how governments can regulate digital currencies?

[crypteris]

There is a difference between government entering the crypto space with regulations or them interrupting and banning crypto transactions. The industry needs some regulations and governments' involvement in order to become widely adopted. The governments should make conferences for blockchain developers and discuss the best ways to cooperate.   

[aeternus]

Some level of regulation is definitely possible especially since many will like to convert their cryptocurrencies to fiat and for that you will need to identify who you are and where you got those coins but there is going to be a minority of users that are going to refuse and the government is going to be very interested in them but it is going to be impossible for them to identify them.

[nurulbd]

It is clearly say to all the government if monitoring hardly they can regulated 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.

[ribowo76]

Directly managing crypto assets, it seems that it cannot be done by any government. Because of the nature of bitcoin which is decentralized. What is very possible is to arrange through exchange. By applying KYC / AML

[liansehao]

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.

I don't think so. Eventhough the government has a lot of power to regulate crypto but it is really hard for them to do it because of crypto's decentralization.

[Kakruzo12]

Decentralization is possible up to some extent. For small players yes, but I doubt there's a fine way to remain anonymous if you have a huge stack. Regulation is required to avoid fraud, but really I don't think that the coverage from the government will eventually lead to good things.

[Zadeket]

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.

The government will obviously get tax revenues if it regulates digital currencies. On the other hand, clearly the government recognizes the existence of certain digital currencies that can be used in their country, perhaps digital currencies that cannot meet the criteria of the country will be banned. Without regulation the government will not receive income from digital currencies.

[bitfocus]

they can only control centralized currencies, not P2P currency as Bitcoin.

[nazaididuan1]

The regulation of cryptocurrencies is a very difficult thing! Because regulators can't make regulatory principles for cryptocurrencies!
So many governments have banned cryptocurrencies!
The government should establish regulatory principles based on the characteristics of digital currency!

[iMark]

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.

Yeah they have all the tools available, they have all the power to control, but they will not be able to control crypto from inside, because decentralization is a system that cannot be changed and intervened. the government can only provide control outside of the system such as on exchanges or sites about crypto

[Jonkn3]

the government can only provide digital crypto regulation without being able to take further steps. maybe the regulation is based on the law in each country so it can't regulate overall from bitcoin.

[Ravenangel]

I think they would not regulate the currency itself, is the places where they trade, we can already see the kyc that exchanges are asking for, that's a way to regulate, because with the kyc and you can start tracking the money and operations of that user.

[carlisle1]

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 ?

No i doubt they can regulate a digital currency because of the decentralization,thiugh there are KYC thats happening but this is not enough to regulate the majority of the currencies.so my answer is simply they cant even how hard they will try.

In my opinion, the government can not control Bitcoin. Because Bitcoin is a crypto currency. Which no one could control. And in the future, it is also worth noting.

Thats what i am trying to say,impossibility is what the government will face if they insist of doing such

[Renampun]

by tax the owner, regulating the circulation and law of cryptocurrencies. I feel the government will only be able to regulate its circulation, cannot regulate the price... indeed, there are now many centralized coins in circulation, but I'm sure the government will still not be able to regulate the price of coins in circulation.

[Koenraad Lange]

I think they would not regulate the currency itself, is the places where they trade, we can already see the kyc that exchanges are asking for, that's a way to regulate, because with the kyc and you can start tracking the money and operations of that user.

The government certainly has a way to find out who the crypto owner is in his country, and tries to get revenue from crypto transactions. The government can request data from the crypto exchange, because from there the government will follow up according to the rules in the country.

[Ompyon]

I think they would not regulate the currency itself, is the places where they trade, we can already see the kyc that exchanges are asking for, that's a way to regulate, because with the kyc and you can start tracking the money and operations of that user.

The government certainly has a way to find out who the crypto owner is in his country, and tries to get revenue from crypto transactions. The government can request data from the crypto exchange, because from there the government will follow up according to the rules in the country.

I think the issue of regulation is only used as a tool to create problems, so it can drop crypto, especially bitcoin, even though the bitcoin transaction is very transparent, then what's the problem? I even thought that the government did not regulate crypto because there were other hidden factors

[kalstarzz]

I don't think they "government" can regulate a certain crypto, unless they have large funds, and even then they only control the price movement, not in terms of use.

[efxtrader]

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.

Many exchanger right now are centralize and i think it can regulated by government. If government regulate trading in exchanger, government can collect taxes from our profits or every our trade. Beside that, ICOs is raising funds for developing project and government should regulate this to protect their citizen investment

[smartbitcoininvestor]

Governments will most likely replace their paper money with blockchain backed cryptocurrency. I think eventually it will be the people who regulate bitcoin, not necessarily the governments.

Bitcoin will probably work similar to Gold in digital form and be a valuable form of currency.

[VaLeRaaa]

If you can't win, try to lead. Pathetic attempts of banks from the past era to join the future.
Mastercard Applies For New Patent for Anonymous Blockchain Transactions – A Regulated Bitcoin Tumbler?
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