Bitcoin Forum

How do you think, will states be able to regulate the crypto currency?

If states buy 51% of bitcoins

Government can't regulate cryptocurrencies. Cryptocurrencies are not bound to be regulated. That's what they were always saying. Because cryptocurrencies are decentralized. But they already find a way to regulate cryptocurrencies and it's users. By regulating all exchanges. This is the only way to regulate cryptocurrencies. Most transactions are being made from exchanges. So if they regulate them. They can regulate cryptocurrecies indirectly. Like Japan did recently. They are the first country which issues licence to their local cryptocurrency exchanges. Many countries will follow as expected especially China. I think they are going to issue licence for their local exchanges soon. Now exchanges needs to be evaluated and need to comply to get licence.

BTW, it's better though. As you can see the effect at the price of bitcoin. Bitcoin is surging. It can even hit up to $6000 this month. I see some people are worrying about regulating the exchanges. But for me it's a good thing because cryptocurrency will be close to government. If they worry about tax. It's inevitable. We are bound to do that as a citizen. It's better than this than to ban cryptocurrency. That's messed up.

It is they’re choice to make, regulating and making a law on regulating bitcoin is they’re job and asking us won’t make any difference as we don’t have a power against it.


I think that will result as bitcoin more uncontrollable if they do that as the prices will go up at a scale of 10000$ if they make that move.

I can only think of one thing they must do or have to make “a new coin”, supported by financial institutions and government with the fiat enthusiast. It will destroy bitcoin a new one will come but controlled by the central banks and govern by state laws.

Bitcoins or any other crypto currencies cannot be regulated but the users of it or establishments like exchanges and the ICO would be regulated. Government will just impose a law or rules on how to send and receive the coins like the people who like to change their bitcoin to fiat should be required an ID for proper identification records and they shall pay taxes for every amount they want to be converted by this examples government can monitored every transaction.

i don't think the states can regulate the crypto because they can not get involve inside the crypto currency world and they only can learn what is crypto currency. maybe they can protect their citizen from scamming program but they can not control or regulate the crypto. i think they will make some program or something like that to see the transaction in crypto world so they will know what is going on in crypto currency. or maybe they can controlling the exchanges and then the exchanges cooperate with government to manage or regulate the exchanges.

It is better to let the government to make services out of bitcoin or cryptocurrency. States should make initiative for the citizens to use bitcoin while they citizen can give back to the government for the economy. Because even if they regulate it, they cant really control how much would to each citizen and probably rich companies from the state will take advantage of it and now the usually common citizens.

The government can't regulate cryptocurrencies. In order to do this you need to have control over the issuance and circulation of currency. I am sure that all governments would like to have the opportunity and then the question of the legalization of bitcoin was not. But since it is not possible they will never accept bitcoin.

The exchanges that they regulated is it the exchange from cryptocurrency to fiat?

If this is the one it will still remain the same exchanges of crypto will still be decentralized countries still don't control it and they will just have a control on the exchanges to their currency. It is indeed a positive improvement for BTC it only means that government are seeing it's potential and that it really has a use.

I'm just wondering how are they going to compute the taxes for such exchanges if the sources of BTC are anonymous?

As a law abiding citizen of my country and a bitcoin enthusiast. I’m stock between this two option on what should be or what best for the government  and cryptocurrency.

And if regulation is for the country’s economic progress and for the bitcoin users security about scammers against scammers and exchanges with overpriced fees and unwanted closure.

And being a bitcoin enthusiast I’m a little wired that regulating this would affect its value and the interest of investors as the highly hate a centralized system.

