Regulation of bitcoin: dream or Inevitable

[Indrawan77]

I prefer the first option where decentralisation still occur to crypto currencies, but unfortunately that will not happen, when crypto got bigger more people will use it, and if using crypto doesn't need to pay taxes, all people will use it and then the country will lose it's income, the government wont let that happen and  I am more happy crypto currencies  being regulated than they got banned

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[biboy]

Regulating the Industry will actually be a good thing in the long run as for me regulation means mass adoption with this kind of technology, as people felt more comfortable to invest in cryptocurrencies and those who sees the true potential of Crypto focuses on getting others, including international and national government bodies as they were trying to put past issues behind them such as high profile criminal and some suspension of trading.

Therefore, regulatory measures should not only to focus on security and the price stabilization but also the position of bitcoin as a currency and should revise some existing laws and create new ones. Full cooperating among countries should be done as it is difficult to regulate when regulations vary from country to country as it will take many debates to end in regulatory resolution.

Helping to create this for the future of cryptocurrencies with the users and those developers.

[denny27]

But I think it also depends on each governments, which previously did have an a good depiction into bitcoin / cryptos., I'm sure it will lead to a more positively / support to the benefit of the country and its citizens. Well the point is definitely trying to do the best for the progress of the country and its citizens.
But anyway., I'm sure, the whole governments will indeed support the existence of this alternative currency.

[Pattart]

Financial regulations are imposed by governments on businesses and financial institutions in order to manage a nation's financial system. Bitcoin is not governed by any central authority and is free from such influences.[1]

On the other hand, bitcoin needs exchange platform So the solution to regulate bitcoin is to regulate the exchanges. If that happens, then the big banks will open their doors, making life easier for exchanges and investors alike. The banks will win from this too, because they can stop customers drifting away to more daring competitors. [2]

which scenarios will occur? "More Regulation or More Decentralization"

I think it has happened? many local exchanges provide terms of identity verification to be able to exchange and transactions on their sites. and the government is behind them. because of a requirement by the government. even users are required to do close up photos for verification. and many bitcoin users do that? it seems that many users are not too concerned about the missing decentralization?

[tannerchum]

all countries are now making regulations about this bitcoin, this can not be rejected by anyone including us [bitcoin lovers]. this is because the government wants this bitcoin also centered by government regulations.

That could be possible, governments wants to centerned the regulation of bitcoin to them. Bitcoin has its own rule they are going to reproduce to all bitcoiner who loves to involve with bitcoin. I consider myself as a follower because in every rules that they are going to implement they would allow to go on for the steps. They set up rules not for fun but for the good and when you have cryptocurrencies you are going to exchange it first before going to declare as a real money.

[mklost]

Inevitably a new industry has been created and dealing directly with money. Governments want their part.

[Nerman]

As bitcoin increase its popularity, government are also taking notice. I do not know if we need regulation or not but i think the regulation of bitcoin or cryptocurrency is inevitable. As we can see now US wants the customers information of the exchanges.

[krishnaverma]

Financial regulations are imposed by governments on businesses and financial institutions in order to manage a nation's financial system. Bitcoin is not governed by any central authority and is free from such influences.[1]

On the other hand, bitcoin needs exchange platform So the solution to regulate bitcoin is to regulate the exchanges. If that happens, then the big banks will open their doors, making life easier for exchanges and investors alike. The banks will win from this too, because they can stop customers drifting away to more daring competitors. [2]

which scenarios will occur? "More Regulation or More Decentralization"

I do not understand that why is everyone against regulations. It has its own advantages like you will see less manipulations. Currently, the big investors are making the most of the bitcoin growth.

[jjdub7]

which scenarios will occur? "More Regulation or More Decentralization"

I think both - crypto's will become more regulated and people will start using more and more decentralized solutions like decentralized exchanges instead of current centralized.

Also, regulation of some kind is inevitable. Governments wants taxes. But with decentralization services, you will need to pay taxes only when you are converting to fiat.

[bitbunnny]

For me it'll stay decentralized banks will never appreciate something they can't control and even they try they will be had a really hard time to figure out regulating  bitcoin so i really think bitcoin will gonna stay decentralized for a long time

But banks are not those who will regulate Bitcoin or other cryptocurrencies but governments. It's not banks who make the law but government and that makes difference.
Banks could try to influence the law in direction they would like it to be but still they don't make the final decision.
Seems that some people have troubles to understand how the states are functioning

[Saveplus]

Regulating bitcoin cannot be avoided ,it was decentralized but the government want to gave an authority by it,imposing tax and implement some rules and regulations by crypto.But they cannot do that for now because no one can rule out for it but as we say it was inevitable,time will come it will happen.

