Bitcoin Forum

Well, i already have my reservations when it comes to regulating Cryptocurrency. From my interaction with friends, it's seems regulating the activities in the cryptospace will facilitate mass adoption of Crypto currencies and reduce the rate at which projects rug pulls. But then, if  we accept crypto regulations, what happens to the decentralized feature  of  crytocurrency/blockchain?

The decentralized feature will still run as it should, it won't lose the interest of users even if it's only used occasionally. You just need to stick to positive principles, take what you need to take advantage of for example eliminating third parties and cutting unnecessary costs. Regulations should be obeyed consciously, so you will not violate them even if you are on free space.
Decentralization or centralization will not turn good people into bad people, and vice versa. Regulation has been around for a long time and it doesn't reduce crime rates. No matter how good prevention is, criminals are always one step ahead of finding other methods of crime.

What you are talking about is already happening. In most of the world, cryptocurrencies are regulated in one way or another. As for the decentralized nature, of Bitcoin in this case, what is happening is that it has been centralized through various entities such as custodial wallets or centralized exchanges. You can use Bitcoin in a decentralized way, like if you hire me to do a job and send me Bitcoin as a P2P payment, but nowadays many of the transactions go through centralized entities in one way or another. Some people see it in a very negative way, while others see it as practically inevitable.

The government regulating the cryptocurrency industry in general is going to achieve little to none. They literally can't even stop traditional finance scams; what more crypto.

You are right to have your reservations about regulations, and it would pretty much invalidate the decentralization of the crypto industry, while not solving rug pulls or eliminating scams.

Decentralization means you do not rely on any central authority, and do not need to trust a middle man. Regulation is the exact opposite as with it, a central authority can control, freeze, or lock your funds, and request you to prove why it should be released to you.

Regulating the crypto industry would definitely kill the beauty and uniqueness of cryptocurrencies. But decentralization, freedom and lack of accountability enjoyed in the crypto sphere have given much impetus to fraudsters and ponzi scheme operators pretending to be genuine crypto operators. Their operations have given rise to the birth of countless worthless shitcoins pre-designed to fail. These scammers keep giving the crypto space bad reputation and to a large extent discourage people from venturing into the real and genuine crypto palace. I totally support deregulation or decentralization, but some sort of regulation or control to limit and discourage the entry or operations of these crypto bad-eggs should be put in place.  

I am of the opinion that some kind of legal regulation is still needed in cryptocurrency. complete anarchy is not exactly the best solution, really fertile ground for attracting various types of scams.
I agree with you about the poor management of traditional finance scams, but out of all rules, cryptocurrencies will only become playgrounds for scammers.

It depends on what it really means when talk about "regulations". Let me give you two opposite examples.

First is the case in New York some years back. They "regulated" bitcoin businesses by requiring them to sign up for a license that had a lot of restrictions and high taxes. Not only it didn't facilitate mass adoption, it did the opposite by forcing business out of NY.

Second case is in Japan where they accepted bitcoin as a legitimate currency and also removed all taxes from payments made in bitcoin. That helped the bitcoin adoption speed up since businesses were more comfortable to accept bitcoin.
It didn't change anything in adoption of cryptocurrencies aka altcoins though.

As you can see regulation on its own is not good or bad. We have to see this as a case by case basis to figure what kind of effects it is going to have on the bitcoin adoption.

It's not even about complete anarchy. It's just the fact that policing everything and the authorities deciding what people can and can't invest in is obviously very ineffective.

Bitcoin can work just fine without being regulated. Don't get tricked into believing your government that you need them to show you how to do things safely. They couldn't care less about your safety or if you get scammed. The goal of their regulations is to have you pay taxes and have a harder time to cash out your crypto earnings and hiding it from them.

Bitcoin can work with or without regulation. Many altcoin projects are scams and get-rich cards for their developers and creators. The best way to stay safe from being scammed by altcoin projects is that you forget all about them. Or at least use only 1 or 2 that have been around for many years and are less likely to cause you headache.

Regulations are not bad as they are helpful as preventive solutions for newbies to avoid or at least reduce risk of scam exposure and being scammed.

However, I agree with you that having more regulations (better regulations) does not mean we should again trust governments and put our money into their finance system from either fiat currencies to CBDCs. They are completely centralized and unsafe.

Let they regulate Bitcoin and cryptocurrency industry, exclusively crypto market but don't store your Bitcoin on any centralized platforms. No matter whether those platforms are controlled or regulated by governments.

"Not your keys, not your coins" means let's use non custodial wallets.

I think that in the regulation of what we call cryptocurrencies, two currents are breaking down that want to go in two different directions. The first direction is an ordinary wild west in which everyone does what they want and mostly passes without serious consequences, and is supported by all those who want to continue running their crypto Ponzi scheme indefinitely.

The second direction has nothing against the regulation of the crypto sector, on the contrary, it encourages the authorities to get serious and disable various entrepreneurs who earn billions of dollars through their projects, leaving behind millions of defrauded people, and thus they harm all honest people who do not have any bad intentions.

When I talk about bad people, I am primarily referring to narcissistic maniacs like Kwon who publicly admit that they enjoy watching everything around them fail, and then cause a mega earthquake on the crypto market with their actions.

Bitcoin is something completely different and in a separate category, and it is difficult for any positive regulation to harm it.

That is true, but cryptocurrencies needs regulation because altcoins are securities, instead of being a commodity, they are having central authority and manipulation become possible.

If only bitcoin is existing, it would have been better.

Are they even decentralized? No, altcoins are not decentralized.

