Bitcoin Forum

In its early days (around 2009), Satoshi Nakamoto envisioned BTC as a replacement for fiat in everyday transactions. However, today, BTC and many other crypto function more as a store of value, similar to an investment. Their price fluctuations offer profit potential but also contribute to gradual inflation of crypto relative to fiat. This dynamic becomes even more complex when people choose to hold crypto assets like BTC, ETH, or USDT instead of fiat. This behavior stems from the belief that fiat are losing value over time, while crypto are expected to appreciate.

The rise of crypto has the potential to significantly impact the role of fiat in the global economy. This could challenge governments' traditional control through mechanisms like money printing. Governments are taking various approaches to this new reality. The EU, for instance, has adopted a regulatory stance with the introduction of the MiCA law ^[1]. China, on the other hand, has opted for a stricter approach, aiming to ban crypto entirely ^[2]. The situation in Nigeria is more fluid, with the government's position yet to be solidified ^[3].

The Nigerian government recently took a hard stance on crypto, accusing it of contributing to the decline of the naira's value. This resulted in a ban on all crypto exchanges operating within the country ^[4]. Specifically, authorities suspect Binance of being involved in a massive, $26 billion illegal money flow that has harmed the Nigerian economy. To investigate these claims, they arrested two Binance executives and demanded user data ^[5]. Binance maintains its innocence and has called for the executives' swift release. While cooperating with the ongoing investigation, the company denies any wrongdoing ^[6].

This incident highlights a critical question: how should governments regulate crypto exchanges? The rapid growth of this industry has exposed gaps in oversight around the world, leaving policymakers scrambling to catch up. The recent actions by the Nigerian government highlight the ongoing tension between governments and crypto exchanges. I believe Nigeria's recent actions towards crypto appear to be overly restrictive and may hinder the technology's potential growth in the country.

Crypto's decentralized structure ensures its existence independent of government approval. However, widespread adoption by governments is crucial for its robust growth. Government restrictions on crypto trading and CEXs can stifle market liquidity and discourage investor participation. This could hinder the influx of new capital and limit the crypto market's potential compared to more accepting environments, though DeFi and P2P transactions might persist.

The recent crackdowns on crypto in countries like China and Nigeria, despite crypto's inherent resilience, raise my concerns about governments' ability to stifle its growth within their borders. If this trend continues and other governments follow suit, the potential consequences for the global crypto market could be far-reaching.

Looking ahead, we need to see two key developments for crypto to flourish. Firstly, major governments should embrace crypto as a legitimate asset class by establishing a legal framework. This framework would allow for taxation of crypto income, similar to other investments. Secondly, the crypto community must strongly oppose and condemn any extreme measures aimed at stifling the market's growth.

I would like to know your views on the acts of repression of the crypto market:

• Can crypto continue to thrive without the support of governments?
• Do you think governments can suppress and restrain the crypto market with their power?
• If you were the head of government, would you accept or reject the crypto opportunity for your country?

---

References:
[1] MiCA, EU’s Comprehensive New Crypto Regulation, Explained (https://www.coindesk.com/learn/mica-eus-comprehensive-new-crypto-regulation-explained/)
[2] China Never Completely Banned Crypto (https://www.coindesk.com/consensus-magazine/2024/02/05/china-never-completely-banned-crypto/)
[3] An overview of cryptocurrency regulations in Nigeria (https://cointelegraph.com/learn/crypto-regulations-in-nigeria)
[4] Nigeria targets cryptocurrency in bid to end naira freefall (https://sg.news.yahoo.com/nigeria-targets-cryptocurrency-bid-end-075831754.html)
[5] Binance Executives’ Detention Could Spark Diplomatic Crisis in Nigeria (https://beincrypto.com/binance-nigeria-hostages/)
[6] Binance says it trained investigators in Nigeria under government cooperation (https://cointelegraph.com/news/binance-trained-investigators-nigeria-under-government-cooperation)

Definitely yes, the government has the power to suppress Crypto market and they've done this many times already.

Have you heard China banned cryptocurrency multiple times? Have you heard SEC decline the legitimacy of Bitcoin?

Well, look at them now they can't totally control the whole crypto market as other countries have their own different point of view and they have no choice but also to adopt or else other countries will take advantage of this market. If I'm the head of the government, as long as it benefits my country then I will support and accept it, regulations will be a big thing in cryptomarket.

Well I think the governments will want to crack down on it. But we must ask our self if it is possible for them to really do it.

China has trued to ban crypto and some other countries too. But the thing about that is you can not ban or crack down on crypto. 

The only thing they can do it try to regulate it to control it. And they are doing that now since crypto is becoming more popular.

It has been thriving before the government intervention earlier and in those days when too much negative news was coming from mainstream media. I do not think the government would suppress or restrain the crypto market. They would try to regulate it and we have already seen certain countries are on the verge of finalizing regulation. Since I am not the head of the government I won't be able to answer the last question as it is not my job to think in that zone. 

Governments would love to make bitcoin disappear, but they cannot do it, the decentralized nature of bitcoin does not allow them to destroy it the same way they could do so against a centralized opponent, and this creates a difficult choice for governments, if they still ban it and forbid their citizens to hold it, then the wealth that it can be obtained out of this new invention will go to other governments that are more open on their posture to bitcoin, giving them a competitive advantage, so at some point even governments that are against it will have to change their posture and accept bitcoin, even if they are not enthusiastic about the idea.

Maybe for centralized projects they can do that. There are plenty of projects goes down and end up in closure due to Government. But in the case of bitcoin they cant touch it as there are no company or sole person that they can tend to whom to stop it cause Satoshi made this coin anonymously and decentralized which this coin may last forever.

I think yes. Crypto can continue to thrive without direct support from the government. After all, it has reached this far without proper support from many of the governments. Neutrality would be enough to keep crypto afloat but approval and adaptation of crypto by the government will give that extra push for the people.

 governments can restrain crypto, definitely but I am sure a lot of people will still check for other ways to use it. Lastly if I were the head of my government I think I would accept crypto with open arms and I would have to learn about how it could affect the nation

As for the first point, in my opinion, of course it is possible because it depends on the strength of the community's own interest in using investment diversification and feeling like they want more freedom than continuing to be tied to traditional financial patterns and systems, especially since they have felt the difference in the case of use.

The second As for government action in terms of influencing liquidity and crypto adoption, I think they are still capable, but of course there is no complete control.

