Why the world needs Altcoin Regulations - Blackpaper

[Spoetnik]

The world needs altcoin regulations because ?

- It would put more profits in your pockets.
- It would aid adoption problems all coins suffer from.
- It would create a far less risky environment for participants.
- It would legitimize the Altcoin world.
- It would dramatically expand technological growth of digital currencies.
- It would provide justice for scammers past & present.
- It would dramatically reduce the amount of scams & thefts in Crypto.

Just imagine if it became common for the worlds investment advisers to recommend an Altcoin to their clients to diversify their Investment portfolio's.

I have told you all lots that the price of your coins would sky rocket if they were adopted on a large scale.

So, tell me Altcoin enthusiasts why are you AGAINST regulations ?

[jaberwock]

regulations only make more difficult and expensive for investors and entrepreneurs, and also will restrict people's freedom

only the government and the ones associated with the government that want to make impossible for the others to get all the market for themselves want regulations

[PolyPanto]

There are of course advantages in altcoin regulation, like you listed above but at the same time regulation has disadvantages. In order a structure which will be able to force people to obey the these regulations it should be on laws level and can be implemented and supervised only by the local government. But involvement of government will change the general concept of altcoins and cryptocurrencies and at the end it will be a copy of the current available markets and I don't think that this is what people want.

[Devnant]

There are too many risks involved with regulations.  For instance, a change in laws or regulations made by the government or a regulatory body can increase the costs of operating a business, reduce the attractiveness of investment and/or change the competitive landscape. Also, don't forget about rent-seekers attempting capture of regulatory government agencies to gain a coercive monopoly. I think that's a really, really terrible idea that would simply destroy altcoins.

People who desire government involvement and control of the crypto market should just stick to fiat.

[BitcoinHodler]

regulation is only good for when we are looking for more adoption, and we are talking about adopting it as a currency in services and merchants accepting it.

but since altcoins are used for speculation purposes and to make more money (bitcoin) from trading them, then regulation means paying taxes on something that you want to only trade! and that means less profit.

[Spoetnik]

regulation is only good for when we are looking for more adoption, and we are talking about adopting it as a currency in services and merchants accepting it.

but since altcoins are used for speculation purposes and to make more money (bitcoin) from trading them, then regulation means paying taxes on something that you want to only trade! and that means less profit.

Uhhmmm you are ALREADY suppose to be paying taxes on your profits from trading as it is guys.
I know the Govt of Canada made this Law back in 2013.
There is no grey area about it.. it is in fact THE LAW !
If you are not claiming your earnings then paying tax on it you can be arrested and charged.
Al Capone style (he was taken down by Tax Fraud when people thought he was untouchable)

I seen not 1 reply yet that had a valid response.
Either you guys made up some crap or got super vague with irrational fears.

Monopolies by "the man" ?
You have got to be kidding me ahhahaha
We have Monopolies already by the Chinese miners and shady whales etc here already.
And don't forget about the centralized / govt compliant exchanges that control the scene with no transparency.. pulling strings as they wish.
Yet the difference would be is making sure they are not using insider trading etc.

If we had more regulations that what we already have it would probably be like how it is in the financial world with FIAT.. which negates your criticisms. (the stuff posted here does not happen in that world)
Further more you all assume that i am talking about letting the government impose rules on you that you do not want.. with out your input.

Well guess what ole Spoetnik has been harping on about since 2013 ?
I told you all regulations are coming anyway.
So you all better get with the program and HAVE YOUR INPUT IN THEIR CREATION.
Then you are the ones making thew rules.. not bitching about rules imposed on you.

What did you all say ? They can't and you laughed at me and got childish and defiant.
Pointless.. because as always i am right 100%.
Since 2013 we have been getting flooded with different aspects of regulations.
- Canada announced Tax guidelines.
- Users selling Bitcoin with LocalBitcoins were arrested for Anti-Money Laundering Laws in Florida.
- FiNCEN fined Ripple.
- The SEC released an investor fraud alert warning about crypto coins.
- Most exchanges implemented anti-money laundering law related personal info collection measures. (AML)

So really it's just about too late to say oh, we don't need or want them.
THEY ARE HERE !

All i see and hear is people assuming a bunch of stuff out of fear and paranoia.
You all assume this would be bad and stop us from doing what we do now.
Wrong.
What would happen is there would be a layer of transparency, accountability and for once justice.
Have you all looked at what the AML laws are and why they are created ?

http://www.finra.org/industry/aml

Firms must comply with the Bank Secrecy Act and its implementing regulations ("Anti-Money Laundering rules"). The purpose of the AML rules is to help detect and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.

You guys are scared of having...

