Future regulation in Bitcoin banking

[virtfund]

How do u think bitcoin banks would be regulated in the future, specifically in the area of fractional reserve requirements. Do u believe they would be held to the same requirements as traditional banks or would they have different rules? Why?

[1715442850]

1715442850

[1715442850]

1715442850

[1715442850]

1715442850

[1715442850]

1715442850

[melody82]

I think there are two things at play: lobbying power and taxation.  It is doubtful that any bitcoin bank, unless a big bank like chase or someone starts a bitcoin section, will have any significant lobbying power.  Traditional banks and governments both have a vested interest in bitcoin not succeeding.  So I see a real possibility of big banks lobbying against bitcoin in general.  Already you are seeing some of this.  California just passed a law making certain types of businesses illegal such as bitcoin exchanges.  I don't know for certain if this was due to lobbying but honestly there would be little reason for the state government to do this otherwise.  It would be in the state's best interest to let businesses of any type flourish.

The second factor is taxation.  At some point governments will realize that bitcoin and other cryptos are indeed the way of the future.  When this happens the future regulation is simple: whatever allows for the most taxes to be collected.  Again I believe that this is related to the lobbying mentioned above.  The recent (slightly insane) move by the US government falls into both of these categories.  By classifying bitcoin as an asset and not a currency it is taxed differently.  And while I don't have any evidence, if you are familiar with the US government then you will understand that NOTHING happens except what the lobby wants.  There may be a "maverick" politician here and there but these are the exception that prove the rule.

As I see it any regulations will be based around those two things.  It is like a battle is under way and in the US at least bitcoin is losing quite badly so far.

[Amph]

the point is that they should have the same regulation to attract more people, since in this way they will feels more comfortable to deal with something that they already know, but i predict a slightly various on the taxes aspect

and interest also will work in different way, especially because they can't burrow many coins from other deposit like they do with fiat, because of the supply limit

[Beefcake]

In the future the regulations will differ greatly by region, just as they do today.  It is possible that the more bitcoin grows the more governments will have to accept it.  But just look at Russia vs the USA to see how different things can be.

[anderson00673]

Bitcoin banks would be an interesting thing.  Unlike traditional banks people seem to not care all that much where the bitcoin bank is located.  So if a government places regulations into effect that the bitbank does not like, they can just move their business somewhere else.  It might not even be all that difficult to do, at least compared to moving operations for a traditional bank.

[arallmuus]

How do u think bitcoin banks would be regulated in the future, specifically in the area of fractional reserve requirements. Do u believe they would be held to the same requirements as traditional banks or would they have different rules? Why?

I seem to be missing the main point of this. AFAIK, BTC is a sole solution to the old traditional banking system, it is created to end a centralized old fashion economy style and thus building some BTC bank isnt gonna help at all.
The word "bank" it self already indicate that it will be the old fashion banking system as in FIAT which means the bank profitted the "saver" with interest and profitted themselves by "lending" it to another people with a huge interest, thus I dont see a point why we need a BTC bank.

If you are concern about having BTC bank could help you to protect your BTC then I must remind you that there are alot of way to protect your own stash of coins without relying on to a third party to help you to secure it such as a either a cold wallet / paper wallet and of course this is a good quote regarding having a third party to keep your coins

Code:

If you are not a sole controller of your [btc], then you dont own your [btc] 

[Hazir]

I told you this before and and tell you this now. I believe that government intervention in the bitcoin industry is simply inevitable, bitcoin will change. I keep thinking about this and I know that bitcoin simply must change to bring it in line with other payment systems. If we want to have 'true bitcoin banking' experience then unfortunately this means adding identity information to bitcoin transactions and making it possible to blacklist funds.

[countryfree]

I don't care much about this for the foreseeable future. Regulations are local, but with BTC it's so easy to buy or sell in another country, that regulations are next to irrelevant. Longer term, if it's possible to buy a property with BTC, and that you can get a loan in BTC to make the deal, it would be much different, but I'm not expecting that anytime soon.