The last, It seems like we need a leader like El Salvador and I am quite inspired by his performance.

You did not clarify this well. "Without the support of the government," did you mean if the government never invested or appreciated it or allowed people to do so? Well, if the first case is the issue, then heck Yes, Bitcoin will flourish with the lack of support from the government. After all, it is people's money that is making Bitcoin to appreciate this much, so the government is not needed here for it to continue to be appreciated and climb in price as we see now.

But if the government does not want Bitcoin in existence, No, Bitcoin may cease to exist. Many would just be running their mouths that Bitcoin is decentralised, private and anonymous in transactions. The latest discoveries have proven that the last two are not true, while the decentralization characteristics of the coin can only be useful with functions websites, apps and hardware wallets. If the government starts clamping down on all the hardware wallets, websites and apps that are dealing with crypto and also people they can trace with the transactions, then this will be a serious problem. The price of the coin will crash and no one would even want to deal with it again to avoid government issues.

Yes, the government has the power, and Yes again, they can suppress/restrain cryptocurrency if they want. I believe so and I have warned people about it since I joined this forum. We can see the trace of that through the recent regulations, and we've not gotten there already as the regulation of the crypto market is still very light and it's in its initial stage. Expect more over time as the government's concern is to move to lessen the decentralisation of the crypto market. Though it will retain the decentralisation in transactions if the coin/token is structured that way, nonetheless, the government would know more about it to reduce illicit flows.

I am a visionary, and just like AI, cryptocurrency is inevitable in the payment and financial industry and the advancement of any country, unless I want to cheat my citizens. So, I will allow cryptocurrency. But I will be thorough and strict with its regulations. I will make sure that tax for the country is not cheated and must know the inflow and outflow of all the registered crypto dealers in my country.

The sad truth is that if the government sees cryptocurrency as a threat to political affairs, limited embezzlement, and economic devaluation, then they will crack down on it. They have the power to do that; the only reason they haven't looked into cryptocurrency for some years now is because most of these government officials and big investors have invested in it secretly or openly. And it has been a source to grow more wealth for them or store there wealth so that it cannot be rubbed or stolen.

Governments never supported cryptocurrencies no matter what because the reason is obvious if people move to use cryptos instead of fiat then their economy is going down hill,, now they are looking for reasons to blame cryptos to suppress the growth of crypto in their nations because they haven't even imagined that bitcoin would grow this much in very short time period.

There are different types of crypto projects, the two major types are centralized and decentralized and multiple subdivisions in it too but now just talk in the broader perspective, bitcoin is completely decentralized so it doesn't have any single authority where the government can make an order and ask them to seize the operation so if its completely decentralized crypto then the government has no way to stop it completely.

Whereas ether (USDT) is centralized that runs by a single authority so ig the government has a strong reason to make them to do something then they will and anyone who is holding centralized cryptos no matter whether it's in exchange or wallet can be frozen.

Governments can & do crack down on crypto. They may not be able to 100% stop it but they can make things a lot more difficult for people to access. If you are desperate to use it then Tor & or a VPN can be used but if governments in a certain country ban crypto it can cause price volatility but also how can you find on/off fiat ramps. P2P trading can only go so far.

Yes, we have the perfect example through BTC.  8)

They can for exchanges and their people but they can't cover the entire world to stop with their suppression of stop everything to get involved with crypto.

I am for crypto so I'd accept it with a grateful heart.  ;)

Cutting down the head which is the founder and making a law to make a certain token illegal to use will make any project dead assuming that we are talking about the worldwide government here and not a single government power.

I believe even Bitcoin can be crackdown if the world government decides to abolish Bitcoin since people has no choice than to follow the government if Bitcoin is already forbidden to use. But this is just hypothetical and impossible to happened since world government can’t have a single decision. The only thing they can do is to do it on their own country but there’s already a lot of countries that support crypto so crypto can’t be crack completely.

putting pressure on the crypto market, yes. but the government will not be able to control ownership of crypto assets such as Bitcoin.
governments pursuing taxes from crypto will contact the growing crypto industry in their countries. it's like an exchange, casino, or maybe mining.
Some regulations can be stressful for business people and crypto project developers. and we have seen how the government intervenes in suppressing the crypto market.

The government have absolute power to suppress crypto ad they cannot ban crypto or stop it but they have power to stop people from dealing in cryptos and we can already see the kind of pressure which has been put into crypto exchanges in India and the ugly news coming out of Nigeria. Since we are all aware that government can never be crypto friendly tried discouraging users from indulging in crypto but they failed and now they have adopted the ugly strategy of taxing crypto transactions, extorting and banning exchanges.

What do you mean by “crack down on crypto”? Do you mean if the governments can ban it? If that’s your question, yes they can do that. Would they be successful? Probably. It is because when they ban it, no legitimate business will be accepting crypto anymore and that means you won’t be using your crypto as a currency. Yes will be able to do p2p trades but there won’t be any exchanges too. That means there will be little to no FIAT volume for your crypto and it will be hard to know the price… Yes the govs can become a major trouble for crypto if they want to.

It can and we have seen that happening, we can't stop people from supporting Cryptocurrency even to the point of their government warning, where people think they can benefit they will go for it.


Yes, it is possible but I doubt if the government will waste its resources and power to suppress Cryptocurrency when in the end it will just yield to their people's will.


I will, Cryptocurrency is a new technology that will benefit the various industries in my country so why stop it from being used by my citizens?

Chinese government has not stopped their people from using crypto despite banning it so there's the example of not being able to put an end to it. 

but governments these days are using the blockchain as some point to monitor users which is not the kind of crackdown you expect and this could result in actually making them more powerful in collecting taxes from the people especially because we are now accustomed to seeing KYC on every platform we signup. and then they supported the ETFs which made people on board so the government is supporting crypto in the end but this is also a double edge sword.

Governments already have the power to suppress crypto. They can do so by controlling centralized exchanges. It's no secret that most crypto is held by third-parties (private custodians). Only a small fraction of crypto (particularly BTC) is held on self-custodied wallets. So if governments like the US and UK want to destroy the crypto market, they can do so by shutting down CEXs (or prohibit them by doing business with US/UK-based customers). What they can't control is Blockchain networks themselves because of the way they were designed.

