how governments can regulate digital currencies?

[rodskee]

That's is a biggest problem need to lear and study of the government
Bitcoin is volatile cryptocurrency run by new technology
So need to learn and stdy hard to control and how to regulate bitcoin
It's also possble in the future bitcoin become regulated people a lot of ideas and talent to discover the solution

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[b3llsf1l3s]

Though it’s easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?

I also think like that, this decentralized blockchain system is also a problem and a solution. on the one hand, ease of user side, fast transaction, but also difficult tracking (if it is possible, it will definitely take a long time for a case)

what I catch here is, government regulations to give crypto asset policies to related markets and customers

[Gaff]

That's is a biggest problem need to lear and study of the government
Bitcoin is volatile cryptocurrency run by new technology
So need to learn and stdy hard to control and how to regulate bitcoin
It's also possble in the future bitcoin become regulated people a lot of ideas and talent to discover the solution

One of ways of handling over bitcoin to government is making it legal to the individuals who prefer of using it. This now can be regulated in terms of government law, and taxation can be implied as per regulations review. However, this isn't a good idea for those biggest investors because a decentralized currency is always capable of being volatile. We can't prevent people of pulling out their assets due to being afraid that their funds will be over taxed by corrupt government system, which probably be happening if bitcoin becomes a legal currency. More traders now hope that bitcoin couldn't be regulated due to that situation may arise, and that's the fear of most independent traders around the world

[kucritt]

yes this is the big question, when all government want to make bitcoin legal but with the regulation, but how? how the government make that regulation? the user of people that use bitcoin is too much, it will hard to get their all data.

[Qurelal]

Governments must legalize cryptocurrency and they will have access to information. The more bans a cryptocurrency has, the less information the government has. The possibility of regulation can only be obtained peacefully.

[karloscimot]

I'm not sure, bro. if the government can regulate digital currency. precisely the government must be able to accept bitcoin because bitcoin has helped the economic growth of the community.

[James_Cline]

Can't there be a middle ground? Can we have regulation while still maintaining the decentralized nature of crypto?

[antonhuda]

The government that legalizes bitcoin means it already has a special network for the internet and all its possibilities. The government is able to make people smart and smart in all fields so that all regulations can be regulated.

[Anies_Sandi]

To be honest, there is no practical way to regulate the flow of cryptocurrencies. The best way for the government is to allow users to disclose their crypto transactions and they have the option to monitor it through the domestic crypto exchanges (with KYC). Even though some governments are trying to find the way to track the crypto transactions and ownership of it but I doubt, how full proof it is going to be in the long run.

It is very true that what you say is that the government does not fully regulate but monitors and collaborates perhaps with cooperation that can benefit both parties to become more developed and progress rapidly in the future economic system

[stayeduptolate]

Though it’s easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?

We all know that bitcoin is a decentralised crypto currency and thus there is no such proper authentic regulating body over the bitcoin who could keep eye over all its activities and thus leading to illegal use of bitcoin and the only thing that could happen to control the illegal use of bitcoin is to legalise it all over the world as those countries who has legalised bitcoins in their nation are now regulating all the illegal activities, though imposing taxes but still the regulation of bitcoin there is so wonderful.

[Russotov94]

I would say that the state can control the currency, but most likely it will use it to its advantage, here are some examples of the proper use of cryptocurrency:

1)Taxes are needed, but minimal. It is important - the first three years, for example, the ICO should be exempted from taxes. And then the country will receive: a) huge liquidity (one ICO - the budget of a region or even a few small ones); b) new funds on deposits; c) new business entities; d) a huge labor market; e) additional funds from related services (purchase of traffic, payment for the work of specialists).
2)Mining Divide it into industrial and home. For example, in terms of power: up to 15 kW - home, over - professional. I always cite the example of hosting: I do not pay any taxes for home hosting, I do not get licenses. Another thing, when it is put on a grand scale.
3)Training. Free and for all: this will remove the issue of investor professionalism, for which (allegedly) many officials are experiencing. Are you afraid that a person will invest in ICO and burn through? So teach him how not to do it: bans will not become a barrier - Forex has already proved this, and binary options have put an end.
4)No interference in the zone of complete virtuality: control only over the points of entry and exit. Why go where there is still no competence? Even Japan, and this country will certainly give two odds on manufacturability, has refused to regulate this aspect.
5)And the main thing is to stop looking at cryptocurrencies as something absurd: this is the future that has come. All that is needed is not to interfere with its development, otherwise we will lose again, as was the case with bank cards, the Internet, online services, PC development, etc.

