Bitcoin Forum

From all stand point as Bitcoin keeps gaining more popularity and adoptions it won't be inaccurate to say the government are endlessly finding a way to do a complete regulation on Crypto currency specifically Bitcoin, Despite most times the word crypto currency might be used to address all crypto related digital asset but the main target remains Bitcoin due to it's decentralised and distributed network as well as been the major crypto asset.

Why it is obvious getting full control of Bitcoin functionality and distribution seems impossible due the fact it has no central point of control one might expect stricter rules governing the use of custodian and non-custodian wallet, declaration of all cold wallet addresses, Setting up committee to monitor transactions on the blockchain public ledger, introduction of wallet trackers and ownership on different OS and maybe lots of wild experimentation to make regulation a possibility.

Believe you me no matter how advanced bitcoin decentralisation might look or sound the government will never risk giving their citizens full control of their assets. The always want to be in charge and has long has they have this limitation of full custody stricter laws regarding Bitcoin usage might spring up. Technology is advancing

main exchanges getting forced by governments to turn over bitcoin is my worry.
coinbase, kraken, gate.io are us based companies.  couldn't the us government eo6102 them?  what would the effect be on bitcoin? what about binance or someother big exchange. 

Fully regulate? Quite impossible. The government would regulate cryptocurrency partially. If you deal with p2p and store Bitcoin in a non-custodial wallet like Ledger then how the government would monitor or regulate you? Yes, they can regulate exchange, custodial wallets, etc. That's how they can regulate a large number of users because at the end of the day we have to use the exchange. Dex always won't help is at all points.

Technically speaking then it would be impossible on tracing up everything even though transaction could really be seen on a public ledger but there's no way that you could really trace up on whose the owner of the said

address.We know that government would really be finding out ways on to engage and get involved on everything specially on talking with transactions that cant really be known by them due to the fact that crypto is

indeed decentralized specially with Bitcoin and since it does really have that fiat value then they would rather be focusing on where they would really be able to connect
which is to deal up with those platforms or companies which is really been attached with crypto space.This is where they do really touch up and make involvement
and setting up those regulations which is actually a shit thing to have.

Bitcoin network being regulated by the government is an impossible mission, but the only means government can have some form of control or regulate Bitcoin is through its services, which are most times centralized such as the exchange and other Bitcoin payment processor gateway. That is why there have been a rise in the number of KYC compliances by bitcoin services providers like exchange and other p2p service providers.

Regulation is inevitable. Regulations won't reduce the control we have over our assets, but what we will do with this freedom.

For example, in the country were i live there are ways to avoid some taxes using bitcoin. This is already illegal here, and people who do that may be fined.

Regulations will come like this, and over exchanges which are centralized and can be controlled

All countries have different regulations few countries have very strict regulations like the US and the UK to avoid money laundering they need to implement it because there are lots of people being scammed and losing their money. That is why they end up regulating exchanges like Binance and other exchanges in EU countries and the US unlike in Asian countries like Japan the hot news recently they are now allowing new coins to be listed easier due to relaxing rules.

If your problem is regulations and wants to avoid being monitored you can still hide your coins or buy coins from individual people or any P2P exchange and use a mixer.

As long as the government keeps claiming that Bitcoin is used for money laundering and it promotes illegal trade, there would always be regulations. The bitcoin industry is a multi-billion dollar sector and the government would always want to collect taxes through different avenues because it is clear that it would soon become a major source of revenue. In order to achieve their taxation goal regulation would become strict.

But Bitcoin was not built to be a centralized currency, therefore it already has a built-in mechanism to overcome these regulations. But the government might want to criminalize the use of decentralized platforms to discourage people from using them. Currently, centralized crypto platforms account for almost 98% of cryptocurrency transactions which is a clear indication that government regulation IS here to stay.

Yes, regulation is inevitable. They were preparing it from the beginning and they now have systems to track everybody's transactions which we can be identified through the KYCs they have been doing. Through the KYC database, the government can gain control over us, and eventually, they will look at our assets. The future is kind of a dystopian world where every transaction can be seen.

If we want Bitcoin to be fully adopted by the world, then imo regulation is inevitable. This doesn't mean that the government would put Bitcoin under their control but rather they'd only set some rules for merchants that accept Bitcoin as a payment method that would inevitably kill some of what makes Bitcoin, well, Bitcoin. In itself, I don't think the regulations could do much, such as p2p transactions but if it was a centralized group/merchant, such as exchanges, then it'd affect it to some extent.

The government will always look for a way to fight what they actually can't control and understand, they will keep on fighting and implementing possible policies they might think will reduce the use of crypto by their citizens which can never stop the crypto, even if they go up to the extent of regulating and asking all IOS and OS app providers to remove and restrict its citizens from using all crypto related app it still can work, people will also fine alternative. that's why most exchange has introduced the p2p system to enable restricted users to trade successfully without a trace.

The ban or against cryptocurrencies seems to be showing signs of abating and is being replaced by regulations that are intended to tighten the use of cryptocurrencies as well as bring many benefits to the government such as taxes.

I think regulation is inevitable, we always want cryptocurrencies to be mass-adopted then it will be impossible to avoid the government's attention. Let's not forget that we live in a world controlled by them, so don't think that there is something that will help us overcome their control. As long as the rules are not too strict we will have to follow and for those who still want to remain anonymous, we also have services like p2p, using mixers, so no need to stress.

Only if governments launch some super strict regulations like they will put everyone into jail if you install Bitcoin wallet software or run a Bitcoin node or store and use Bitcoin for any purpose. Honestly I don't imagine such future like this. If it happens, the world is without any sort of freedom.

Governments can not detect and prevent people to download and install any software and their citizens in freedom world will not easily accept it. They will make a lot of massive protest to fight and prevent it to be effectively applied. The crowd, the citizen will succeed with their fights for their freedom.

Regulation is indeed inevitable. It can be delayed due to number of reasons but it can't be avoided. A government will not allow a separate store of value to mix with their own economy, unless they find a way to regulate it. This is a normal behaviour.

It is also true that it is impossible for governments to gain full control of bitcoins due to its nature and structure. So primarily they will target the exchanges to bring them under some strict kyc and reporting rules. That's what is happening around the world. Not today, may not tomorrow, but day after tomorrow there will be some sort of regulatory framework available for us to follow.