If all of the world's countries went against crypto (which is very unlikely to happen anytime soon), it will survive as long as it remains decentralized and censorship-resistant. Of course, market prices will dip. But you can keep using the coin of your choice completely under the radar of the government. It's what's happening with Monero right now where most centralized exchanges are de-listing it. Market prices are low, but the XMR blockchain itself is alive and healthy as usual. Who said crypto was created to please banks and mainstream governments? Wasn't it all about "eliminating" the middleman? :)

We should probably just not focus on things this easy when there are bigger stuff to consider, it is going to be just a thing that will not be all that important, and it is going to definitely take some time. I think we should probably just consider the fact that we are going to be all that more difficult if government tries to crack down on it, instead of let it be.

The difference is that, if they crack down on it, they need to spend money on chasing who uses it, and that makes them lose money, and governments do not like to lose money back to people, they like to keep it. Instead, if they let it be, they can charge tax on it, and that means they are going to be able to make money, and do a lot better. I think they would prefer that.

Yes, the government has the power that they can start a crackdown on crypto anytime they feel discomfortable about this but in my honest opinion doing this is not a good step as the crypto industry has a bright future in the coming times well if we see El Salvador has already accepted Bitcoin as their legal asset. The people of El Salvador can buy sell or sell crypto assets as an legal tender on the other hand many countries people facing the problem that like they can not use cryptocurrency as their legal asset. Now maybe you wonder that how can a government can ban crypto from the country.

They can ban all the exchanges that offer to buy Crypto assets and they can even ban the servers that hold your crypto assets. Recently you may also know that many people of India who are highly involved in the crypto industry have started to move to those countries that are crypto-friendly because I came to know that India has banned crypto but for now I think they have lifted the ban on crypto but I am not sure about this because I am not resident of India if in any case, you guys know about this must share the update about it. Many Thanks!

They can block URLs and track users to seize their crypto but they won't be able to completely shut down a crypto platform. Also, crypto platforms are using decentralized storage solutions and domain solutions to have a backup URL for their platform in case they face any problems with the centralized server. That means no matter what the govt do decentralized crypto platform like dex can not be shut down from the internet, and if the government blocks the URL users can just use a VPN to avoid detection.

Government’s can crackdown on a specific project as like they can block IP's or URL's in a project, but there also solution if you will use VPN. They can shutdown for a individual project and it’s happened in many counties but they can't totally stopped crypto. And governments will never crackdown specially decentralised project, they can only controlled centralized project if they want.

The crackdown of crypto is very possible in the system. Crypto projects are best and good for improvement. The Government means good for the country, they're trying their possible best to eliminates cryptocurrency because they sensed it to be threats. Government have power and dominates every activities within a country, they mean good and development for a country, one of the major reasons they're not sliding back but focused on their budgets. The government have a hand in the restrictions of crypto projects in the market.

They might be able to do it for some things, but not everything about crypto, especially Bitcoin, seems impossible to crack down. They can only tighten the regulations and use of Bitcoin, and that is only in the area under their government.

Unless it is related to a project or anything that was created or built in that country. So it will be quite easy for the government to obstruct and even crack down the projects as long as they are not following the mechanism from the government. Because they will definitely argue about regulations.

1. Cryptocurrency isn’t about the government, it is about 2 individuals. Which is exactly why Satoshi created Bitcoin, money that is independent of the government.
2. They can suppress it (imagine the use of cryptocurrencies was declared illegal in a country), but people will always find a way out.
3. This is a heavy question. As a user, I would approve it, but note that the decisions we make as a user aren’t what we’ll make for the mass because factors need to be considered. But for a more straightforward answer; as long as cryptocurrencies are used just about the way they currently are, I would definitely accept it.

Yes, governments can do it. I think the government could try to ban or regulate crypto, but such a ban would be very difficult to enforce. For example, even though China has banned crypto, there are still many people involved in crypto transactions. As we know Bitcoin works on a decentralized network where transactions are verified and recorded through a global network. This could make it nearly impossible for a government to completely shut down the Bitcoin network. Bitcoin transactions are pseudonymous, meaning users are identified by their wallet address rather than their real identity. This will certainly make it challenging for governments to track and regulate crypto transactions.

It can and they are doing it. Just look at china, being one of the hotpot of crypto and blockchain technology to going to cave ages for crypto, the government decided and did killed crypto in China. Even though holding crypto itself is not illegal in China, they have made it so much difficult for the general people to buy and sell them with cash that some people do visit other countries just to buy or sell crypto. There's a total ban on mining even when there's energy surplus and wastage.
But it can't be a role model to every country as every government are not as technocrat and has blanket policing. The effect can be less severe for others.

Indeed they can do it since they have the power to put stop on everything circulating in their country especially about crypto since they can just request all the network provider on their country to block the access of the sites and then we can see those crypto platforms start declining until we can't see any people using crypto or those platforms related to it. In case of china people still can find a lot of ways to have an access and participate on any crypto activities but the problem there is they can't easily do what they like to do especially for cashing out their earnings since bitcoin has been banned on their country and I think there's limited ways for them to cashout bitcoin unless they found trusted person which they can do p2p transactions.

Op you've done a great job in compiling such an interesting post, but however the issue of the Nigerian government and binance did not lead to ban of cryptocurrency. In fact we still have full access to crypto, the only problem was that they suspected that the volume of p2p trade with dollar to naira from binance exchange was very high and that could have lead to the cause of the rapid volatility of the dollar to naira, so binance was asked to stop all p2p transactions with the NGN fiat. However there are still other exchange out there that still have Naira p2p.

I also hope that other governments will be wise and have more reasonable solutions for the development of crypto in their countries. Crypto brings jobs, income, taxes and employment, crypto does not threaten fiat or the political power of the government - there is no reason for the government to apply extreme solutions to crypto and turn their country into a dangerous place for crypto companies. I am waiting for the legal framework for crypto in the US, which could be the leading legal framework as it will be referenced by many other countries.

Thank you for providing more information. I only read the news that the largest CEXs, Binance, Coinbase, and Kraken, are no longer welcome in Nigeria. It is possible that this extreme action by the Nigerian government is only targeting the largest foreign CEXs with the highest trading volume, and which have been accused by the presidential advisor.

I would like to know how this action will affect the liquidity of the crypto market in Nigeria? Will people still be able to trade crypto normally with acceptable slippage?