[Semosuchi Tesongrato]

It will be a bloody war. The philosophy behind bitcoin was exactly to escape from central authority but, onf course, central authorities won't reonunce to their power so easily.
Now we can see a lot of try to ban bitcoin or to control it. Who knows who will win, we'll see.

[Shrinath]

I think that regulation is something that is inevitable and more and more countries will decide to regulate Bitcoin in some way. But I don't think that regulation is equal to centralization. Bitcoin can be regulated and decentralized at the same time.
Regulation means seting some rules how Bitcoin should be treated, what is legal and what isn't, how it should be fitted into financial framework.
I think that regulation could strengthen Bitcoin and help it to be more accepted, we don't have to be afraid of that.

There is a thin degree of misunderstanding in terms of “regulation” and “centralization” as discussed in the quote. We all are aware that digital currencies have largely operated in a regulatory vacuum since bitcoin's debut in 2009. But governments and central banks are starting to pay closer attention, warning investors about potential scams. However, this “regulation” refers to the protocols and parameters laid down in a country specific framework. The central banks are trying to regulate Bitcoin into the same framework internationally. This has nothing to do with it being centralized or decentralized. Hence, they cannot be equated.

Bitcoin from day one has been created on the platform of decentralized digital currency. Top government officials at the World Economic Forum in Davos also signaled that more regulation could be on its way. Hence, if the central banks start to regulate the exchanges in their own individual framework, Bitcoin will definitely re-organize its mining process so that the implemented regulations could be further decentralized all the more.

[xdrpx]

I'm going to start by putting a highly possible scenario in here which looks like what is bound to happen in my country. Here goes:

The Central Bank in my country has distributed a circular on their website and several news agencies have gone through it and broadcasted it on TV channels and newspapers. What the circular mentions the following - "The use of Bitcoins and cryptocurrencies as a form of Legal tender / accepting as a form of payment is illegal" By outlawing Bitcoin in my country to be used as a legal tender, no single brick and mortar store, or an online service will be able to receive payments in Bitcoin for the goods and services they sell. So now, people can either personally send and receive Bitcoins only for trading (like a derivative or a stock), as a gift or for any personal deals (a barter maybe) which doesn't attract the regulator's attention.

After this was done, the very same week (or I guess the week prior) several Income Tax departments were alterted to visit Cryptocurrency exchanges to collect KYC/AML details of investors to track taxes paid (capital gains for long term or taxed directly as Income from other sources under the normal tax bracket). After this, every High Networth Individual's who've invested in crypto's were sent a letter to pay their taxes for the profits they've made on cryptocurrency sales. I'm assuming even other small investors are also on their radar.

Right after all of those, last week, several private banks have restricted accounts of all cryptocurrency exchanges forcing them to switch their accounts into Government owned banks. Also, the Citi Bank group as well as another private bank have restricted their customers from purchasing cryptocurrencies using credit and debit cards. If you're assuming people can trade on LocalBitcoins, yes they can, but there's no saying as to when the Government can start a campaign to track the sellers and buyers on this website since most of these sellers make use of local bank transfers or 3rd party payment services and they're easily trackable to both parties accounts, unless ofcourse you take the high-risk of buying / selling face-to-face.

The regulators are already starting to brand cryptocurrencies as "Cryptoassets" and are attempting to give it a bad name by going to the extent of calling it a ponzi scheme to scare off new investors who aren't aware of it.

Now, looking at all of these restrictions imposed, I'm sure there's a regulatory body formed to regulate all cryptocurrency exchanges in the country. With this, people can no longer buy or sell Bitcoins with ease, and they'll be tracked. Also, the coins bought can only be used as a derivate or a stock within the country and not for payments or buying your food due to the "not legal-tender" restrictions. So basically all investors are just relying on the price of the cryptocurrencies based on its value in foreign markets, which upsets me.

So in short:

1) They'll regulate all exchanges
2) They'll make cryptocurrenceis not a legal tender
3) They'll then call it a ponzi scheme as it's no longer a legal tender cause they've outlawed it and the price is purely the sole intension to invest or sell.
4) They'll tax your cryptocurrency investments as capital gains (20-30% tax maybe) or part of the tax bracket and call it a cryptoasset. [I honestly don't mind the taxation part of it]
5) They'll ask banks to block customers who buy/sell cryptos outside of the exchanges in the country.
6) They'll then launch their own version of a cryptocurrency so people will obviously use it since they feel the safety of "regulation"

Overall, this is how I feel they'll regulate it elsewhere as well. I think those who already own crypto and haven't bought it via exchanges but have earned it online and not sell it for fiat will probably be the ones who could buy stuff from foreign vendors and utilize it without attracting much attention for a short time. I think confidential transaction and future BIP's in Bitcoin will make it difficult for regulators to track funds.

