Why It’s Good News That Crypto Companies Are Stepping Back From The US

[jonathan6655321]

An interesting article I read now that I thought will be interesting to share here and to brainstorm about.

TL;DR

Only after facebook announcment about Libra, regulators decided to wake up and they will make some changes in the near future when it comes to regulating crypto.

I wonder where have they been all this time?

If they will regulate crypto, Facebook will find a way to overcome it, and the smaller blockchain companies will be the ones that actually suffer


Link to the article:
https://cryptodaily.co.uk/2019/06/the-long-game-why-its-good-news-that-crypto-companies-are-stepping-back-from-the-us

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[avikz]

When regulation becomes irrelevant, this is what happens! Also when the companies have options for better regulatory environment, why would they stay and continue to suffer? Just a small example about Zebpay, an India grown bitcoin exchange. When Indian Reserve Bank banned them from trading in crypto market, they simply flew away to Singapore. Now they offer their services to more than 130 countries except India when the company is founded by an Indian and majority of their employees are from India itself. It's an opportunity lost for India to earn on tax income as well to provide employment.  

Facebook has informed that they will launch Libra in the first quarter of 2020, but they will be lucky if they can do it in 2020 itself! They haven't yet faced enough red tepism and regulatory hurdles! I am sure they have already initiated discussion with their key market countries to launch Libra but a lot of resistance will follow before anything happens on ground!

[aad140386]

It seems to me that the United States is simply afraid that with the development of cryptocurrency the hegemony of the dollar in international payments will fall and the dollar will eventually lose its leadership in international payments. As you yourself understand, this will cause significant damage to the American economy, which in the last decade has significantly increased the dollar's money issue. In addition, the US is trying to control its citizens and ensure that they regularly pay taxes and do not violate the law, and cryptocurrencies can be used to evade taxes

[jseverson]

It's good news because they don't have to play by US regulations anymore? Couldn't they just restrict what's available to US residents to comply and do whatever they want for other jurisdictions, or am I missing something?

I also think it's more likely for the companies who pulled out to be pressured into being compliant rather than the US government being pressured to put out clear regulations lol. The void left by the non-compliant companies will eventually be filled by entities wanting to strike while the iron is hot.

[Haunebu]

When regulation becomes irrelevant, this is what happens! Also when the companies have options for better regulatory environment, why would they stay and continue to suffer? Just a small example about Zebpay, an India grown bitcoin exchange. When Indian Reserve Bank banned them from trading in crypto market, they simply flew away to Singapore. Now they offer their services to more than 130 countries except India when the company is founded by an Indian and majority of their employees are from India itself. It's an opportunity lost for India to earn on tax income as well to provide employment.  

Well said. The entire stance of the Indian government towards crypto in general is pathetic in my opinion. So many exchanges are shutting down as the days pass by thanks to the Supreme Court delaying the verdict on the RBI ban day after day.

They basically don't care about the verdict itself and take eons to actually do something which suggests why it is still just a developing country. As long as BJP continues to rule India, crypto investors will always face tough times over there.

[Jet Cash]

There are two points here -

FaceBux is not  crypto in my opinion.

Washington is determined to shove the US under a bus, so until Lockheed Martin creates a crypto, they will continue to disadvantage the rapidly expanding crypto world in the US.

[CryptoBry]

When regulation becomes irrelevant, this is what happens! Also when the companies have options for better regulatory environment, why would they stay and continue to suffer? Just a small example about Zebpay, an India grown bitcoin exchange. When Indian Reserve Bank banned them from trading in crypto market, they simply flew away to Singapore. Now they offer their services to more than 130 countries except India when the company is founded by an Indian and majority of their employees are from India itself. It's an opportunity lost for India to earn on tax income as well to provide employment.  

Well said. The entire stance of the Indian government towards crypto in general is pathetic in my opinion. So many exchanges are shutting down as the days pass by thanks to the Supreme Court delaying the verdict on the RBI ban day after day.

They basically don't care about the verdict itself and take eons to actually do something which suggests why it is still just a developing country. As long as BJP continues to rule India, crypto investors will always face tough times over there.

I am amazed at the story of Zebpay...as they indeed turned the lemons thrown unto them into lemonade. Anyway, one thing for sure is that the industry could not do away with regulations and when a certain country has become hostile to a business there are many more other countries that can welcome with an open arms so this is just a matter of finding the open doors available.

Doing business in USA means one has to comply with the burdensome  legal requirements but there are still many players trying to survive with the market all because USA still represents a big market that is worth catching with. At least, in USA when you have fully complied with the prerequisites then you can stay onboard unlike with countries which officially ban crypto-related business.

[Nolimitz84]

Only after facebook announcment about Libra, regulators decided to wake up and they will make some changes in the near future when it comes to regulating crypto.

I wonder where have they been all this time?

It's very simple:all on the planet Earth use cryptocurrency from 0.5 to 1% of all inhabitants of the planet.And Facebook has a daily audience of 1.53 billion people worldwide.Accordingly, this social network can seriously hit the dollar.This is where regulators come into play.

[dothebeats]

The US had been pretty much a harsh environment for crypto to thrive on lately, same as with the EU. No wonder big companies are trying to branch out and place their HQ somewhere in Asia (HK and SGP for example) wherein regulations are pretty much viable for the companies and the compliance is not that strict. If the US regulators persist in kicking/pushing away good crypto businesses out of their own soil, it's opportunity lost for them and not the services. There are loads of countries with light regulations re: cryptocurrencies, and it just gives services better operating environment than trying to fit in and be a slave to Uncle Sam.

[pooya87]

I wonder where have they been all this time?

they have been active all this time, you may have missed them in the news each day coming up with new weird things about bitcoin and regulating it!