It seems to me that you are confused. You can fully regulate anything. In fact, there are more and more regulations. Look at how many regulations they were 100 and 1,000 years ago and you will see that there are more and more.

Another thing is whether the regulations are effective in controlling all aspects, which seems to me to be what you are referring to.

It is possible to make a regulation that requires all Bitcoin transactions to be identified with KYC, but it is another matter whether this can be implemented 100%.

It's not a regulation anymore but a complete ban on bitcoin, I don't think things will go to such extremes. Bitcoin is not a killer disease or a social evil that destroys humanity that the government must severely punish. Human rights is what the world is increasingly moving towards, maybe it won't be completely free because that would create a very chaotic society but we will get some space, some privacy certain in today's modern world.

Bitcoin is the technology of the future and represents a modern world, maybe regulations that will make bitcoin and cryptocurrencies regulated like securities will be what the government is aiming for. They want to collect taxes and control fraudulent activities in cryptocurrencies the way they are doing with securities.

Digital crime are keep increasing more and more, that's make governments want to regulate anything that they can including Bitcoin. They're not regulating by the network and manipulating the price, but they're regulating about their countries accept or not about Bitcoin and it make criminals are harder to use Bitcoin. Regulation isn't bad at all, but too much regulation make it bad.

IMO governments wouldn't ban Bitcoin, but they're trying to record every users who own Bitcoin in order to know who's the person behind each address.

The only way for governments to regulate cryptocurrencies is to take control of centralized exchange so that they know who is buying and who is selling. Apart from this, there is no way to regulate them. If someone doesn't use a centralized exchange and buys Bitcoin or any other cryptocurrency from a P2P exchange and transfers it to his personal wallet, then no one will know who it is. Even, your governments won't be able to trace your identity.

Regulation is inevitable but regulation is not always equal to restriction or banning because it all depends on the country and their administration. We have Bangladesh that has outright banned bitcoin and we also have El Salvador that has adopted bitcoin with open arms as legal tender. Then we have all the others in between.

In other words, regulations are not always a bad thing. Another example of good regulations is banning ICOs which prevents a large number of scams which is the only thing they are used for.

what aspect of bitcoin lacks good functionality OP? you said it has no central control yes and accepted but the functionality here remains unclear to be, but i want to believe you're talking about upgrades or new developments which will let me refer you back to  bitcoin improvement proposals (BIPs)  (https://github.com/bitcoin/bips) which are the current and basic functioning adjustment made on the bitcoin network.


that's why the harder the government keep trying against the network the stronger it becomes for them to control, all this were the advanced measures from the bips to give a stronger resistance against centralization, security and privacy following some set up concesor protocols.

The government will do whatever it takes so that people do not have full control over what they have, so that the government can make follow-up rules very easily. For example, the government has set taxes for users or companies engaged in crypto. Strict laws will only be made when they (the government) are getting cornered and crypto is growing.
Maybe strict KYC will continue to be carried out on crypto users, local exchanges are now under the government.

Broad adoption without regulation is impossible imo. If you want bitcoin to be adopted widely then you need to accept regulations by the governments. The regulations will make crypto exchanges look like banks because of the KYC enforcement (if it hasn't happened already) and that is not a good thing. Crypto means freedom and KYC is the exact opposite of being free. We are trying to escape the FIAT slavery system but regulations will turn crypto into a similar thing.

Regulation will be inevitable but the fear for most bitcoin users and crypto enthusiast is the level and extent of regulation that the government will want to put in play for cryptocurrency. Serious regulations will prompt a lot of persons, especially those who became crypto users because of the freedom it offered them to rethink their options and dedication to cryptocurrency reason being that the previous reasons which they joined crypto currency for  are no longer looking valid.

that is exactly what i am interested in, apart from regulating us, when we're not using centralized exchange, how will the government regulate us if we're not using centralized exchange? i think the government is also aware of this and don't know how they will deal with us in case people just use p2p or DEX trading. if they blacklist p2p and DEX trading, it'll be trouble for us. i know regulations are inevitable but i hope they won't be too harsh on us

there are some arms dealers, drug dealers, and even organ trafficking using bitcoin transactions, but whether they monitor all Bitcoin users for that reason is something that should be justified? times are sophisticated, they should be able to stop these crimes without having to scapegoat Bitcoin.

we do want the adoption of cryptocurrencies as soon as possible but regulation and monitoring are just an excuse for them to profit from taxes, if taxes are used for good it doesn't matter but the majority of tax money is used for negative things. when they see that cryptocurrencies have a large tax revenue opportunity, it is possible that in the future they will increase tax rates.

You're live in a country who have a complete infrastructure and someone who can control your country, how can you though regulation isn't inevitable? Regulation is inevitable since they're either want to adopt or ban Bitcoin, El Salvador is an example a country who regulate Bitcoin become legal tender while China is an example a country who ban Bitcoin. This mean regulation isn't only about bad thing for Bitcoin, but a good thing can be happen too as long as the president is a Bitcoin enthusiast.

Yes, indeed, the government wants to control bitcoin, but don't forget that it is not run by one or two people and because of its decentralized nature, the government cannot interfere in the process. Governments may be able to control the exchanges that trade bitcoins but what about decentralized exchanges? The government certainly will not be able to control it.

But the government will not stop trying to control it by making regulations for crypto users and they may be required to fill out forms about the crypto they have on the exchange. But the government will find it difficult to find crypto data outside of the exchange because it is a private right to keep what they own. But again, the government will continue to try to find it and impose taxes on us.

Fully regulating bitcoin in the future is impossible because of it decentralized nature and tracking every single transaction will be too costly. They just will be constrained to reported case or interested fund or personalities. Some non-custodian wallets will comply with security agents with the enforcement of KYC. We already saw popular blockchain wallet introducing KYC giving compliance customers some airdrops. I don't keep bitcoin in that wallet anymore.

Well, the main thing is that the government is looking for a way how to regulate the increase of fraud and money laundering. They have found out that crypto is also a medium use for illegal activities bringing their attention. I do opposing to the situation that they will imposed strict market regulations but if this could help to minize these activities, I no longer to stop it but giving their support as long there is a fair rules implemented.

This is already been applied to some countries who already accepting Bitcoin. Regulation is not the thing we worried about but the growing case of scams which I see this could help it.

