how governments can regulate digital currencies?

[Raidal]

Nothing is impossible in this world. Crypto currency is made by humans so that humans should also be able to regulate this crypto currency. The government as the official state authority can certainly regulate the crypto currency. I have this belief because now the government has been proven to be able to regulate the circulation of fiat currencies so managing crypto currencies is not difficult. All settings are only based on technology. If indeed this crypto currency will be regulated, then the first step, we must change is to make the crypto currency system become centralized. Decentralized systems are less suitable if crypto currencies want to be regulated. As a good and not detrimental currency, the crypto system must turn into a centralized system. When this crypto currency is set the price fluctuations can end soon and trust in the crypto currency can increase. We must give up the facility of anonymity in crypto currencies if indeed the arrangement of crypto currencies is a better decision. All information must be given honestly but kept confidential.

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[syntac]

yes, of course, because the government does not want to lose anything, especially in relation to money. surely you will think to mitigate the risks that exist. therefore, it is only natural that the government wants to control what is in the component of the country.

[South Park]

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 ?

Like its original nature, decentralized digital currency movements cannot be regulated by anyone including the government. But the government can do this by forcing each exchange to require every user to provide an original ID especially when they want to register.

This is why we need decentralized exchanges, governments are going to try to attack every single centralized point of failure that we create, so not only cryptocurrencies need to be decentralized, all the market needs to be decentralized as well and that includes exchanges, and while there are several decentralized exchanges there is still not one that can compete with its centralized counterparts.

[VickyRobin]

The government can not control it completely, but only in part, assuming that the government will levy taxes on bitcoin transactions.

[Bijikopi]

they will have difficulty managing everything at once, they just need to step by step from local exchanges to ICO regulations before entering the next stage regarding taxation and transaction regulations. I am sure they can do it because this has become a broad conversation between countries. There is no point in banning crypto because it cannot be prevented anymore.

[Dean Collins]

Each country does it in its own way. Someone prohibits completely, someone only partially tries to regulate.

[SistaFista]

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 is not an easy task to regulate the currency which you cannot control such as cryptocurrency because it's decentralized and anonymous nature.
Centralized database will be easier to regulate because the authorities can have access into it, but not with decentralized database.
Government may still seek for a way to control and regulate crypto for the future.

[DennyPen]

Governments must invent some new mechanisms, as the existing ones do not allow them to take a full control over crypto and its users. That's a big deal for governments, and that's the reason some governments ban crypto. Many authorities are afraid of crypto, as they don't know what to do with it. However, as time goes by, governments are updating themselves and becoming more able to control crypto.

[[ProTrader]]

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 ?

They can only regulate cryptocurrency when you exchange it to fiat currency or you buy cryptocurrency using fiat. They regulate those exchangers and required KYC to those people who use the exchangers.

[Harrisonimo]

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 ?

A very good way in government getting to regulate the digital currencies is for them to get fully involved! When they do, they get to know how things are done. Those with offline wallets can be charged via transactions made whenever they do come online to make any transaction.

[deppil]

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.

After all if the government makes a cryptocurrency itself then do they still have control to their users? because the crypto system uses blockchain? then what condition about fiat currency? the government won't do that. and they realize they can't control bitcoin users from the inside. but from the outside, maybe they can?

[sehoon]

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 only way I know the government can regulate cryptocurrency is taxing it. Because in countries like China and Russia where cryptocurrency is banned, there are still a huge number of people who manages to use cryptocurrency. Meaning, they can't really have a full control over it.

[Bitdressa]

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 the government controls electronic finance can be from what we spend on our daily needs and also see from a number of existing exchange transactions, maybe from there they control this electronic money, this in my opinion maybe others can agree with me. or maybe not, I return to the perception of each - each. That is all and thank you

[Siren]

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.

Yeah,paying taxes must be the our way for the government to let us do what we need to do here,because all the governments are only asking for a piece of cake.
But regulating cryptocurrency is far from reality because all of them knew that it is impossible doing this as decentralization and anonymity makes effect on this community so i guess its about how the both regulations and irregularities will bind to make things possible

[Sarastiche]

The regulation can takes place when investors tends to convert there token to a fiat or when individual want to buy into a token, since bank always monitor all transaction, government will need to synchronize this with cryptocurrency exchange, developer, central bank, They migth not be able to regulate digital currencies without the cooperation of  all the stake holders involve.

[gheawari431]

yes, of course, because the government does not want to lose anything, especially in relation to money. surely you will think to mitigate the risks that exist. therefore, it is only natural that the government wants to control what is in the component of the country.

Sources of state income, among others, taxes, therefore the government will make every effort to withdraw taxes from cryptocurrency. One of the doors to being able to withdraw taxes is when you withdraw from cryptocurrency to fiat money. In addition, the government can also monitor the circulation of bitcoin and who are its users. For transactions on the internet, the government cannot control, because what happens is peer to peer transactions.

[zhanyiguai261315]

Paying taxes according to law may be a trend in the regulation of cryptocurrencies!
The main purpose of government supervision is to collect taxes, and taxation according to law itself will become a key indicator of the value recognition of cryptocurrencies.

[Prettymie]

Interesting question. But keep in mind they are government which means they have access to almost everything, even great people, hackers, it, computer geniuses etc. That is why I believe they could hire very smart people to help them regulate cryptos, or maybe they are already doing it, they are only waiting to apply it officially, who knows? Never underestimate the government.

I agree on you, the government had probably watching us now and planning how to catch us in our cryptocurrency transactions. This is also the reason that we need to pass a KYC on those reputable exchanges as those government can use our data if they need it. Anyway, if the government will impose a taxes on our crypto earnings then it's better to comply than fight against them. Indeed our government here is neutral on cryptocurrency as we are free to transact cryptocurrency.

[lyks15]

I think there is many ways that government can do to regulate bitcoin because they have a full power in everything in their country. But I think they can regulate bitcoin well if they make bitcoin in a legal stage. Because I know that many opportunies will open when the time that bitcoin recognized as a legal currency. When it's happen the use of bitcoin will be stretch and widen so many investors will come and invest and all of us wilk be benifited. And I think when government start to make somr regulation and  progress a big opportunities for the traders will open also because I think this will be the most have benefits when government doing something good actions about bitcoin.

[Rocky19]

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