Before legalizing the bitcoin the government will make an policy thru their legislative department and compose a policy or law on how to proper handle the crypto currency then after that it will vote in congress for the approval until it will pass to the president and sign. Mostly affected of this regulations will be the local exchanges, ICO and the bitcoin holders in which they may required an proper identification or government ID during their transactions with the local exchanges in order for them to be trace all the time.

yeah maybe when they give legalization to bitcoin and let bitcoin grow, spread and use by their society of course it will also give a good contribution to economy of that country but surely there will be consequences that will be accepted by the government if legalizing and regulating bitcoin, as people may prefer bitcoin over local currency, increase the number of crimes and money laundering, etc, of course the government will be very concerned about that risk,,

States will have the possibility to regulate the cryptocurrency. But the ability to adjust the Fiat of the state is always there. I'm sure the government will deal with trade in bitcoins will impose any deal on the exchange of bitcoins for Fiat. The state will not conduct these transactions and therefore will not take the risk in case bitcoin goes bankrupt.

Implement tax on bitcoin or control bitcoin supply in order to preventing inflation or other privilege that government able to do in order to regulate bitcoin for good.
The advantage is people may use bitcoin as their main transaction anywhere and anytime !

The government does not approve of the way people pay each other with bitcoins even in the event of legalization. I am sure that all governments who will attempt to legalize the use of bitcoins will make it only in exchange for Fiat. Probably online exchangers who are currently working without authorization will be closed. The exchange of bitcoins is through exchange on which registered users ' Bank account and how this expense will come from the Fiat banks will charge tax.

Yes, given the status of the United States of America, I strongly think it will be able to regulate cryptocurrencies. Nonetheless, I concede that the latter feat is challenging in a sense that some people can just do a little workaround just so they can sustain their cause without having to submit to the authorities' demands. To be more accurate, I think regulation is easy. What is difficult is the execution of such regulation because it is the only time that the government can assess its plausibility.

No clue how it's going to work logistically.And I wonder how all of the governments will work that out.

It would be hard for them to totally regulate internet transaction and mostly if the type of government is democratic and not a communist one. But those who always abides by the law would have no problem at all as if it was intended to protect them but the criminal minded individuals who uses bitcoin in an act against the law is and must be destroyed.

States does not need to regulate all users, all it needs to do is to regulate the service providers and those are the middle men. Just like the case of banks, government agencies does not deal with individuals but the moment they control those who made the transaction possible, then there is nothing they cant do. Just in the case of KYC for exchange sites, its from the state and the moment all this is circulated, there wont be an hiding place than to just do it if you still want to carry out less stress transactions.

How is the government going to collect those BTC? LOL goodluck.

I think yes of course, If they want they can do it, Bitcoin is a big thing now for the most powerful countries and they want to regulate it because there is a big money that is involve inside of it and their citizens are making a profit and loss out of it so they will soon regulate it with taxes for that big money that is circulating. Bitcoin and cryptocurrency exchanges as of now I think is not paying in the government regarding those taxes with each every transactions so I think this is the main objective of USA.

The answer is, they can't due to bitcoin's decentralized nature. No one can regulate bitcoin transactions due to the anonymity it provides but if the government of each country are determined to control bitcoin, then I guess that if they acquire at least more than half of the total bitcoin they can monopolize and control the price using the law of supply and demand. But I also guess that if CIA were to intervene with bitcoin transaction, then they just might crackdown the secrets of regulating it, thus imposing tax and becoming a state-policy.

I'm sure they can figure out how to do this, they have billions of dollars and when you have money you have everything. What will they do if people stop using fiat and just use cryptocurrencies? governments could deny people from accessing public services. If they knew who is using crypto, One of the advantages of crypto is anonymity. The future of the world is decentralization of the world.
But if they buy everything no need to regulate it :D

If the government will legalize bitcoin there is big possibility of its regulation but until then there is no way it can be done without they’re recognizing bitcoin as a currency. The time that any states or country will legalize it the more it’s harder for them to monitor all as they need an army of web agents to take down illegal activities that is hiding on Blockchain technology.

This is only my opinion and it might be right or not as it will be subjectively being observed.

I suppose every state will take it's own law and position, in general, to bitcoin a they always do. So on such place like Las Vegas the circulation of crypto currencies is going to be free for sure.

