how governments can regulate digital currencies?

[Spider A4]

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 ?

Decentralized exchange will not be possible if government want to regulation, Because there are no identification or Know Your Customer(KYC)
Also hardware wallet is anonymous so regulate is impossible.

[1714527105]

1714527105

[1714527105]

1714527105

[jakezyrus]

I think its impossible to regulate cryptos because of their decentralized nature but it is possible to regulate other digital currencies that is not decentralized .  some says that being regulated is good because they are now supervised and approved to be legal and legit  but other said that being regulated is bad because this can lead to taxation and we all know that tax is the root of corruption 

[yulionoo]

yes you are right this is hard to do because our digital wallet is anonymous then how can the government check our wallet. and this decentralized digital currency no one can control it. because this is how many governments reject digital currency. because it is difficult to detect and is afraid of being used for criminal acts. and in my opinion until now no country has been able to regulate cryptocurrency.

[trauchot]

I honestly don’t know how exactly governments will come up with for regulating cryptocurrency, but I am 100% sure that they will can control cryptocurrency completely and they will find a way to remove anonymity or they will create very strict laws for using cryptocurrency, there are a lot of options.

[tanxpresisit514]

I think its impossible to regulate cryptos because of their decentralized nature but it is possible to regulate other digital currencies that is not decentralized .  some says that being regulated is good because they are now supervised and approved to be legal and legit  but other said that being regulated is bad because this can lead to taxation and we all know that tax is the root of corruption 

The government as a policy maker wants to regulate digital currencies such as bitcoin, so that taxes can be taken for the development of the country. Because taxes are a source of state funding. On the other hand, taxes are often damaged by greedy officers. In principle digital currencies cannot be regulated, but restrictions can be made that protect citizens.

[libert19]

They can only regulate, crypto to fiat conversions. It would be really hard to identify crypto holders.

[kaisa]

Bitcoin cannot be regulated by the government, but KYC / AML can be applied by the exchange. Just like fiat, fiat circulation cannot be regulated except through a banking system. Even the central bank does not know for sure what money is circulating in the community is still a good percentage to use. However, bitcoin can be arranged when the world agrees that making wallets must go through KYC and AML.