• Nigeria Blocks Access To 3 Major Crypto Exchanges (https://milkroad.com/news/nigeria-blocks-access-to-3-major-crypto-exchanges/)

The fact that 3 exchanges where asked to stop NGN fiat p2p doesn't necessarily mean that crypto p2p has ended in Nigeria, in fact this action is only creating more traffic in other exchange whole still accepts NGN fait for p2p transactions . So definitely all those other exchanges will start having more customers within this short period of time. And currently they are contemplating on how to better the situation rather than making it worse than this. So in no time everything will become normal and running.

1. I think yes.  Crypto can exist without support from the government.  Crypto is decentralized where the price cannot be determined by any entity and the price is purely based on supply and demand.  And it has been a value that is free from government interference until now. Even many countries have banned it from their citizens, but it is still used.  The government cannot completely suppress crypto because of its decentralization.

2. I do not think so.  We have seen a lot of pressure from Tiongkok and other countries to ban crypto, but it is not fully implemented.  Because crypto is free and if the country really prohibits its citizens from 100% being able to use crypto, it will deprive its citizens of the opportunity to earn income from crypto.

3. I will definitely support it.  Crypto provides many benefits in the real world.  So many opportunities that can be taken.  So, why should I waste it if it can support my country and society.  That's not enough, there is also need to educate the public about the benefits and risks of crypto, as well as the regulations that keep it always on a good path.

Of course the state has the right to any control over what its people can consume, including crypto currency if we look at it broadly, we see countries that limit themselves to crypt currency besides Nigeria, there are China and Bangladesh and also other countries that oppose crypto currency operating in their countries, this is determined by political and / or government decisions in managing the country.

So the three points of your question OP the answer is Yes, the government has the control to regulate what is allowed and what is not within the scope of its power, of course with certain policies to prevent things they fear from happening in the country they manage.

Can Crypto develop even though it is not supported by the government?, Of course it can, but surely the scale will not be large and vulnerable to being dangers.

Government had a capacity to crack the transaction by their ulr and had access to many process.But mostly government track the high transaction in the crypto space,because the transaction with high volume will liable for the government with more taxes.It was also the reason for the tracking of high volume.It’s better to use the hardware wallet in the cryptocurrency field as compared to the use of exchanges to hold your money.Because we don’t know when the exchange will close their business and this leads to loss of assets in that exchange for the traders.

For China, just like with other anti–crypto countries, it's a struggle to suppress the activities of cryptocurrencies and that's why they repeatedly carry it out. They ban and reban, ban again and then forgot they had banned it before only to ban it again. It's a funny circle. Nigeria is also another case. Notably, the government can only ban crypto activities but not cryptocurrencies. It's almost an impossible task and that's why Bitcoin continues to thrive despite government hate of it.

This is why we consider Satoshi to be a very smart person. His actions and code used in making Bitcoin network was a wise one, the fact that it is not being controlled by any central authority is what makes it immune to governments threats and their deeds to to ban Bitcoin/ cryptocurrency. However I still believe that some day, they'll come to realization that Bitcoin and cryptocurrency is a beautiful inventory. The case of Nigeria, Nigeria has never really ban cryptocurrency, they only restricted the citizens to buy crypto using bank payments.

Yes, governments can easily disrupt the crypto market. They can simply impose taxes on your accounts, ban some major markets, or declare cryptocurrencies illegal assets. Moreover, they have many ways to track you even if you try to use crypto behind their backs. So, we hope governments play fair and don't interfere with us right now.

Then what's the point of decentralization and censorship-resistance if governments make crypto illegal? Crypto will survive, but people using it will be at risk of getting jailed or fined by the government. Imagine what would happen if all of the world's countries ban crypto/Blockchain tech. Market prices will decline at a very fast pace. After all, institutional and retail investors are the ones who move the crypto market to new heights. Without them, crypto will only remain a "niche" to the general public.

Like it or not, crypto needs the government to grow. With legalization of the crypto industry, market prices will stay high for a long time. Nothing is set in stone, so lets hope for the best. :)

Yes, even though people talk about decentralization or something like that, crypto needs government involvement to achieve high prices. But imagine if all governments were to ban crypto. I think crypto would still survive, but it would be used among small groups and be hard to maintain a high price like it is now.

I would say that there is a limit to it though. I mean I am fine with regulations and such, but when government makes it so much crazier then it changes a lot. Let me give you an example, I am not American but I read the laws and the situation at USA right now and I can give an example there.

Right now, New York state has such a high regulation barrier that we are actually getting a lot worse and all the companies there basically either stopped working and closed their shop, or they just moved to another state, that is a state involvement, so it is still politics. At the other hand, Texas made it so clear (and has cheap energy) that there are dozens of mining companies popping up every year. See the difference? It is important to know the degree of it.

The simple consequence would be the falling price of cryptocurrency assets. Not even one of them would be able to survive this and Bitcoin will lead the fall. I like the way things are falling into place with what I said that people did not take seriously at the time I started with this forum, but now, they are waking up. I hinted that the government is so powerful since my first months of joining, but as usual, people will say otherwise, they would be calling the decentralization power of cryptocurrency. Decentralization in the face of the government that has the absolute power in this regard? I don't think so.

The decentralization will only work when the websites, apps and other means by which they are being translated are allowed by the government. What if the government blocked that access? Including the CEX and DEX? People often believe in the DEX, but they often forget that it is also running online and it is people that would patronise it for it to function. What if it is now a criminal offence all over the world and strict internet surveillance is used?

I hope the day never comes, so we should embrace and cooperate with any regulation brought by the government, at least, it is better than losing everything.

The government ha sthe power to crackdown the crypto market and we should not be surprised because the power is flexible and could tune things around either form our own benefits or against our wish. Just like we have been seeing before the Bitcoin ETF was confirmed by the SEC allowing big firms to start there own Bitcoin ETF for there customers. This is one of things we should see and know about the government. The power surplus and could even be against our wish so we should not underestimate the power.

Definitely they have power top turn things around but not through the method you have mentioned because there are whales who hodl much more than government backed institutions could ever hodl and it's Bitcoin will be decentralized but government can create hurdles like how Indian and Nigerian government are doing it right now to kill the crypto industry in their respective country. I think we should be more concerned about country banning exchange or scrutinizing users in terms of withdrawals instead of ETF which poses lesser threat at the moment.

