A whole set of regulatory measures in action

[runCRYPTOrun]

Regulating measures spreading from all over the internet. It looks like it's becoming a trend for governments and especially banks to push over cryptosphere. While last week Germany had some mild attempts of regulations in a liberating manner, now I see a whole bunch of aggressive moves against crypto.

Take a look at the headlines:

* Brazil regulators move to block bitcoin mining investments
* TD bank, one of the largest bank in North america to block credit card cryptocurrency purchases
* A city in US proposed law to put 18 month moratorium on new mining operations
* Coinbase is legally required to turnover information to IRS on approximately 13000 of its customers
* 24-Year-Old Sent to Prison for Selling Bitcoin Without Asking for ID

These are one of those days when the benefits of a decentralized network are exposed.

Is it a start of crypto going back to backgrounds of localbitcoins?

[pawel7777]

...
* Brazil regulators move to block bitcoin mining investments
* TD bank, one of the largest bank in North america to block credit card cryptocurrency purchases
* A city in US proposed law to put 18 month moratorium on new mining operations
* Coinbase is legally required to turnover information to IRS on approximately 13000 of its customers
* 24-Year-Old Sent to Prison for Selling Bitcoin Without Asking for ID
...

Only one of these examples is actually somehow related to new regulation proposals. Other 4 are just executing existing laws to bitcoin-related activities.

US City Mulls 18-Month Moratorium on Bitcoin Mining

Local authorities are (rightfully) concerned over excessive power use of Bitcoin mining and it's their job to assess the risk and prevent negative consequences.

The proposed law was advanced by Mayor Colin Read, who told the Watertown Daily Times that the growth of crypto mining in Plattsburgh "has increased our power usage and put us over our threshold, and it is affecting our ratepayers."

Moratorium could sound like an overkill, but that's still better than having your mining farm invaded by pitchfork mob.

[runCRYPTOrun]

Only one of these examples is actually somehow related to new regulation proposals. Other 4 are just executing existing laws to bitcoin-related activities.

US City Mulls 18-Month Moratorium on Bitcoin Mining

Local authorities are (rightfully) concerned over excessive power use of Bitcoin mining and it's their job to assess the risk and prevent negative consequences.

The proposed law was advanced by Mayor Colin Read, who told the Watertown Daily Times that the growth of crypto mining in Plattsburgh "has increased our power usage and put us over our threshold, and it is affecting our ratepayers."

Moratorium could sound like an overkill, but that's still better than having your mining farm invaded by pitchfork mob.

* I would argue that power distribution concerns are an internal business of the specific company doing it, and not that of the authorities. However the solution to that (the moratorium) doesnt seem to be discussed with both parties.

* Brasil blocked that ICO because of anouthorized pitching through social media, while not having regulations on ICOs, they just claimed it could be treated as securities offering.

* TD Bank credit card purchases of crypto currencies ban is just a trend in global banking regulations, so nothing to do with laws, simply internal banking regulations.

* Coinbase info turnover: I am not too deep into US taxes to say if bitcoin is somehow specified there or not, it is the fact that an exchange can be obliged to turnover that data that atracted my attention

* 24 year old sent to prison for conducting an unlicensed money transmitting business - its not about bitcoin, its about money transmitting... when actualy that was a trading operation and I would like to be able to sell my game character's gear without going to prison (as an example)

That is my personal opinion and could be wrong due to lack of some infomation so am very happy to complement it.

That last news however compromises my thought of bitcoin trading on localbitcoins freely.

[xsaints128]

The government see cryptocurrencies as a threat towards the country. But they don't see that it can be a really useful technology. Most of the countries are so called democratic but I don't see here people making the decisions just some politicians taking decisions on behalf of the whole country.

[runCRYPTOrun]

The government see cryptocurrencies as a threat towards the country. But they don't see that it can be a really useful technology. Most of the countries are so called democratic but I don't see here people making the decisions just some politicians taking decisions on behalf of the whole country.

