Bitcoin Forum

Though it’s easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?

The regulations are clearly impossible to touch open source and decentralized projects. Centralized exchanges in the other hand are easy to regulate because of KYC/AML.

They can be regulated by proxy by licensing and taxing miners' electrical consumption, and crypto exchanges that transmit fiat. But bitcoin, ether, litecoin and most other protocols (although not Ripple's XRP, which is a true token created administratively) just hash data using known algorithms (such as SHA-256). Use of such algorithms cannot be restricted in nations with any kind of rule of law. (Only poverty can do that, such as is found in Cuba and N. Korea.) Nor can the digital products of such algorithms (bitcoins, ethers, litecoins) be banned for the purposes of commerce. Not being fiat, to use such products to obtain goods and services is to engage in literal trade, or barter. The only regulatory potential there relates to tax enforcement, not suppression.

they can try to regulate the exchanges and the users of them. Store your bitcoin in your own secure wallet anyway, not on an exchange. If you want to cash out bitcoin you dont have to do it on an exchange, although it does make it easy. When you withdraw from an exchange to your bank account, you will have to explain the income, and that is also where regulations might get you.

To be honest, there is no practical way to regulate the flow of cryptocurrencies. The best way for the government is to allow users to disclose their crypto transactions and they have the option to monitor it through the domestic crypto exchanges (with KYC). Even though some governments are trying to find the way to track the crypto transactions and ownership of it but I doubt, how full proof it is going to be in the long run.

I think so, it is very difficult to regulate by any government to its inhabitants who uses digital currencies. Actually it will fully depends on peoples honesty i think. If they think that they will do their work legally they may follow government rules as a result they both may gainer legally.

Yes, the fact that regulating or making regulations for digital assets is not as easy as making regulations for asset owners in conventional banks. There are no tracks that can be used as a reference to tax on coins. The easiest regulation is to prohibit it as in some countries. Which indirectly kills the cryptocurrency.

Thats true mate, i think that's reason bounty hunter requiring kyc registration to start study how to comtrol bitcoin as currency.
I think kyc is a trail process for implementing rules and regulations how to monitor and control this harder anonymous digital currency.

they don't have the ability to affect transactions on the network. they can't physically stop people from using crypto, and they don't have jurisdiction outside their countries, where citizens are making cross-border transactions.

however, they can pass laws that affect users. they can make it illegal to use crypto (some countries have done so), although that's impossible to enforce and is mostly done as a deterrent. they can include traders and exchanges under anti-money laundering laws, forcing traders to provide ID and personal info to trade on centralized exchanges. they can (and do) analyze the blockchain for financial crime and tax purposes. and you can bet that your local tax agency wants a piece of your bitcoin profits, which you can hide in a private key, but not in your bank account after you sell at the exchange.

You're right. It is easy to say but so much harder to do. If it is easy to do government probably make and create the regulation about Crypto since many years ago. For that reasons, it needs a long time to make that regulation because the government should investigate and research first the movement of Crypto currency. The regulation should prevent and minimize the high risks or potential risks for the users pleasure and secure.

It is not an easy way to do because government should do many ways to create and make regulation about crypto currency. Therefore, there are many country still investigate and research how the crypto currency system and how does it works. The government do not want to do it in hurry. Let the government doing the best for crypto currency.

regulation of cryptocurrency sound impossible but there are measures that taken by the Government that  can make it possible . the government controls everything. here are my fews tip on how cryptocurrency can be regulated successfully if the Government buy my ideology:
1.Clear up the tax situation
2.Regulate exchanges
3.Create a framework for ICOs
4.Let exchanges manage ICOs
5.Establish a working group of blockchain experts, economists and policy wonks
6.Don’t innovate yourself

Yes, regarding bitcoin, there should be a regulation that regulates both from the government or from the Bank.

Some banks in the world state that bitcoin and other digital currencies are not legal currency or means of payment. People are urged to be careful of bitcoin and other digital currencies.

Not recognized as a legitimate currency or payment instrument, bitcoin can actually pose its own dangers. Bitcoin can be used as a means for financial criminals to practice money laundering.

Ironically, the auditor's money laundering practices cannot be detected by the Financial Transaction Reports and Analysis Center.

Bitcoin is currently a zone where law enforcement officials and financial auditors are also difficult to track and prove these criminal actions.

We must see some countries that accept bitcoin, one of which is the United States, where bitcoin is categorized as property for tax purposes. There is also Bitcoin seen as a commodity by CRA and this means the transaction is seen as a barter transaction and the income generated will be considered business income.

no, the government cannot manage offline wallets from nano ledger and others, online and offline are contradictory and I am sure the government cannot regulate it.

i think you need to go back and start learning the basics about bitcoin instead of only posting in your signature campaign and earning pennies! this is not how bitcoin works. there is no "server" for a bitcoin wallet and whether the wallet is a cold storage (offline or hardware) or a hot wallet (desktop connected to internet) doesn't change the fact for its identification! they both are doing the same as far as the network is concerned which is holding private keys and signing transactions with them.

The governments can regulate digital currencies through two process namely: creating/reforming laws on cryptocurrencies and the government's central bank. These processes are effective in regulating digital currencies that are flowing through the country.

Yes they cannot regulate digital money because of the process which the wallet is having no identification to their server, they are not connected to any network but, i think they use  something new process that everyone can use it as a currency. Somehow, government should implement digital money as a new currency since we are living in this world where technology almost control all individual.

how do you regulate currencies.. the same way you regulate liquids and plants

you cant destroy the cannibis growth or the beer growth or its consumption.
the war on drugs and alcohol prohibition era proved that.

all that is done is outlawing or controlling the people and businesses. but thats IF agencies find whos selling or buying it.
but yea
blackmarkets, street dealers still happen
moonshiners, 'speakeasies' still happened

in my opinion the government cannot regulate the crypto currency because we know that the crypto currency is currently still anonymous, the government can be regulated if all crypto currency users give their identity to the local government bank to be taxed

If governments can make regulation to crypto currency then for sure it will help a certain country, if we are going to calculate on how many times does crypto users buy and sell crypto then taxes will be a huge amount. Furthermore,  as far as i know as long as ledger is not connected then transfering of data or transacting to any address will not cost much expense if regulated.

As long as Bitcoin is not used directly "need to exchange it for your local money."
They "centralized platform" can request to sign a message that you have borrowed Bitcoin from specific sources.
By using this method, you will not be able to sell your coin except through P2P which is considered a risk.

It requires a unified international resolution.

You can start to regulate the market. The government does not need your wallets. If they manage the market.

In this case I think that the government will not regulate individual crypto users because they cannot identify. The government can only burden taxes on every transaction that is carried out without having to participate in crypto affairs which should remain decentralized

We all are aware with this fact I guess that these crypto currencies are decentralised in our world and with time there are now many countries that has legalised crypto currencies in their nation after getting the fate and potential of crypto and these crypto are legalised in these nation only and the governments of these nations regulate it by keeping eye over all these crypto activities and thus stopping the illegal use of these crypto and I think other countries should also get inspired from these digital nations.

I think they are going to start regulating through the SEC and probably the existing exchanges as well, this is why the exchanges are now asking KYC unlike years ago. With the KYC, the government can now track down who are the people getting into crypto. If they find out you have been in crypto for years and yet not even bothering to submit for the IRS or whichever department, they might give you a visit along with the documents that you have withdraw BTCs from exchanges. This is scary of course but this might just happen one day.  :D

Exactly those who are newly getting into crypto then they must have to go through legalized exchanges to buy and then their addresses can be tracked however for veterans story would be different since they might know ins and outs.

Most governments already targeted the on-ramp and off-ramp for fiat to Crypto currency conversion, so regulation already cover a large portion of the transactions that are done via centralized exchanges. Regulating P2P tx's and also tx's that are done via decentralized exchanges is more difficult, but it only represents a small volume of the total tx's that are being done.

The governments also have a good hold on the payment processors and all the merchants that accepts bitcoin as a payment option. So gathering information on Crypto currency use, is a lot easier than what it was a few years ago.  :P

It seems to me that the best way to regulate cryptocurrencies by the government is full legalization and introduction of taxes, because people use crypto anyway, but while coins are not legal, the government loses a lot of potential tax fees.

Since this market runs on a decentralized system, regulating it will be a tough call. But if the market did run on a centralized one, then they would have had no problem in regulating it.