Govt mostly wants to regulate bitcoin by accusing it as a medium of illegal deals and payments. But the real purpose is to control the financial freedom of people. When people have too much wealth in their hands which govt have no control over they could be a threat to that govt. They just can not allow it to stay free.

China knows this very well so they just simply ban bitcoin from their country and stop using their resources to develop a way to regulate it. They know how lethal it could be for them because of the possibility of anti-govt funding through cryptocurrency in china. So they just ban it without taking any risk.

This very reason is why regulation has not been put in place yet , because I think Government (SEC and CFTC) is a kinda battling with a way to go about regulating cryptos and somehow be in control of cryptos because the government literally likes controlling everything, but the way with which Bitcoin and some cryptos are built makes it so difficult for them to have total control over cryptos.

Therefore,  I do think that, this is why they came up with CBDC'S to see if they can use it to track and control all transaction and too  tell you where and when to buy or sell.

A discussion that governments fear digital currencies is premature because the market capacity of this industry is still very small, and we cannot judge the motives of governments because there are not enough reasons to regulate such a market.
In general, small governments have accepted Bitcoin and still control most if not all of the people's money.

Has any country outlawed non-custodial wallets? Perhaps some did, and in a few Bitcoin is banned altogether, but these aren't standard practices. I am okay with the lack of regulations, but I also think that for businesses to thrive and for better adoption, regulation is often important. So IMO, it's better to fight for reasonable regulations than for no regulation at all. The state does want to oversee many things, but the level of control and areas in which it prevails depends on a country. There are also some positive things that come out of regulations, such as actually fighting terrorism, limiting usage of funds that can be used for very malicious acts like firing missiles upon a foreign country, as well as encouraging businesses to not be afraid to adopt Bitcoin themselves, as they can be sure it's fully legal.

Regulation is inevitable centuries now. There's nothing changed. It just needs more adoption for most governments to intervene.

You might feel it's a good decision, and I might feel it too, because I know ICOs are synonyms to scams. But it's not. For once more, we're making it clear that we believe we're incapable of protecting ourselves more than our government. Instead of using this little, apparently, thing between our ears, to critically judge whether a stockbroking instrument is legitimate or not, act responsibly, and avoid these scams, we allow politicians decide for the common good, as always.

The result is to have less responsible people, and more complains for injustice.

The main streamline process can never be disturbed and that’s what bitcoin is doing with traditional banking system. It’s literally disrupting the whole process flow with ownership criteria. If government shuts down and say nothing about it then believe me, by now economy would have collapsed and we wouldn’t be talking here.

They can’t just let it go around and make it official.

If bitcoin gets fully accepted then it is going to be the way it is currently. Partial laws, partial acceptance and full transactions as per the user.

If worlds money disappears then how will we trade? How everything will get valued and against what? If ownership surpasses then the deciding factor would be demand and supply. But it will cripple the tax system, how government sectors will work? How military will operate? How CIVIL services will work if there is no tax?

We can’t just expect bitcoin to take over the world. We are in immature stage right now.

Actually I don't like to say that the government has the power to do anything, but that's the truth. Although actually you can think that it is not accurate, but I think the government managed to prevent a lot of things with regulation even if the percentage is not at 100%.

Regarding the regulation of bitcoin that should not be used as a legal tender, users can still circumvent it. The government won't know who and where the money came from if these people are smart enough to hide their bitcoin transactions and history. Transactions that occur between wallet X to wallet Y may not be known for what purpose if bitcoin has been through the mixing process. so I think it's true that regulation can't prevent people from sticking to the rules but it might be the reason why someone gets punished.

“ government are endlessly finding a way to do a complete regulation on Crypto currency specifically Bitcoin”.. I think if anything bitcoin is being the least regulated. It would seem to me that other altcoins that act more like securities are being paid closer attention to, a fact at least that the US government has come out and stated.

Also coins like Monero will face more regulation being that it’s nature is being anonymous.

Bitcoin regulation was always inevitable and in my opinion a good thing as long as governments don’t overstep their boundaries.

Bitcoin itself cannot be stopped but it can be regulated through exchanges. They can also regulate all the investment platforms and attempt to regulate mining, although regulation of mining is a bad idea because mining is barely profitable due to low bitcoin price and expensive power. If people are required to apply for mining permits and licenses it's going to make things worse for them.

Bitcoin regulation that would allow for bitcoin retirement funds, trusts and such to exist would be great.

Regulating Bitcoin requires resources, and not everyone in the government thinks that it's worth it to allocate them to tighten the grip on Bitcoin. They are trying to make it the responsibility of centralized exchanges and banks, expand the existing financial monitoring rules to cover transactions linked to crypto. This is easier than creating government-owned departments of crypto monitoring and trying to go after the decentralized use of crypto, which they understand is not feasible.

In as much as quite agree with all you said, I must also emphasize on the fact that achieving such as advance regulation possibility will take years and years of hard work from the government, it will take a really great commitment on their path to pull this off, trust me, it's not gonna be easy, and even though, like you said, technology is advancing, we might have all gone to meet our maker in heaven before the government can be able to achieve this height of regulation.
This is just my opinion though.

No, regulation is not inevitable and it has been happening indirectly for years, and even so now that btc is getting closer to global adoption the regulation process will keep increasing.
it is not going to be business as usual when we have big institutions joining the btc community. Regulation is inevitable and it is the price to pay for the so-desired adoption.

Regulational pressure from the governments and their impotent laws toward decentralized cryptocurrencies like Bitcoin will only push us further towards removing banks and other centralized middle-men platforms like (centralized) crypto exchanges from the world of crypto. I see absolutely nothing wrong with this. Not only is it helping our cause and further developing decentralized technologies to replace the old centralized ways, but it also shows how powerless the governments are in face of decentralized blockchain technology. Its been years of promises of regulations and bans and many years later, we still stand strong.

The governments have nothing that could destroy or regulate crypto.

Bitcoin represents all cryptocurrencies, it is the "King" and taming the king is like controlling all its domain ( cryptocurrency industry).  So regulators always aim for the dominant one to give a good example.


It is impossible because of the system and traditions people have where trust is given to a third-party company recognized by the government thinking that it is best to let the licensed entity by the government manage their financial security.  People are too reluctant to manage their own finance and bear the sole responsibility of securing it.


