What does Regulation really means?

[ReindeerOnMe]

Been a long time and someone asked me about this, I don't know what to say. I cashed out my money in a remittance center and if we are doing that, we are just putting the name of the exchange in the name of the one who sent it. The guy is confused with that since I think he is a newbie on that job, I am cashing some of my BTCs there in the past and I am not asked why I am putting there a company's name. The guard knew me so he's smiled at me, and I just did that too.

So I explained how I cash out my money in this exchange and he understood that since he is also freelancing in the past and he's also being paid online but he's not cashing it out as I do. So we continued the conversation to the point that we are talking about cryptocurrencies. And he asked me about regulations if it's legal in our country and I said yes then he asked me if these regulations protect the people who are using it, I don't know what to say.

I just explained what regulation does but I did not answer his question. As scams and hacking are common on the internet, cryptocurrencies are not new to that and they are decentralized so the government doesn't really know how would they be able to know the users and track transactions that happened.

So if a cryptocurrency is regulated in a country, does that protect the citizens that are using it? or they just allow the usage of it in the country? I will lock this after I got a satisfying answer. Thank you.

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[dothebeats]

Regulation is used very loosely nowadays. For one, regulation could mean the limitations wherein a certain service, asset, tool etc. can be used by the society, but on the other it could also mean the legal status of the said service, asset, tool etc. For the most part though, regulations only state the limits on how things can be used, governed by a certain regulating body to ensure that no abuse can be made. In a way, you were right in explaininf how regulations work, and I think it would suffice as an explanation since people just need to know the how's for this certain type of thing, and not necessarily the why's since we all know that bitcoin and crypto is money, and it is understood how money should and should not be used in the eyes of the government.

[kawetsriyanto]

I don't think it is a good idea to make it regulated by a country. If cryptocurrency is regulated by a country, it means destroying the "decentralization". The government also has a chance to manipulate crypto world in this way. And I doubt if it can solve the problem of security or protection among the crypto users.

[GreatArkansas]

I don't think it is a good idea to make it regulated by a country. If cryptocurrency is regulated by a country, it means destroying the "decentralization". The government also has a chance to manipulate crypto world in this way. And I doubt if it can solve the problem of security or protection among the crypto users.

That's how cruel some government is. They want to control the people, especially in financial. Financial freedom is one of the biggest thing we should have, especially now that technologies continue to evolve, financial freedom can easy to achieve especially using Bitcoin but here you go, government is preventing it. But still, Bitcoin will stay even have some regulations that against the Bitcoin.

[cryptoaddictchie]

So if a cryptocurrency is regulated in a country, does that protect the citizens that are using it? or they just allow the usage of it in the country? I will lock this after I got a satisfying answer. Thank you.

Of course regulations comes with terms and responsibility. If one country made certain regulation over crypto law, they ate indeed liable and in their protections all those who are using crypto. Usage can be done in every country even there is no regulation. Users will be just fuc*ed up if they get into some kind of trouble and no regulation will be liable on his mistake.

Both are applicable IMO.

I don't think it is a good idea to make it regulated by a country. If cryptocurrency is regulated by a country, it means destroying the "decentralization". 

Could be but, we are never been into decentralization at all even the government not yet regulating cryptocurrency. How many users prefer using Major exchange such as Binance known to be a centralized entity over some dex such as forkdelta? Many right? See how decentralization being toppled even without government interventions yet.

[goinmerry]

Don't just look at the bad side of regulations. Didn't you know that without these regulations, lots of scams and shit exchanges will be popped out everywhere? No big institutions nor companies will consider using BTC as a mode of payment if no regulations will be made.

If people got scammed on crypto by these exchanges or companies, where will they run? where will they complain? In the end, they will run into the government asking for help.

We will never experience the full decentralization while on our end, we want to convert our BTC into fiat. Why asked for decentralization if the main purpose of others is to convert BTC to fiat once the high price reached. Fiat was owned by the government.

Being regulated somehow protects us by these scam shit. We will only experience the full decentralization once there will be no fiat transactions and BTC will be the mode of payment anywhere; 1:1, no conversion, no fiat value, pure crypto transaction.

[Janation]

As far as I know, regulation is what you've said to him.

It is allowed to be used in the country but in terms of security, I think they are also helping these people. Despite the experience of my mutual friend in the past where police do not know what to do with her report, they told her that they can't do anything with it. But still, there are a lot of criminals that are caught even though they are using cryptocurrencies. They might not completely track a transaction but still, they can find a way to track down scammers and hackers.

[Assface16678]

As far as I know, regulation is what you've said to him.

