What is Bitcoin and how might it be regulated?

[pbleak]

Article: http://irishtechnews.net/ITN3/what-is-bitcoin-and-how-might-it-be-regulated/

Some choice nuggets from the Irish government at the end.

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[Amph]

it's a bit pointless to talk about this, for a simple reason

every nation will regulate it in many ways, because every one of them see it in a different way

so even if in one of those nation, it is heavily regulated no one can stop me from going to another country and have a less strict regulation, or better no regulation at all

bitcoin is decentralized even in the regulation area

[samuelars037]

it will not be regulated, no government can truly kill an idea, but they will try

[Fortify]

It can be useful to keep an eye on http://www.coindesk.com as they have a lot of articles covering new legislation in various countries. It's interesting to watch how countries like Russia and China dance around the issue with conflicting statements.

[FinalFantasy]

Bitcoin is freedom 

[pbleak]

it's a bit pointless to talk about this, for a simple reason

every nation will regulate it in many ways, because every one of them see it in a different way

so even if in one of those nation, it is heavily regulated no one can stop me from going to another country and have a less strict regulation, or better no regulation at all

bitcoin is decentralized even in the regulation area

Indeed, it seems we'll see a number of ad hoc approaches over the years. Though I trust enough in crypto to know it will find a way to skip around things.

[European Central Bank]

What I'd like to know is if any of these guys have made plans for a time if bitcoin leaves behind the need to change back into their national currency. Good luck regulating that.

[abugseuf]

a crypto currency more reliable and more trustful. it is the duty of all government to analyze either they are going to legalize it or not. the government of the states have the right to take a decision about bitcoin.

[PsursV]

bitcoin is a crypto currency. which is used in all over the world like a single currency. it is the duty of the state to regulate it. the state has to consider it as a legal currency and then the govt will make a law for it.

[Gahs]

All these talk about governments legislating bitcoins sounds like they are afraid of bitcoins or something. I mean what is there to legislate? They don't legislate food/water, do they?

[AgentofCoin]

All these talk about governments legislating bitcoins sounds like they are afraid of bitcoins or something. I mean what is there to legislate? They don't legislate food/water, do they?

Yes, I'm certain in most areas of the world, governments legislate control over food & water.

It is very important to take control and create laws/guidelines as to all water types, whether
for drinking use or commerce/recreational use.

It is also very important for 1st & 2nd world governments to attempt to protect their citizens
from certain types of harm that could be caused by food. These governments need to guarantee
that certain products are what they represent to be, they don't contain harmful substances, ensure
the meat is not diseased, and so on and so forth.

Normally, as long as you live in the "civilized world", all things are governed by laws in some way.
Nothing escapes its grasp (except Bitcoin/bitcoin - which is one reason why it is special).

[1.btcwonder]

BTC is a digital currency, which is cast-off in all over the world as a single currency. Digital currencies are extra reliable and extra trustful, and it is the responsibility of the government to regulate it. The government has to reflect it as a legit currency and at that time the govt will introduce a law to it. The duty of all government should be to investigate either they are going to allow it or not. The administration of the countries has the right to make a decision about BTC.

[darkangel11]

All these talk about governments legislating bitcoins sounds like they are afraid of bitcoins or something. I mean what is there to legislate? They don't legislate food/water, do they?

They do. They're even taxing air in areas that are proven to have it clean and healthy, places people choose as holiday destinations, like the Alps. There's a special tax added on top of property tax, that makes you pay for the friggin air you breathe. It's just the government's way of saying that if you have money to buy land in the mountains, you must be rich and should contribute.
Some regions make you pay for water, and I'm not talking about the water that you drink, but rain water. If the rain from your roof flows to the sewers, it increases the amount of sewage they have to process and that costs them money, so now it will cost you...

[alexrose2699]

One barrier to the adoption of Bitcoin that continues to emerge is the simple one of ambiguity in regulatory terms. Whilst the average user may not be overly worried about owning a small stash of the cryptocurrency, perhaps as a small speculative bet, the scale at which a company may engage Bitcoin alters the legal framework of owning it significantly. This is, surely, one reason why larger corporations have tended to adopt the blockchain as their favoured term when discussing what the underlying protocol beneath Bitcoin is. After all, the blockchain was invented explicitly to support a form of currency, Bitcoin, and it emerges from a cypherpunk tradition, a kind of blend of libertarian ideals and cryptography, that had always sought precisely a way to circumvent government regulation. With that in mind it is perhaps safer to talk about the potential of blockchain technology as a means of establishing a little distance from the roguish cryptocurrency.