Regulating the cryptocurrency based services may be useful to find the scammer but it is impossible to eradicate scams and rug pulls because basically anyone can create a project with any idea they have and also they can raise funds even before it hits the public sale so how the regulations will stop the scam projects which will probably run away with all the raised money.

There are many crypto products that claims to be that but they were really not decentralized to begin and yet we see a lot of people using them. My take is that these users won't quickly change their choice just because those platforms made changes to be compliant as long as they find them convenient and they're making money.

There's decentralization of they network and decentralization of the whole ecosystem. Regulations are very unlikely to affect the network, because the network is global and was created to withstand any attempts to control it. But ecosystem is already quite centralized, with majority of Bitcoin volume happening through centralized exchanges. Regulations can make certain types of p2p trades that require bank transfers less attractive, pushing users even more towards centralized exchanges. Regulations could also force smaller exchanges to close down, living only a few companies on the market.

It is true that we are afraid that regulation will cause us to lose our freedom, lose our decentralization. Nevertheless, without any regulation for cryptocurrencies, it will become a very messy and complicated issue, criminals will take advantage of this loophole to wreak havoc. Regulations will not be able to completely prevent fraudulent and scam acts but will reduce them somewhat and criminals will be held responsible for their deceitful acts.

Unfortunately, cryptocurrency wasn't made to be regulated. I think this is one of the reasons most users that are hooked up to cryptocurrency today enjoy it so wel. It's unregulated nature and the fact that one is in complete control over his affairs. That's everything to most and regulations would only take that away which would make it no different from the CBDC out there. Contrary to mass adoption, I think it would just fade off and that's so much not what we need.

Talking about criminals, I guess they've never stopped from the beginning of time, its left for users of the cryptospace to grow wiser.

If and when Bitcoin is regulated, it does not necessarily mean that it is becoming centralized. Regulations, fair and proper ones at least, don't have to take away a cryptocurrency's best feature.

The reason why I am supporting regulations on the cryptocurrency market is that majority of crypto projects are simply created to prey on innocent people and take away their money. They are totally free to start a project anytime, even with unsustainable and simply ridiculous tokenomics, start an ICO or IEO or whatever, and make money. The project fails; they create another one and, again, make money.

There is no office or agency whatsoever which scrutinizes or approves any of these projects.

Cryptocurrency doesn't have any serious regulations, the thing that makes cryptocurrency to have regulations is the standard of the market return by investors, so the regulations is not something we can be sure of cryptocurrency. I believe that since it's a decentralized currency it doesn't have any way of someone regulating it due to it's adoption. Why the adoption affectes cryptocurrency it's because cryptocurrency have a influence over More buying and selling in the market

Government regulations could encourage more to take the plunge, increasing the number of users, as I'm there is some fear out there; however, if too stiff, rigid, or draconian, it could have the opposite effect and run some away, slowing or even reversing adoption trends.

Most of people think cryptocurrency don't needed Government Regulations,if done than what happened Decentralized features in crypto. But i think sometimes we need Govt regulation for safety.Terra luna Collapse remind me Crypto need regulation by govt.

Even its being regulated, you cant stop those rug pullers whom gonna try to make a project. Apparently, its gonna take time to make it regulated and many will oppose on doing that since their modus will be busted easily or probably will use any fake accounts for using other people KYC.

Im not against Government and Im sure there are also other wanted to abolish those scammers. But think about it. Will it ever be erase even the situation on restriction will change?

This may not really give a big influence on the centralized currency. However, not all countries will accept this easily, the regulation of crypto is very complex and difficult to control. Although there are some easier regulations that make crypto accepted, in fact, there may be some regulations that are working on this regulation seriously.
Btw, each country has different regulations. We can see some positive and negative sides about the regulation, moreover related to the taxes. However, I don't think that this crypto will disturb fiat or centralized currency in the country, because they are fixed and centralized. Related to the decentralized features of the cryptocurrency, there must be some ways change if crypto is fixed regulated by the government. But the question is, can they exactly? They may regulate some terms like the exchanges and other platforms, or the project developers or companies, but in fact, there must be complicated to regulate the decentralization.

Crypto regulation is already happening and as the industry grows, more regulations will come to play and adoption will keep increasing. Meanwhile, the regulation of crypto is not going to be a universal one. It is country by country according to their native laws and how crypto affect and effect their economy. The type of regulations in Germany will not be same for El Salvador.

This doesn't meanthat bitcoin will be centralized. Bitcoin can only pass through centralized agencies, maybe become compromised but the heart and system of bitcoin its remains decentralized. Anyday bitcoin becomes totally centralized, we have lost the whole market.
So, regulation is not bad if done properly.

Cryptocurrency gives too much freedom to people to manage their finances and lives. Of course, this cannot pass by the attention of governments. Regulation is already taking place in many countries, much to my regret. As for the consequences... Yes, I think you might be right in some way

Regulating cryptocurrency will obviously facilitate mass adoption but the area of reducing the rate at which projects rug pull i don't think it has much to do with Crypto regulation since they are associated with decentralised finance and the provide liquidity to DEXs. I think rug pull is solely regulated by the developers and influencers of those projects.

It seems, the government's efforts to make regulations on crypto are getting stricter. Likewise in my country where crypto is also regulated under the law. So all platforms that are not registered will be blocked. Not only that, it seems that now this regulation will also be related to the tax generated. I really don't like it, crypto is more about decentralization, but when the government intervenes, it's like they want to make centralization based on their power.
However, in this case, actually, they cannot make it 100% centralised because whatever happened, crypto moreover Bitcoin is decentralized and the government still cannot control it 100%