In addition to large amounts of capital that runs off the radars of governments and the traditional financial system, there are a number of factors that put the regulation of digital coins on the agenda.
Money laundry
Illicit practices
economy

in my opinion, regulation for now only depends on whether bitcoin is illegal or not. while to overcome other things beyond this, it is still under development. of course the regulation will run gradually and cannot be completed in one stage

From what i know, regulation from government is about on crypto trading. But for payment, in several advance country bitcoin already can used for payment and merchant can accept crypto for payment. I dont familiar with regulation language but from if advance country start regulating cryptocurrency, i am believe others country can regulating too

Do you see all the sheep lining up to do KYC?  They will all bey the government thus making yo an outlaw that stands alone.  You will be then threatened with violence for using it.  This is where a free man does as he pleases as what your doing harms no other man and natural laws are in effect.  No idea what it takes to get humans to wake up to the fact we are being used as slaves for the elite banking class.  Privacy is the most important thing about this movement with the ever encroaching government.

I think so, How the governments can regulate a digital currency, they can't control decentralized things like the bitcoin. No one knows the owner of the bitcoin, who is Satoshi Nakamoto, where is he now! No one has any idea about that. So, how can government control or regulate the bitcoin? It is not possible as my knowledge says.

No Like you have mentioned it is very hard to regulate and it is closer to impossible. Because most governments have there own problems to deal with in the financial sector and I doubt that they will even spare time to regulate a digital asset and specially a decentralized one by going through such terrible processes like you have mentioned so it is very unlikely to happen but there is a possibility that they might allow trusted digital currencies to use locally without making restrictions for users but to regulate I doubt 

Do you rarely read the news? Do you know that G7 will also create regulations regarding crypto transactions?
I include articles that might enlighten your mind and get rid the misleading opinions off.
https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory
https://www.coindesk.com/g20-eyes-october-deadline-for-crypto-anti-money-laundering-standard/

Regulations on cryptocurrency is not possible especially decentralized one like bitcoin,and other altcoins,government cant..

So we all know bitcoin itself cannot be regulated, we control our own wallets
and the miners all around the world confirm our transactions.

IMO the only way to regulate this space is to affect the entry and exit points
from and back to FIAT .
So long as FIAT is not used we are safe from regulation or buy bitcoin with cash.

Yeah government can do it if they wanted to but this will affect how people invested in crypto as they believe that they want to have no control from the government and being decentralize currency without the use of third party. Maybe government can collect taxes from crypto if they have the control on all exchanges.  

It is true that it will difficult to regulate crypto since we don't need any identification when we create wallet and we can generate wallet as we like, but there are few ways to regulate, like create a local exchanges that require kyc and force all the users to only used the exchanges, make the regulation for every crypto users to register themselves to a regulatory body that handle crypto, and then cooperate with the banking system so the government know who is the users that convert crypto to fiat

Thats what makes decentralisation unique, government cannot control this space unless they cut the relation of the bank and crypto. But this might be hard because different countries have different views and treatment about crypto, banks are always in the money so how can they refuse to take part in this growing industry.

I think the government can adjust the digital money. The government will introduce strict regulations for the development of digital money. Some governments only allow quality coins to operate.

If you are asking a redesign on the blockchain's core technology where pseudonymity is in effect, i think that would really be difficult to regulate. Making such changes may simply destroy the whole concept of cryptocurrency.

But, if you are referring to regulating the exchanges where we transact our bitcoin with or with the merchants that accepts bitcoin as a payment, then it is already being done. Most of us had already submitted to the regulation with the KYCs we made.

Though most exchanges point out that we can remain pseudonymous if we want to, most of us allowed ourselves to submit under particular KYC procedure (which at times include selfies and video messages to prove our identities) so that we can take better advantage of increased transactional allowances. And though at times it feels that the KYC goes way beyond what is really needed, it feels like we have no choice really since it was mandated by the government against the exchanges should they wish to continue operations.

I think the government really wants the control in crypto to happen. they will not care about the feelings of users who want decentralization or not what the government wants is legalization that can control crypto users. but the government doesn't know how

Of course the government knew. Its just a matter of time, we'd all be under am exchange controlled by government. They've been watching us for years, probably even scraping all the email addresses in this forum. But the most recent is the KYC on exchanges which they mandate allowing the government to check information.

I agree. There's no way a government can directly regulate digital currencies like Bitcoin. They can make rules and regulations but they cannot control it because from the start, cryptocurrencies are decentralized. They can make government owned exchange sites but they can't tell the people to not use those private exchange sites.

if the government wants to fundamentally regulate cryptocurrency / digital assets it might be very difficult. and that is the reason why they are trying to fight this industry since the beginning of the year. but it cannot be denied that crpyto is growing and cannot be rejected by the times.  rather than thinking about ways to regulate crypto as a whole, such as offline wallet etc. the government can still regulate in the form of crypto control in their territorial context rather than the world as a whole. they can use KYC and AML rules against local exchanger before digital money is converted into the country's currency. impose a tax on every transaction on a local exchanger. why can i say those two things? because that is what has happened in my country today. the crypto community cannot fight the government seporadically, so we must respect the decisions that exist while it does not cause significant harm.

In order to regulate digital currencies in relations to cryptocurrencies, the government must and should be the majority holders of all cryptocurrencies. With this, they can control the amount of a particular coin circulating. They can determine the market price of the coin at a particular time and period. IF the government can achieve this, they can regulate the crypto market and world.

Crypto is global and decentralised, but people who use it aren't. Regulating crypto means that you write laws on how people have to pay taxes on it, and what they need to do if they want to create it, trade it, and advertise it.
While there are well known examples ;) of crypto that were started anonymously, nowadays most of the projects have founders known by name, and these founders will have to stay in line with the law, or move to a country that doesn't have such laws. Also, for exchanges, this means that if you're running an exchange, or an interface to a decentralised exchange, you will need to apply the laws, or move away from that country.

wow  thank you all for grate responses i have leaned lot from this.i thank all for helpful responses.

you don't regulate things by having a stake in them! it is like saying for the government to regulate companies like Apple, Microsoft, Google, Dell,... they have to own majority of the shares of these companies to control them! which is obviously not the case. 
in a society when the law maker makes a new law the law enforcement enforces it. they don't need stakes to enforce it. and cryptocurrencies and their regulation doesn't have to be any different than regulating a company.

i think its almost impossible for the government to regulate digital currency because the initial goal of digital currency is to make another financial system that is simply free and without needing the third party. So, i think it will be impossible for the government to regulate it.

As demand for cryptocurrency grows, global regulators are divided on how to keep up. Most digital currencies are not backed by any central government, meaning each country has different standards. Every seemingly small regulation announcement has driven the price of bitcoin and other cryptocurrencies in 2018. I think that governments never will be able to fully regulate the digital currencies.

Hopefully it can, adjust the development of the times that are currently changing every time. especially receiving digital currencies that have been circulating throughout the world

Regulations on cryptocurrency is not possible especially decentralized one like bitcoin,and other altcoins,government cant..

I think that's almost impossible, because the decentralization of cryptocurrency that make people who owns cryptocurrency are undetectable.
The ease of wallet creation will make the regulation hard to apply.

I think that could happen, the government can work with existing exchanges. from there the government can trace crypto asset owners.

It IS possible. The weakest point of cryptocurrencies is the need for fiat money to buy it. Since you can regulate the flow of fiat money you can also regulate the exchanges and with them any cryptocurrency that you want. It doesn't matter that it's decentralized. If you can't buy it it's dead. Mining isn't enough to sustain growth.

Some governments only allow quality co-operation. Making such changes can simply destroy the whole concept of electronic money. Most of us have submitted regulations to the KYC that we have implemented. And although sometimes it feels that KYC goes beyond what is really needed, it feels like we have no real choice because it was mandated by the government against the trading floors if they want to continue to operate.

Cryptocurrencies themselves, they can adjust not can, because they have no single center. They will be able to regulate only their exchange for Fiat

I think that digital money cannot be regulated by the government, because the circulation of digital money is not through a running bank. so the bank is having a hard time participating in digital currency.