The government always wanted to show its citizen its power and control reason why any government will do its best to control all things and the cryptocurrency industry is no exemption.  As long as people are using centralized industry, no matter how decentralized bitcoin is, there is always this choke point where the government regulates anything that passes it.  Besides regulation is inevitable if the industry needs government adoption.

Regulation's already here. Miners were the first to be targeted, under the guise of "climate change" activism in Europe and the U.S. In reality, it's merely politicians using climate change as a facade to drill down the miners and make crypto mining less profitable, therefore curtailing the enter market. They'll move on to higher taxes and force crypto users to register all crypto holdings with the government. They might even pass a wealth tax (it's customary to pay taxes on assets that are sold for a profit, not mere accumulated wealth). That'll cause holders to immediately dump their assets.

Decentralization does not mean an authoritarian government is incapable of regulation. Sometimes I sense complacency amongst crypto users that decentralization protects them from the government. It helps, but it's not 100% immune.

Power in Hands is a very decent concept but as you know that on the digital era maximum of people tried their best to stand with privacy concerns but the power rule is what you think not always get it. Privacy is a myth on web 2.0 we know that very well so it would be no wonder that decentralization can also e a myth as Bitcoin is the key and governments cant risk their stakes by providing the key to the users. Well said...

That is really the case we can't skip the possibility that one day the government will impose some crypto restrictions and even stricter than what we think. I expect such condition knowing that fraud and money laundering is really hard to stop but possibly even increasing numbers. But I do how this won't against our well and this is for everyone's benefit. Their moves isn't clear for now but for sure this will lead to somewhat we need to adjust, unlike the usual thing we do, KYC might be mandatory.

No doubt. Every country will always look a ways to smack Bitcoin down with their regulations, because full control over the people's assets is important. Wealth tax is one of the reasons. They will always say that Bitcoin is often used for terrorist financing, drugs, and a lot of bad stuff. That's why they think they should regulate Bitcoin or cryptocurrencies. Although fiat money has become a crime tool long before cryptocurrencies existed, they are ignored it.

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I suspect maybe the CBDC exists to build up the next regulations they will make (just a wild opinion).

It's inevitable and it's coming from the people, not from the governments. There are too many scams and a lot of victims are now begging the authorities in charge to help them.

Everything is just an excuse for them to find a way to impose bitcoin on their framework, fiat is ignored simply because it is created and controlled by the government but bitcoin is not, it is only a matter of time before they set regulations for bitcoin. The government will never let us threaten their power. As long as we live under their control, we can never think of being completely free without any control from them, regulation is inevitable.

What kind of regulation does the OP mean, bitcoin cannot be controlled by anyone, because the basic framework of development does not include it. Regulations can only limit support, but not control bitcoin, and no one will ever agree to this issue. Therefore, I don't think that regulation will have any effect on bitcoin's future journey, because from the past there has never been regulation.
Unlike the case with CBDC, it absolutely has a pattern that can be set by them.

CBDCs are definitely going to be regulated, as they'll essentially work as surveillance money. I don't understand how is this on-topic, though.

He means to impose a legal framework around bitcoin, same as with stocks, precious metals, and markets. For example, taxation of bitcoin.

Many countries do not want to legalize bitcoin as a legal currency and means of payment where the government continues to try to limit its use with various regulations. I don't see why governments are so concerned about bitcoin and its use case as a means of payment, it's not like a real threat to the future of fiat.

So far, bitcoin is associated with cases of illegal transactions as well as several unlawful acts such as drug trafficking, money laundering and the like. Though it is not something new even though bitcoin does not exist. Fiat have a bad reputation and it was completely centralized compared to bitcoin, but both are currencies that can be abused. It's just that bitcoin is a different kind of currency with a number of great innovations compared to the fiat system.

We've had cries of an apocalyptic end and somehow, it has never surfaced. We often get to move past that as time goes on and somehow, regulations might seem impossible with the steps governments have been taking towards the bitcoin network but that too can stay far away from sight.

It's difficult for the government to accept that there could be something out of there control but, they also have to realise that the quest to be free is a part of human nature and humans would always seek that out when they find any sense of better some place else.

I wonder why these countries crying bans and bans aren't seeing what other nations that have been this open to a ccepting cryptocurrencies are seeing.

With their regulations in government settings, it has nothing to do with the massive and continuous adoption of bitcoin since the decentralization of the digital currency bitcoin has solved it all, no amount of regulations put in place can have effect on bitcoin except for centralized exchanges in which most of them are promoters of shitcoins can got regulated but bitcoin remains unregulated by government.

This is the truth, sadly, no matter whether we have tried Bitcoin to be decentralized, the government will make certain centralization in some ways to reach it. They even make regulations about Bitcoin and other cryptocurrencies, trying to control them in some ways as they can. Although basically, they may not be able to control all access to Bitcoin because they are decentralized and can be gained from other decentralized ways, the government will always limit the decentralization.

We have found so many exchanges that must be centralized, government tries to control the exchanges themselves or other regulations or they will be banned. But on the other hand, we can also still be able to pass it in certain ways like decentralized P2P, although this is also risky to take.

Decentralized exchanges and decentralized finance is the number one enemy of the governments. You still have to find a way to turn your fiat into crypto and your crypto into fiat, so there will always be exchanges that work in that field and working together with the governments via KYC, but aside from that with the improvements of DEX and DeFi, we are really going to end up seeing things get a lot better in the long run for sure.

This will prevent governments from interfering with our money, they have already taken so much and did so little with it, and I believe that we are going to really see regular people like us prosper thanks to this new technology.

And talking about DEXs, I believe for now they are not subject to KYC/AML regulations that's why most people will continue to advise to use them in other to avoid providing your personal information but what happens if the Government really wants to regulate, this means they too might be put under that law as well and both CEXs and DEXs are fully under the Governments monitoring scop except for countries whos Government are pro-Bitcoin/cryptocurrency.

They make regulations not to control Bitcoin, but to control users.
For example, there are several countries that have banned using Bitcoin, such as Algeria, Nepal, and Bangladesh. Meanwhile, countries such as China, Bahrain, Turkey, and Russia only legally restricted to using Bitcoin in their countries. It all happened because these countries made regulations. You can read the full list at Countries Where Bitcoin Is Banned or Legal In 2022 (https://cryptonews.com/guides/countries-in-which-bitcoin-is-banned-or-legal.htm).

