way is to just empose taxes to these establishments then just collect and the taxation department will do the rest.

Of course TAX are good. If they can't have it, they'd handle it by force. Exchanges never asked these KYC back then but of course the government were trying to monitor and choking them to death so the started collecting information. They can't just busting doors of every house they suspect doing business using bitcoin so they need to particularly identify who. Its not so cruel I guess.

I don't think governments want to involve into this kind of market. The only thing that concerns them is how they get tax. The other thing, Will they accept it as a currency or as an asset? They seem to be quite confused about this.

There are still some issues as to how they would recognized it so that they can levy tax appropriately. For the exchanges, they don't need to create their own because they can just grant licenses to private companies and then tax them for it. The companies then would just require the users to have KYC and then apply tax to their transactions so that they would just accumulate the tax collected and they will be the one to remit it to the government.


This is what I have been saying. Instead of doing it themselves, they would just let the exchanges - existing or not yet - to take care of the business of trading and they would just collect taxes from it. Some people might not trust the exchanges if it's handled by the government especially if it has already an issue of graft and corruption.

If Govt. open up or add crypto in stock market asset trading than crypto should be in centralized in nature and more secure. BTW govt. exchanges is great concept. it can give security to the trader because govt. recognize crypto and make system centralized. 

If I am not mistaken, I think some government are already doing that in other countries. That is a good thing to do also if they want to tax the users of cryptocurrencies. Instead of banning the cryptos in their respective countries, why not look for a way that can benefit both the crypto users and the government. FUD is not a good thing also because it will keep away the crypto investors and the government must not engage with that just to lessen the users of crypto, instead they must encourage the using of crypto because it may help to grow the economic state of the country.

Well it will not happen because the government is smart and will not held an exchanges because they do not want to be held liable for any loss but instead the government will going to license a local exchange wherein they could control and implement taxation on every crypto you will going to purchase.

Bank under management of government and state management. It is in the orbit of the state apparatus of any country in the world. Before the appearance of electronic money, the bank is the mainstream of the market. And when electronic money arrives the bank is no longer favored, because the interest rates are too low. The bank has reduced its profitability over the electronics market. That's what banks are not happy about.

then the government must close another exchange, right? because if there is still another exchange with a small fee, surely everyone will still choose it rather than the exchange from the government which might be a bigger fee.

In free market, government can not create their exchange because investor think government will involve on price. If government want to collect taxes from cryptocurrency transaction, government can regulate crypto transaction with obligate KYC for customer in every exchange.

You spelled "banks" wrong.
Governments will not have exchanges but governments may help banks to get a legit exchange and make it as legal as possible and you can have your bank account with bitcoin, that way banks can make it really easy for you to own bitcoin or buy/sell bitcoin.

Currently you can buy foreign currencies from your bank, back in the day currency exchanges was mainly business all by itself but now banks are making it a lot easier, if banks are allowed to do that on bitcoin, they can make bitcoin known by a lot more people and it can have amazing companies (banks) behind it so the trust issues with exchanges will go away right away, it could be amazing for bitcoin and for all of us that already owns bitcoin.

Lolz. I barely doubt that they will do anything like that and create the exchanger because they want to take the profits from it. I mean government is already rich enough and they keep getting huge profits from the taxation that is done every time you buy a stuff. Why would you expect them to create something like that and trouble us and get even richer on the same money for which they are going grab the taxes too. Its like paying them double money and thus making them more greedy for it. Big lol.

The creation by the government of the exchange is the automatic acceptance of crypto-currencies and, as a consequence, the need to write regulatory laws for them. I think that Japan, Singapore, Switzerland could do it first. This is really the right step on the part of the government.

That is a nice idea from the point of view of government. But as an investor, I will be very doubtful on using that exchnage because:

1) Most of the government operated sites are vulnerable to hacking attempts. They do not enough experience to handle this and it will put my investment at risk as well.

2) They will also track the investments very closely and it can result in huge problems in future.

There are main 1 plus and 1 minus:
plus: the state exchange will be the most reliable, probably it will guarantee the safety of funds, which is very important.
minus: citizens will have to pay income tax.

The government is collecting taxes even without their own exchange but I think there would be less evaders if they have their own. They just aren't sure if people will be using the exchange if they announce its a state exchange. Of all the exchanges coming out these days, there must be few of them are run by  the government. Its not going to be publicize.

Government agency concern about cryptocurrency were smart. They will not brought cryptocurrency in their own hands and take advantage on it. This because there could be some problem that may arise regarding on national security interest.

So, they will going to implement taxation discreetly. Maybe now your crypto holdings are being taxed by the government agency. This by getting a part on the transaction fee in the local exchanges. In return they will give the local exchanges a license to operate. Again the government will take part on the transaction fee being done to every client on local exchanges for cryptocurrency.

The conspiracy theory is that major players and big wigs are pressuring the government to halt or slow down the progress of crypto currency. You can also say that governments are all playing chicken and waiting for a better execution of crypto currency and do the same for their country. Lastly, they jist don't care

We already have a privacy issue. Now almost every exchange and exchanger requires us to undergo a KYC check and leave our data. Therefore, the creation of government exchanges is not so fantastic idea. In the future, I do not exclude the emergence of such government exchanges and exchangers. It will be quite logical.

This is actually a great suggestion and something the government should also look into. I am sure people won't bother much about performing a KYC with a government owned exchange knowing fully well that their information is secured just like in banks.

