how governments can regulate digital currencies?

[Steinway-Bobb]

If the government wants to control crypto , I think the tax measure is a good solution but if it is hit on electronic money, it seems to lose the character of crypto

[Conasse]

Dude a tax isn't going to help a government to control and regulate digital cash. Hello, have you ever hear of tax evasion and talking specifically about the decentralized money, how it(s going to happen. Unless you use it with the bank account you own.

[CarTrick]

When it comes to regulation, we could take cue from Japan.
“In April 2017, acting on the advice of the FATF, Japan revised its Payment Services Act. The revision included the legalization of virtual currency as a form of payment, as well as, new licensing requirements for exchanges operating within the country. Technically, Japan does not consider Bitcoin as legal tender because it’s not issued from any central government, but they do acknowledge that it can be used to purchase items.”
https://coincentral.com/japan-crypto-lessons-in-blockchain-regulation/

[earlytrade24]

The government can accept crypto as a legal tender, just like what Japan did.

[kelaxo76r]

It is reasonable why there should be a few controls to confine the utilization of blockchain technology that is utilized in promoting any type of venture, particularly with the rising number of phony cryptocurrencies. What could be of most extreme advantage to the industry is if a well put together  regulatory framework was executed. This was endeavored in March when individuals from the G20 met to examine the fate of cryptocurrencies on the universal stage, yet no accord was reached. At the present time, it might appear as though there are a bigger number of disagreements than consensus, however this is altogether anticipated that would change as blockchain ends up perceived as a vital technology for organizations around the world.

[bayu7adi]

digital money does use the blockchain, known as decentralization, but I doubt ... is all blockchain-based currencies included in the decentralized category (I doubt this point)
for example, XRP, which can be said as a centralized currency because it gets support from the government and banks

[hastag_80]

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 ?

Maybe you have a point,but being a government law they have a power and capabilities to organize this matter,even thats you said thats identification,maybe as of now we cannot figure out what the outcomes of this development about crypto,but soon once its become established and more and more all over the world patronize cryptocurrency then the progress and possibility would going on.

[denzkilim]

Dude a tax isn't going to help a government to control and regulate digital cash. Hello, have you ever hear of tax evasion and talking specifically about the decentralized money, how it(s going to happen. Unless you use it with the bank account you own.

It doesn't help a lot but it will help the government to earn some extra cash and I hope it won't end up entering their own pockets.
That tax evasion thing is kinda impossible for Crypto Currency users even if they implement KYC(Know your customer) on every Crypto users on their respective countries, I heard and read some article about the Japanese government implementing taxes on Crypto users but it didn't explain how that law works on every citizen of their country that uses Crypto Currencies.

digital money does use the blockchain, known as decentralization, but I doubt ... is all blockchain-based currencies included in the decentralized category (I doubt this point)
for example, XRP, which can be said as a centralized currency because it gets support from the government and banks

I don't know much about XRP(Ripple) but I see some posts in this forum that it will be used by banks in the middle east. I think this is one of the reasons why Ripple reached the top 3 on Coin market capitalization.
I immediately googled about the decentralized and centralized issue about ripple and I think its just FUD according to this article that I have read below.
https://coingape.com/ripple-clears-about-centralized-or-decentralized/

[peacefulpeace]

it is going to be impossible for the government to regulate digital cryptocurrencies due to it decentralized nature, the only way to do so is to centralized cryptocurrency and that is impossible, my advice is that government should legalize crypto, at least when it start operating in the limelight, the government can have a close look into it's operations and transactions.

[nellakarisma]

if in my opinion it is very difficult for the government to regulate digital currency movements. because there are so many Wallet that don't have an official site (only using e-mail without a copy). but in the future there will certainly be a way out to regulate cryiptocurrency

[lovesybitz]

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 ?

The government of each country has no capability to regulate bitcoin or digital currencies, unless if one of the coins is centralize.
Because of decentralization that's the common reason why most of the government don't want to accept bitcoin and other digital currency.
but if one of the exchange company has been register under the agency of the government that exchange was being categorize in centralization or regulated business company, that's why they required KYC for their user clients.

[erikoy]

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

Local exchanges are the best way to control or regulate cryptocurrency. Thus, regulating it would be easy by implementing KYC before involving in exchanging fiat to crypto. ICO's could also be regulated by the registering their ICO project including the team for when they will scam the their investors then they will be put to jailed.

[Harlod Benjamin]

As far as I'm concerned, it is impossible for government to regulate digital currencies because cryptocurrency are decentralized and can not be controlled. The govenrment only can regulate cryptocurrency if cryptocurrency are centralized.

[barlasb]

Does the governments needs to regulate digital currencies? or should it be free market system without control probably best solution would be taking tax from it by that way it would be win and win

[bitfocus]

They can always control Centralized Currencies but they can only push KYC and deploy financial surveillance to  decentralized currencies as Bitcoin.

[suprex333]

It will be very difficult if the government wants to regulate bitcoin, tracking and tracking names and wallets takes a long time, besides that Indigo which is fluctuating and difficult to analyze is also something that cannot be managed.

[Amevalentine]

the way the government regulates and uses bitcoin is the call of the minister of finance and information technology to unite laws or rules to be created and sanctioned by the president

[MarjorieZimmermanGinger]

The government can accept crypto as a legal tender, just like what Japan did.

but what we have to expect is that if the government wants to regulate the digital currency it must first accept or legalize it, because with the government already legalizing digital currency, the government can regulate it like the government in Japan

[moon sorcerers]

on the basis of decentralized cryptocurrency so that the government cannot fully regulate or control its use, it is very difficult for the government to regulate crypto, in a country there must be many people who use crypto, how does the government regulate so many crypto users? I think the government will experience difficulties especially there are so many wallets that don't have complete identities

[RiskySanchez]

If regulations are implemented now it is very late because all exchange systems have been implemented with decentralization that can be accessed by anyone. the government can only manage through the creation of its own digital currency not bitcoin