No, these regulations may affect cryptocurrencies. Imagine if all countries agreed to completely ban Bitcoin, and no one was against regulation. What will happen?

Indeed because there are countries who currently ban cryptos but they might change their minds for one condition and that is if people will agree for the crypto to be regulated by them. This is hard but this is better than nothing. At least people can still experience if what are cryptos.

Crypto exchanges (the centralized one) were already look like a bank even before because they can hold and freeze the users funds. Not all centralized exchanges mandate a KYC but if they did and we don't like it then we can switch on decentralized exchanges. Regulations can also be avoided but there might be some inconveniences that we might felt.

This is even more unlikely, the legal framework is based on many considerations, bitcoin is not legalized as an official currency and legal tender, but it is not a use case prohibition, even if the state prohibits bitcoin, people can still access it in various ways. The case of stocks, precious metals and markets, is different with bitcoin, and if taxation is expected, it has been subject to withholding transactions through banks or so-called administrative fees.

It doesn't matter if the ban is enforced, did you know that bitcoin was also synonymous with prohibition, but its development continues to improve until now. Try to find a country that prohibits bitcoin, whether bitcoin's growth has stopped, the answer is no. They only restrict but don't completely ban, so bitcoin can still be accessed in that country.

It is true, that anyone who has not taken the time to understand bitcoin will find it difficult to understand how a decentralized exchange can be secure. This exchange has a different set of security issues, and these are issues that are still being resolved.

How can we protect someone's money if the money is not deposited in the bank? Who needs to sign the transaction?

The answers to these questions may not be clear, but what can be said for sure is that there are people working hard to find alternative approaches. That may not mean that regulators won't try to suppress these new exchanges, but I think decentralization makes bitcoin more resilient than we often give it. My assumption is that regulators will inevitably try, but whether they succeed is still uncertain.

I think that there is a misunderstanding of the term "regulation".
The governments trying to regulate the crypto industry is one thing. The governments trying to destroy your privacy and achieve complete control and transparency over your assets is a completely different thing. This doesn't seem like regulation to me. It seems more like dictatorship.
Of course, all this BS comes with good intentions. Fighting tax evasion and money laundering. Lowering the amount of crypto scams, etc.
The battle against total government control is inevitable. Trying to protect your privacy will become more and more difficult in the future and you might be facing consequences.

As much as crypto currencies have gained credence, esp Bitcoin, there are still skeptical investors who are are scared to invest in it due to it's high volatility rate, but with these regulations, it helps allays their fears somewhat.
 As new coins keep emerging in the market, it's quite necessary for government to regulate them to avoid less speculation and as well boost the morale of these traders who beforehand had the fear to to do so.

 

That's why they're the government, they're following the centralized way of managing the country so things must go accordingly to what they're implementing. And as for our assets, it's on you on how you should keep them. They're still giving us some freedom to manage these things as we still get to own them but they've got a portion of it through taxes. We hold and manage our own assets but they're telling us that let's not forget them that they have a part of everything we profit with, whether it's from btc or not.

Can there be a destruction of privacy if there is no regulation governing the usage of Bitcoin i think the answer is obviously  no. Regulation or declaration of crypto asset  is another way of saying your privacy is compromised, destroyed and taken away. I see dictatorship as the aftermath of the regulation if it eventually actualises. The government are working endlessly to see the get full control of the crypto space since their ban is not having effect at all.

As for the good intents that is been presented before the public just like the money laundering fight on tax evasion, i bet it will still be used against citizens. No matter how nice it is been painted powers in the hands of a central body becomes compromised with time

It is legalized as an official currency in El Salvador. It is prohibited to use it as currency in various countries. Also, prohibition is legal framework.

I didn't say it's going to be easy to collect taxes from bitcoin users, but we should expect it happening within the next decade. And no, I didn't mean intermediaries' fees. I meant taxation. Like Co2 tax, or VAT.

Yes, because the ban is not fully enforced by all countries in the world. There are still many countries that legalize to use of cryptocurrencies. I said, if the whole world (without exception) banned bitcoin and all cryptocurrencies, it would have a big impact.

Of course, the movement still exists, even in countries that ban bitcoin. But did I discuss the movement?

It is difficult to feel the effect of it, surely Crypto will fall deep if the whole world bans. It's hard to happen but whatever it's all in crypto can come. But I didn't expect that.

Even if looking for news about china, I read in the local media (https://www.cnbcindonesia.com/tech/20221024141447-37-382087/dilarang-xi-jinping-china-tetap-jadi-pasar-kripto-dunia) after the ban on their transactions still continued. They use a VPN to keep their whereabouts private. They are also working on using Metaverse and NFT-related campaigns.

I don't think they can really fully regulate Bitcoin, but the system has already been consistent on trying to put it under their control at any way they can. It's their business to put tax or some kind of fee's on everything and of course track people, transactions etc. Bitcoin is a target since it has a lot of value now, it's not a small market anymore like several years ago. They can add regulations, bans but they still wont be able to control it yet and hopefully it will stay that way.

Of course, governments won't be able to regulate everything even when they desperately want to control bitcoin. So it is true that they can only regulate a few things, but the government can't regulate the bitcoin network.

There are several things that might prevent banned bitcoin users from trading Ledger ^{[Hardware Wallet]} if the government has prohibited it by regulation. Basically every product is subject to the rules and laws of a particular country, so it is always possible for the government to prohibit its circulation.

Meanwhile, I read this one from Ledger, it's one of their ToS.


I just agree the government has ways of preventing you from using bitcoin, monitoring your transactions and such. But I don't think they will succeed in preventing all of them and I agree that the government can only partially regulate it.

This is a good side of regulation, regulation will really help cryptocurrency grow as people will start using it more once it is protected by the government, scam projects will definitely decrease because there is penalties for fraud. But in terms of privacy, regulation controls us the way they use fiat controls us. Those who do not want to reveal their identities and hide their assets will face many difficulties and even lead to breaking the law if the regulations are too strict. Regulation is inevitable and will have advantages and disadvantages.