[1Referee]

But banks are not those who will regulate Bitcoin or other cryptocurrencies but governments. It's not banks who make the law but government and that makes difference.
Banks could try to influence the law in direction they would like it to be but still they don't make the final decision.
Seems that some people have troubles to understand how the states are functioning

The government indeed sets the rules, but as long as a bank within these rules decides to prevent people from using their service in combination with crypto, they can do so at any time. In other words, banks don't need governmental approval for any of their actions as long as it happens internally and doesn't collide with the laws they as financial institution are subject to. It's just a matter of logical thinking. Banks on their own have a lot more power than you people can even imagine. If they control your wealth, which is the case, they control you.

[Strongball]

It's an expected inevitability I'm afraid, with the flow bitcoin is on right now
and the margin of success it possess. Governments and banks are surely to take
notice and action as they undeniably must recognize and adapt to bitcoins position
in the economy and market in the future. With the success and popularity of cryptocurrency,
being decentralized and volatile has it's issues with banks. Regulation is the said imposed solution
which entirely may exhibit some positive and negative efficacy on bitcoins and the people who support
and utilized them. I believe it will definitely succumb to regulation in general soon. It's only a matter of time.

[Mometaskers]

I'm seeing more regulation as the trend now. Countries closing to cryptos aside, it does have its benefits. It makes it less likely that an exchange would somehow just shutdown without notice with all the coins disappearing into thin air for example.

Regulation of the exchanges is a good idea)) concidering the news about bots manipulating the market, it's essential. So if you were wondering how Bitcoin suddenly appreciated in value by a factor of 10 within the span of one month, well, this may be why

It depends on what the regulations will bring to the table. For instance you can require exchanges to register as companies and have collateral and insurance that will pay for the damages in case of a loss of funds on their part. This is great as the exchanges were always the weak point in crypto security.

On the other hand the regulator may require full disclosure: client's names, coin addresses, balances... That would be a disaster.
I'm of course comparing the best scenario with the worst to give you a perspective, but such things can happen. We can't deny it. That's one of the reasons why i'm afraid of regulations and would prefer more decentralization, even if the exchanges would remain a wild west.

I guess we can all agree that that's most people's concern. Our local exchange for example already have photos of our government IDs and pretty much all information a bank would ask from new clients. Even if each exchange only allow you to make a single account, should the gov't regulator compel them them to give up your info, they'd have a pretty good idea of your worth in crypto. Then they can just monitor transactions being made with your exchange address. It's not hard to see that you would pretty much give up anonymity if you are to transact with an exchange.

Of course people can make new addresses and load that up by buying face to face but they wouldn't be able to convert that to fiat via exchange without revealing themselves.

[illnino]

Financial regulations are imposed by governments on businesses and financial institutions in order to manage a nation's financial system. Bitcoin is not governed by any central authority and is free from such influences.[1]

On the other hand, bitcoin needs exchange platform So the solution to regulate bitcoin is to regulate the exchanges. If that happens, then the big banks will open their doors, making life easier for exchanges and investors alike. The banks will win from this too, because they can stop customers drifting away to more daring competitors. [2]

which scenarios will occur? "More Regulation or More Decentralization"

I believe that soon all countries will begin to regulate bitcoin and other crypto-currencies. This can not be avoided because it has a huge impact on the world's financial turnover.   

[metenjean]

Regulation of the exchanges is a good idea)) concidering the news about bots manipulating the market, it's essential. So if you were wondering how Bitcoin suddenly appreciated in value by a factor of 10 within the span of one month, well, this may be why

I don't think regulation of exchanges means that they could control the news or even controlling bots, and did you have any prove to back this up? Regulation is inevitable but also necessary because if bitcoin, exchanger, miner or anything about bitcoin being regulated means that they stand equal with other investing instrument which will remove recent FUD from the market. It may become not so annonymous anymore for people using bitcoin but the investor will gain stable increase from the market shares.

[Sanitough]

Financial regulations are imposed by governments on businesses and financial institutions in order to manage a nation's financial system. Bitcoin is not governed by any central authority and is free from such influences.[1]

On the other hand, bitcoin needs exchange platform So the solution to regulate bitcoin is to regulate the exchanges. If that happens, then the big banks will open their doors, making life easier for exchanges and investors alike. The banks will win from this too, because they can stop customers drifting away to more daring competitors. [2]

which scenarios will occur? "More Regulation or More Decentralization"

I believe that soon all countries will begin to regulate bitcoin and other crypto-currencies. This can not be avoided because it has a huge impact on the world's financial turnover.   

As bitcoin continues to grow this would call the attention of the government and they will regulate it.
It would be easy for the small countries to regulate bitcoin if big countries have already started regulating it as they can easily copy
the regulation and will use it as a standard way to regulate bitcoin, I think this does not only apply with bitcoin but the entire cryptocurrency.