If governments could effectively stop a peer to peer network, they would’ve shut down the illegal practices of torrent websites over a decade ago. Even the success of the hydra-like torrent sites isn’t a perfect analogy for bitcoin, though, because cryptocurreny’s legal status is far easy to debate.Beyond the difficulties presented by the decentralization of bitcoin itself, governments and regulatory bodies have shown they lack understanding of technological topics, and bitcoin is one of the most complex. As governments struggle to ban technologies like Tor and encryption, it seems impossible to imagine them gaining the ability to truly impact bitcoin – and its alt-coin contemporaries – in a way that could impede its progress.

Most of us have submitted regulations with the KYC that we have made and although sometimes it feels that KYC goes beyond what is really needed, it feels like we have no real choice. Because it was mandated by the government against the trading floors if they wanted to continue to operate. They can use the KYC and AML rules against a local exchange before the digital currency is converted into that country's currency, imposing taxes on every transaction on a local exchange. is what happened in my country today. In order to adjust the digital currency in relation to electronic money, the government must and must be the majority owner of all electronic money. They can determine the market price of a coin at a specific time and time. Crypto is global and decentralized, but its users do not. In addition, to exchange, this means that if you are running a exchange, or an interface for decentralized exchange, you will need to apply the law, or move out of that country. As demand for electronic money increases, global managers are divided in ways to keep up. Any regulatory notice appears to have pushed bitcoins and other electronic currencies into 2018.

What digital currency are you talking about?? Are you already aware that cryptocurrency and digital currency is two different kinds of virtual currency.
I assume youre talking about cryptocurrency, since you mentioned that " the circulation didnt run through banks"
While digital currencies already has a regulation before it is released publicly, since it will still go through government approval.

I think this can still be overcome, considering that all the transactions in Crypto and Blockchain itself can still be tracked. this regulation itself is not about how the wallet will be, but is crypto really feasible for the public

In my own opinion Bitcoin doesnt need to be regulated by the government it just needs to be accepted by the government and they will be forced by the community in the future and theres nothing government can do when the public already speaks.

I think the government can adjust the digital money. The government will introduce strict regulations for the development of digital money. Some governments only allow quality coins to operate....

Eventually they will have to connect to the internet if they will want to cash out their profit unless they are willing to do a p2p physical transaction. Most of the exchanges now requires you to fill the "Know Your Customer" form. This is done to keep track of your investments. Not only in exchanges, if you want to buy bitcoins directly online you will be required to submit your identification and other personal information. If such actions are not taken by the service providers, the government will not let them operate their services. That is different laws are being placed by the government in an effort to bring full regulation of crypto currencies..

of course it needs to be arranged and accepting it is not as easy as you think. the government must be able to regulate it and control it to reduce the risk of fraud or crime.

Any decentralised currency cannot be regulated by itself, but mechanism’s can be put in place to try to make it transparent, For example currencies like Ethereum and Bitcoin are completely Decentralised any Developers can just push another version on top of it, Replacing it’s Merkel Root and Genisis Hash will result in new currency. So By it’s very nature it cannot be modified once blockchain has been started. By their very nature these currencies by their very nature doesn't need to be regulated but the business involved in this technology need to be regulated and shall be accountable to the nation they belong to this will result in protecting fate of end consumer and thereby people will have more ease and trust on cryptocurrencies.

They should be self-regulated. People are capable of bottom up organisation. We don’t need no Leviathan to tell us what to do. Plus, the idea is that we entrust algorithms, rather than governments.
In my opinion the only thing to regulate at the moment are not the currencies themselves, as they are automatically regulated, but the exchanges, also the ICOs that raise money and then run away with it.

in this day and age, regulations is very important in the use of cryptocurrencies because without it, may people are going to use it for criminal activities such money laundering and a whole lot of crime.

The government can dramatically affect the cryptocurrency market and bitcoin. The fact that now they do not work with the government and illegal, in their direction can apply measures that can greatly affect the course and capitalization of the market.

I think that to regulate cryptocurrency movements will be difficult for the government to do, because cryptocurrency don't involve third parties in the exchange.

Direct regulation will be possible only if some government launches its own coin on the market, and regulation will only concern it. Indirect regulation will be possible through operations to transfer cryptocurrency to fiat. It is also possible that some operations can be tracked through KYC.

Regulate of course can and should be.But for this, you first have to support the cryptocurrency at the state level.Create a special registration system with support for registered users.Just like business.There are companies registered with white papers that pay taxes and receive government support for employees and users.And there are illegal companies that are persecuted by the state as illegal.It's time to step out of the shadows to the next level.

Only by working with crypto users in person, I don't think that there are other options how can they perform this, actually I'd say that it nearly cannot be put in reality.

Most of the digital currencies are decentralized, so you might think that there's no way for the gov to regulate it right? wrong. Since cryptocurrency has a value, a person must cash it out somehow. The government will impose laws and rules on exchanges so they can control the crypto in and out of the country. This is only one way, there are many ways for the gov to do it.

They can regulate but only if peoples want to use selling their digital currency to fiat currency.
as long peoples using digital currency without using fiat currency, i think government cannot regulate them.

Yes, cryptocurrency could be regulated and even could be taxed by the government on that particular country. Like here in the Philippines, the cryptocurrency is being regulated through local exchange. Thus, we could not convert our fiat money using another exchange for it will be risky also in transferring money online for a payment in cryptocurrency and it is also a burden to do it for it need some credit cards for one to buy crypto outside the country. So by this local exchange one could be traced through one time KYC. This is how they regulate every member in converting fiat money to cryptocurrency.

Government should legalize the crypto and allow banks that start a section of crypto and there should be KYC necessary before doing any transaction.It will encourage the people to use crypto through banks to avoid scam or fraud and also government will monitor the financial activities either illegal or legal.

   Lets\'s be objective guys, it is better to stick on the above topic as posted, On the issue of regulation by Government agency on the entry of Crypto Market on Digital transaction, we have both positive and negative implication as to Regulation. Positive, we can transact openly in the market, Crypto coins can be openly used either for our basic utilities, food etc.etc.  Negative are, the Taxes for every transaction on the market, it may imposed higher taxes, surcharges, etc.etc.

Although it is hard for them to regulate the wallet individually, they can still regulate any trading platform. We all know that all centralized platform is somehow regulated by the government.

I feel one of the so many reasons government will not be able to really regulate digital currencies is because of its stand alone construct of existence. It doesn't have a central body or a regulating body, so the idea of having so  many coins with a lot of third party base is a factor that won't be easy to take control of. Unless they can pick an already existing market, or coin, take for instance bitcoin. Since bitcoin is the most recognized and  most traded coin, which has made more impact more than any other coin, then it should be picked and worked on, if done so, it could help develop a watching policy that will guide it's mining and exchange.

The government cannot regulate digital currency Cryptocurrency, because digital currencies are anonymous and decentralized. but the government can regulate the coin exchange market, the government can apply the Cryptocurrency tax from it. For example we draw 100 bitcoins. For example, the withdrawal fee is 0.3% and the government tax is 0.2%. So that each withdrawal of our coins is cut by 0.5%.

What government can regulate are the transactions that are registered or being done through local exchanges or international trading platforms. They can't fully regulate if we are going to talk about those offline wallets because they really can't, they know what's the strength of crypto's and that is having a wallet which can be your very own bank account without any information to be given away to the wallet provider.

The answer on this question lays in this question. If the governments will know that this wallet is belong to you, only then they can take taxes from you. KYC/AML is very useful for them in this case.

To simply put it, in my humble opinion they cannot be regulated whatsoever. Also ,I don't think government bodies actually properly understand what this technology is, let alone they could regulate.So you know what they come up with?? All sorts of ban. That's in unfortunate situation

although government and the bank can create a digital money own by a form of legal money But they still have disadvantages compared to third-party digital money such as Bitcoin. It is difficult to adjust.

Rather than wanting to regulate cryptocurrency, it would be better if the Government only carried out supervision because even though in any way the cryptocurrency movement would not be able to be regulated by any of the parties whatever it was due to the decentralized system used. Supervise, is much easier than doing the rules. However, such supervision does not aim to narrow the movement of crypto to develop.

To make sure everyone is honest it is unrealistic. No one can be sure that everyone is honest. There is always greed, especially on the Internet. I think governments have banned Bitcoin for a reason. They fear that when they do not manage Bitcoin closely, it will be a threat. I think when they have found a solution, there is no reason for them to ban it.