The government can only regulate part or at the widest layer. They will never be able to fully manage everything. Bitcoin or cryptocurrencies are only given regulations that will curb their users, such as regulating taxes, users who have to deposit KYC or restrictions on transactions on exchanges. But it will not apply to the personal wallet used. Regulation is the main foundation for governments to profit from cryptocurrencies.

Of course, I know about this but I can't be 100% on the same side as the government might be able to regulate users instead of non-custodial wallets. As I said above, some jurisdictions can prevent you from owning certain products so the process of shipping goods without a marketing authorization will result in you failing to own something. Then more than that, you won't be able to hide forever when the government starts watching your movements even if you hide your privacy.

Especially from users and centralized exchange.

You know whenever Cryptocurrency is mentioned my understanding is only on bitcoin because I take bitcoin as the king of crypto. And if bitcoin is the king of crypto it has a lot of battles on it way to popularize in the world. And if any government or authority is trying to remove or ban cryptocurrency, the first target is bitcoin because for them if/when bitcoin is defeated then other Cryptocurrencies will be defeated easily but it is very hard for them to defeat bitcoin because of it decentralized nature.
A country that stopped crypto in their Banks became the highest country using crypto in Africa. Only that will tell you that no government or institution can stop or ban bitcoin to the zero percent.
Bitcoin is the King of Crypto.

Perhaps bitcoin really cannot be fully regulated, but it is probably possible to make life difficult for users. For example, by criminalising mining or any use of the cryptocurrency. Another good example is blocking funds by ethereum validators if they are associated with tornado cash. I don't know if this is feasible with bitcoin, but it seems to me that something similar could be done for large miners too, so that they don't allow certain transactions to go through.

The problem is that many people lose their private key and lose their bitcoins. I gave some crypto to a friend of mine but he lost everything because he lost access to his private key. The government need to implement a recovery system based on identity. It already exists for gold and other assets. If you can prove that the bitcoins are yours (like a purchase receipt) then they can order the miners to release the funds. The mantra "not your keys not your bitcoins" is absurd. if you lose your private key it's still your bitcoins if you can prove that it belongs to you.

I just heard about this kind of rule. In my country cryptocurrencies are only regulated as commodity assets, but do not prohibit certain products such as non-custodial wallets. for a country that prohibits certain devices like this it might be a bit cons or completely ban cryptocurrencies. Every movement of crypto users in a country that regulates all movements will be highly suspicious, especially if we deliberately expose that we are directly involved with crypto. As long as we don't publish private wallets or crypto holdings, the government won't fully know.
About the issue of tax collection will only deal with the central exchange.

It is necessary to exclude countries that have legalized bitcoin as an official currency, El Salvador has welcomed bitcoin quite well, our discussion is more on countries that have not legalized bitcoin, so it is necessary to create a legal framework as discussed in this thread.
While El Salvador has finished with the legal framework against bitcoin, this is no longer a debate.

It may be possible to implement, although there will be a lot of speculation, but if the legal framework is not fully implemented like El Salvador, it will be slow in implementation.

El Salvador and eight other countries have answered your question?
and it seems impossible.

Of course when we discuss regulation, the fact we take is countries that do not have regulation on bitcoin. But bitcoin doesn't stop and continues to grow, even if you don't ask, I just want to add and prove the journey of bitcoin's growth.

It's a different thing if we're going to let them have full control to our assets. Well, for some countries they're doing that but if we're living in a free country and there's democracy, they cannot do that unless they find your assets came from illegal activities. What they're likely to do is to freeze those assets. But, since we're from crypto and our source is from our own investments and money as we buy bitcoin, there's no way that they'll do that. I almost forgot that, corrupt people also uses bitcoin and if the regulators have found it out that they misuse funds from legitimate sources, they will seize it from the owners if they have leads of them.

But not all countries right? If all countries make the same regulations to strictly prohibit bitcoin and no one dares to fight back, then the cryptocurrency exchange will stop, and of course bitcoin will stop growing. But well, that's very hard to happen; you are right.

Honestly, I don't wish to have it but can't deny the possibility that one day this will come to the crypto world for a reason. However, I don't think it was regrettable, not in the case that it will ruin the entire market but seems to give us protection from the continuous spread of scams and hacking incidents that terribly shake and give worries to the investors and holders this time. I have no clue when it comes but as it was already been implemented in other countries, this will also happen to our country as well sooner.

Regulations are only done to curb criminal activity and allow honest users to streamline their trading. It will not be a sort of restriction to stop you from using it. What governments want is to oversee such money launderers and to keep offshoring of money in check. Prohibiting something only leads to more people using it is something that governments have understood by this time and they will not do that. Taxation is something that governments want and chances are they might include taxation framework and a legal framework on crypto via regulatory bodies.

I still dont see anything bad in this, but this discussion has been going on for more than a few years and it is yet to come in reality.

There will be time that regulations will be put in many countries as more user known bitcoin, but this regulations will only limit users so governments can have a way to put tax on it and gather earnings from its user. They might ban it at first but then later on will implement it again once they know how they can access or way to put taxes on it. It’s the target of the government’s now to atleast get profit on it as many investors now are putting money in crypto.

If we are to consider the areas where regulations is needed most are the other crypto projects, NFTs, exchanges, and their like because the level of their commitment to endangered risk on people is very high, bitcoin is already regulated by itself and need no more of such because every other cryptocurrencies follow after trends on bitcoin to ascertain their own stand, there's no way to do without being regulated as long as it's under a centralized system of operations and this makes bitcoin not to be included among because it is decentralized while other cryptos are not.

That is impossible to happen, because one or another country will see a worldwide ban as an opportunity for them to shine as crypto adopters. Imagine if the main countries of the world banned crypto services, so the few countries which allowed exchanges and services in general to operate would be highly benefited by the settlement of such companies on their territories. It would mean more income for the state, more jobs available for citizens and more money circulating in the local economy for everyone. Meanwhile, people from countries which banned bitcoin could still use it if desired, going against their governments' impositions.

Even if all countries start banning bitcoin, there is also no certainty that bitcoin will stop growing or cryptocurrency will be abandoned.
Some countries view the bitcoin problem as a form of solution, so the adoption of bitcoin has grown and become a medium of exchange in the country.
Despite the worldwide ban, it will have a 50% impact as you say, but it won't happen, so be prepared to take part in investing in bitcoin.

