how governments can regulate digital currencies?

[libert19]

The most they can do is regulate crypto exchanges under their jurisdiction, so they can keep track trades and transfers.

[primejia]

maybe the government cannot regulate the ownership of digital currencies but the government can monitor the movement of money that is deemed suspicious, the government can apply strict regulations and certainly the government has digital currency user data and if needed can be traced to the origin of the money, but this is definitely not easy ..

[junglist.massive]

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 ?

Somehow, government should implement digital money as a new currency since we are living in this world where technology almost control all individual.

You said the government cannot regulate digital money but now you say the government must make the digital money as a new currency. Government exists because the state needs to be regulated and everything in it which it’s a great responsibility, I suggest you to read any article or journal related.

[Netnox]

The governments can't regulate the digital currencies, since most of them are decentralized. However, it is possible for the government to regulate the other sectors which are related to these currencies, such as exchanges and ICOs.

[MAJICOIN]

Government can regulate coins and they can give a space i the country So when government allow them for transactions they will provide a legal channel for the transfer of crypto and this will make bitcoin more stable and valuable in these days bitcoin is used by investors, businesses and traders but later government will use crypto for their own transaction.

[Jessica2009]

  Nobody can regulate digital currencies since they are decentralized one so it is difficult to regulate the government can regulate centralized projects because there is no KYC in decentralized one. Though some governments are trying to regulate the flow of cryptocurrency it is not practical.

[Omparkash72]

Yes you are right it is not easy for any government to regulate digital currency. That's why still Bitcoin is not used as a main currency rather then paper currency. But this Bitcoin is the future mode of currency that is true because we are adopting latest technology in every field then why not in currency. But the main thing is how government can regulate or assese this crypto. My opinion is government can make a process before any transaction that should be mendatory for any person who is going to process any transaction through Bitcoin . This way govt can assess this and maintain the record for tax purpose.

[posi]

Well, the government will only try their best in regulating the movement of cryptocurrency but they cant regulate in all because i dont think there is possibility for them to regulate offline wallets devices which rely on third party server as the OP said but the only part i think they can regulate are the crypto currency exchange system.

[rhenrhen]

Yes, for me, it is impossible that government will regulate the bitcoin and all other coins. They can just ban but not regulate. They can as well implement stricter policy towards bitcoin but not totally manipulate it.

[gesdan]

to regulate the bitcoin and the user, I think it will very hard because in bitcoin there are many variations of user and bitcoin address. so its very complicated for government to regulate the digital currency

[bloodyvio]

they can regulate the digital currency through exchange
and exchange implements KYC for every user who transacts there
even though they can regulate the exchange but the government cannot regulate the bitcoin ecosystem

[Andrew Gergeo]

The government can only intervene in a bitcoin, if it is too big it will not be an anonymous bitcoin market anymore, the government can issue rules or regulations to investors. private bitcoin for example

[andika2018]

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 its possible to regulate bitcoin and cryptocurrency. Government can regulate bitcoin or cryptocurrency as commodities and government can collect taxes from the transaction.Regulation needed if we want mass adoption on bitcoin and cryptocurrency

[Rooster101]

The exchanges are the first one to be regulated if government decides to impose regualtion on cryptocurrency exchanges. This is where buying and selling coins and tokens take place and if this left unchecked, it may be use by some people in their illegal activities like money laundering. In Japan, the government financial regulator has formally granted the cryptocurrency industry with a self-regulatory status by allowing an industry body to police their local exchanges.

[johnwest]

The government can only regulate the coins which people sell or buy from exchanges by controlling centralized exchanges. Regulation of tokens which are Holding and using them on the platform will be quite complicated.

[hahay]

I also don't know how the government will regulate digital currencies, if the government only regulates an exchange, what kind of rules can the government apply there, whether it is only the maximum ownership of crypto or such a maximum allowable withdrawal. If that is applied by the government, I only know if the regulation has been implemented in every exchange.

[cahbagus555]

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 am always believe government can regulate cryptocurrency because government want to collect taxes from crypto transaction. They can regulate cryptocurrency as commodities like other country and i think that is win win situation for crypto community and government.
Crypto community have regulation and more relax with their investment and government can collect taxes from profits and transaction

[CoinFoxs]

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

You are right, the cryptocurrency is decentralized so that the government cannot fully control, except for binding regulations related to distribution and use permits in the country. If the government wants to have coins that they can control fully then they have to make it themselves, right?

The government can regulate digital currencies by implementing taxes on their transaction as fiat currency but we all know that bitcoin is decentralized so no one completely controls it so governments can only take taxes from users of crypto-currencies from their country and give them access to bitcoin/ digital currencies trading.

[Initscri]

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

You are right, the cryptocurrency is decentralized so that the government cannot fully control, except for binding regulations related to distribution and use permits in the country. If the government wants to have coins that they can control fully then they have to make it themselves, right?

Yes, but then the very essence of government control and it being decentralized would result in the currency probably not being used to it's fullest extent.

Lets face it. The target demographic for cryptocurrency users aren't exactly fond of government control.

[bdc2343]

the government can employ great people, hackers, computer geniuses, etc. to help the government regulate cryptos, or maybe the government has done it, just waiting to implement it officially, never underestimate the government.

I find that the importance of bitcoin to the government is enormous; it is possible that they have also invested a huge capital into bitcoin just to know that bitcoin is not scam, this way it is possible. And in the ways listed by you, I think they have seen bitcoin as a real scam.