States regulating cryptocurrency will be automatic in my opinion the moment they are not giving bitcoin a free hand to operate. But taking it further is when they now want to regard it as either investment or asset which which will then bring all fintech companies or exchnahe sites into the tax net. By that, they can go to extent of ensuring they submit their reports of their transactions on a monthly to the relevant government agencies in charge of regulating their activities.

I am surprised so many people said States can’t regulate cryptos. They can regulate whatever they want to, people following what regulations state is another matter. I don’t know if different people here are thinking of a different concept of regulation. What I understand by regulation is passing laws or rules that affect bitcoin users, both individuals and companies (like exchanges).

In this sense, some partial regulations have already been implemented. In my country miners are regulated as self-employed people and have to pay taxes according to that, profits on bitcoin trading are also regulated and for those who have very important amounts of bitcoins there are also regulations. Exchanges aren’t regulated yet but they will be.

Many other countries have similar regulations or even more, so I don’t wonder whether Governments will be able to regulate cryptos as they already have.

Optimal regulation of the country's crypto-currency is even very useful for the development of the crypto-currency and its spread all over the world. The state can establish general rules for circulation of the crypto currency and establish a profit tax on operations with crypto currency. There is nothing wrong. In exchange, the state recognizes crypto currency as a legal tender and takes it under its protection by its judicial bodies. At the same time, its main principles, including the anonymity and decentralization of the crypto currency, do not lose.

Nope, the only things they can regulate are some of the exit point from bitcoin to fiat and the exchanges
 
I suppose you might get different stances like we do with Cannabis where a lot of states differ in their viewpoint but regulating Crypto it just will not happen.

No they can't, not unless they buy crypto themselves and manipulate the market lol. Otherwise, no one's going to give it up.
I do see that utilizing smart contracts will be a way to navigate regulation in a trustless manner

Hi! The question is highly subjective because we know the US is composed of various States that are independent from one another. Having said that, you should know that since they are distinct and independent from one another, their laws vary as well. These laws depend on their legislative departments for they are in the better position to know what works for them.

As regards regulation of cryptocurrencies, I think it would depend on their individual legislation.

Regulations, of course, depend on the country/state where they are being issued. But they are coming and that's a fact. If not regulations, then bans. As more and more money is being thrown into the crypto market - more and more money is being taken away from the reach of governments with the current pretty much non-existant definition of cryptocurrencies. Also, governments are there to protect their citizens (they should be) and there is no way to protect your people when you have no idea about what they're doing. What I think is the only reasonable way to 'fight' the regulations is by being involved when forming them. Thing is, we need to have a conversation with governments, we have to reach a consensus that would be beneficial to both parties - the crypto community and the country. It simply has to be a win-win situation, otherwise there is no future for crypto. The core characteristics of cryptocurrencies have to remain, but there should be some sort of regulatory system to avoid scams and make this type of currency a safe alternative for the general public. Governments can get tax money from transactions (we gotta pay the taxes, that's just how it is) and therefore it is also beneficial for them. I am not exactly sure yet how to regulate cryptocurrencies in a way that they would keep their 'anonymity' and so on., but I'm currently working on a project with a mission to achieve exactly that - fair, open and regulated environment for cryptocurrency adoption, that is safe and sustainable. We can't forget some of benefits fiat currencies currently have, we have to bring them to crypto.

In fact, to protect the transaction very easy. Such systems exist with Fiat. Until the buyer confirmed that the product is delivered and the terms of the transaction are met the transaction amount is blocked on his account. After confirmation the transaction is automatically resumed and the money goes to the seller. Why do we need the state?

A governments can do anything, anytime when they likes, they got the power.
But governments should not regulate crypto because crypto is meant to be decentralized / anonymous.

If a government regulates crypto then the beauty of crypto will be lost.

The only way to regulate crypto is regulating all wallet firms and exchanges I think.

