Why haven't governments illegalized bitcoin transactions?

[sunsilk]

Do You know the  number of politicians that hold BTC in disguise. They will never support that though they might not be able to come out any support BTC at the moment but things will change over time

I know that there were politicians that has announced that they've bought bitcoin few years ago but what number are we talking in here? A perfect example would be Tulsi Gabbard.

US Congresswoman Reveals She Bought Ether and Litecoin Last Year

But who could be the others?



We have heard a lot of news about bitcoin ban, making bitcoin transactions illegal but as long as they don't impose certain rule about it, they just can't.

[randyboy]

Is there any other things have caused governments to not make bitcoin illegal?

I don't think that government will do that as of now, maybe there will be a person or organization will prove to government that bitcoin are not that use for illegal way.. bitcoin's era will be a  life changer. what we can't do in present we can do if we legalize btc. like, break poverty. make people use bitcoin as tool to make easy payment for their small business. everyone will loved to use it. government will better to see the bright side of bitcoins uses.

[Indamuck]

Governments actually like bitcoin for a lot of reasons, the main one is that it is easy to track.  The nature of a public blockchain means everything is out in the open.  Now privacy coins are a completely different story and many governments are trying to get those banned.

[thesmallgod]

When you mention government, I hope you realize it is a big entity. There are many countries in the world and individual has its way of making policy and regulations regarding leger tender and also some other currencies. I think people carries rumours a lot, Apart from china that we all hear that they ban crypto, I don't think or heard about making the transaction illegal. Even in some countries that crypto has been regulated, there are still many ways people make the transaction using bitcoin. I am very sure even in china, people still transact crypto

[jostorres]

Do you know that when there is an increase in the financial status of a country, they will feel it too whether illegal means or legal, and in one way, some countries would have felt a better financial status on their economy linking it to bitcoin.

For something that is helping the economy of the country financially, why would government really place those unnecessary bans or make it illegal. Bitcoin technology itself was not developed for and illegal purpose, but people only took advantage of the little weakness of it to do illegal things which can really be controlled if government is to regulate the industry. People just carry about news through assumption and then blow it beyond proportion, if the way they say government sees it as illegal, by now, they would have succeeded in banning it.

[mazdafunsun]

Because it is impossible to make it illegal it is decentralized, many shops are accepting crypto as payment options and the number is growing, it just doe snot make sense!
Their are regulating exchanges instead, as many news articles are reporting .

[Rozita]

Do you know that when there is an increase in the financial status of a country, they will feel it too whether illegal means or legal, and in one way, some countries would have felt a better financial status on their economy linking it to bitcoin.

For something that is helping the economy of the country financially, why would government really place those unnecessary bans or make it illegal. Bitcoin technology itself was not developed for and illegal purpose, but people only took advantage of the little weakness of it to do illegal things which can really be controlled if government is to regulate the industry. People just carry about news through assumption and then blow it beyond proportion, if the way they say government sees it as illegal, by now, they would have succeeded in banning it.

I know there are many governments that are trying to regulate bitcoin. But how will be the regulations?  
The purpose of regulation is finding those people that are trying to misuse the system. For this purpose, governments need to have access to identity of the users. If this happens bitcoin won't remain anonymous.
Governments should also be able to block some wallets and also reverse transactions. How can it be possible without harming the decentralization?  
So, bitcoin shouldn't be anonymous and decentralized. In this case, will bitcoin the currency that it was supposed to be? If want to have a currency which is centralized and controlled by the governments, No difference whether we use fiat or bitcoin.

[DaWidyaaa]

In my opinion there are 2 things that make the government come to bitcoin :

1. Bitcoin is vulnerable to hacking

With such a large exchange rate, do not be surprised if many are trying to hack or break into it.
The financial system at a local bank can be hacked by nosy hands. Though the local bank has been supervised directly by the FSA and approved by the Indonesian government. What about Bitcoin that has been officially banned? Of course every risk is no longer the responsibility of the government.
Money in digital form is not always safe. As smart as you hide the Bitcoin wallet access code, it still has the possibility to be hacked. If the bitcoin fragments you have are lost, then no one can guarantee the alias can not come back again.

2. Often Stuck Money Laundering to Terrorist Funding

Quite worrying indeed. Once the Indonesian government bans Bitcoin, it is naturally easy to affiliate with illicit practices. For example, money laundering from corruptors or mafias and terrorist groups to launch terrorist acts here and there. Do you want to be equaled with them?
In addition, Bitcoin is also vulnerable to being used for various other crime. For example prostitution. Because, Bitcoin users are allowed to trade using a cover.

[Zemomtum]

Well, the scenario are two. Some have really provides guidelines and framework on how Bitcoin and other digital currencies should operate while other outright banned bitcoin dealing. It is pretty certain that, there is a little the Government can do to ban Bitcoin in entirety due to its nature of immutability, decentralized and govern by nobody. Chinese and Iran Governments are just only trying but cannot achieve any positive outcome to illegalised Bitcoin transaction because there are other means to remain anonymous while carrying out the transaction.