Something I have come to realize is that the majority of people out there invest in things that don't spell out high risk, and bitcoin being a whole new playground it's overwhelming for them to say the least. And crypto having no regulatory body makes it difficult to invest big money has their interests seem not to be protected,but because of the high interest into these assets law makers have been pushed to come up with ways they can protect peoples hard earned money.

Bitcoin is not king but bitcoin is one of the best among several decentralized crypto assets. Bitcoin should not be considered king only because of the transaction volume, higher price, and also large market capitalization, but rather the use and function of the asset as an alternative currency and other innovations.

Basically governments can't ban bitcoin, but they can only fully or partially regulate users. In some countries bitcoin can be used as a means of payment, but there are still many countries that have rules that bitcoin is not allowed as legal tender. The government only regulates users, meaning not bitcoin.

When the regulation comes, it will definitely be a big barrier for us because then we will not be as free as we are now. But on the other hand, regulation is a good thing, scam projects will not be able to attack us and we will be protected if we are attacked by scam projects. Once there is regulation of crypto, it will certainly be mass adoption, that's what we always expect, regulation will definitely make crypto bigger and will probably compete directly with the stock market. Open up many investment opportunities for everyone.

Nobody knows whether it will be a barrier or allow more opportunities for common people, so better not to comment such.

I feel the same, with a better control over the scam projects, most of them will be forced to run underground, at least it will make it easier for older users here to identify which one might be a "high risk" project as compared to others.

Too much investment opportunity is not there for crypto, it is better to keep yourself limited to bitcoin and the top few altcoins. Mass adoption is a good thing is something I expect to increase if the regulations come in place in the proper manner such that people get interest in crypto while keeping the bad things at bay.

In my opinion, regulation will do us more harm than good. It can control the spread of scams in the market and reduce the losses for investors but in return we lose our freedom, our privacy is violated. They will interfere with our every transaction and will try to control us again, same way they are doing with fiat. It is even worse if the regulations are made strict enough to limit the volatility of the market, then our profits will also decrease significantly.

And I just preferred to be legalized as it was enough rather than being controlled through strict regulations as it breaks our privacy rules as possible.
But I can't conclude what will really happen once this is implemented, I know many investors and crypto users will tend to oppose that. However, if the set rules are also acceptable and give us more favor than what we think, I should go for it and support the government. For now, our opinion is more on the negative side, I think that we need also to hear the side of the implementing authorities to make it fair.

I mean the regulation that they could do at most is just provide 3rd party apps that would somehow allow their crypto holders to buy and sell cryptos with a big BUT of needing KYC.

They can't regulate personal transaction which is somehow the method of some people to get and sell their Bitcoin under the radar.

They can't completely ban it, but if we intentionally break the law and try to get around it, they'll be even more strict with us. For example, they will make a rule that personal transaction will be illegal and sanctioned. They are the ones who write the rules, so any regulation can be enacted. In short, regulations are not better for us, we don't need them, we are still doing great without regulation. Why control us when we are still growing so well?

If you'd ask me eye to eye I would say that regulation is never gonna happen with bitcoin, unless Satoshi warrants it so. AFAIK he's the only one with power who could really do something behind the lines and edit bitcoin's backend to support centralization. Any efforts made by governments or entities to centralize bitcoin will be in vain because again, Only Satoshi has the power to do so. That is why China banned cryptocurrency usage in their territories, particularly bitcoin, because they couldn't fully control it. People will find out ways to use it without their prying eyes however hard they try to do control it.

Here it is about the regulations. Not about the power over the network or making it centralized. Even Satoshi can't do anything on the network which is the truth.

China banned for tax evasion which disturbed the incoming tax revenue in large scale. Rather than control it is quite an easy task to regulate with certain procedures to use bitcoin. Beyond this people will stay anonymous and use bitcoin which can't be controlled through any means.

While bitcoin cannot be stopped directly, exchanges can control it. Resources are needed to regulate Bitcoin, and not everyone in the government believes that allocating them to tighten the hold on Bitcoin is worthwhile. They can also control all investment platforms and make an effort to control mining, but this is a horrible idea given that mining is barely profitable owing to the low price of bitcoin and high power costs. It will be worse for them if they have to submit applications for mining permits and licenses.

Yes, regulation is inevitable, actually it's already in play and has been happening for a few years.  So yes, expect more and more of this as governments want a cut of the pie as well- this is the main motivator.

I agree with you, nothing would stop more regulations as we strive to create a better world. Cryptocurrency is a new technology that is still highly unregulated, and we should not deceive ourselves, no world government would be able to entertain that for long. As long as some people could be contacted, they would locate them and get them more accountable for their services. What could only be preserved is the decentralization of some coins, but regulation would unveil more anonymity. This might be inconvenient to many, but it would happen.

Countries and governments can only restrict and pass laws to limit how cryptocurrencies or bitcoins are handled but they can't simply eliminate them and never will.
and it is very clear that Satoshi Nakamoto created bitcoin with the sole purpose of creating a system that is independent of any regulatory entity, and if bitcoin is regulated, it will no longer fulfill its original purpose.
So the state or government can only make rules and it depends on how strict the rules they make, but they will not be able to eliminate or break them.

For me, every government and bank is corrupt, I will never be able to change that, the only way that I believe in a government is that it be an AI that is completely impartial and is for everyone the same, this is something that will not be for now, but I think that in the future yes, if they regulate bitcoin it is because obviously it can end the entire world economic suisetme, that is the reason and because of the lack of control they have over that technology, if we see it that way that is why there are regulations, but the boniernmos they cannot contain all that because it is inevitable that all this will come to the countries, bitcoin is already worldwide, the adoption is already there, no one can deny it.

Really? I guess the beginning of regulation was to kick bitcoin since they have no control over the bitcoins circulation. Money laundering and criminals using bitcoin are just some of their reasons. However, because they couldn't hold the users growing, they changed the regulation to manage the bitcoin users. CMIIW.

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I'm not saying "if the main country", but "if all the countries in the world".

If the government really wanted to kick Bitcoin, why do they have to regulate it and not ban it?  Banning Bitcoin is easier than regulating it since they have to prepare guidelines and spend time debating what to put on that guidelines while banning is simply making all crypto dealings illegal.  The government does not want to kick Bitcoin out of circulation but rather to get profit from it under the guise of customer protection thing.