You would be surprised that a large part of their decisions is actualy the majority will, and democracy is all about that -- NOT the most efficient decision, but the decision of the majority (which is rarely the best)

[seizetehday5]

-Blocking mining in one country won't undo the system or stop mining for a second, there are still loads of profitable places to mine
-That is a good thing, you don't want people buying crypto on credit then making bad trades then trashing crypto because of their stupidity
-Again, totally fine we have places in the world
-Who cares, are you trying to avoid tax? That is only a concern if you are evading tax
-That is awful, and I would like to know more about it so we can prevent stuff like that from happening

Apart from the final point which seems terrible, the other points are either good or manageable. Don't you worry Bitcoin is quite resilient as you can see it hasn't died over the years. This hump is no different.

[runCRYPTOrun]

-Blocking mining in one country won't undo the system or stop mining for a second, there are still loads of profitable places to mine
-That is a good thing, you don't want people buying crypto on credit then making bad trades then trashing crypto because of their stupidity
-Again, totally fine we have places in the world
-Who cares, are you trying to avoid tax? That is only a concern if you are evading tax
-That is awful, and I would like to know more about it so we can prevent stuff like that from happening

Apart from the final point which seems terrible, the other points are either good or manageable. Don't you worry Bitcoin is quite resilient as you can see it hasn't died over the years. This hump is no different.

https://news.bitcoin.com/24-year-old-sent-to-prison-for-selling-bitcoin-to-undercover-agents/

As a system it has been studied quite a lot and doesn`t seem to have points of too much worry, I agree.
On behalf of usability, this anticrypto trend adds some litle problems to UX imo.

[Jet Cash]

I can see a time when miners are forced to reduce power consumption during periods of peak demand. Alternatively, they may face heavy surcharges.

[runCRYPTOrun]

I can see a time when miners are forced to reduce power consumption during periods of peak demand. Alternatively, they may face heavy surcharges.

My vision on mining vs power plant situation: a company refuses extra clients and income (the power plant) ... no logic

[gua86402]

Perhaps effective regulation will help the digital money market more!

This will stop some cheating ico projects!

A good ico project can get the corresponding legal protection, can play the magic of digital currency!

[Minnie1928]

Regulating measures spreading from all over the internet. It looks like it's becoming a trend for governments and especially banks to push over cryptosphere. While last week Germany had some mild attempts of regulations in a liberating manner, now I see a whole bunch of aggressive moves against crypto.

Take a look at the headlines:

* Brazil regulators move to block bitcoin mining investments
* TD Bank, one of the largest bank in North America to block credit card cryptocurrency purchases
* A city in US proposed law to put 18 month moratorium on new mining operations
* Coinbase is legally required to turnover information to IRS on approximately 13000 of its customers
* 24-Year-Old Sent to Prison for Selling Bitcoin Without Asking for ID

These are one of those days when the benefits of a decentralized network are exposed.

Is it a start of crypto going back to backgrounds of localbitcoins?

Something that cannot be stopped is trying to be controlled. Governments are using their power and finding loopholes for restricting some parts of the investments because that restrictions are benefiting them.
The government cannot control the Bitcoin flow and investment but they can do a big harm in some countries to the Bitcoin investors.
Bitcoin will prevail over this attempt for control and with each obvious move from the government the Bitcoin holders are educating themselves and I don't think that the reputation of the certain authorities bringing themselves any good.

[liangweicha]

Because many encryption currency all used for money laundering and other illegal crime, so each country according to its own situation to take certain measures to limit encryption currency is normal, but banning bitcoin countries most of them are silly.

[penig]

In another thread in this very sub-forum people are asking if we can discuss with government to make sure crytpocurrencies are legally recognised.  Here we there is complaint that they have been regulated.  

Legal recognition means regulations. What is that the community want?  Recognition with regulation or non-recognition with no regulation.  You cannot have both, and existing laws and regulations will still apply anyway.