[Kriptos]

For the government makes legalization of Bitcoin transactions not easy. Basically, if it gets legalized, it will definitely be regulated and have a legal entity. But this cryptosystem seems unregulated, as Bitcoin has no price stability. Especially with many studies that Bitcoin is able to be utilized for negative things, such as terrorism financing, and the procurement of illegal drugs.

Things like this are of course unwanted government and until now they are also still reviewing. But as long as it is crypto we can still access and I think it is legal or not, it does not matter.

[senin]

I have heard some stories about making bitcoin transactions illegal. It's all been a humor and I don't think any government have officially made bitcoin transactions illegal. Why is that?
Many governments are trying to regulate bitcoin, control exchanges and force people to be authorized. But I am sure government wish bitcoin was not created and there was no trouble of regulating bitcoin. They  prefer their fiat to any other currency.
Why no government have made bitcoin transactions illegal?
I think they want to avoid creating an underground market.They don't want bitcoin to be traded like Alcohol and drugs. They have to accept bitcoin as they cannot stop a decentralized network and now they can only try to regulate it. Do you agree with me? Is there any other things have caused governments to not make bitcoin illegal?

Now many states are preparing for the adoption of rules for regulating cryptocurrencies. G-7 countries and European Union countries are already ready for this. Therefore, soon we should see its massive legalization.
We also know that there are about a dozen states in which it is forbidden to use cryptocurrency. In these states, its use is either impossible or very difficult. Basically, these are states with an authoritarian form of government, where the rights of citizens are not respected.

[Oyarebu]

Governments actually like bitcoin for a lot of reasons, the main one is that it is easy to track.  The nature of a public blockchain means everything is out in the open.  Now privacy coins are a completely different story and many governments are trying to get those banned.

Agreed, the government appreciate the transparency of the Bitcoin transactions on the Blockchain and wouldn't just wake up to ban Bitcoin. Some senators have said in the house that, Bitcoin is a store of value, so, Bitcoin is already been recognised by the few in government. Government not legalize Bitcoin mean that, they want to protect their citizens from the volatility of the cryptocurrency market.

[LogitechMouse]

~snip

Government don't own Bitcoin so why the hell to they illegalize Bitcoin transaction. Fuck them all.

Bitcoin is decentralized and even the stupid governments cannot stop it. They don't have the right to make it illegal. Although there are some countries who banned Bitcoin to use in their country already, there are some countries who accepted Bitcoin already and I believe that it will rise in the future.

[Distraction]

Governments do not need to illegalize any Bitcoin transactions. They make some regulations when accepting Bitcoin as legal or they simply choose not to legalize it on the country.

[shoreno]

~snip

Government don't own Bitcoin so why the hell to they illegalize Bitcoin transaction. Fuck them all.

thats right they dont own bitcoin so they only want bitcoin to become illegal but of course there are few governments that act oppositely  .

 there are the ones that legalize bitcoin transactions but i think these governments are not assuming to own bitcoin but they just want to help thier selves or thier country to improve more becaus they already see the potential of bitcoin if what it can do  .

[pawanjain]

I hardly agree with you because the reasons you specify for bitcoin to be declared illegal by the government are just absurd.
I think that the governments know the potential of bitcoin and they know that even if they declare bitcoin as illegal, people will still be using it and there will be no way they can track people using it.
So they just find it easy to regulate bitcoin instead of taking the burden of declaring it illegal.

[UstadSoleh]

The problem for the government is that Bitcoin has a volatile selling value, so it cannot be regulated. In the digital era as it is today, that Bitcoin is great for development. Everyone wants to meet their needs instantly, like buying and selling.

In addition, the Government if the rules of success about Bitcoin are occurring in this country. Will earn revenue for the government through income tax from crypto.

However, Bitcoin will certainly be used by people who are not responsible for fraud. So these negative things are also a consideration for the government. Therefore, the Government has not legalized Bitcoin.

[royalfestus]

Some government use distracting method to talk more on blockchain and never mentioned bitcoin. However, everyone is getting to know the importance of blockchain and gradually seeing the benefit of bitcoin. It could be very difficult to control bitcoin if illegal; though they can make measures to control fiat to cryptocurrency exchange,prevent media advert on crypto, control of crypto related project within their community and publicly punish any individual that is caught breaking any of these laws, but cryptocurrency can be an asset kept for years.

[Golftech]

I hardly agree with you because the reasons you specify for bitcoin to be declared illegal by the government are just absurd.
I think that the governments know the potential of bitcoin and they know that even if they declare bitcoin as illegal, people will still be using it and there will be no way they can track people using it.
So they just find it easy to regulate bitcoin instead of taking the burden of declaring it illegal.

Knowing that as long as internet is open bitcoin will continue being use so instead of declaring it as illegal that will only leads their citizens to hide it from them, it's better to work with regulations to ensure that they've still have to control in case that many people inside their jurisdictions will adopt this system, chances to see it more legalized in the future can be dictated if there's more adoptions and end users to demand it's existence.

[topcryptodomains]

I don't see any reason for governments to illegalize Bitcoin.
It doesn't break any laws.
"Bitcoin is just an alternative economy and ideally people should be able to exchange goods in alternative economy if they so choose."
 So governments should leave Bitcoin alone.