Can Bitcoin be regulated? And why it might be a major problem.

[HardFlaccid]

Well, you say it is not that hard to declare possession of cryptocurrencies to be illegal under sanction. But how would governments and other authorities be able to fiscalize it? There would be Constitucional rights at stake here...

[caixa]

Well, you say it is not that hard to declare possession of cryptocurrencies to be illegal under sanction. But how would governments and other authorities be able to fiscalize it? There would be Constitucional rights at stake here...

Of course they would not be able to properly regulate it. It would be an empty law, totally flawed. Moreover, one could just change to Dash or another fully anonymous coin...

[BTCBinary]

Eventually governments will want to regulate bitcoin. For now I don't think it is a good idea to regulate a new industry who is still in evolution! At this time regulation might stiflle this new technology.

[aardvark15]

I don't think it can ever be fully regulated.  Even if they try to put restrictions on it for businesses, people will be able to move bitcoins freely from person to person.

[BadGhost]

Honestly, that is what I think as well. It is impossible to regulate BTC. The only way is either to regulate exchanges to try to do some background check. Or to ban bitcoin in its entirety. But I was asking, because that is what might be a problem. If there would be a way to regulate the use of bitcoin without damaging it maybe for a future use it would be better. As something that might not be regulated is always easier to ban.

[ampere]

I don't think it can ever be fully regulated.  Even if they try to put restrictions on it for businesses, people will be able to move bitcoins freely from person to person.

Yeah bitcoin is decentralized and cannot be controlled or regulated by an individual or by any body, like banks or governments and that is the reason people are attracted towards bitcoin as it gives us freedom.

[watashi-kokoto]

No Bitcoin can't be regulated. Bitcoin is above law of various countries.

[fuathan]

Maybe just governments will put some small regulations but because of it is decentralized nature fully regulated scenario is not possible...

[PakistanHockeyfan]

Regulation is the next step to the government finally accepting us though. Unfortunately, most don't want them to be a part of the government, like myself. I'd rather Bitcoin be where it is right now. If it ever became mainstream, to an extent, that'd be a problem to me.

[Holliday]

What am I saying is that with the necessity of anonymity of bitcoin users and also with its transparency you simply cannot create a regulation. So I fear bitcoin might be proclaimed illegal the same way as drugs are, because after all it is still goods to most of the countries.

Now can the community developing bitcoin do something about it?

I am prepared to laugh at and ignore any regulations.

[Amph]

Regulation is the next step to the government finally accepting us though. Unfortunately, most don't want them to be a part of the government, like myself. I'd rather Bitcoin be where it is right now. If it ever became mainstream, to an extent, that'd be a problem to me.

fully regulation it's impossible with bitcoin, and government know this, that's why they are a bit reluctant to regulate bitcoin even partially

there are always easy way to mix your coin and do money laundering or whatever tax evasion, especially if you pay directly in bitcoin

[ctlaltdefeat]

I gave it some thinking and I am not entirely sure about this. I believe that you can either leave Bitcoin (and other Cryptocurrencies) unregulated or you can ban Bitcoin. I will explain why.

When I am regulating something I need to have a sort of control over it. Say I want set a speed on highways to 50. I will make it a law and subsequently I will dispatch a force to make it happen. In a normal society you will have people doing 50 on that regulated highways.

What if I want to regulate Bitcoins. Bitcoin is associated with money laundering. So if we would want to put a stop on that, but we wouldn't want to declare bitcoin illegal how would we do it? The currencies whom are legal tender - fiat currencies usually have a certain limit to stop you from trading in cash in large amounts. They do background checks on how much money you have on your bank account compare these to taxes report your possible income etc. I am saying that to show that they can do it. They can do it, because trusted 3rd party has all the information regarding your financials.

With Bitcoin it's different. No one is supposed to know who owns which bitcoin address. The whole network is build on anonymity. And If you would know a certain link in the chain from that point you could find another users of bitcoin. Theoretically speaking you could connect a person to a certain bitcoin valet. Would you want me to know who you are and how much money you own? In that case it would be more secure to use a classic banking. Therefore no one can know who is behind what address. As there is no place for a "personal check", it inevitably leads to the check somewhere else. But the authority cannot ask you where did you get those bitcoins, because after all you just don't know. Even if you would follow the blockchain. In the end it all comes down to bitcoin exchanges, which is the only place where the authority can do something. But again the possibilities are very limited. But the authority will always have a reasonable doubt to freeze the whole exchange or its accounts and its possession of goods (which would be other cryptos) under the anti-money laundering law. Is it a big step? No someone will start another exchange. But in the end a normal person does not wants to see dirty money flying around unregulated sponsoring terrorists across the globe. So they will just proclaim cryptocurrencies illegal. That again is very hard but it is not that hard to ban exchanges with cryptocurrencies. It is not that hard to declare possession of cryptocurrencies to be illegal under sanction etc.

What am I saying is that with the necessity of anonymity of bitcoin users and also with its transparency you simply cannot create a regulation. So I fear bitcoin might be proclaimed illegal the same way as drugs are, because after all it is still goods to most of the countries.

Now can the community developing bitcoin do something about it?

even bitcoin have regulation, dont think some country or communities will follow that regulation,they just enjoy what bitcoin become from it start,

[Karartma1]

Since the US government auctioned off bitcoins to the public (from Silk Road), I don't really think they can now make them illegal.  That would be very ironic.  They could try to regulate though.

What you say is completely true but you should know that any gov will do whatever it takes to have the latest advantage on everything.
If they decide to ban btc you will be an outlaw by using them and than it's your problem not theirs.
Govs always win, unfortunately.

[gkv9]

Since the US government auctioned off bitcoins to the public (from Silk Road), I don't really think they can now make them illegal.  That would be very ironic.  They could try to regulate though.

What you say is completely true but you should know that any gov will do whatever it takes to have the latest advantage on everything.
If they decide to ban btc you will be an outlaw by using them and than it's your problem not theirs.
Govs always win, unfortunately.

Like mine here, our Government has also declared this illegal here and warned not to trade it...
But you know, people love to trade Bitcoins and they will do it without caring whoever comes in between...
It cannot be regulated as if it ever does, people will start leaving BTC as we are here due to decentralization...