Bitcoin Forum

What are your thoughts on the need for regulation in the cryptocurrency industry? As the industry matures, I think it would make sense to go the regulatory route rather than to fight the "existing system"?

I think Concordium clearly understands the need for Privacy. I like how this project clearly separates between privacy and anonymity. The founder of Concordium is the founder of Saxo Bank. It made sense when he mentions in his video that he's seen trends like the internet grow when no one believed him and the way it matured over time.He thinks something very similar is going to happen in blockchain as well.

According to him Banks and Financial institutions ( he has more than 20 years of experience being CEO of a bank he co founded ) need identity verification and anonymity will not be possible but privacy sure can be possible and Concordium addresses this very point.

It made sense to me. What are your thoughts?

Obviously banks are private so I doubt that they will allow public and permission less blockchain.
But I do agree that we need more privacy, it's just a matter of how you are going to protect it using blockchain. For one bitcoin has it's mixing services and conjoins and wasabi wallet.

As for Altcoin, there are privacy coins, Monero, Zcash so I don't know how are they going to address it. Or is Concordium going to build it's own public blockchain?

According to their website it does look like they are building their own public permissionless chain. Quite interesting how the developments are going to unfold.

He is talking about banks that adapting blockchain in there system. There is no way that they can't do permission less transaction while they are using blockchain. Regulators will just required KYC in every existing account on the banks unlike the current situation of project which user has data privacy while using there service.

Following the regulatory requirements is the only way for crypto project to survive on this game. Many project are already closed/bankrupt because they can't afford to apply for license.

I don't think the same, regulations will give governments some control in cryptocurrencies, they will try to impose laws that will enable them track cryptocurrency users, govt always wants control, that's why they are shifting away from cryptocurrencies to create their own cbds's; we've head about the launching of the digital dollar and digital yuan sometime in the future, crypto is btw legal in my country, but I'll not want my government to know how much bitcoins I have, and impose regulations that will defeat users anonymity, bitcoin is meant to function without a third party, if government can regulate it and impose sanctions, then they are more like a third party.

Part of me saying go for it. While the other half says its better to stay this way. Apparently most of the investors in crypto market always said that they are losing funds precisely due to high volatility. Well that part of investment there is winner and loser. But what makes me feel the needs of the regulation is the scam and fraud of most coins traded. This is sharply damaging the reputation of crypto. Is it possible to implement this only to those who are new and those old and proven good project remains untouched?

That is why crypto is an ideal place for scammers and fraudsters to prowl around due to anonymity, decentralization, and not being regulated. But at the same time, people enjoy this benefit as well due to the same characteristics. Crypto is definitely way more convenient than using banks. We cannot have both decentralization and regulation.

IMHO, I think there's no problem with regulation because I believe that it was badly needed in the industry that often used to launder money and other fraudulent activities. but the regulation must be limited only in the identities of its users like the KYC to know more about the people who use and doing transactions using the Blockchain infrastructure, If the banks will adopt Blockchain technology to their system I'm sure it will be a game-changer if it was realized.

Investors in crypto market are whiners. They all knew what they were getting into so if you're investing a shitload of money into something proven to be highly volatile, then you only have yourselves to blame. Regulations keep scammers in check but it's always reactive. You need people to start waking up and taking responsibility.

Regulation means simply tracking all the crypto transactions which means there won't be any privacy at all if it is regulated.If you think privacy is still possible means you are trusting the institution whol collected all our data but it is at the stake of risk and anything can happen at any time.

I do agree with regulations for crypto market as this will stop scammers to take advantage of the market as unregulated simply means no one is responsible while under regulations the relevant authorities will be able to take action against scammers and fake coins.
And even if you analyse all countries where crypto regulations are issued the crypto scene has grown there and public trust and interest has increased so basically regulations are good and in the end they are pro crypto.

Much better if our government just let its countrymen adopt cryptocurrency in a natural manner. You know, people use the tech based in their own will without making steps to compromise the privacy features of it. However, I believe that too much freedom leads to chaos — and that's where regulation enters. So yeah! Though some of us (even me) hate to follow rules, but at the end of the day, we all need it in order to maintain the sanity of everyone.

Besides, having a regulated system is better than banning the use of it, isn't it :D?

Ps: good luck on supporting Concordium, I hope you succeed.

There are differences between regulation and regulation. If you want regulation on business' and jobs that earn bitcoin, I would agree that there should be some regulations and make sure that all of them are taxed and registered and so forth. However if you are talking about ownership of bitcoin, that should not be regulated, it should be let go and not checked, what matters is the people who are money laundering or using it for bad stuff right?

This means if you send money or receive money you should be checked and see who you are, but if you just hold it and not move it, why should you be checked? It is yours and you are not doing anything but hold it with hopes of becoming rich later on. That is why companies and people who send/receive from each other should be regulated, people who just own it should not.

Anonymity is very much needed for the security of decentralized network and users. Without it am not sure if a network will operate securely or be too difficult to hijack. I know this is counterintuitive but this kind of anonymity does not mean a user will be completely unknown or not unmasked when serious crime is committed by him/her. Users names will be verified and stored on immutable registry which access keys they fully control/owned, & the private data is hidden from public view or hidden from every other person. The register can still be used for other purposes that require identity verifications, it could also be linked to users other personal data on a decentralized network etc

In some countries they are already allowing their national banks to deal with crypto and obviously when we talk about kyc and other services related to payment and remittance transfer banks can make use of blockchain tech big time and stay in the competition otherwise they will be soon outdated.

The only project which doesn't need to follow any regulation is bitcoin. Regulation must try to fit in bitcoin.

All the other MUST follow regulaations, because they are companies. If a company is against the law, it will be shut down and operators will have to face consequences (fines, jail, whatever).
As bitcoin doesn't have an owner, ceo, etc, and neither a central point, it simple cannot be shut down by any regulator.

THe most recent example is libra, which american congress just stopped it before even it was born.