BTW that guy getting jailed, was because he didnt follow the law on money laundering.  It wasnt because he was trading bitcoin, but because he didnt ask for ID as required to for *any* transaction over certain amount.  If he'd been trading other items of value he'd would have been jailed for not complying too.

[pawel7777]

I can see a time when miners are forced to reduce power consumption during periods of peak demand. Alternatively, they may face heavy surcharges.

My vision on mining vs power plant situation: a company refuses extra clients and income (the power plant) ... no logic

Power Plants are not your average business. They can't increase their capacities in a snap. If demand suddenly goes too high - there will be a power shortage. They need to operate in a stable environment.

Power plants also have strategic meaning, so the local authorities are likely to intervene if something goes wrong.

[ranman09]

I can see a time when miners are forced to reduce power consumption during periods of peak demand. Alternatively, they may face heavy surcharges.

Can crypto be done on low power consumption? If yes, then why its made this way?

[bug.lady]

-snip-
* Coinbase is legally required to turnover information to IRS on approximately 13000 of its customers
* 24-Year-Old Sent to Prison for Selling Bitcoin Without Asking for ID
-snip-

Well these news show that the countries enforce and "seal" the way they can tax bitcoin. You cannot expect anything less. A few high-profile cases with an adequate media attention and you can be sure that people will report their capital gains or income at their own volition.

Look at your own comment:

-snip-
That last news however compromises my thought of bitcoin trading on localbitcoins freely.

You are already starting to think the way they want you to.

[runCRYPTOrun]

-snip-
* Coinbase is legally required to turnover information to IRS on approximately 13000 of its customers
* 24-Year-Old Sent to Prison for Selling Bitcoin Without Asking for ID
-snip-

Well these news show that the countries enforce and "seal" the way they can tax bitcoin. You cannot expect anything less. A few high-profile cases with an adequate media attention and you can be sure that people will report their capital gains or income at their own volition.

Look at your own comment:

-snip-
That last news however compromises my thought of bitcoin trading on localbitcoins freely.

You are already starting to think the way they want you to.

This was an evaluation of possiblities for crypto circulating. In terms of user experience, restraints of free exchange are an issue. However they do not overcome benefits of crypto by the tyniest bit.

Power Plants are not your average business. They can't increase their capacities in a snap. If demand suddenly goes too high - there will be a power shortage. They need to operate in a stable environment.

Power plants also have strategic meaning, so the local authorities are likely to intervene if something goes wrong.

My logic: Electricity povider has full control over powerline throughput (you can not use unlimited mwh in your house due to powerline limitations) so it has full control over its business, and it can refuse you (due to technical issues) if you solicit an increase in power usage, or try and increase electricity production (due to numerous solicitations). Question: where do authorities fit here?

[runCRYPTOrun]

Because many encryption currency all used for money laundering and other illegal crime, so each country according to its own situation to take certain measures to limit encryption currency is normal, but banning bitcoin countries most of them are silly.

I dont think its normal to limit cryptocurrency due to its use in some illegal actions, it is normal to search for the criminals ( you dont ban cars because they were used in a bank robbery).

In another thread in this very sub-forum people are asking if we can discuss with government to make sure crytpocurrencies are legally recognised.  Here we there is complaint that they have been regulated.  

Legal recognition means regulations. What is that the community want?  Recognition with regulation or non-recognition with no regulation.  You cannot have both, and existing laws and regulations will still apply anyway.

BTW that guy getting jailed, was because he didnt follow the law on money laundering.  It wasnt because he was trading bitcoin, but because he didnt ask for ID as required to for *any* transaction over certain amount.  If he'd been trading other items of value he'd would have been jailed for not complying too.

No regulation doesnt mean non-recognition ( if I dont have a law stating that yellow dogs are alowed to enter the city => yellow dogs can still enter the city ).

Could you detail a bit on money laundering thing, is it legally necessary to ask for ID for ANY transaction over a certain amount? And what precise amount, if you are aware?