how governments can regulate digital currencies?

[hugeblack]

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.

As long as Bitcoin is not used directly "need to exchange it for your local money."
They "centralized platform" can request to sign a message that you have borrowed Bitcoin from specific sources.
By using this method, you will not be able to sell your coin except through P2P which is considered a risk.

It requires a unified international resolution.

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[zikzag]

You can start to regulate the market. The government does not need your wallets. If they manage the market.

[genuin]

In this case I think that the government will not regulate individual crypto users because they cannot identify. The government can only burden taxes on every transaction that is carried out without having to participate in crypto affairs which should remain decentralized

[stayeduptolate]

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 ?

We all are aware with this fact I guess that these crypto currencies are decentralised in our world and with time there are now many countries that has legalised crypto currencies in their nation after getting the fate and potential of crypto and these crypto are legalised in these nation only and the governments of these nations regulate it by keeping eye over all these crypto activities and thus stopping the illegal use of these crypto and I think other countries should also get inspired from these digital nations.

[cabron]

I think they are going to start regulating through the SEC and probably the existing exchanges as well, this is why the exchanges are now asking KYC unlike years ago. With the KYC, the government can now track down who are the people getting into crypto. If they find out you have been in crypto for years and yet not even bothering to submit for the IRS or whichever department, they might give you a visit along with the documents that you have withdraw BTCs from exchanges. This is scary of course but this might just happen one day. 

[libert19]

I think they are going to start regulating through the SEC and probably the existing exchanges as well, this is why the exchanges are now asking KYC unlike years ago. With the KYC, the government can now track down who are the people getting into crypto. If they find out you have been in crypto for years and yet not even bothering to submit for the IRS or whichever department, they might give you a visit along with the documents that you have withdraw BTCs from exchanges. This is scary of course but this might just happen one day. 

Exactly those who are newly getting into crypto then they must have to go through legalized exchanges to buy and then their addresses can be tracked however for veterans story would be different since they might know ins and outs.

[Kakmakr]

Most governments already targeted the on-ramp and off-ramp for fiat to Crypto currency conversion, so regulation already cover a large portion of the transactions that are done via centralized exchanges. Regulating P2P tx's and also tx's that are done via decentralized exchanges is more difficult, but it only represents a small volume of the total tx's that are being done.

The governments also have a good hold on the payment processors and all the merchants that accepts bitcoin as a payment option. So gathering information on Crypto currency use, is a lot easier than what it was a few years ago. 

[Faroxx]

It seems to me that the best way to regulate cryptocurrencies by the government is full legalization and introduction of taxes, because people use crypto anyway, but while coins are not legal, the government loses a lot of potential tax fees.

[ETHTachometer]

Since this market runs on a decentralized system, regulating it will be a tough call. But if the market did run on a centralized one, then they would have had no problem in regulating it.

[Ninja Sword]

In addition to large amounts of capital that runs off the radars of governments and the traditional financial system, there are a number of factors that put the regulation of digital coins on the agenda.
Money laundry
Illicit practices
economy

[metalglowd]

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 ?

in my opinion, regulation for now only depends on whether bitcoin is illegal or not. while to overcome other things beyond this, it is still under development. of course the regulation will run gradually and cannot be completed in one stage

[jcarlo]

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 ?

From what i know, regulation from government is about on crypto trading. But for payment, in several advance country bitcoin already can used for payment and merchant can accept crypto for payment. I dont familiar with regulation language but from if advance country start regulating cryptocurrency, i am believe others country can regulating too

[solarsun]

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 ?

Do you see all the sheep lining up to do KYC?  They will all bey the government thus making yo an outlaw that stands alone.  You will be then threatened with violence for using it.  This is where a free man does as he pleases as what your doing harms no other man and natural laws are in effect.  No idea what it takes to get humans to wake up to the fact we are being used as slaves for the elite banking class.  Privacy is the most important thing about this movement with the ever encroaching government.

[lornadane]

I think so, How the governments can regulate a digital currency, they can't control decentralized things like the bitcoin. No one knows the owner of the bitcoin, who is Satoshi Nakamoto, where is he now! No one has any idea about that. So, how can government control or regulate the bitcoin? It is not possible as my knowledge says.

[AAKODI]

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 Like you have mentioned it is very hard to regulate and it is closer to impossible. Because most governments have there own problems to deal with in the financial sector and I doubt that they will even spare time to regulate a digital asset and specially a decentralized one by going through such terrible processes like you have mentioned so it is very unlikely to happen but there is a possibility that they might allow trusted digital currencies to use locally without making restrictions for users but to regulate I doubt 

[sublime5447]

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 ?

Yes they cannot regulate digital money because of the process which the wallet is having no identification to their server, they are not connected to any network but, i think they use  something new process that everyone can use it as a currency. Somehow, government should implement digital money as a new currency since we are living in this world where technology almost control all individual.

Do you rarely read the news? Do you know that G7 will also create regulations regarding crypto transactions?
I include articles that might enlighten your mind and get rid the misleading opinions off.
https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory
https://www.coindesk.com/g20-eyes-october-deadline-for-crypto-anti-money-laundering-standard/

[Cryptogid]

Regulations on cryptocurrency is not possible especially decentralized one like bitcoin,and other altcoins,government cant..

[aoluain]

So we all know bitcoin itself cannot be regulated, we control our own wallets
and the miners all around the world confirm our transactions.

IMO the only way to regulate this space is to affect the entry and exit points
from and back to FIAT .
So long as FIAT is not used we are safe from regulation or buy bitcoin with cash.

[CrazeCoinz]

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.

Yeah government can do it if they wanted to but this will affect how people invested in crypto as they believe that they want to have no control from the government and being decentralize currency without the use of third party. Maybe government can collect taxes from crypto if they have the control on all exchanges.  

[Indrawan77]

It is true that it will difficult to regulate crypto since we don't need any identification when we create wallet and we can generate wallet as we like, but there are few ways to regulate, like create a local exchanges that require kyc and force all the users to only used the exchanges, make the regulation for every crypto users to register themselves to a regulatory body that handle crypto, and then cooperate with the banking system so the government know who is the users that convert crypto to fiat