Let be clear with something here, when it comes to control the government can control cryptocurrency regardless of which cryptocurrency it is, there is a limit to decentralisation and as long as citizens are involved in it, it can be traced to somebody, and one of the easiest way is through centralized platform which collect your informations, this have been the major issues, lately and for sure there is a need to regulate the cryptocurrency Industry and the government need to step in to save the growing market and if left unchecked there will be alot of bad actors in the market and for that even the cryptocurrency users themselves will be at risk and if anything happens there won't be always traces to that, and that effects alot of us in the pass already.

For the best result I think the government will need to be more friendly in they approach to how the deal on cryptocurrency and it regulations if not any wrong approach will trigger up a negative response from the citizens which could result to large amount of hidden transactions.

Who said decentralized applications need the approval of the government to run or function as intended? If they do, they aren't truly-decentralized. The vast majority of so-called "dApps" rely on some kind of centralized infrastructure, so it's easy enough for governments to take action agaisnt them. When we get truly-decentralized exchanges and dApps hosted on IPFS or ZeroNet, using a decentralized TLD (ENS, SNS, Unstoppable Domains, etc), and governed by DAOs, that's when the revolution will truly begin. But I'm afraid this will become a distant dream as developers are only focused on making money. Out of fear, they will comply with government regulations. Even if that means sacrificing users' privacy and freedom.

I'm afraid centralized entities will continue to dominate the industry for as long as crypto lives. If there's only one truly-decentralized project that exists, that would be Bitcoin. The rest are compromised (ETH included). Be aware though, BTC is getting mass-accumulated by institutional investment companies. So things will only get worse in the future. It was fun while it lasted, right? :)

You started by slightly against my opinion but ended by still aligning with it, this is so funny. It is very easy to say that the DEX and the so-called domains that seem untouchable to you can function when the government starts clamping down on the cryptocurrency industry, well, that's if they see patronage. Perhaps, you did not think it through towards the fact that it will first instil fear in most cryptocurrency holders and users and dissuade more than 60% from using it since they do not want to be in the trouble of the government. What do you think would happen to the crypto space afterwards?

Mind you, the strong-minded people that would continue with cryptocurrency if the government is serious about the clamping down may be so fewer than expected, and you think the price of cryptocurrency will be encouraging to the point that is worth daring the government? It will even be on a selling spree due to less demand and people will be losing their fortunes to it. So what is the point of holding it? Aside from that, is it not a gadget that people are using to connect the app, website/domain, or whatever? What if Windows, Android, IOs and others stopped any operation with cryptocurrency on their gadget on the directive of the world government? Think these are through. This is the government we are talking about, unless there is a division within them, the clampdown will total, bro, that will be the end of cryptocurrency.

1. It is clear that government support can play an important role in promoting the development and widespread adoption of cryptocurrencies. So if it comes under intense criticism, it will be difficult for cryptocurrencies to grow, but we in this space are also seeing more government acceptance.

2.  yep, maybe so. And we have also seen some countries using their rights to issue orders requiring people to comply, whether opposing/supporting, it is part of the process of helping crypto become more known again.

3. I think the support could be coming up with many policies linked to blockchain, as well as finding many ways to apply it in life.

Alternative way for government will be if they wanna shutdown internet that is the only way and I know that is not possible since every communication requires network and internet connectivity, there is no day such thing can likely happened except for those project that are centralized. Government can have full control over those projects but can't alter bitcoin progress since no one could hold to control bitcoin as they think of controlling the market instead i have understand that most of them have dive into bitcoin since they can't beat it then they join it.

The government can do many things if they wants in their countries, as like blocking or strict restrictions in crypto, that happen in my country but i see crypto is going more popular day by day, because if they shut down a site, people resort to alternative methods as like using VPN or other ways. So government can dominate but can't totally stopped it.

But do you think this solution is possible? I doubt even people from the Government cant live now without the glimpse of internet. You are right thats the only way buy considering the use of internet nowadays I doubt it will ever happened. Its like a necessity now than a means to everyone.

Governments posses the authority to crack down on cryptocurrencies and regulate it, as demonstrated by their actions in many countries. While they they can target any person or entity involved  in illicit crypto activities without their  consent, gaining access to personnel wallets even for government entities, remains exceedingly challenging.

Examining the historical track record of cryptocurrencies for the past 15 years, it has been observed that despite government restriction they have shown remarkable growth. This resilience underscores reflects the  acknowledgement and acceptance decentralization concept.

Yes it is true the people in the government can't survive without the Internet that's true and they can not get other means to Internet when the Internet is completely shutdown unless they will come and idea to build a government owned Internet which they will use for sharing of information but that can't be possible because there's no way the government of a particular country will deny her citizens access to Internet it's not possible. The only thing they can go on to do which is easily achievable is to place a ban on all forms of cryptocurrency and also set a fine or penalty for anyone who's found guilty of investing or having any cryptocurrency related activities.

How can you ban bitcoin? Its unstoppable, unless the government forbids all citizen of each country to use it, however does people will not use it even they say its illegal now? I think some will slipped and continously use that or migrate to a country that isnt scope of ban like El Savador and other crypto friendly countries.

Increasing users and high demands in the crypto field IMF has asked to give tax for Pakistani people but the funniest thing is that nobody knows how many users are involved in the crypto space in Pakistan and the Government never showed its interest in knowing that how many people are involved in crypto space in the Pakistan but for now the government has to trace the involved user in crypto space in Pakistan so that Pakistan meet the demands of IMF. Now the Thing is that how will the government trace all the users involved in the crypto space in Pakistan?

As most of the user save their data using decentralized wallets some hold it in hard wallets and some use those techniques that can never traced by anyone until they do a transaction. These kinds of users stay anonymous to avoid any kind of action them or move out of the country like Dubai to feel free in these kinds of matters haha. As a month ago we have seen that India banned cryptocurrency and many of the crypto users moved out of the country to use their holding assets.

The government has the power in there hands and we don't have to underestimate that. Although it's going to take time for the world government to decide where they are going to crackdown cryptocurrency or not. The cryptocurrency market worth so much money and they would want to reconsider that on how to actually do there thing. This will not be an easy move because almost all the countries in the world are involved in crypto and cracking it down is going to cause so much problems for us.

Well some governments are banning certain exchanges (Belgium tried to ban Binance but they found a loophole) so you always need to be cautious. There always exchanges you can use, but cashing out to a bank account might get harder and more difficult also. Or you need to find another solution to spend your crypto.