Acquisition of huge amounts of bitcoin would definitely affect supply and demand but then for this to happen it would take much time and money. The best part about bitcoin's decentralized nature is the lack of any control or regulation over bitcoin.

Governments may try to impose taxes on bitcoin transactions in order to generate revenue and protect the interest of the citizens. They may make some regulations such as limited bitcoin holdings or transactions to be made. The CIA may be already trying to intervene with bitcoin transactions already for as much as we know.

Governments cannot regulate bitcoin. But to control users and monitor transactions on exchange of bitcoins for Fiat money can always. This means that the state can indirectly regulate the turnover of bitcoin. When you are able not to exchange the bitcoin to Fiat the possibility of the state will be significantly limited.

Never is a long-term, and never does not exist in theory. They can regulate a lot of steps as their citizens deal with cryptocurrencies and still some governments are more open than others, Japan, for example, created a few rules to regulate the way the population use the cryptocurrency and virtually legalized bitcoin as a usual currency, Switzerland made rules to make the country a safe haven for ICO projects. It´s all about mentality. They may try to ban and prohibit and have theirs citizen breaking theirs laws or they may make a set of rules to allow their population use it, but regulate completely no, there it goes your NEVER.

Everything the governments of states, U.S. and foreign, have tried against Bitcoin has failed. What else could they plausibly which hasn't been tried already?

The government can regulate the current crypto currency thru the services like exchanges, ICO and wallet providers, but not the crypto currency itself. Or the government from all over the  world can make their own crypto currency and make similar organization like the IMF (International Monetary Fund) that have rules and regulations.

The government as an elected officials by the people has the mandate to protect and serve for the betterment of them. In that alone most government officials uses that to regulate bitcoin/cryptocurrencynot for that reason but most because they’re protecting they’re investments in banks.

They can regulate bitcoin but not the users. We can go beyond anonymity and hide/run from authority but until when? is a sad truth. We must follow laws that may implemented and share to our countries economy improvements.

Even bitcoin should be decentralized but because of abused and scammers we pay the price that our member of the community mistakes and that is “regulation “.

No way mate, it is difficult to regulate and monitor the bitcoins as it is a decentralized currency and no one has the authority to do so. People are still using and holding the bitcoins without thinking about their local governments, there is no need to fear as the bitcoins will continue to rise by each passing day.

I guess first you need to decide with what people understand under the regulation. The issue of coins, the state will never be able to control because most of the coins of the bitcoin has been mined. Regulation of the turnover is also impossible because it is happening all over the world. The government can only control operations to exchange coins for Fiat. They may prohibit such sharing, but it won't make sense because users will change to another currency and then convert to the local currency. There is only one. To levy a tax on exchange operations or of the proceeds to the Bank account. Then traders will have to register a business to be able to put their investments in cryptocurrencies on costs and avoid paying twice the tax on these amounts.

No I think not. In the first place, Bitcoin was made to be free. Free from regulation and free from being tracked in transactions. I think also, if ever the government wants to own and regulate it, it would be hard because there are a lot of users already across the globe. Regulations then should come from all of those countries which is hard as we all know different countries sometimes do not meet their interests. That's why we have our each currencies in the first place.

They can if they want to but just on the surface transactions and not all of them.. The government even have the capacity to stop hackers then it shows that they’re incapable of doing so.. But I’m not against any regulation for if this will be necessary for the hundreds of scamming incidents for this past few years..

Any rules is the reduction of the level of freedom. Even if these rules are intended to improve the rules of use. In the case of government I don't believe in good intentions. Bitcoin could not appear when all users like the Fiat and everyone is happy with how the state distributes income from the economy.

Firstly every country already has its own currency which has to be regulated regularly .So, regulating the cryptocurrency will be really difficult for the country or the states to regulate it. Also, cryptocurrency is independent of these rules and regulations and will remain like this only. There is very little chance that states will ever regulate the cryptocurrency.