- Insider trading stopped ?
- Money laundering stopped ?
- Terrorist financing stopped ?
- Securities fraud stopped ?
- Market manipulation stopped ?
- Blatant coin scam and MLM's etc stopped ?
- Thieves like on GOX & Cryptsy and Mintpal stopped ?

Why would you all defend people using corrupt unfair practices ? Hmm i wonder why ROFL
Martha Stewart an old lady that baked pies on TV was arrested for insider trading and convicted and put in an orange jumpsuit and served JAIL TIME.

In crypto ? She would still be doing it and worse.
And to all of you that is great.. why ?

You are worried laws are going to stop you from profiting off of shallow scammy hollow pointless scam coins that would be taken down.. choking your precious ROI'z.
YOU ALL WANT A SCAMMY CORRUPT RISKY SCENE ..TO PROFIT FROM !

..while claiming your earnings with the taxman of course right ?

[Devnant]

"Hurp durr you are against regulations because you are a scammer."

Not an argument.

Honestly, I avoid about 99% of altcoins because they indeed seem like scams. And no, I don't want big daddy government protecting me. I'm a grown man and I'm aware of the risks and rewards associated with crypto. I don't leave currency on any exchanges. I do my research thoroughly before investing in any altcoin.

All the wonders of bureaucracy already exist on the fiat world, and it hasn't stopped the biggest, most damaging, and least accountable scams of them all! And guess what? These all had a Central Bank behind them. Also, you gotta be pretty ingenuous to think you'd have a say on any of these rules you are proposing. Rules are bought by the ones that most benefit from them.

Here's a better rule for you: vote with your wallet!

[Blockchain Mechanic]

Regulation == Tax. If the taxes paid actually worked towards benefiting the industry , it would be great, but as we all know , it just becomes another cash cow for centralized governments. Even the most well meaning regulations could end up being used as tools of oppression if someone else ended up in office.

Legitimacy is great, but know that once one law is passed, more will follow until this becomes just as heavily controlled and impossible to navigate like anything else. I'm not against regulation, I'm just against the abuses it will bring and how it can potentially stifle the industry. I'd like to ask though, how would you propose to "regulate" something that is almost entirely internet based ? The level of cooperation to have effective policing of crypto is just too much, with all these differences between nation states.

The best policing IMO would be industry based wherein users and developers boycott bad apples and warn others proactively, not trolling or shilling, but genuine fact backed analyses. The major problem is probably lack of a trusted ratings company. And even if it was created, how to secure it from manipulation?

Could be a real DAC idea in there somewhere for someone itching to try coding something.

[Spoetnik]

http://www.coindesk.com/irs-bitcoin-tax-guidelines-mean/
http://www.coindesk.com/canada-revenue-agency-tax-rules-apply-bitcoin/

ya ya rabble rabble derpty fuckin' derp  

How many of you paid your fucking taxes ?

I would safely bet 0 did it properly.

Reread what i just fucking said.. i warned you all it would happened before both Coindesk stories came out.
Regulations are already here in *part.

The purpose of Crypto Currencies is to evade taxes ? hmm who knew ?

[BitcoinNational]

Spoet you are the regulator.

- Insider trading stopped ?  IMPOSSIBLE, US SENATE does it best
- Money laundering stopped ? IMPOSSIBLE, CITY OF LONDON level expert
- Terrorist financing stopped ? IMPOSSIBLE, STATE DEPT/CIA/House of Saud
- Securities fraud stopped ?  IMPOSSIBLE, see NYSE
- Market manipulation stopped ?  IMPOSSIBLE, lol, that's the FEDRES job
- Blatant coin scam and MLM's etc stopped ? We can fix that.  Honestly, that is what this place is about. Reputation
- Thieves like on GOX & Cryptsy and Mintpal stopped ?  We can fix that.  Work on creating a distributed risk, decentralized exchange system, open source.

[Spoetnik]

Spoet you are the regulator.

- Insider trading stopped ?  IMPOSSIBLE, US SENATE does it best
- Money laundering stopped ? IMPOSSIBLE, CITY OF LONDON level expert
- Terrorist financing stopped ? IMPOSSIBLE, STATE DEPT/CIA/House of Saud
- Securities fraud stopped ?  IMPOSSIBLE, see NYSE
- Market manipulation stopped ?  IMPOSSIBLE, lol, that's the FEDRES job
- Blatant coin scam and MLM's etc stopped ? We can fix that.  Honestly, that is what this place is about. Reputation
- Thieves like on GOX & Cryptsy and Mintpal stopped ?  We can fix that.  Work on creating a distributed risk, decentralized exchange system, open source.