The only way for governments to regulate cryptocurrencies through implementing a KYC procedure in every place that they are used but it is very unlikely to happen because even many exchanges are today follow a decentralized structure so making every cryptocurrencies go under regulations is closer to impossible according to my understanding but for certain extend government can make it happen

The only way to regulate the crypto space is by bringing KYC in place for all centralised exchanges.Its very difficult to monitor for decentralised exchanges .The only way is that people when they withdraw to bank account ,they have to explain the source of income and pay the taxes ,thats the only way to bring the crypto space in regulation.Hope we will see the regulations fall in place in the new future as the space is expanding day by day.

I am also think what only one way is binding to everyone personal wallet adress.
But then we have one more issue - controlling newly generating adress

Governments may impose appropriate restrictions on the cryptocurrency turnover or, on the contrary, make them more accessible to the average man.

it depends on each of them. I think the government will not be able to regulate the use of digital currencies, because the government will be defeated. only honesty from the people can manage it

In order to be able to go into operation and bring into full play, digital money needs the support of governments or the central bank. One reason is the growing concern that this type of virtual currency can be used for nefarious activities, such as money laundering. Virtual money can also be a threat to the current financial system because it sometimes encourages speculative consumers and innocent borrowing. But to regulate digital money is hardly possible doing.

They can try to regulate the exchanges and the users of them. Store your bitcoin in your own secure wallet anyway, not on an exchange.The best way for the government is to allow users to disclose their crypto transactions and they have the option to monitor it through the domestic crypto exchanges (with KYC).If they think that they will do their work legally they may follow government rules as a result they both may gainer legally.

I believe that the bitcoin system could never be regulated nor it should be regulated at all. I think it is best to preserve bitcoin's structure to warrant the retention of security and features.

I believe it would be best to regulate exchanges and crypto-related services only, especially the conversion to fiat money. Let the regulation take place at this level alone, let bitcoin exist as a private digital asset and only receive regulation when it is to enter to financial sphere of a country. This way, bitcoin remains to be ideal as it was primed for and at the samte time, creates enough security blanket for the governments against malicious financial attacks.

it's possible, if they (the government) create their own cryptocurrency so they can manage it themselves. this is what underlies many countries that reject the presence of cryptocurrency, because they cannot be monitored.

Governments can't really control or regulate digital currencies themselves but on the other hand, they can regulate and control financial institutions or exchanges.

Cryptocurrencies have been the target of regulations by you governments but since they can't control a decentralized currency, they instead imposed regulations on cryptoexchanges so they can monitor their flow of transactions. Most of the present are centralized and can be controlled but decentralized exchanges or DExs are also growing in numbers and it said to be safer way to trade than in centralized ones. Government might find it difficult to impose regulations on DEx because nobody actually owns it.

Complete regulation of crypto currencies is not possible that is why the governments don't know how to accept them as legal transaction method but if people uses the centralized exchages for storing purpose then they can be traced and their assets maybe recorded but it is impossible tho in a countries where we have people in millions or even in billions.

Base on my opinion, crypto currency regulations will not as hard as it is. Here in our country, there are already merchants who accepts crypto. And banks also accepts bitcoin transactions. We can also convert or buy bitcoins in some money transfers.

According to Professor Williams, Bitcoin has already reached its historical maximum once and will no longer be able to repeat such a jump. Unlike gold, which has a tangible value.

You are very right, the government can easily do everything about crypto currencies in the country if the government forbids me to think that no one can do anything to free the ban if the government cooperates, maybe it will get better results.

the government is the one that regulates all of a country that I know the government is in control of digital money is the day the minister of finance and minister of information technology because it is identical with today's technology so most likely the controlling person is that person

Government cannot regulate the flow unless they legalized bitcoin as the currency. They cannot control something they don't know, since bitcoin seems unknown for them. But perhaps government can try to track the transaction from the token that is made administratively in licensing of electrical consumption and crypto exchange that transmit fiat.

I think the government can adjust the digital money. The government will introduce strict regulations for the development of digital money. Some governments only allow quality coins to operate.

I do not know that because I am not an official hehe my opinion that I ketauhi is that which regulates the state's superiors, namely the minister and so on, is a matter of managing finances, it is state and government affairs, we just follow it and I am also a commoner here

Regulation to date has been minimal, but history tells us that governments rarely preference light regulation – it just takes them a while to catch up with technology. There are a large number of issues that any government could regulate when it comes to cryptocurrency use among the public. In 2013, the U.S. Senate held the first hearings on Bitcoin. In that same year, FinCEN released the first announcement by any government agency related to the technology. The IRS was also the first tax agency in the world to clarify the tax treatment of Bitcoin and other digital currencies. Additionally, BitLicense in New York was the first licensing regime in the world directed at digital currencies.

Any cryptocurrency is at risk of being made illegal by any government. Owning and operating a money transmitter service in the U.S. is “illegal” unless it is registered with State agencies. This is also true if one uses Bitcoin or any other cryptocurrency to exchange for fiat currency. Bitcoin is not immune from State or Federal laws regulating the flow of money, and agents can track bitcoin transfers over the blockchain.

The question is, do cryptocurrencies really need regulating? It's been doing a fine well on its own so far, despite of the volatility, but does it really need regulating? Will users even benefit from it?

Very simple. It seems to me that the easiest way to start cryptoregulation with the control of  stock exchanges and cryptocurrency exchanges.

From What I know, there is no way for government to regulate the bitcoin transaction , but they are trying to find solution to this problem so they can control the digital currency more clearly

Bitcoins only remove the issue of money laundering but all transactions are open and track down the point of exit of the cue ball in real, with some effort, the problem is not, unlike cash dollars.

Get down a little on the ground. All cryptocurrencies stay on electricity and any serious failure will lead to a collapse. Even now the world has become very fragile, the loss of electricity will lead to unpredictable consequences.

This is a free digital decentralized cryptocurrency, the rate of which is determined every minute as a result of trading. But about the fact that in the real world it is not worth anything, show me the place where she was not worth anything?

I also do not understand how they control the bitcoin, but in my opinion they will try to buy a lot of bitcoin and achieve a certain% and then they will disturb this market.

As others have pointed out there is no practical way for governments to regulate bitcoin-they can however regulate exchanges and the banking industry thereby making life a little more tedious for us when we want to trade with our bitcoins.

That's is a biggest problem need to lear and study of the government
Bitcoin is volatile cryptocurrency run by new technology
So need to learn and stdy hard to control and how to regulate bitcoin
It's also possble in the future bitcoin become regulated people a lot of ideas and talent to discover the solution

I also think like that, this decentralized blockchain system is also a problem and a solution. on the one hand, ease of user side, fast transaction, but also difficult tracking (if it is possible, it will definitely take a long time for a case)

what I catch here is, government regulations to give crypto asset policies to related markets and customers

One of ways of handling over bitcoin to government is making it legal to the individuals who prefer of using it. This now can be regulated in terms of government law, and taxation can be implied as per regulations review. However, this isn't a good idea for those biggest investors because a decentralized currency is always capable of being volatile. We can't prevent people of pulling out their assets due to being afraid that their funds will be over taxed by corrupt government system, which probably be happening if bitcoin becomes a legal currency. More traders now hope that bitcoin couldn't be regulated due to that situation may arise, and that's the fear of most independent traders around the world

yes this is the big question, when all government want to make bitcoin legal but with the regulation, but how? how the government make that regulation? the user of people that use bitcoin is too much, it will hard to get their all data.

Governments must legalize cryptocurrency and they will have access to information. The more bans a cryptocurrency has, the less information the government has. The possibility of regulation can only be obtained peacefully.

I'm not sure, bro. if the government can regulate digital currency. precisely the government must be able to accept bitcoin because bitcoin has helped the economic growth of the community.

Can't there be a middle ground? Can we have regulation while still maintaining the decentralized nature of crypto?

The government that legalizes bitcoin means it already has a special network for the internet and all its possibilities. The government is able to make people smart and smart in all fields so that all regulations can be regulated.

It is very true that what you say is that the government does not fully regulate but monitors and collaborates perhaps with cooperation that can benefit both parties to become more developed and progress rapidly in the future economic system

We all know that bitcoin is a decentralised crypto currency and thus there is no such proper authentic regulating body over the bitcoin who could keep eye over all its activities and thus leading to illegal use of bitcoin and the only thing that could happen to control the illegal use of bitcoin is to legalise it all over the world as those countries who has legalised bitcoins in their nation are now regulating all the illegal activities, though imposing taxes but still the regulation of bitcoin there is so wonderful.