If they will regulate crypto, Facebook will find a way to overcome it, and the smaller blockchain companies will be the ones that actually suffer

the difference is that Facebook and their coin are not "crypto", it is a centralized money printing machine that decided they wanted to start printing their own money.
the difference with regulation regarding this is that now that it is centralized the government has a door to kick down so they can easily put pressure on them and force them to do anything they want. unlike bitcoin that there is no company or centralized place to go to and force it in their desired direction!

[Kakmakr]

One thing is very important to note here and that is that the US government will fight any competing "currency" that would threaten the hold that the US Dollar has over global economics. The US know that they can manipulate their reserve currency and they have full control over the supply, but they do not want a competing currency, messing with the demand for it's reserve currency.

It's all about politics and perceived power and the US Dollar has been the tool that is used to enforce that power over other countries. Expect a lot of resistance from the US regulators and other governments working closely with them, against Facebook and all other Crypto currencies all over the world.   <That is to say, if they cannot find a way to boost the US Dollar by linking it to a small group of selected reserve currencies>

[hatshepsut93]

It's literally "this is good for Bitcoin" meme turned into an article!

I like seeing how crypto journalists are bending backwards to make a statement that something is bullish/bearish for Bitcoin. In this case there's nothing good about losing one of the largest countries in crypto sphere, even if they relocate and find new customers, a huge market would still be lost.

And what we really need is not more crypto companies, but decentralized crypto services that can't be regulated in the first place, just like Bitcoin's protocol can't be regulated.

[Pursuer]

It's literally "this is good for Bitcoin" meme turned into an article!

I like seeing how crypto journalists are bending backwards to make a statement that something is bullish/bearish for Bitcoin. In this case there's nothing good about losing one of the largest countries in crypto sphere, even if they relocate and find new customers, a huge market would still be lost.

And what we really need is not more crypto companies, but decentralized crypto services that can't be regulated in the first place, just like Bitcoin's protocol can't be regulated.

it is because there is a lot of demand for "speculation" about bitcoin but so little number of people who can actually speculate bitcoin and even less (probably zero) of those who are willing to share their speculation with others. so the news sites have to come up with these types of random guesses based on any random news they come up with.

[betty11]

The government didn't expect the crypto market to succeed to this current level of even seeing a giant company like bitcoin coming into the space. Some government has thought it was like a Ponzi scheme or HYIPs but they have realize it's much more bigger than they had earlier imagine, they now have to find away to keep the traditional bank afloat and looking for ways to keep things under control, I think they may have been late.

[hatshepsut93]

it is because there is a lot of demand for "speculation" about bitcoin but so little number of people who can actually speculate bitcoin and even less (probably zero) of those who are willing to share their speculation with others. so the news sites have to come up with these types of random guesses based on any random news they come up with.

They just tell people what they want to hear, because that's what generates the most traffic and as the result the most revenue for them. When the market is bullish, they will also be bullish and if there are no bullish news (which is usually the case), they will invent them by making far-fetched explanations how something is good for Bitcoin. It's the same on bear market, although to a smaller extent, because they can't be too bearish - that might be viewed as nocoinery.

[b3llsf1l3s]

The US had been pretty much a harsh environment for crypto to thrive on lately, same as with the EU. No wonder big companies are trying to branch out and place their HQ somewhere in Asia (HK and SGP for example) wherein regulations are pretty much viable for the companies and the compliance is not that strict. If the US regulators persist in kicking/pushing away good crypto businesses out of their own soil, it's opportunity lost for them and not the services. There are loads of countries with light regulations re: cryptocurrencies, and it just gives services better operating environment than trying to fit in and be a slave to Uncle Sam.

US is a bit crude with crypto because this is also related to the security of their citizens' data, especially if the crypto project requires KYC, and the majority does indeed prohibit US citizens from participating. On the other hand, the EU is more free. countries like Ukraine, Latvia, Malta and Estonia were more friendly to crypto

[MonsterV]

It seems to me that the United States is simply afraid that with the development of cryptocurrency the hegemony of the dollar in international payments will fall and the dollar will eventually lose its leadership in international payments. As you yourself understand, this will cause significant damage to the American economy, which in the last decade has significantly increased the dollar's money issue. In addition, the US is trying to control its citizens and ensure that they regularly pay taxes and do not violate the law, and cryptocurrencies can be used to evade taxes

That's right, therefore all exchanges and crypto users in the US must obey taxes. Even the entry and exit of all money is closely monitored there. It seems like the US doesn't want the Dollar to miss and fall because of crypto.

They just tell people what they want to hear, because that's what generates the most traffic and as the result the most revenue for them. When the market is bullish, they will also be bullish and if there are no bullish news (which is usually the case), they will invent them by making far-fetched explanations how something is good for Bitcoin. It's the same on bear market, although to a smaller extent, because they can't be too bearish - that might be viewed as nocoinery.

So this action can be called market manipulation, even though they do not trade, but they try to manipulate the market through the FUD they preach.

[kryptqnick]

If I got it right, the point of the article is that it's okay that companies are leaving the US, since it puts more pressure on the regulators, pushing them to choose their approach. However, I don't really see it being so. Maybe the US wants them to go away from their country and not spoil society with their new ideas of decentralization and financial freedom, you know. The US financial system is very conservative. Even though they made big mistakes, they've been pretty successful overall, and they don't want to risk what they have by inviting in the companies that are so different. As for the Libra case, I think it's different. I don't think it's a coincidence that it's a Democrat demanding the delay. Democrats care about privacy protection and things like that, and they don't want Facebook to gain even more power. After all, some believe that Trump won because of Facebook selling data and then Trumps political strategists targeting potential audience and giving them what they want to hear.