Actually the government can easily regulate the use of cryptocurrencies. We are helping them in this. Instead of trying to unite and fight against interference of the government in the cryptocurrency market we are discussing how best to do it. Actually voluntarily giving power to the government over them. Then why all this had to start. Use only Fiat. It legalized.

I think that in the future, most states will regulate the process of circulation in their countries of the country. This is a regular stage in the development of the crypto currency and is entirely permissible. It is also permissible and it is usual practice of all states to establish value added tax when performing transactions with any financial assets, which in any case is a crypto currency. Here, however, the question arises how to relate to the rule of possible identification of a person when charging such a tax. After all, does this undermine the principle of anonymity of the crypto currency?

Even if you do say to support the government but most of the time we cant really trust them because they can make any plans anytime as long as they want which would really oppose on the things we do want to happen.They can really regulate cryptocurrencies just try to look at on the thing happened on the country of Japan which they did able to regulate bitcoin but not totally making it as a main but just an alternative way payment system.If its possible into their place then why not on other country? It would really just depend on a certain government if they would like to they can really do it. They cant control decentralized stuff but somehow can be accepted and adopted and making use of it.

I think it will not.

First of all, one of the main objectice why Bitcoin was created is to have a digital currency available worlwide at is not regulated by any central bank or government.

Second, the United States already has it's own currenct to regulate which is the US dollars. It no longer need to have another currency to regulate.

Third, Bitcoin is not owned by the US nor by any country. That's why regulating it needs to approval of the majority of the Bitcoin holding countries. Or maybe if they own more than 50% of it.

You are wrong. The fact that the state cannot control the issue of coins does not mean that it can't regulate this market. The state will control all operations for Fiat. This is enough to take high tax and not to develop bitcoin. If there will be a trade with bitcoin will be a complete ban of the state for such operations.

That's impossible. The only way to do that is to own part of the supply or have strict laws. Even then, enforcing them is impossible.

Regulating bitcoin is going to be a difficult thing for government because they cannot centralise everything even though you shut down access to banks not to make support for exchange sites, transactions can still be carried on. People can chat via social media then make deals either through cash or bank transfer as an individual with that, sales has taken place.

However, where I see them being protected is not to go after individuals rather the exchange sites by allowing them operate and at same time making them comply with the KYC policies by that only those who want to do the right thing will be on exchange platforms while government and it's agencies can channel their effort on tracking down those who wouldn't use the exchange platform because of their illegal activities.

I do not think givernment can regulate digital currency, they could not get involve on it, bitcoin can operate without declaring if it is legal or illegal by the government the important is we should used bitcoin in the right way or in a good thing to make the image of bitcoin be positive to other people and the government of all nation in the world.

I agree with you if the government can not regulate bitcoin, both legal and illegal in the country, but we know that the legality of bitcoin in a country will have a good effect on bitcoin progress as well as to have a positive effect on the country's economic development but not necessarily change the system decentralize in it and manage bitcoin performance.

In my opinion, there is no way that states or the government can control/regulate cryptocurrencies in general due to its decentralized nature. But they may, in effect, manipulate the price of it by earning most of the bitcoins in existence, thus making them whales. I also do believe that if the government of each country wants to regulate bitcoin, then it is obvious that they should ban its usage instead of trying to accomplish the impossible. But who wants to ban bitcoin anyway? The opportunities it provides to people are far greater than its repercussion on the banking community.

My own opinion is, they should be a regulatory body were all up coming ICO should be verified to a standard before they are allowed to flag of.... There team should be check and contacted, there company should be verified... and the problem they tend to solve me be unique else they should not approve the ICO... this will help a long way

I think it is the other way around. Governments can regulate their users, but not bitcoin use. Bitcoin's decentralization makes it immune from interference from governments, so governments would have to regulate how users use their bitcoins. They cannot stop it, but they can stop the users.