I would say that the state can control the currency, but most likely it will use it to its advantage, here are some examples of the proper use of cryptocurrency:

1)Taxes are needed, but minimal. It is important - the first three years, for example, the ICO should be exempted from taxes. And then the country will receive: a) huge liquidity (one ICO - the budget of a region or even a few small ones); b) new funds on deposits; c) new business entities; d) a huge labor market; e) additional funds from related services (purchase of traffic, payment for the work of specialists).
2)Mining Divide it into industrial and home. For example, in terms of power: up to 15 kW - home, over - professional. I always cite the example of hosting: I do not pay any taxes for home hosting, I do not get licenses. Another thing, when it is put on a grand scale.
3)Training. Free and for all: this will remove the issue of investor professionalism, for which (allegedly) many officials are experiencing. Are you afraid that a person will invest in ICO and burn through? So teach him how not to do it: bans will not become a barrier - Forex has already proved this, and binary options have put an end.
4)No interference in the zone of complete virtuality: control only over the points of entry and exit. Why go where there is still no competence? Even Japan, and this country will certainly give two odds on manufacturability, has refused to regulate this aspect.
5)And the main thing is to stop looking at cryptocurrencies as something absurd: this is the future that has come. All that is needed is not to interfere with its development, otherwise we will lose again, as was the case with bank cards, the Internet, online services, PC development, etc.

They should just accept the use of digital currencies and stop the false speculations they spread regarding the use of cryptocurrencies. They should adapt to this new advancement and stop the idea of trying to control it. We need to make them understand that cryptocurrency operates on a decentralized ecosystem.

I don't believe that they can do this. Sometimes, I have the thought that they just want us to believe that they have all the information but in reality the system of regulation isn't perfect

Eventhough crypto currency can't be controlled by government because of being decentralized but still they have the hold in terms of security, as we know that crypto currency is not yet fully optimized then therefore every holders must convert first into local money through bank and other fiat exchanger of which they require proof of identification, so I think that's the only way government can do their part and that is for security only and beyond that no more.

Maybe they control what market do in their country, then control what ICO project, it is like some ICO project must get approved by government. That will be very cool if can really happen.

Wallets and exchanges that require identification of the user is a form of regulation. Local wallets in some countries which are recognized/approved by central banks (a.k.a. governments), is an obvious regulatory act. Indirect taxes in the form of trx fees are part of this regulation. Good thing about regulation though is that it aims to protect users from fraudulent activities. Unless, the frauds are the governments themselves...

That's one way of government regulations, because it's very important due to money laundering cases which will arise when there's no control between Banks and crypto trading sites. You're mentioning here KYC mate, and it has been implemented lately on most of the exchanges and projects due to government requirements in order to prevent any fraudulent crimes.

Regulation on cryptocurrency is a bit hard because of the decentralization concept of it. However, ICOs can be regulated to bring back the trust to ICOs. I am in favor of regulating ICOs. This will reduce the number of scam and failed ICOs in the future.

Your answer is simple but in fact enlightening. The whole situation is not that difficult to do, of course it will have some workarounds that dishonest people will use but that applies to any currency or commercial activity in the whole world probably during all human history.

Taxes are a good thing because it allows government to have a real reason beyond personal preference to invest in the implementation of processes or systems to regulate and of course accept Bitcoin and all or most others.

It will depends on the country that will be regulating crypto currency r digital currency, I think it will also depends on the people who are using crypto currency in that country, the government itself.

of course the government will not be able to provide 100% control over bitcoin, because decentralization cannot be eliminated, I think the government is doing cooperation with third parties. namely local exchanges, the government requires if they want to operate, there are things that must be obeyed, that is user verification and taxes that must be paid..

this is the big problem for right now, we can see that bitcoin problem is in this right? we see that there are many people taht against bitcoin because bitcoin is not regulated by government, and if government want to regulate it, how? it is very complicated to regulated

They can only regulate and control Centralize Crypto, not decentralized ones (according to a recent report, about 86% of cryptoes are centralized) - so, I see no way for any government to control any Decentralized Crypto.

Government can regulate cryptocurrency in trading. I think if government regulate crypto trading, i think its good news for market. For payment, i think cryptocurrency can make partnertship with payment processor like mastercard or visa and i am believe it will happen in near future

For my own opinion a lot of people refer to the crypto world as the wild wild west, because there's no regulation in the markets like there is with trading stocks.I think it might be for the best if the crypto world had some regulations imposed on it,but I don't see how they could achieve that.

It's hard for them to regulate cash but they do their best and largely rely on information from third parties  -- your employer and bank etc -- and hope people are just being honest and then cracking down on those that aren't. They wont actually regulate actual bitcoin directly just like they can't really regulate the cash in your pocket or under your bed, but they will regulate it via exchanges and the services you use. Lets look at exchanges for example. Most if not all -- especially legitimate ones -- already require KYC to open a new account. They might not know about the bitcoin in your wallet or ledger nano, but they'll know about it when you send money to an exchange. You might be able to avoid that by dealing in cash only but then you've got a lot of cash that is unaccounted for and you'll have to explain the origins of if you ever put it in the bank or try buy anything substantial with it -- houses and cars and so on.

I think it can happen, all are connected to the internet and when the government wants to regulate digital money, they can access and capture information from you

Due to  the decentralized nature of blockchain tehnology, any form of regulation of any cryptocurrency such as bitcoin would be very difficult. I think as the knowledge of cryptocurrency is on the rise now, I believe there would be some form of regulation in the very near future. The world of blockchain technology is fast advancing, any form of regulation by government would be very possible.

That is difficult, the government will not be able to regulate it all. I think they can only regulate people who use digital currencies that are illegal like an act of cyber crime. But the value and wallet of their digital currency users have no rights to it.

I see one option in which the state will be able to control cryptocurrency. But only one coin issued by the state itself as a state currency. As for the rest, such control will not be possible without totalitarian control over Internet traffic within a given state.

Yes, that is one of the main factors where each user is obliged to verify his identity and can be subject to tax fees because behind the existing local exchange market, the government has taken part in cooperating with the local exchange market, and of course this is not known directly by every one. Cryptocurrency has a decentralized nature so the government cannot directly regulate its holders to be taxed directly unless the cryptocurrency can be formalized by all countries, the government has the authority to regulate everything.

I think government can regulate cryptocurrency start with crypto trading. We can not expect much government regulate bitcoin as payment because many central banks againts it. By regulation on crypto trading, we can relax and calm to invest and trade in cryptocurrency market

So all of your movements that go through exchanges are transparent to them. Are there currently ways that they can trace your money BEYOND the exchanges?

I think the government will not have a way for them to adjust digital money, because as everyone knows there are a few but still have not agreed to fully accept the bitcoin, so this move will be very Feasibility.

It seems that it will not happen, the government cannot fully regulate this digital world. The decentralization system cannot be penetrated or pegged by a practical system, the government cannot limit the existence of this already developed crypto.

The government does not need to regulate cryptocurrency, because as a global currency the rules of each country must be different. Simply put, government authority is only available at the place of exchange of cryoptocurrency, specifically related to taxes and monitoring of terrorist or criminal cases.

Digital money has unsuitable elements for government. So digital money is for the government to accept, it must accept the laws set by the government, accept the correction.

I don’t think that governments will be able to totally control bitcoin. A partial deprivation of anonymity through AML / KYC is possible, however, an international control committee with jurisdiction in any country of the world must be created for this. It will be very difficult, therefore unlikely.

To regulate and track the movement of cryptocurrencies are two different things. Regulation of cryptocurrency, as a rule, includes the establishment of the legal status of cryptocurrency, the determination of the conditions and procedure for its circulation within the state and in most cases the establishment of taxation.
Therefore, regardless of where the cryptocurrency will actually be stored, it is quite possible to regulate its circulation in the state.

govt can prepare guidelines so that crypto investors can follow the guidelines and trade as per the rules

If the government wants to control crypto , I think the tax measure is a good solution but if it is hit on electronic money, it seems to lose the character of crypto

Dude a tax isn't going to help a government to control and regulate digital cash. Hello, have you ever hear of tax evasion and talking specifically about the decentralized money, how it(s going to happen. Unless you use it with the bank account you own.

