how governments can regulate digital currencies?

[Pattart]

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

of course the government will not be able to provide 100% control over bitcoin, because decentralization cannot be eliminated, I think the government is doing cooperation with third parties. namely local exchanges, the government requires if they want to operate, there are things that must be obeyed, that is user verification and taxes that must be paid..

[vonnyaries]

this is the big problem for right now, we can see that bitcoin problem is in this right? we see that there are many people taht against bitcoin because bitcoin is not regulated by government, and if government want to regulate it, how? it is very complicated to regulated

[bitfocus]

They can only regulate and control Centralize Crypto, not decentralized ones (according to a recent report, about 86% of cryptoes are centralized) - so, I see no way for any government to control any Decentralized Crypto.

[efxtrader]

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 ?

Government can regulate cryptocurrency in trading. I think if government regulate crypto trading, i think its good news for market. For payment, i think cryptocurrency can make partnertship with payment processor like mastercard or visa and i am believe it will happen in near future

[anonymous2020]

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 ?

For my own opinion a lot of people refer to the crypto world as the wild wild west, because there's no regulation in the markets like there is with trading stocks.I think it might be for the best if the crypto world had some regulations imposed on it,but I don't see how they could achieve that.

[guybrushthreepwood]

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 ?

It's hard for them to regulate cash but they do their best and largely rely on information from third parties  -- your employer and bank etc -- and hope people are just being honest and then cracking down on those that aren't. They wont actually regulate actual bitcoin directly just like they can't really regulate the cash in your pocket or under your bed, but they will regulate it via exchanges and the services you use. Lets look at exchanges for example. Most if not all -- especially legitimate ones -- already require KYC to open a new account. They might not know about the bitcoin in your wallet or ledger nano, but they'll know about it when you send money to an exchange. You might be able to avoid that by dealing in cash only but then you've got a lot of cash that is unaccounted for and you'll have to explain the origins of if you ever put it in the bank or try buy anything substantial with it -- houses and cars and so on.

[sidebyside]

I think it can happen, all are connected to the internet and when the government wants to regulate digital money, they can access and capture information from you

[kwakgyimah]

Due to  the decentralized nature of blockchain tehnology, any form of regulation of any cryptocurrency such as bitcoin would be very difficult. I think as the knowledge of cryptocurrency is on the rise now, I believe there would be some form of regulation in the very near future. The world of blockchain technology is fast advancing, any form of regulation by government would be very possible.

[mitchr4]

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 ?

That is difficult, the government will not be able to regulate it all. I think they can only regulate people who use digital currencies that are illegal like an act of cyber crime. But the value and wallet of their digital currency users have no rights to it.

[reverseflash]

I see one option in which the state will be able to control cryptocurrency. But only one coin issued by the state itself as a state currency. As for the rest, such control will not be possible without totalitarian control over Internet traffic within a given state.

[ocid]

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

of course the government will not be able to provide 100% control over bitcoin, because decentralization cannot be eliminated, I think the government is doing cooperation with third parties. namely local exchanges, the government requires if they want to operate, there are things that must be obeyed, that is user verification and taxes that must be paid..

Yes, that is one of the main factors where each user is obliged to verify his identity and can be subject to tax fees because behind the existing local exchange market, the government has taken part in cooperating with the local exchange market, and of course this is not known directly by every one. Cryptocurrency has a decentralized nature so the government cannot directly regulate its holders to be taxed directly unless the cryptocurrency can be formalized by all countries, the government has the authority to regulate everything.

[setialovers]

I think government can regulate cryptocurrency start with crypto trading. We can not expect much government regulate bitcoin as payment because many central banks againts it. By regulation on crypto trading, we can relax and calm to invest and trade in cryptocurrency market

[RomanPoman]

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 ?

It's hard for them to regulate cash but they do their best and largely rely on information from third parties  -- your employer and bank etc -- and hope people are just being honest and then cracking down on those that aren't. They wont actually regulate actual bitcoin directly just like they can't really regulate the cash in your pocket or under your bed, but they will regulate it via exchanges and the services you use. Lets look at exchanges for example. Most if not all -- especially legitimate ones -- already require KYC to open a new account. They might not know about the bitcoin in your wallet or ledger nano, but they'll know about it when you send money to an exchange. You might be able to avoid that by dealing in cash only but then you've got a lot of cash that is unaccounted for and you'll have to explain the origins of if you ever put it in the bank or try buy anything substantial with it -- houses and cars and so on.

So all of your movements that go through exchanges are transparent to them. Are there currently ways that they can trace your money BEYOND the exchanges?

[bdc2343]

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 think the government will not have a way for them to adjust digital money, because as everyone knows there are a few but still have not agreed to fully accept the bitcoin, so this move will be very Feasibility.

[blocklancer8]

It seems that it will not happen, the government cannot fully regulate this digital world. The decentralization system cannot be penetrated or pegged by a practical system, the government cannot limit the existence of this already developed crypto.

[Wodomi]

this is the big problem for right now, we can see that bitcoin problem is in this right? we see that there are many people taht against bitcoin because bitcoin is not regulated by government, and if government want to regulate it, how? it is very complicated to regulated

The government does not need to regulate cryptocurrency, because as a global currency the rules of each country must be different. Simply put, government authority is only available at the place of exchange of cryoptocurrency, specifically related to taxes and monitoring of terrorist or criminal cases.

[giantrobot]

Digital money has unsuitable elements for government. So digital money is for the government to accept, it must accept the laws set by the government, accept the correction.

[Zalaster]

I don’t think that governments will be able to totally control bitcoin. A partial deprivation of anonymity through AML / KYC is possible, however, an international control committee with jurisdiction in any country of the world must be created for this. It will be very difficult, therefore unlikely.

[Argoo]

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 ?

To regulate and track the movement of cryptocurrencies are two different things. Regulation of cryptocurrency, as a rule, includes the establishment of the legal status of cryptocurrency, the determination of the conditions and procedure for its circulation within the state and in most cases the establishment of taxation.
Therefore, regardless of where the cryptocurrency will actually be stored, it is quite possible to regulate its circulation in the state.

[fourtimesprofit]

govt can prepare guidelines so that crypto investors can follow the guidelines and trade as per the rules