I agree with you guys. Another thing in my mind is what if this exchanges by government let's say have been hacked. Will the government offer insurance for the lost coins in cases like these since they are government owned exchanges? If they will not offer insurance, people might think that these incidents might be jnside job. This is just an example of a scenario about security and the responsibility of a government to protect its people. They need to build that trust for government owned exchanges.

Somehow governors would want to gain tax from bitcoin. They would like to apply tax even though on air that we breathe. Of course, governors will facilitate a legal infrastructure but they had better to do that by taking into account of  thoughts of investors and supporters of cryptocurrencies and agreeing with them.

They could truly charge some taxes for the exchanges that are involve in crypto that way the Government could still have some way of getting money from us.

I don't believe exchanges are needed when the crypto currency used by most of the people for payment they will just share the cryptos between them.Even if the governments creating exchanges most of the people are not going to use a centralized exchange when there are lots of decentralized popping up in these days.

when the government makes its own exchange it looks like it will be very terrible and it looks like there will be price manipulation and when doing KYC it will make their identities disrupted and make your privacy known by the government and that is very dangerous.

This is such a great idea, and I'm pretty sure it crossed their mind already. It's just that they are too greedy that they want all. They want to extract profit from everything in this crypto universe and not just rely on an exchange which would just be a part. Also, if they were to put up an exchange, this would cause them a lot of risk. The decision where to trade lies on the trader, and if their exchange would not be 'palatable' to the traders, they wouldn't as well profit as they are targeting to. As we all know, new ICOs and exchanges hardly make it in the market nowadays.

it happens if the government has legalized it, and i think it is actually our identity that is safe, and not misused, because our id also makes government, but indeed we cannot avoid taxes

If Government have a taste of the money exchange are making, they will even try to ban all other exchange that are not own by Government and just be sure that everything will be centralize. Another reason that may hinder Government from venturing into it is that it will take time for Government to build a trusted blockchain based staffs.

All the government wants is money. I think the middle ground of all this is wilingness tocbe minimally taxed and in exchange be protected by the financial laws of the land. That simple barter is acceptable for me. If a government is actually a jerk, the government will make their own coin and ban everything else.

to regulate crypto the government is now using the KYC / AML Method for crypto users registered in their country through state-based crypto markets and projects because the government is aware that crypto cannot be limited, regulated because they are centralized and decentralized.

No the government is already earning from taxing cryptocurrencies. This is already happening in every country where bitcoin/cryptocurrency is regulated. They had not made their own exchange because there are some technicals that might contradict with the government centralization system. How they able to do it? Well, they collect local exchanges taxes from its revenue of the people invested in bitcoin/cryptocurrency by adding a percentage plus with the local exchange transaction fee in exchange to giving local exchange a license to operate. The government is smart.

I think if the government makes an exchange just to get taxes from crypto currency transactions there will certainly be a few people who trade there, it won't be effective for the implementation of crypto currency taxes

That is right! They don't need to create exchange anymore! Government will control cryptocurrency because it is not a difficult for them to join in the current scenario of crypto space. They want to be part of this growing community and regulating all of cryptocurrencies is the step of government to protect or manipulate the people.

Having a government exchange is going to be similar to having the central banks which are controlled by the governments. But I don't think it will really have any advantage over other exchanges. Also, people with big crypto funds may not want to use it to avoid huge tax exposure.

On the decentralized system, it is not possible for the government to handle all the crypto currency. But other companies can start exchange system and government can add tax those exchange system.

Fewer people will be there trading but I think that isn't going to be an issue for them but their services along with the exchange might be helpful for users which might force users to register to them like for example easier to pay like internal revenue, healthcare or something like that. OR probably the government exchange will the only 3rd party that you can use to cash out into fiat.

If government have to start exchanges then people will more trust it and due to that crypto will be more popular while the chances of fraud will be less in this regard but governments are not crypto friendly and they are always against of it and exchanges if operate in the countries in their respective languages then it will be a convenient way for the users.

Those exchange that requiring their users to submit KYC was just a normal things if they are under the control of the government due to they are centralized exchange it is because of AML, at least by giving our KYC to them is not a problem at all. And I just want to clarify something which you just said in the above that " They needed KYC but in the end, you won't be able to withdraw your funds " You can't able to withdraw it, maybe because you didn't comply completely the requirements for the KYC to that exchange, because once you complete it, you can now able to withdraw your balance fund you have their any time you want.

that's the only way that government can regulate something inside crypto from their jurisdictions, implementing kyc will able to know who's using the system how things are being transfer, we knew that crypto mostly use decentralized and anonymous transactions so for government to make some ruling they also need to implement KYC procedures.

You think the current exchanges are any different? I mean right now we have private organizations that help you basically trade with other people without actually putting up any money and when the ETF comes out it will be about the same but by a governmental organization however if you take a look at the KYC rules almost everywhere you can see that governments are already in this business.

Not profiting from it and not giving you the trust any government can provide because its still private but every single private exchange out there is cooperating with governments to provide your personal information to them (sometimes even pictures) and use that to follow up on what you are doing with crypto world. Hence the governments are maybe not running the exchanges just yet but they are in it as much as the organizations itself.

That's true, those centralized exchange who passed under SEC and requiring their client users to submit KYC it is for their client protections, which is for me I don't see any problem with it. Compare to decentralized exchange where it will be more risk for us because once you get a problem with their platform it will be hard for you to recover your coins.