how governments can regulate digital currencies?

[Wipeout2097]

Government should legalize the crypto and allow banks that start a section of crypto and there should be KYC necessary before doing any transaction.It will encourage the people to use crypto through banks to avoid scam or fraud and also government will monitor the financial activities either illegal or legal.

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[CarnagexD]

how do you regulate currencies.. the same way you regulate liquids and plants

you cant destroy the cannibis growth or the beer growth or its consumption.
the war on drugs and alcohol prohibition era proved that.

all that is done is outlawing or controlling the people and businesses. but thats IF agencies find whos selling or buying it.
but yea
blackmarkets, street dealers still happen
moonshiners, 'speakeasies' still happened

   Lets\'s be objective guys, it is better to stick on the above topic as posted, On the issue of regulation by Government agency on the entry of Crypto Market on Digital transaction, we have both positive and negative implication as to Regulation. Positive, we can transact openly in the market, Crypto coins can be openly used either for our basic utilities, food etc.etc.  Negative are, the Taxes for every transaction on the market, it may imposed higher taxes, surcharges, etc.etc.

[happyme1818]

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 ?

Although it is hard for them to regulate the wallet individually, they can still regulate any trading platform. We all know that all centralized platform is somehow regulated by the government.

[thankyoulord]

I feel one of the so many reasons government will not be able to really regulate digital currencies is because of its stand alone construct of existence. It doesn't have a central body or a regulating body, so the idea of having so  many coins with a lot of third party base is a factor that won't be easy to take control of. Unless they can pick an already existing market, or coin, take for instance bitcoin. Since bitcoin is the most recognized and  most traded coin, which has made more impact more than any other coin, then it should be picked and worked on, if done so, it could help develop a watching policy that will guide it's mining and exchange.

[alroys]

The government cannot regulate digital currency Cryptocurrency, because digital currencies are anonymous and decentralized. but the government can regulate the coin exchange market, the government can apply the Cryptocurrency tax from it. For example we draw 100 bitcoins. For example, the withdrawal fee is 0.3% and the government tax is 0.2%. So that each withdrawal of our coins is cut by 0.5%.

[batang_bitcoin]

What government can regulate are the transactions that are registered or being done through local exchanges or international trading platforms. They can't fully regulate if we are going to talk about those offline wallets because they really can't, they know what's the strength of crypto's and that is having a wallet which can be your very own bank account without any information to be given away to the wallet provider.

[Vladislav2306]

The answer on this question lays in this question. If the governments will know that this wallet is belong to you, only then they can take taxes from you. KYC/AML is very useful for them in this case.

[project_delta]

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 ?

To simply put it, in my humble opinion they cannot be regulated whatsoever. Also ,I don't think government bodies actually properly understand what this technology is, let alone they could regulate.So you know what they come up with?? All sorts of ban. That's in unfortunate situation

[Bonnie113]

although government and the bank can create a digital money own by a form of legal money But they still have disadvantages compared to third-party digital money such as Bitcoin. It is difficult to adjust.

[daarul50]

Rather than wanting to regulate cryptocurrency, it would be better if the Government only carried out supervision because even though in any way the cryptocurrency movement would not be able to be regulated by any of the parties whatever it was due to the decentralized system used. Supervise, is much easier than doing the rules. However, such supervision does not aim to narrow the movement of crypto to develop.

[giantrobot]

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 so, it is very difficult to regulate by any government to its inhabitants who uses digital currencies. Actually it will fully depends on peoples honesty i think. If they think that they will do their work legally they may follow government rules as a result they both may gainer legally.

To make sure everyone is honest it is unrealistic. No one can be sure that everyone is honest. There is always greed, especially on the Internet. I think governments have banned Bitcoin for a reason. They fear that when they do not manage Bitcoin closely, it will be a threat. I think when they have found a solution, there is no reason for them to ban it.

[AAKODI]

The only way for governments to regulate cryptocurrencies through implementing a KYC procedure in every place that they are used but it is very unlikely to happen because even many exchanges are today follow a decentralized structure so making every cryptocurrencies go under regulations is closer to impossible according to my understanding but for certain extend government can make it happen

[chidrawarster]

The only way to regulate the crypto space is by bringing KYC in place for all centralised exchanges.Its very difficult to monitor for decentralised exchanges .The only way is that people when they withdraw to bank account ,they have to explain the source of income and pay the taxes ,thats the only way to bring the crypto space in regulation.Hope we will see the regulations fall in place in the new future as the space is expanding day by day.

[Sevarchik]

I am also think what only one way is binding to everyone personal wallet adress.
But then we have one more issue - controlling newly generating adress

[magnat7691]

Governments may impose appropriate restrictions on the cryptocurrency turnover or, on the contrary, make them more accessible to the average man.

[manyu22]

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 so, it is very difficult to regulate by any government to its inhabitants who uses digital currencies. Actually it will fully depends on peoples honesty i think. If they think that they will do their work legally they may follow government rules as a result they both may gainer legally.

To make sure everyone is honest it is unrealistic. No one can be sure that everyone is honest. There is always greed, especially on the Internet. I think governments have banned Bitcoin for a reason. They fear that when they do not manage Bitcoin closely, it will be a threat. I think when they have found a solution, there is no reason for them to ban it.

it depends on each of them. I think the government will not be able to regulate the use of digital currencies, because the government will be defeated. only honesty from the people can manage it

[happybola]

In order to be able to go into operation and bring into full play, digital money needs the support of governments or the central bank. One reason is the growing concern that this type of virtual currency can be used for nefarious activities, such as money laundering. Virtual money can also be a threat to the current financial system because it sometimes encourages speculative consumers and innocent borrowing. But to regulate digital money is hardly possible doing.

[adamtruongkz]

They can try to regulate the exchanges and the users of them. Store your bitcoin in your own secure wallet anyway, not on an exchange.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).If they think that they will do their work legally they may follow government rules as a result they both may gainer legally.

[bitcoindusts]

I believe that the bitcoin system could never be regulated nor it should be regulated at all. I think it is best to preserve bitcoin's structure to warrant the retention of security and features.

I believe it would be best to regulate exchanges and crypto-related services only, especially the conversion to fiat money. Let the regulation take place at this level alone, let bitcoin exist as a private digital asset and only receive regulation when it is to enter to financial sphere of a country. This way, bitcoin remains to be ideal as it was primed for and at the samte time, creates enough security blanket for the governments against malicious financial attacks.

[andriw]

it's possible, if they (the government) create their own cryptocurrency so they can manage it themselves. this is what underlies many countries that reject the presence of cryptocurrency, because they cannot be monitored.