That made me smile  

It's not so much what i think ..it's what is going to happen or already has.
When i started there was no rules.
I kept warning you it's coming and i rattled off a huge pile of example earlier.
I was right !

This stuff can only fly under the radar so long before governments crack down somehow.
Most recently i have been thinking of a couple key issues.
- Terrorist Funding
- Cartel Money Laundering
- General 1st world regulations (UK, CAN, USA etc)

That terrorist funding / laundering loop hole created in crypto is a gaping hole which is why AML laws were implemented on exchanges.. which also applies to organized crime.. Al Capone ring a bell people ?
So what happens ? Exchanges are taking our picture ID and you all are fine with it.
Because one day you all figure we will be using decentralized exchanges.. well.. when ?
Bitcoin ? 7 or 8 years old now ?
They so far are not able to offer the same level of service a traditional exchange offers which means they are not yet a viable replacement.. sorry but i too wish they were guys  

Taxes ?
Once again like the money laundering shit.. it's too late guys.
How many of you are teens who never filed a tax return in your life ?
This crypto should *could come back to haunt you in an audit or investigation or if someone ratted you out later on down the road.
Me i think my ass is covered to some extent because i quit trading as the law became publicized.
By the time it was time for me to do a tax return the next year and claim my exchange earnings i had already long stopped any activity.
Taxes ? cough cough Al Capone anyone ?

I love your rebellious attitude i really do but i think we all need to be practical and realistic about what is happening and what will happen in the future.
And being anti-tax is silly.. You don't get a choice in the matter.
Want to evade them ? Then enjoy your jail sentence.. end of story.
The tax man is the one mutha fucka' you don't want a piece of on this planet earth  

I have wondered why we don't have major regulations flooding us.
Guy earlier hit on the head.

It's the code !
The logistics of having a branch of the govt sit there and sift through all these different coin projects and services is simply too much.. at least right now.

But does that mean they are going to ignore this stuff forever ?
Nope.
Sadly guys it's obvious.
They will simply be heavy handed and hammer down some draconian rules on us.
Which is what i warned you all they would do and why it was imperceptive we strike a deal early by being an input into their creation early before they make decisions for us.
We should have been at their door saying give us regulations that are fair for both sides.
Not waiting for them to hand us what ever they want. (with out our input)

Honestly i don't think the IRS etc care too much about kids making a bit of money on coin schemes.
What they are watching is.. how big will this stuff get ?

I don't think you all fathom how serious money laundering is.
Drug cartels across the globe for example need to launder billions (see Mexicans + HSBC bank)
When there is enough liquidity in crypto they will move in i guarantee it.
Problem is 1 single drug cartel moves more money that the market cap of every coin combined in 1 year.
If they wanted to just the major Mexican one AKA: The Golden Triangle could walk into the crypto scene and buy every single coin on CoinMarketCap at once and have change left over.

The real big whales out there are monumentally large and powerful world players.
And when you ire the wrath of the NSA, CIA, FBI look out guys.

China just banned VPN's.. heavy handed tactics.
In the USA they don't need to.. they simply walk in with a Homeland Security warrant and seize it and leave it running for data collection.
This forum could have been hijacked by the US govt long ago and theymos could have been ordered to not say anything.. it HAS happened lots before on the internet with services.
It is to the benefit of the US agencies to let the rats scurry around.. so you can track them.

Just look at the world of Piracy / File Sharing guys..
It's a cat & mouse game that never ends.
I tried to support P2P for ages and i have seen a zillion incidents go down with the govt's.
A lot of parallels can be drawn between the two.
Such as this crypto stuff is like the early days of P2P.. they just have not had time yet to react with "laws".
I have said they can't stop us lots with P2P.
Maybe not but many of us are doing jail time right now.

Anyway you are already using regulations and supporting them or close your Poloniex, Coinbase accounts etc right now.
You can not claim you are against them then comply with their laws they have in place.
That makes you all a hypocrite.
Cryptsy admitted before to feeding a customer lies and bullshit and handing over their info to the US Fed's.
This is not a conspiracy guys.. it actually happens.
Coinbase handed over the data of a guy running KickAssTorrents.com
This shit is real .. it's not a joke.. the guy is behind bars right NOW !

[cryptoisdafuture]

Regulations have the advantage to prevent defrauding investors, customers etc. At the same time, this is a libertarian experiment which thrives on the fact that there is no government oversight making everything complicated, thus reducing costs of running a business, there are much lesser middlemen. Smart contracts are attempting to replace all these accounting, legal, insurance BS which are a mess frankly. Some amount of regulations to prevent fraud, sure. Anymore, no please.