[mongkie]

bitcoin is a cryptocurrency that is decentralized but widely use by people nowadays. decentralized meaning there is no bank that hold its reserve but in a cloudform like the internet meaning less hassle, less bank fees, and less worries because it is stored in a blockchain where your indentity is secured unlike typical banks. in terms of regulations,every country has its own treatment in regulating btc but its better unregulated for it to remain its low transaction fee and affordablity

[zulkarnaen]

I think if the role of government in managing btc is able to make good contribution to bitcoin development, it is necessary to get support from various parties related to bitcoin, but if the role doesnt give positive contribution then should not be expected again role to engage with bitcoin.

[Wesimon]

a crypto currency more reliable and more trustful. it is the duty of all government to analyze either they are going to legalize it or not. the government of the states have the right to take a decision about bitcoin.

It is true that the government has the right to analyze if they will leglize bitcoin or not. One reason why government come up to regulate bitcoin is they already knew that bitcoin would help them in financial stability.

But the government will never have the right do make decisions for bitcoin. Because bitcoin is decentralized. It is not dependent on the government, bitcoin can stand on its own.

[fuer44]

Bitcoin is a consensus network that enables new payment systems and money that are entirely digital. From a user point of view, Bitcoin is nothing more than a mobile app or computer program that provides a Bitcoin wallet and allows users to send and receive bitcoins. This is how Bitcoin works for most users.

[BTCwoker]

Bitcoin decentralized the presence of the third party and operated electronically. it will not regulate by any government or power in future. 

[iv4n]

What is bitcoin and how it might be regulated is what government institutions needs to think about, and they are trying to figure it out how they can classify bitcoin in order to have most advantage for them.
Bitcoin is already regulated, you have developers, miners, users, you have rules and transaction fees but governments will try to be find a way to control how people are using bitcoin and a way to tax all that, like they are doing with fiat at the moment.

[atun jong]

the Indonesian  govemment has not set been able to arrange Bitcoin
because it stiil hit the system.

[Umenk]

the Indonesian  govemment has not set been able to arrange Bitcoin
because it stiil hit the system.

I agree with you ... the government also can not
operate bitcoin yet

[qwertyup23]

the Indonesian  govemment has not set been able to arrange Bitcoin
because it stiil hit the system.

I agree with you ... the government also can not
operate bitcoin yet

Here in our country, my colleague interviewed the lawyer at the BSP (Central Bank) and they said that the government sees bitcoin not as money, but as property and isn't subject to legal tender. The government does not see it as a threat as of now and that explains the lack of government intervention with it. But they must also consider that its values is significantly high, people use it as a means of trading. They also didn't mention about the websites that lets you convert bitcoin to fiat and that is why I'm having doubts to its regulation in the future.

[iamTom123]

Technically, Bitcoin can not be regulated but what any government can do is to make laws and guidelines on its use, on matters of buying and selling, tax matters and anything else they might require for people doing business with Bitcoin under their own jurisdiction. And for me, that can be any government's right to do so. They are in the authority so we might as well expect that they will really exercise that authority no matter where that can be derived from.

We can only hope that they would consider the many benefits that can come from the use of Bitcoin and the blockchain technology behind it. While many governments can be short-sighted, once they will realize the reasons why Japan opted to be leader in recognizing Bitcoin, then am sure they will think twice before thrashing Bitcoin.

The battle for regulation of Bitcoin will always be an ongoing issue for a long, long time. We should expect for that.

[ezzy.co]

Personally, I don't think it is possible to regulate bitcoin system, since it is absoluty decentralized. However, it is possible some countries may try to limit acces to the system.

[ezzy.co]

By the way, in Sweden it's prohibited to use crypto-currency to buy scrap-metal. More over, in 2013 Bitcoin was ''prohibited'' in Thailand, but later companies which worked with Bitcoin could work and even get a lisence, in spite of prohibition.