Bitcoin network is immune to government regulation but the system outside the Bitcoin blockchain can be manipulated by the government.  I think regulation is inevitable if we use centralized services and it is really needed if we want Bitcoin to be adopted by every country in the world.

I just think like; when Bitcoin comes up to the world for the first time, they don't care about it instead of thinking that Bitcoin will "attack" fiat money. Then users are still growing, so they are thinking this is a "war". But finally, they can see that Bitcoin still can give huge benefits to their country, so the "main leader" is saying "let's regulate them".

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Do you have any references for me to read about history of Bitcoin regulation?

The world are really connect through the internet, which bitcoin has seen the vision of the world economy to connect in less than 5 second of any given transaction, which is Bitcoin is a decentralize finance, that you can send any part of the world at the same rate, nothing change and acceptable any part of the world, Therefore, Government coming into cryptocurrency regulation, is a waste of time, but rather they can only implement taxi for any transaction been made through local bank,their will be a specific task been paid, and that is all government can do, because Bitcoin have no central point to be controlled. 

Banning bitcoin has twofold problems:

1. Putting a ban on something like bitcoin means cutting down electricity and internet to a region, because these two things are essential to run a wallet and transact. This leads a lot more problems than solutions.
2. Banning something in general only raises public curiosity about it.

Coming to regulating bitcoin, government want to generate taxation from capital gains, so regulation is the two pronged sword here, it is a method to monitor the gains and keep launderers at check. Therefore average honest users will not face big problems with regulation.

Majority of the people who are against regulation have illicit bitcoins at hand, and hence they want to save their asses.

Obviously that's bad, but either way there's always a way to stay decentralized with your bitcoin.

I can't expect the government to give full freedom about financial and their management. They expect to profit from our asset ownership in any way including taxes or the like. It's always hard to expect financial freedom if the government doesn't want to allow it, but we can always minimize this centralization as long as we have options.

Government's nature makes it trying to regulate everything and quasi regulations are still regulations. Lots of things are regulated indirectly, main idea is to control as much as possible. If you have no option of regulating the ledger itself you can try to regulate miners, trade based on Bitcoin, etc. Mostly every connection between Bitcoin and outer world can be regulated: so may be Bitcoin itself will not be regulated but it is not a spherical horse in vacuum, we need it to use it for real cases which can be regulated much more easily.

I agree with you that since the government wants to tax bitcoin there will be regulations instead of outright ban, outright ban is not in their favor either. But those who are against regulation are not the ones who are holding bitcoins illegally, there are some who prefer privacy and not being controlled by the government or anyone. There are many cases where assets in banks are sometimes frozen, confiscated for unknown reasons and take a long time to get back, causing them to miss a lot of their plans or many cases of not getting their assets back despite doing nothing wrong. So they want a private space that no one can invade.

Let's see this as much applicable to other cryptocurrencies than with bitcoin, there's high probability that other currencies will continue to maintain being under regulations just as they have already been, but we cannot derive a conclusion with bitcoin to being centralized because it is a decentralized network already and governments have been finding this a major thing of concern they never got a solution to.

I don't blame anyone for being against the regulation of cryptocurrencies. What is it with centralisation anyway, how is it making the system better? Do regulation commodities or centralized systems comes without fault? Hell No!

The quest for centralisation or a mode decentralized system or cryptocurrency without regulation  is one that seeks to correct the failures of centralized systems. If they've been better, then there would be no need.

It's wrong how your money can be confiscated without any reason by the government and yet they make you feel so powerles on doing anything about it.

Regulation is innevitable unfortunately. One way or another there has to be regulation otherewise the state intervention will be a lot worst. The thing is that the real problem is that while regulation is needed to protect the inerest of consumers, it also needs to be applied with moderation so that it not stifles the development of the technology.

From what we have seen with the ethereum network, regulation takes us back to centralization which is exactly what we have to fight against. Regulation is more like a hindrance to the development of the tech than it does any good.

I agree, we cannot stop that since that certain country wants to be regulized. There's a many different good benefits when your country regulized crypto, I admit that before I don't want government to do that, but there's a good way as well. But the thing is when it is now regulated we need to pay for taxes but these taxes will be used for your country's improvement.

I agree with your statement- if the government cannot regulate BTC and its outputs, then their regulation would stem from its exchanges.

Back in 2017 when I first joined this forum, our local exchange was very lenient. We can freely use our wallet to buy/purchase BTC without any restrictions and KYC. In addition, you can even gamble your BTCs and put them on the wallet that you provided.

Fast forward to 2022, our local exchange now requires KYC + other supporting documents in order to prove the origin of funds. In addition to this, their TOS now prohibits any gambling-related activity. Not to mention, they become very strict and they also flag your account if you make transactions that are relatively huge.

It sounds like some kind of nonsense. How do you think AI should regulate the exchange rate? The value of each currency is determined precisely by events in the world. And these events can be deliberate and beneficial for certain people. And this, unfortunately, cannot be changed.

Regulation is a one-edged sword, just to take benefits. Investor/user protection sounds like a lie.
For example, investors were spending money on cryptocurrency projects, but they didn't know that the project owner was a bad guy. Then the owner gets arrested by the FBI/authorities, but the investors was unable to get their money back because all the money was confiscated by the authorities.
A real example in this case is Terra Luna. As far as I know, Do Kwon was not arrested, Daniel Shin is only a witness in the court, and investors have not received compensation.

In practice, blockchain cannot be fully decentralized. Although the technology is revolutionary and aims to solve many centralized problems, it is not perfect. If there’s no some control and regulation at all, we have to deal with such as FTX…

Depends on the regulation. If you're in the USA, I presume things don't go well, do they? They're taxing about 15-20% of your capital appreciation that comes from holding bitcoin. Besides that, the FATF has published a paper where they describe that even self-custody puts you in their list of suspects for money laundering. That's some nonsensical regulation there.

This is generally for government regulation. It isn't necessarily bad, but it usually is-- perhaps because most politicians don't want your good.

Blockchain can easily be fully centralized by appointing some node as a master node which and only which can approve transactions. That's why there are many projects pretending to be crypto but which are centralized and that's why are not true crypto.

Fortunately Bitcoin is not built that way so direct regulation by governments is impossible and all regulations will be outside of Bitcoin's blockchain.