When it comes to regulation, we could take cue from Japan.
“In April 2017, acting on the advice of the FATF, Japan revised its Payment Services Act. The revision included the legalization of virtual currency as a form of payment, as well as, new licensing requirements for exchanges operating within the country. Technically, Japan does not consider Bitcoin as legal tender because it’s not issued from any central government, but they do acknowledge that it can be used to purchase items.”
https://coincentral.com/japan-crypto-lessons-in-blockchain-regulation/

The government can accept crypto as a legal tender, just like what Japan did.

It is reasonable why there should be a few controls to confine the utilization of blockchain technology that is utilized in promoting any type of venture, particularly with the rising number of phony cryptocurrencies. What could be of most extreme advantage to the industry is if a well put together  regulatory framework was executed. This was endeavored in March when individuals from the G20 met to examine the fate of cryptocurrencies on the universal stage, yet no accord was reached. At the present time, it might appear as though there are a bigger number of disagreements than consensus, however this is altogether anticipated that would change as blockchain ends up perceived as a vital technology for organizations around the world.

digital money does use the blockchain, known as decentralization, but I doubt ... is all blockchain-based currencies included in the decentralized category (I doubt this point)
for example, XRP, which can be said as a centralized currency because it gets support from the government and banks

Maybe you have a point,but being a government law they have a power and capabilities to organize this matter,even thats you said thats identification,maybe as of now we cannot figure out what the outcomes of this development about crypto,but soon once its become established and more and more all over the world patronize cryptocurrency then the progress and possibility would going on.

It doesn't help a lot but it will help the government to earn some extra cash and I hope it won't end up entering their own pockets. ;D
That tax evasion thing is kinda impossible for Crypto Currency users even if they implement KYC(Know your customer) on every Crypto users on their respective countries, I heard and read some article about the Japanese government implementing taxes on Crypto users but it didn't explain how that law works on every citizen of their country that uses Crypto Currencies.

I don't know much about XRP(Ripple) but I see some posts in this forum that it will be used by banks in the middle east. I think this is one of the reasons why Ripple reached the top 3 on Coin market capitalization.
I immediately googled about the decentralized and centralized issue about ripple and I think its just FUD according to this article that I have read below.
https://coingape.com/ripple-clears-about-centralized-or-decentralized/ (https://coingape.com/ripple-clears-about-centralized-or-decentralized/)

it is going to be impossible for the government to regulate digital cryptocurrencies due to it decentralized nature, the only way to do so is to centralized cryptocurrency and that is impossible, my advice is that government should legalize crypto, at least when it start operating in the limelight, the government can have a close look into it's operations and transactions.

if in my opinion it is very difficult for the government to regulate digital currency movements. because there are so many Wallet that don't have an official site (only using e-mail without a copy). but in the future there will certainly be a way out to regulate cryiptocurrency

The government of each country has no capability to regulate bitcoin or digital currencies, unless if one of the coins is centralize.
Because of decentralization that's the common reason why most of the government don't want to accept bitcoin and other digital currency.
but if one of the exchange company has been register under the agency of the government that exchange was being categorize in centralization or regulated business company, that's why they required KYC for their user clients.

Local exchanges are the best way to control or regulate cryptocurrency. Thus, regulating it would be easy by implementing KYC before involving in exchanging fiat to crypto. ICO's could also be regulated by the registering their ICO project including the team for when they will scam the their investors then they will be put to jailed.

As far as I'm concerned, it is impossible for government to regulate digital currencies because cryptocurrency are decentralized and can not be controlled. The govenrment only can regulate cryptocurrency if cryptocurrency are centralized.

Does the governments needs to regulate digital currencies? or should it be free market system without control probably best solution would be taking tax from it by that way it would be win and win

They can always control Centralized Currencies but they can only push KYC and deploy financial surveillance to  decentralized currencies as Bitcoin.

It will be very difficult if the government wants to regulate bitcoin, tracking and tracking names and wallets takes a long time, besides that Indigo which is fluctuating and difficult to analyze is also something that cannot be managed.

the way the government regulates and uses bitcoin is the call of the minister of finance and information technology to unite laws or rules to be created and sanctioned by the president

but what we have to expect is that if the government wants to regulate the digital currency it must first accept or legalize it, because with the government already legalizing digital currency, the government can regulate it like the government in Japan

on the basis of decentralized cryptocurrency so that the government cannot fully regulate or control its use, it is very difficult for the government to regulate crypto, in a country there must be many people who use crypto, how does the government regulate so many crypto users? I think the government will experience difficulties especially there are so many wallets that don't have complete identities

If regulations are implemented now it is very late because all exchange systems have been implemented with decentralization that can be accessed by anyone. the government can only manage through the creation of its own digital currency not bitcoin

at least the government has the right to regulate each transaction activity through their local exchange first

today I read the news that the SEC had begun to require all exchangers to become centers with legitimate company ownership. for example etherdelta has been suppressed like that or will get harsh sanctions. If there is a strong intention, the regulation will start from the smallest and the most sustainable.

Government can regulate only to the known exchanges, as they are the only exchanges which have started to use KYC and they are having track of all transactions made by their respective users. so who ever is trading in their local exchanges through deposit of fiat currency and trading crypto currency, will be possible to regulate. Other exchanges which are running only cryptocurrency coins and not supporting fiat currency

As you can see the government has found many ways to be able to control Cryptocurrency but this is not possible, so the government has issued the ban. I do not think there is anything that can help the government intervene and control Cryptocurrency.

They are going to try it that's for sure but it's going to be an incredible challenge, there are many people that are going to use cryptocurrencies and are going to comply with whatever the government orders them to do so that is a great advantage for them, but the ones that are holding the most bitcoin are going to be the most reluctant to comply and unless they know their identities is going to be impossible to force them to do it.

No. That's the whole point.

People own and control their money.

Nobody cares what each government wants, they all want different things in different era's.

People want to own and control their money though...that won't change....it's a pretty simple concept.

I don't think regulating digital currencies are so easy although the governments would want to regulate these crypto currencies and transactions.

the government can only provide digital crypto regulation without being able to take further steps. maybe the regulation is based on the law in each country so it can't regulate overall from bitcoin.

After nearly a decade since its invention, Blockchain has not yet reached to its full potential. Billions of dollars of investments are made every day, but none of the great potentials come to reality, despite only serving Bitcoin for its payment system and allows illegal payments to occur in the Dark Web. The government has started to underestimate the value of Bitcoin and thinks that regulation is the best way to solve its issue.

No one is interested in making btc a form of payment. But everyone is interested in making money on btc. That's good and bad at the same time. The more greedy the people, the higher the price. But at some time it will end up either with a huge price drop and shift to a new paradigm or real acceptance, probably as value storage.

I also always wondered exactly how one could fully regulate cryptocurrency operations. Now I think it is impossible. And I think the government is very angry about it. :D

What did you mean by that? And what if other countries' government accepted or legalized Bitcoin? It is not late since there are no things that is late when doing these kind of things. They are just taking care of their people and their country, that is why they don't accept cryptos so easily. Bitcoin's transaction history can be seen on site like Blockchain.info, now what is the effect of that to the government? They can just accept Bitcoin whenever they want since that will be just a crpyto in their country and will never be a main currency.

Must government control everything? The worst is that anything that entered into government control will now become for the privileged few. This will eventually become the case for cryptocurrency if the government succeeded in taking over the management of Crypto. For once let me see what will really give the government some headaches. The next move will be to destroy the cryptocurrency.

Each country can try to watch the cryptocurrency within its Internet space. But for global regulation, all countries will have to work together, and this is unlikely.

And yet many people do not get the concept of self determination, I understand the desire of the government to have some control of the society because that is why we created governments in the first place, but now were coming to a point in which decentralized solutions are becoming better than centralized solutions and instead of understanding this the government is opposing the change because they do not want to lose their power.

for now the government in my country still can't find a way to regulate the bitcoin world bro. but now they are still studying the depth stage. both in terms of the benefits and negatives of bitcoin for the country and nation

the government can employ great people, hackers, computer geniuses, etc. to help the government regulate cryptos, or maybe the government has done it, just waiting to implement it officially, never underestimate the government.

Their power is directly tied to controlling the money supply....

Even if it takes 100 years, society will at some point realize "hey these people in government and politics manipulate how much this dollar Im supposed to value is actually WORTH.....maybe that isn't a good thing for me, my family or friends to continue"

It proved bad in Venezuela, starting to show in India, there are a ton of central banks that are continually screwing over entire nations though.