This is one area that regulation might help the users. Checking Icos is important so that they don't just come and leave investors in more debt. Hence, even if total regulation from mining to everything about cryptos might be difficult at least that of Icos is important.

For instance, some icos come promising goodies while their site are prone to collapse when hit by traffic of subscribers, just like we are witnessing in many ico site now, because they either didn't do their research very well, they are incompetent or not ready.

Bitcoin is a international virtual money states must first allow in here legislation the methods of using and the transactions of bitcoin but this needs an intervention of the Central Bank for this state.
persons can speculate their transaction of bitcoin not in legal market.
but now there's many countries are accepting bitcoin we hope that the others states do the same thing

Why do you need it? So you want to quickly get into slavery? I don't understand those people who want the state to regulate the cryptocurrency market. Then what bitcoin is different from Fiat? Bitcoin has been given to us so that we escaped from under the control of the state. If you are satisfied, use Fiat.

States can regulate cryptocurrency by the use of controlling the transactions around it, for example they can issue a tax towards every transaction for buying and selling crypto currency, by that you can regulate and control the flow of cryptocurrency.

If you are pertaining on regulating all of the crypto currency then that will be impossible since part of it's feature is that it is somehow anonymous so no one has the exact and complete ledger of the names of the people who own coins and tokens and the amount that they own. In order for the states to regulate it this is the first details that they need to have.

So for the state to regulate crypto currency they need to start from square one which means abolishing all existing crypto currency and doing a state governed crypto currency from the start, which I think will not succeed.

I think government will implement that all business, stores or any services need to submit all the transactions that they have that involves crypto. They can track everyone so they will know who will they tax or others who are using cryptos that came from money laundering.

The coordination of government and the company and management of bitcoin will help to stabilize the regulate the system in field of cryptocurrency; with this they can help each other to provide a organize system in all aspects.

Crypto still go down to fiat so I think government will oblige their local exchanges to tax every conversion and withdrawal that is made by the owner of btc and crypto.

I don't know what it will give to the government. It seems to me that it makes no sense to require exchanges to report all exchange transactions and findings. On the exchange there are people from different countries and the taxes they must pay in their countries. States enough to control the flow of money to Bank accounts in order to collect all their citizens taxes.

Actually of course it could be I think, if the people and governments really knows more deeply and understand all things related to crypto currency. will definitely be able to regulate crypto currency (bitcoin) and makes a crypto currency (bitcoin) as an alternative currency for the community, but yeah.. it seems that most countries that haven't legalized bitcoin, is still worried about the risks that will adversely affect the country's financial system, as well as the country's economy.
But it doesn't rule out the possibility as time goes by.. I think some countries would be more of loud thinking on crypto currency, it could be that some governments on each countries will trying to legalize bitcoin and regulating it with the rules.

Why is it the people? In legalizing cryptocurrencies interested in the first place the government. I am sure that the state will act repressively. Let me remind everyone that bitcoin was invented to give people freedom. Cryptocurrency is part of a free economy. Any legalization that would be to deprive us of our freedom. The state has Fiat. They let him govern. If the government is fairly distributing the income from the bitcoin economy would not have been born.

This is why Satoshi did have this kind of goal or plans while creating bitcoin which to really have the freedom to those people who are manipulators which is the government. There would be no equality when it comes on Local fiat this why Bitcoin is a revolutionary thing that make things possible to be freed out on this situation. People are just thinking off on legality or adoption because they are only seeing that they would able to use their bitcoin directly without even knowing on what would be the possible results would happen.

The way to organize it is that the government must have a bitcoin exchange place to fiat money and have a wallet managed by the state so that the government can manage and monitor the development of bitcoin. I think it's better than bitcoin to be illegal because it is considered a currency that weakens the currency and replaces the function of state banks.

I think the United States of America has a capabilities that they can regulate the cryptocurrency in the whole world; since USA is a dominant and most powerful country in the whole world.
With them and the cooperation of other countries in the world they can build a big opportunity for a good life.