So far internet has been the way of communication and no government could use because of bitcoin to shutdown internet just to eliminate bitcoin or control bitcoin, as a matter of facts if the internet goes off the bitcoin is but on sleeping mood whenever the internet comes back the operation of bitcoin starts again. So this solution is never possible to happened because millions of people can't afford to lose worth they have sorts for, for the internet to shut down just bitcoin.

Disconnecting the internet just to prevent people from accessing BTC is not a wise move, no matter how much the government hates BTC. The internet has become extremely important to everyone, and the lack of internet can hinder the development of the country and push the economy and society into crisis.

If they really want to limit the influence of crypto, governments can issue extremely harsh bans: ban crypto trading, ban crypto ownership, ban crypto advertising... All violations will be considered as harming the national economy, the punishment will be extremely severe and that information will be spread on national media channels to warn of similar acts. I think that is the best way the government can do to stop crypto. Of course, it is only done by a totalitarian government and does not need to listen to the people's opinion.

A wiser government would want to regulate crypto and collect taxes on crypto to gain the support of the people and have more budget for national development.

What if the government of a certain country decides to ban all the exchanges in the country does it mean the citizens of that country who are into crypto will need to migrate to another country before they can trade their cryptocurrency, will their be an exchange which they can not come against that the citizens can rely on for their transactions, this is some of the things I find really difficult to answer with the way the government is placing attacks.

Possibly the best move is probably to migrate or transfer first to other countries which doesnt have restriction on crypto and process his asset. Well thats one thing we can do, since your country isnt supporting any at all then leave for another place. If you can migrate or have a long time stay on other countries who embraces crypto. Most whales are doing that since they are having hard time on trading or cashing out their crypto.

Cex won't allow you to use any kind of vpn to access their services. Government can ban certain exchanges in their country and this will create inconvenience for people to enter or exit with their liquidity from the market. But crypto can still be used to do other activities by using dapps. Also P2P can be a good option in a non crypto friendly country.

They don't need to migrate into the another counter to trade their crypto. They needs only to find an exchange site that is still remain unbanned to help them convert their tokens to the USDT that can be exchange with money. The most complicated thing when your government ordered all of exchange sites to be banned.
You can go through p2p to sell your crypto. This is what happening in india. Many crypto gets banned and its users were starting to struggle in finding an exchange site that was supporting that country. It's sometimes hard to find an exchange site that has good liquidity to help you liquidate your money into the fiat money.


The only way to find p2p for your assets. You can do nothing even if your country being blacklisted by the developers after the government has issued an order to ban it. So, you can do nothing once your asset was there.
Your money potentially blocked by the exchange site as you can't comply with their regulation to disallowed people from the blocked country to trade on their exchange site.
Anything that is involving the regulators are always very hard to deal. The regulartors can crack down anything what they think it's not giving them benefit.

Why not just block access to crypto software instead? The same way China blocks people from surfing certain websites with their "Great Firewall", the same way governments can restrict/block access to crypto exchanges, wallet software, etc. In the case of node operators, it's easy enough to block inbound/outbound requests at the IP level. I'm yet to see whenever governments are able to prevent people from using VPNs to circumvent these restrictions. I hope not, especially when crypto (particularly Bitcoin) strives for decentralization and censorship-resistance.

People should be able to get true financial freedom regardless of what the government thinks about crypto/Blockchain tech. As long as crypto has its supporters/defenders, governments are going to have a hard time cracking down the entire industry. They'll win more by regulating it. Maybe all of the world's countries will embrace crypto in the future? :)

Attempting to block crypto is a futile effort that benefits no government, unless that government wants to be satisfied with power instead of listening to the people and developing the country. Every country can refer to El Salvador's approach with Bitcoin strategy to develop the country, every government can learn the cautious approach to BTC that the US is taking. Taxes, jobs, energy are all things that the government wants to have, they don't want to spend budget on efforts to ban crypto.

Even, to my knowledge, in some countries without internet-banking services, people can still buy and sell BTC in P2P form: meet to exchange money and receive BTC at self-custody addresses. I really haven't figured out an effective way for the government to completely ban crypto. The government is increasingly having more young people, I believe they will be able to convince others to trust and open up to crypto.

That's true, and that's a physical P2P. Many people used to do this in the past but because of some threats that can happen, this is discouraged to be done.

So, if someone wants to do P2P then he/she has to go to the P2P platforms that are reputable and do the exchange or trade there.

I highly doubt that they're going to understand it like this even if there will be more younger people work to the government.

Because what matters there is all about the leader whether he or she is young or old but if don't like crypto, then regulations might come or worst, a ban.

Government can only crack down the centralized exchanges, and centralized cryptocurrency projects and not the open source cryptocurrency projects. As you can see. Governments is dealing with Binance in the world world. At first it was USA who made the Binance CEO to resign. Then later Nigeria government deal with them because they manipulate the country exchange market or the rate and today the news reaching me that, Philippines SEC has as also asked the National Telecommunication Commission to Block Binance in the country so when you look at all these things you can see that centralized exchanges are suffering in the hand of the government.

But the decentralized exchanges and non custodial project are save from government attack.

Yes, you are very right friend, even crypto exchanges have been banned from several countries because they are considered to threaten the sustainability of the country. they are afraid that if their people see and access crypto it will cause uncontrollability in the society they lead.

it would also make it difficult for him to take actions that could benefit a country.
but we also have to be smarter than the government, even though the channel can no longer be used generally, we can still access crypto exchanges in other ways.

I don't think they're safe either as some decentralized exchange are blocked in some countries and also some countries aren't allowed to participate in presale on some presale sites that are decentralized. The government wants to make sure that cryptocurrency isn't a threat to them therefore they're using all the measures that they can to crack down on cryptic. Each country has something that they're fighting and this is makings the adoption of cryptocurrency to reduce.

The government can crack down on crypto as not all cryptocurrency are decentralized, many of them are centralized as they have someone heading the cryptocurrency and if the governments target that peron, that cryptocurrency might fall in price or stop getting investors as many individual will be doubting if the coin can survive the government attack. As governments is fighting crypto, they might win.

You are right, we have to accept that if we want to develop strongly, crypto needs acceptance and support from governments, not confrontation or suppression. Crypto has blockchain and a large community, but the government has enough power to make it difficult for crypto to develop or to exist in the dark. That is why the teams of large projects in the market, including blockchains and crypto companies, are trying to comply with the regulations of countries to survive and develop.