Some day the Fed might even have to allow that audit that citizens and elected official have suggested might be a good idea for the people in America....
https://www.trustnodes.com/2017/07/12/millennial-responds-yellens-refusal-audit-fed-bitcoin

They will regulate cryptocurrency whether we would it or not. As long as they want to have regulation and legality with it. They regulate cryptocurrency in order for their citizen to be comfortable and safe when using it. SEC provides the legality of every exchange and it is the reason why until now, BTC won't hike.

You are right, the cryptocurrency is decentralized so that the government cannot fully control, except for binding regulations related to distribution and use permits in the country. If the government wants to have coins that they can control fully then they have to make it themselves, right?

Like its original nature, decentralized digital currency movements cannot be regulated by anyone including the government. But the government can do this by forcing each exchange to require every user to provide an original ID especially when they want to register.

Even though Nano Ledger is more likely to be offline, sometimes this wallet becomes online especially when its owner wants to convert his bitcoin into fiat money, this's where the exchange account can require the owner to issue the original ID as a condition for disbursing his money. So, with that recorded identity, the government can find out the number of bitcoins the user has, and maybe they will control it only from the user's hand.

The most they can do is regulate crypto exchanges under their jurisdiction, so they can keep track trades and transfers.

maybe the government cannot regulate the ownership of digital currencies but the government can monitor the movement of money that is deemed suspicious, the government can apply strict regulations and certainly the government has digital currency user data and if needed can be traced to the origin of the money, but this is definitely not easy ..

You sa (http://renovasi-rumah.net)id the government cannot regulate digital money but now you say the government must make the digital money as a new currency. Government exists because the state needs to be regulated and everything in it which it’s a great responsibility, I suggest you to read any article or journal related.

The governments can't regulate the digital currencies, since most of them are decentralized. However, it is possible for the government to regulate the other sectors which are related to these currencies, such as exchanges and ICOs.

Government can regulate coins and they can give a space i the country So when government allow them for transactions they will provide a legal channel for the transfer of crypto and this will make bitcoin more stable and valuable in these days bitcoin is used by investors, businesses and traders but later government will use crypto for their own transaction.

  Nobody can regulate digital currencies since they are decentralized one so it is difficult to regulate the government can regulate centralized projects because there is no KYC in decentralized one. Though some governments are trying to regulate the flow of cryptocurrency it is not practical.

Yes you are right it is not easy for any government to regulate digital currency. That's why still Bitcoin is not used as a main currency rather then paper currency. But this Bitcoin is the future mode of currency that is true because we are adopting latest technology in every field then why not in currency. But the main thing is how government can regulate or assese this crypto. My opinion is government can make a process before any transaction that should be mendatory for any person who is going to process any transaction through Bitcoin . This way govt can assess this and maintain the record for tax purpose.

Well, the government will only try their best in regulating the movement of cryptocurrency but they cant regulate in all because i dont think there is possibility for them to regulate offline wallets devices which rely on third party server as the OP said but the only part i think they can regulate are the crypto currency exchange system.

Yes, for me, it is impossible that government will regulate the bitcoin and all other coins. They can just ban but not regulate. They can as well implement stricter policy towards bitcoin but not totally manipulate it.

to regulate the bitcoin and the user, I think it will very hard because in bitcoin there are many variations of user and bitcoin address. so its very complicated for government to regulate the digital currency

they can regulate the digital currency through exchange
and exchange implements KYC for every user who transacts there
even though they can regulate the exchange but the government cannot regulate the bitcoin ecosystem

The government can only intervene in a bitcoin, if it is too big it will not be an anonymous bitcoin market anymore, the government can issue rules or regulations to investors. private bitcoin for example

I think its possible to regulate bitcoin and cryptocurrency. Government can regulate bitcoin or cryptocurrency as commodities and government can collect taxes from the transaction.Regulation needed if we want mass adoption on bitcoin and cryptocurrency

The exchanges are the first one to be regulated if government decides to impose regualtion on cryptocurrency exchanges. This is where buying and selling coins and tokens take place and if this left unchecked, it may be use by some people in their illegal activities like money laundering. In Japan, the government financial regulator has formally granted the cryptocurrency industry with a self-regulatory status by allowing an industry body to police their local exchanges.

The government can only regulate the coins which people sell or buy from exchanges by controlling centralized exchanges. Regulation of tokens which are Holding and using them on the platform will be quite complicated.

I also don't know how the government will regulate digital currencies, if the government only regulates an exchange, what kind of rules can the government apply there, whether it is only the maximum ownership of crypto or such a maximum allowable withdrawal. If that is applied by the government, I only know if the regulation has been implemented in every exchange.

I am always believe government can regulate cryptocurrency because government want to collect taxes from crypto transaction. They can regulate cryptocurrency as commodities like other country and i think that is win win situation for crypto community and government.
Crypto community have regulation and more relax with their investment and government can collect taxes from profits and transaction

The government can regulate digital currencies by implementing taxes on their transaction as fiat currency but we all know that bitcoin is decentralized so no one completely controls it so governments can only take taxes from users of crypto-currencies from their country and give them access to bitcoin/ digital currencies trading.

Yes, but then the very essence of government control and it being decentralized would result in the currency probably not being used to it's fullest extent.

Lets face it. The target demographic for cryptocurrency users aren't exactly fond of government control.

I find that the importance of bitcoin to the government is enormous; it is possible that they have also invested a huge capital into bitcoin just to know that bitcoin is not scam, this way it is possible. And in the ways listed by you, I think they have seen bitcoin as a real scam. ???

Nothing is impossible in this world. Crypto currency is made by humans so that humans should also be able to regulate this crypto currency. The government as the official state authority can certainly regulate the crypto currency. I have this belief because now the government has been proven to be able to regulate the circulation of fiat currencies so managing crypto currencies is not difficult. All settings are only based on technology. If indeed this crypto currency will be regulated, then the first step, we must change is to make the crypto currency system become centralized. Decentralized systems are less suitable if crypto currencies want to be regulated. As a good and not detrimental currency, the crypto system must turn into a centralized system. When this crypto currency is set the price fluctuations can end soon and trust in the crypto currency can increase. We must give up the facility of anonymity in crypto currencies if indeed the arrangement of crypto currencies is a better decision. All information must be given honestly but kept confidential.

yes, of course, because the government does not want to lose anything, especially in relation to money. surely you will think to mitigate the risks that exist. therefore, it is only natural that the government wants to control what is in the component of the country.

This is why we need decentralized exchanges, governments are going to try to attack every single centralized point of failure that we create, so not only cryptocurrencies need to be decentralized, all the market needs to be decentralized as well and that includes exchanges, and while there are several decentralized exchanges there is still not one that can compete with its centralized counterparts.

The government can not control it completely, but only in part, assuming that the government will levy taxes on bitcoin transactions.

they will have difficulty managing everything at once, they just need to step by step from local exchanges to ICO regulations before entering the next stage regarding taxation and transaction regulations. I am sure they can do it because this has become a broad conversation between countries. There is no point in banning crypto because it cannot be prevented anymore.

Each country does it in its own way. Someone prohibits completely, someone only partially tries to regulate.

It is not an easy task to regulate the currency which you cannot control such as cryptocurrency because it's decentralized and anonymous nature.
Centralized database will be easier to regulate because the authorities can have access into it, but not with decentralized database.
Government may still seek for a way to control and regulate crypto for the future.

Governments must invent some new mechanisms, as the existing ones do not allow them to take a full control over crypto and its users. That's a big deal for governments, and that's the reason some governments ban crypto. Many authorities are afraid of crypto, as they don't know what to do with it. However, as time goes by, governments are updating themselves and becoming more able to control crypto.

They can only regulate cryptocurrency when you exchange it to fiat currency or you buy cryptocurrency using fiat. They regulate those exchangers and required KYC to those people who use the exchangers.

A very good way in government getting to regulate the digital currencies is for them to get fully involved! When they do, they get to know how things are done. Those with offline wallets can be charged via transactions made whenever they do come online to make any transaction.

After all if the government makes a cryptocurrency itself then do they still have control to their users? because the crypto system uses blockchain? then what condition about fiat currency? the government won't do that. and they realize they can't control bitcoin users from the inside. but from the outside, maybe they can?