[kvipcn]

They should just accept the use of digital currencies and stop the false speculations they spread regarding the use of cryptocurrencies. They should adapt to this new advancement and stop the idea of trying to control it. We need to make them understand that cryptocurrency operates on a decentralized ecosystem.

[loveinberlin]

I don't believe that they can do this. Sometimes, I have the thought that they just want us to believe that they have all the information but in reality the system of regulation isn't perfect

[DPrillio]

I don't believe that they can do this. Sometimes, I have the thought that they just want us to believe that they have all the information but in reality the system of regulation isn't perfect

Eventhough crypto currency can't be controlled by government because of being decentralized but still they have the hold in terms of security, as we know that crypto currency is not yet fully optimized then therefore every holders must convert first into local money through bank and other fiat exchanger of which they require proof of identification, so I think that's the only way government can do their part and that is for security only and beyond that no more.

[udidrone]

I also do not understand how they control the bitcoin, but in my opinion they will try to buy a lot of bitcoin and achieve a certain% and then they will disturb this market.

Maybe they control what market do in their country, then control what ICO project, it is like some ICO project must get approved by government. That will be very cool if can really happen.

[kendra1107]

Though it’s easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?

Wallets and exchanges that require identification of the user is a form of regulation. Local wallets in some countries which are recognized/approved by central banks (a.k.a. governments), is an obvious regulatory act. Indirect taxes in the form of trx fees are part of this regulation. Good thing about regulation though is that it aims to protect users from fraudulent activities. Unless, the frauds are the governments themselves...

[cryptojac17]

I don't believe that they can do this. Sometimes, I have the thought that they just want us to believe that they have all the information but in reality the system of regulation isn't perfect

Eventhough crypto currency can't be controlled by government because of being decentralized but still they have the hold in terms of security, as we know that crypto currency is not yet fully optimized then therefore every holders must convert first into local money through bank and other fiat exchanger of which they require proof of identification, so I think that's the only way government can do their part and that is for security only and beyond that no more.

That's one way of government regulations, because it's very important due to money laundering cases which will arise when there's no control between Banks and crypto trading sites. You're mentioning here KYC mate, and it has been implemented lately on most of the exchanges and projects due to government requirements in order to prevent any fraudulent crimes.

[Jamjamz30]

Regulation on cryptocurrency is a bit hard because of the decentralization concept of it. However, ICOs can be regulated to bring back the trust to ICOs. I am in favor of regulating ICOs. This will reduce the number of scam and failed ICOs in the future.

[xWolfx]

The regulations are clearly impossible to touch open source and decentralized projects. Centralized exchanges in the other hand are easy to regulate because of KYC/AML.

Except that is exactly where the regulations are going to be put at and things like local Bitcoin where you can buy and sell in person will be targeted for shutdowns. Which isn't too bad, just pay your taxes and don't get robbed.

Your answer is simple but in fact enlightening. The whole situation is not that difficult to do, of course it will have some workarounds that dishonest people will use but that applies to any currency or commercial activity in the whole world probably during all human history.

Taxes are a good thing because it allows government to have a real reason beyond personal preference to invest in the implementation of processes or systems to regulate and of course accept Bitcoin and all or most others.

[darkangel020716]

The regulations are clearly impossible to touch open source and decentralized projects. Centralized exchanges in the other hand are easy to regulate because of KYC/AML.

Except that is exactly where the regulations are going to be put at and things like local Bitcoin where you can buy and sell in person will be targeted for shutdowns. Which isn't too bad, just pay your taxes and don't get robbed.

Your answer is simple but in fact enlightening. The whole situation is not that difficult to do, of course it will have some workarounds that dishonest people will use but that applies to any currency or commercial activity in the whole world probably during all human history.

Taxes are a good thing because it allows government to have a real reason beyond personal preference to invest in the implementation of processes or systems to regulate and of course accept Bitcoin and all or most others.

It will depends on the country that will be regulating crypto currency r digital currency, I think it will also depends on the people who are using crypto currency in that country, the government itself.