I really feel comfortable being able to buy and sell crypto on CEXs or DEXs as it is now, I don't want to have to trade secretly to avoid prosecution and accusations from the government @@

1. In a purely technological sense, yes. Decentralized cryptocurrencies will function regardless of government approval. However, widespread adoption and mainstream integration require a degree of government acceptance and regulatory frameworks.
2.While significantly disrupting the market is possible, complete suppression is unlikely. Bans and restrictions can force activities underground, spur P2P markets, and push innovation to find workarounds. However, governments can certainly hinder growth and mainstream accessibility.
3.My view would be to embrace the innovation with caution. Establish a regulatory framework that balances consumer protection with the potential for technological and financial advancement. Aim for regulation that ensures safety and taxation, while encouraging innovation. Rejection stifles growth, while a complete free-for-all invites chaos and exploitation.

Cryptocurrencies can cause temporary damage if the government wants to, but that damage is not permanent. For example, India announced a ban on all types of exchanges a few days ago, but even after banning exchanges, it could not ban the use of cryptocurrencies from Indian people. Although the Chinese government has repeatedly banned Bitcoin, it has not stopped the Chinese people from using Bitcoin. So no matter how hard the government tries, it cannot ban the use of bitcoins and crypto-currencies.

That is what those miners did when China banned bitcoin in their country , migrating to other countries to continue their operations.
and we are talking millions and billions of dollars here and also the world will never have the same stand in banning bitcoin meaning we can still have our place to enjoy using our bitcoins though small holders like me cannot afford that so wishing to never have this cracking in my country.

You never know, the day may come in which bitcoin is so valuable that even those that think about themselves as small holders could have a lot of fiat money thanks to their bitcoin investments, however if that were to happen where you live, probably the best move will be to do nothing, keep quiet about your investment and hope for the next government to change their posture towards bitcoin, this way you will not need to do anything and in just a few years your problem regarding the legality of holding your coins will become a moot point.

I also think that crypto can exist, but it is difficult to develop strongly if it becomes a dangerous object for the economy in the eyes of the government. Crypto needs a legal framework so that developers and investors can comply and participate in this market more actively. Similarly, after the traffic law for cars was introduced, the automotive industry developed strongly.

We are still cautious in considering, issuing and testing legal frameworks for crypto. MiCA has been launched and I am waiting for the results of the pilot test in the EU to see what is best for crypto.

The revolution simply can't be stopped. No matter how hard governments try, people will always find a way to get access to crypto/Blockchain tech. The code is open source and widely-distributed worldwide. Anyone can produce new binaries from that code, even if governments manage to remove every trace of the core wallet software. Not only that, but the largest cryptocurrency in the world (Bitcoin) has a huge number of nodes and miners supporting it.

As long as there are two nodes on the network, cryptocurrencies will never die. Trying to shut them down is like trying to shut down the whole Internet (which is practically impossible to achieve). Lets all sit back and relax as the best is yet to come. Who knows if crypto (particularly BTC) goes as far as replacing Fiat currencies in the future? :D

Considering what happened to binance in Nigeria I think yes government can crackdown on crypto but thou they can not completely stop the technology behind the crypto space but can regulates it in certain areas just like what happened in Nigeria, it doesn't happen in other countries.
There is always going to be an alternative solution towards what ever government of any any region may do as regards to cracking down the crypto space.

I agree with your point of view: crypto will always exist with the internet and user trust. It is very difficult for governments around the world to agree on a single issue, whether it is fighting climate change or condemning war, and the same is probably true for banning crypto. The internet, VPN, Tor, P2P market... will be ways for users to access and use crypto even if it is banned in many countries. Of course, countries cannot cut off the internet just to destroy crypto!

However, I think that in order to develop strongly, crypto also needs to be recognized as legal by governments. That will be the scenario we aim for to see crypto widely adopted in investment and payment. Governments should adopt crypto cautiously to gain additional financial resources for national development, while also taking advantage of blockchain technology.

Exactly. Crypto needs governments' approval to reach new heights. Without their support, demand for crypto assets will be extremely-low (which translates into lower market prices). VCs, and both institutional and retail investors are the ones who pour money into the crypto market. Without them, crypto will become a "ghost town". Even if Blockchains remain alive and healthy because of their decentralized nature.

We can't predict what will happen in the future because of the uncertainty of government regulations. It's in our best interests to defend the crypto industry by voting for politicians in favor of the revolution. With governments working hand-in-hand with the crypto industry, our world will become a better place. ;D

Currently, crypto investors have become an important part of the electorate, and politicians know this. Look at the US election: presidential candidates talk about crypto, senators talk about crypto, it seems everyone wants to express their views on crypto to get votes from electorate. If people understand the value of crypto, they will choose a government with a crypto-friendly view and crypto will have the conditions to develop strongly in that country. Suppose Trump will be re-elected president and Gary Gensler has to step down as SEC chairman, we will soon see a big crypto era in the US.

What I'm worried about is in authoritarian countries, where people have no voice and the government wants to protect its control over the economy through fiat. Crypto will have a difficult journey in such countries :(

That is true, I wouldn't say "ghost town", it would still exist, and if they never got in then people here who are retail investors wouldn't be able to take it this high but at least would make it go higher than what it used to be, and then when those big companies left there wouldn't be a crash because they never joined.

Now that they are already here, it looks like it would be quite terrible if they left, even worse than if they didn't join, so that is why we need them to stay. For them to stay we need these government approval, because without that, companies wouldn't have gotten into it. Good news is, just this year USA approved so many ETF's, and that means we are getting billions and everyone is enjoying the profits.

Of course. Some governments are realizing crypto is the only answer to all of their economic problems. Politicians on the US and abroad have gone as far as publicly stating their support for crypto just to gather voters' attention. You can see the huge taxation benefits they will receive by embracing the revolution with open arms. I think even authoritarian countries will change their stance about crypto due to its ever-rising popularity. China once "banned" Bitcoin mining, and now supports crypto through Hong Kong. Even Russia is considering adopting crypto for international payments to circumvent sanctions.