The only way I know the government can regulate cryptocurrency is taxing it. Because in countries like China and Russia where cryptocurrency is banned, there are still a huge number of people who manages to use cryptocurrency. Meaning, they can't really have a full control over it.

maybe the government controls electronic finance can be from what we spend on our daily needs and also see from a number of existing exchange transactions, maybe from there they control this electronic money, this in my opinion maybe others can agree with me. or maybe not, I return to the perception of each - each. That is all and thank you

Yeah,paying taxes must be the our way for the government to let us do what we need to do here,because all the governments are only asking for a piece of cake.
But regulating cryptocurrency is far from reality because all of them knew that it is impossible doing this as decentralization and anonymity makes effect on this community so i guess its about how the both regulations and irregularities will bind to make things possible

The regulation can takes place when investors tends to convert there token to a fiat or when individual want to buy into a token, since bank always monitor all transaction, government will need to synchronize this with cryptocurrency exchange, developer, central bank, They migth not be able to regulate digital currencies without the cooperation of  all the stake holders involve.

Sources of state income, among others, taxes, therefore the government will make every effort to withdraw taxes from cryptocurrency. One of the doors to being able to withdraw taxes is when you withdraw from cryptocurrency to fiat money. In addition, the government can also monitor the circulation of bitcoin and who are its users. For transactions on the internet, the government cannot control, because what happens is peer to peer transactions.

Paying taxes according to law may be a trend in the regulation of cryptocurrencies!
The main purpose of government supervision is to collect taxes, and taxation according to law itself will become a key indicator of the value recognition of cryptocurrencies.

I agree on you, the government had probably watching us now and planning how to catch us in our cryptocurrency transactions. This is also the reason that we need to pass a KYC on those reputable exchanges as those government can use our data if they need it. Anyway, if the government will impose a taxes on our crypto earnings then it's better to comply than fight against them. Indeed our government here is neutral on cryptocurrency as we are free to transact cryptocurrency.

I think there is many ways that government can do to regulate bitcoin because they have a full power in everything in their country. But I think they can regulate bitcoin well if they make bitcoin in a legal stage. Because I know that many opportunies will open when the time that bitcoin recognized as a legal currency. When it's happen the use of bitcoin will be stretch and widen so many investors will come and invest and all of us wilk be benifited. And I think when government start to make somr regulation and  progress a big opportunities for the traders will open also because I think this will be the most have benefits when government doing something good actions about bitcoin.

way the government regulates and uses bitcoin is the call of the minister of finance and information technology to unite laws or rules to be created and sanctioned by the president

There is a difference between government entering the crypto space with regulations or them interrupting and banning crypto transactions. The industry needs some regulations and governments' involvement in order to become widely adopted. The governments should make conferences for blockchain developers and discuss the best ways to cooperate.   

Some level of regulation is definitely possible especially since many will like to convert their cryptocurrencies to fiat and for that you will need to identify who you are and where you got those coins but there is going to be a minority of users that are going to refuse and the government is going to be very interested in them but it is going to be impossible for them to identify them.

It is clearly say to all the government if monitoring hardly they can regulated of cryptocurrencies. The best way for the government is to allow users to disclose their crypto transactions and they have the option to monitor it through the domestic crypto exchanges (with KYC). Even though some governments are trying to find the way to track the crypto transactions and ownership of it but I doubt, how full proof it is going to be in the long run.

Directly managing crypto assets, it seems that it cannot be done by any government. Because of the nature of bitcoin which is decentralized. What is very possible is to arrange through exchange. By applying KYC / AML

I don't think so. Eventhough the government has a lot of power to regulate crypto but it is really hard for them to do it because of crypto's decentralization.

Decentralization is possible up to some extent. For small players yes, but I doubt there's a fine way to remain anonymous if you have a huge stack. Regulation is required to avoid fraud, but really I don't think that the coverage from the government will eventually lead to good things.

The government will obviously get tax revenues if it regulates digital currencies. On the other hand, clearly the government recognizes the existence of certain digital currencies that can be used in their country, perhaps digital currencies that cannot meet the criteria of the country will be banned. Without regulation the government will not receive income from digital currencies.

they can only control centralized currencies, not P2P currency as Bitcoin.

The regulation of cryptocurrencies is a very difficult thing! Because regulators can't make regulatory principles for cryptocurrencies!
So many governments have banned cryptocurrencies!
The government should establish regulatory principles based on the characteristics of digital currency!

Yeah they have all the tools available, they have all the power to control, but they will not be able to control crypto from inside, because decentralization is a system that cannot be changed and intervened. the government can only provide control outside of the system such as on exchanges or sites about crypto

the government can only provide digital crypto regulation without being able to take further steps. maybe the regulation is based on the law in each country so it can't regulate overall from bitcoin.

I think they would not regulate the currency itself, is the places where they trade, we can already see the kyc that exchanges are asking for, that's a way to regulate, because with the kyc and you can start tracking the money and operations of that user.

No i doubt they can regulate a digital currency because of the decentralization,thiugh there are KYC thats happening but this is not enough to regulate the majority of the currencies.so my answer is simply they cant even how hard they will try.
Thats what i am trying to say,impossibility is what the government will face if they insist of doing such

by tax the owner, regulating the circulation and law of cryptocurrencies. I feel the government will only be able to regulate its circulation, cannot regulate the price... indeed, there are now many centralized coins in circulation, but I'm sure the government will still not be able to regulate the price of coins in circulation.

The government certainly has a way to find out who the crypto owner is in his country, and tries to get revenue from crypto transactions. The government can request data from the crypto exchange, because from there the government will follow up according to the rules in the country.

I think the issue of regulation is only used as a tool to create problems, so it can drop crypto, especially bitcoin, even though the bitcoin transaction is very transparent, then what's the problem? I even thought that the government did not regulate crypto because there were other hidden factors

I don't think they "government" can regulate a certain crypto, unless they have large funds, and even then they only control the price movement, not in terms of use.

Many exchanger right now are centralize and i think it can regulated by government. If government regulate trading in exchanger, government can collect taxes from our profits or every our trade. Beside that, ICOs is raising funds for developing project and government should regulate this to protect their citizen investment

Governments will most likely replace their paper money with blockchain backed cryptocurrency. I think eventually it will be the people who regulate bitcoin, not necessarily the governments.

Bitcoin will probably work similar to Gold in digital form and be a valuable form of currency.

If you can't win, try to lead. Pathetic attempts of banks from the past era to join the future.
Mastercard Applies For New Patent for Anonymous Blockchain Transactions – A Regulated Bitcoin Tumbler?
https://www.ccn.com/mastercard-applies-for-new-patent-for-anonymous-blockchain-transactions-a-regulated-bitcoin-tumbler/

Decentralized exchange will not be possible if government want to regulation, Because there are no identification or Know Your Customer(KYC)
Also hardware wallet is anonymous so regulate is impossible.

I think its impossible to regulate cryptos because of their decentralized nature but it is possible to regulate other digital currencies that is not decentralized .  some says that being regulated is good because they are now supervised and approved to be legal and legit  but other said that being regulated is bad because this can lead to taxation and we all know that tax is the root of corruption 

yes you are right this is hard to do because our digital wallet is anonymous then how can the government check our wallet. and this decentralized digital currency no one can control it. because this is how many governments reject digital currency. because it is difficult to detect and is afraid of being used for criminal acts. and in my opinion until now no country has been able to regulate cryptocurrency.

I honestly don’t know how exactly governments will come up with for regulating cryptocurrency, but I am 100% sure that they will can control cryptocurrency completely and they will find a way to remove anonymity or they will create very strict laws for using cryptocurrency, there are a lot of options.

The government as a policy maker wants to regulate digital currencies such as bitcoin, so that taxes can be taken for the development of the country. Because taxes are a source of state funding. On the other hand, taxes are often damaged by greedy officers. In principle digital currencies cannot be regulated, but restrictions can be made that protect citizens.

They can only regulate, crypto to fiat conversions. It would be really hard to identify crypto holders.

Bitcoin cannot be regulated by the government, but KYC / AML can be applied by the exchange. Just like fiat, fiat circulation cannot be regulated except through a banking system. Even the central bank does not know for sure what money is circulating in the community is still a good percentage to use. However, bitcoin can be arranged when the world agrees that making wallets must go through KYC and AML.