If the crypto industry becomes a huge success, it's likely Fiat currencies will become a thing of the past. This means the end of centralized money, and the dawn of decentralized large-scale economies (hyperbitcoinization?). Who knows what will happen in the future? :D

Cryptocurrency especially bitcoin can not be ban but it can be regulated or restricted in a particular country due to their government, so bitcoin is not a centralized currency in which government can sealed or give a sanctions of it, its a decentralized currency which government have no access to it and also in document of its technology..its impossible from my perspective that government can abolish the existence of bitcoin...bitcoin is a currency that have to do decentralized operations so banning it totally will be difficult for government...and since the existence or introduction of bitcoin may countries has attempted to ban bitcoin but they could not.

the last question is answerable, as a lover of a cryptocurrencies and more especially bitcoin, its obvious that if I eventually become a president in my country I will accept Bitcoin as a legal tender in my country, because have noticed and also been aware of bitcoin, knowing that with bitcoin investment in my country it can also help for eradication or elimination of downfall of a country economy,  it will be one of elevation or sustainable impacts of my country economy...its when you know the worth of bitcoin it's when you will redirect it into economy generating function. [/list]

Chinese are indeed some of the biggest crypto holders and if iay say something, the ban on cryptocurrency in China have hard a bad negative implications on the growth and development in the Blockchain sector, despite that China was one of the leading country with mining farms in the early days it's there in history.


Up until China authentically banned cryptocurrency and that brought a stop to the growth and presence of such cryptocurrency related activities in that region, but we still have some Chinese that hold some of the decentralized coins like Bitcoin.

I don't think governments will give up the right to print fiat, because it's a simple way to run the economy and the country. El Salvador can accept BTC because they don't have a national currency and they use USD, other countries can hardly do the same. CBDC is the way for them to put fiat on the blockchain, they even don't want to use popular stablecoins like USDT and USDC to replace fiat.

Governments just want to regulate crypto to collect taxes and create more jobs for people, I think they tend to classify crypto as a commodity to avoid conflict between crypto and fiat as the main payment method in the economy.

I believe that the community's desire to seek  further  fiscal liberty and diversify their investments will determine whether or not cryptocurrencies are  espoused extensively. This tendency is a result of both wanting freedom from traditional  fiscal structures and realizing the advantages of using cryptocurrencies. In terms of government involvement,  officers don't have complete control over liquidity and the relinquishment of cryptocurrencies. Eventually, the rise of leaders  similar as El Salvador serves as  provocation and emphasizes the possibility of favorable  metamorphosis in the cryptocurrency field.

El Salvador is a famous experiment with positive results for crypto on a national scale. Although El Salvador is a small country and does not have its own currency, we hope that it will also be a worthy example for other governments to see the positive effects of accepting, adopting, and encouraging crypto.

Governments are elected by the people, and they will be responsible for carrying out the people's wishes, but perhaps only in the US lawmakers face significant pressure from the growing wave of crypto support. This is also good because the US is a large economy, and the US's crypto legal framework will be cleverly referenced and applied by other governments around the world. In the meantime, while waiting for a clear legal framework for crypto, I hope that public awareness of crypto will improve and make crypto an indispensable part of the economy.

Governments of different countries have divergent views on cryptocurrency. While some countries recognize it as financial technology capable of hedging inflation in their country, others view it as a threat to their fiat banking system. Further, other counties aim to regulate it in the aspects of security and money laundering. As a result, governments can crack down on crypto depending on the area of concern. In my opinion, I think cryptocurrency have come to stay as a new paradigm in finances, more so when you view the level of acceptance as depicted on the amount of crypto assets at Coinmarketcap.

The answer here is YES. Governments have the capability to crack down on cryptocurrencies, and there are several methods they can employe to regulate.
Consider that in the world there are a lot of different governments, based on your jurisdiction, these governments have different methods to regulate cryptocurrency.

For me, heavy-handed regulations or bans can push the cryptocurrency market underground, making it even harder for authorities to monitor and regulate.

Governments are definitely going to try everything they have on their arsenal in order to keep delaying the adoption of cryptocurrencies, but as long as all of the reasons why this market was created keep on existing, then their attempts to fully control it will fail, as now that I know about the existence of bitcoin, I have no incentive at all to save my money on fiat form, since I know very well that if I did that the purchasing power of my savings will keep on decreasing.

There are certain alternative ways to recover your money once a country banned crypto but if a person wants to continue crypto then he should migrate to that country where there is no banned on it.

I think it will not happen but for the purpose of security one should not keep his money saved for longer time in crypto because anything can happen here and once government banned its use then you will not be able to take your profit. One should take out his money because in such situations when there happen some restrictions then you would miss to take out profit and will regret for whole life.

You should also know that there are countries that ban cryptocurrency but does not take it too seriously and people are still buying and holding good projects in the market. There is no need to leave the country we are staying because we want to keep trading and doing our crypto business because some persons could be working and do not necessarily need to leave their job and migrate to another country. There are good VPN we can always use to make sure we track all our crypto portfolios and earn from the market.

You do have a point there, mate. Governments always want control/power over the economy. Stripping off central banks' ability to print money at will, is a no-go for them. The only exception is El Salvador because it doesn't have a central bank. Argentina's President Javier Milei promised to abolish the central bank and adopt BTC as currency (as well as the USD), but that hasn't materialized yet. If all of the world's countries abolished central banks + Fiat in favor of BTC, we'd be in a better position now.

At least we know it's impossible to take down crypto. Governments will only go as far as regulating the industry or "banning" centralized exchanges from the face of the Earth. But core Blockchain networks will remain alive and running as usual thanks to their decentralized and censorship-resistant nature. Lets move on, shall we? :)

With the rise of cryptocurrencies, China has given special attention to this sector, but various regulations from Chinese regulatory agencies have also created various problems for crypto users. Despite China being one of the leading countries for Bitcoin mining, they have maintained their position in crypto despite government restrictions. If they had received direct support, they would certainly have had the opportunity to advance further than other countries. Crypto transactions, including the use of blockchain, still hold a significant position despite their ban. However, no government has the power to completely stop the use of crypto at will. Even if China doesn't accept crypto, its country's crypto enthusiasts will never shy away from using crypto.

We understand the power and intentions of the government, we know that the government always wants to protect their own fiat because sometimes it is also really necessary. But we also need to protect the value of our labor, fiat is depreciating against goods and crypto, we are forced to choose crypto or a few other assets to not be left behind in the never-ending wave of inflation.

I hope that governments will take the time to go to crypto forums to understand the aspirations of the people and crypto investors, they will see that we are willing to pay reasonable taxes, they will see that crypto can actually bring huge benefits to the country. But I wouldn't be surprised if many countries decide to block crypto forum links. :)