It is allowed to be used in the country but in terms of security, I think they are also helping these people. Despite the experience of my mutual friend in the past where police do not know what to do with her report, they told her that they can't do anything with it. But still, there are a lot of criminals that are caught even though they are using cryptocurrencies. They might not completely track a transaction but still, they can find a way to track down scammers and hackers.

One of the definition of the regulation is having a restriction or like an implementing for the rules in a particular place. Most of the time in every country that supports the use of crypto currency because they want to manage and monitor about the transaction happening on their country to avoid some transaction that is illegal because we all know that the crypto currency is transferring funds with the use of it has a less transaction fee. Still even the cryptocurrency is secured we need to manage the transaction to avoid having too much large data transact and may cause of data trafficking.

[Debonaire217]

The main reason why regulation is pushed to a particular country is because when there is a need to protect the personal interest. Sometimes, the needs of a lower financial status citizens aren't considered unless there are elite government entities who's assets are concerned. More over, regulation to the cryptocurrency will depend when the entire country needs it to be implemented in such a case that the economy is threatened.

IMO, when it comes to security and safety of the users of cryptocurrency, it needs to be holistically concerned before the government acts upon it. Mainly, regulation starts within ourselves, on how we should be responsible upon taking care of our security, safety, and funds.

[pooya87]

So if a cryptocurrency is regulated in a country, does that protect the citizens that are using it? or they just allow the usage of it in the country? I will lock this after I got a satisfying answer. Thank you. [/b]

the only positive thing about regulations that i have seen was speeding up adoption. for example merchants adopted bitcoin more when Japan regulated bitcoin a couple of years ago and accepted it as a legal way of payment. it is not needed for adoption though since bitcoin and some of the other cryptocurrencies are decentralized.
everything else such as protection,... either doesn't exist or is not the focus. the main focus of regulations for government is for taxation purposes!

[davis196]

Saying that more regulations will protect the citizens is so far away from the truth.
The whole purpose of the government regulations over the cryptocurrency industry is to remove any layer of anonymity,in order to prevent money laundering and for taxation purposes.I don't believe in the "having more regulations will protect crypto users from scammers" type of BS.This simply isn't true.The governments want more taxes and more control over our data.That's why they regulate the crypto world.

[NeuroticFish]

So if a cryptocurrency is regulated in a country, does that protect the citizens that are using it? or they just allow the usage of it in the country?

I think that a cryptocurrency cannot be properly be regulated in a way to protect the users. A cryptocurrency is just a software running on computers. Owning crypto can happen by keeping safely a private key onto a piece of paper.

The only way to "regulate cryptocurrencies" is to clearly specify if they are seen as currencies, as assets or as (worthless) "Monopoly money".

What should be regulated and it's quite easy to do so are the businesses, especially the exchanges and payment processors, no matter they work with fiat or not. This would indeed imply that crypto is recognized to worth certain value. And this means obviously KYC, but the the users should be protected by the laws.

Keep in mind that with regulation also comes the proper taxation (but governments already get us pay taxes even without properly regulating crypto).

[Oasisman]

Regulation is indeed can protect the investors from fraudulent attacks, but regulation means total transparency and eliminates the anonymity feature of cryptocurrency, which contradicts the idea of Bitcoin's decentralized property.
Both the investors and the government can benefit from the regulation as long as there are no corrupt officials sitting in the office, since taxation is of the common source of corruption.

[vintages]

I think it depends on how each countries want to practice their own cryptocurrency regulations. Some might even go as far to collecting identity of the user and buyer. This is why some cryptocurrency users don't like the idea of regulation. Thus, regulations can come in different ways, yet, it's still beneficially and protects every crypto users.

Moreover, crypto transactions can be tracked, in cases of hacks and scams. It just takes time and lots of work. Here an article that explains better: https://www.google.com/amp/s/www.technologyreview.com/s/610807/sitting-with-the-cyber-sleuths-who-track-cryptocurrency-criminals/amp/

[magneto159]

I don't think that regulations work that way. They don't really protect people. It's just for the government to know what's what. And isn't the whole point of crypto to be your own bank and be responsible for everything yourself?

[sheenshane]

Just in case the government will revise the code, I guess they must also consider the citizens that are using it and at least help them liquidate their assets before the code is being revised in a legal way. They must inform and provide timeframes before they revise the law so the people who are use cryptocurrencies are well informed, well agreed and will provide cooperations.

It really is sad to find Bitcoin being regulated. Its purpose is slowly being dead and the cryptocurrencies have received the attractions from the government, enough for the government to notice it and control it. It's a government responsibility to protect their people from a bad thing.

[FlightyPouch]

Well, obviously. As crypto currencies are being adopted, the government will be making policies on how it will be used in their country and how should it be beneficial to the country and to them as well. I don't know specifically how they would be protecting the people but that will always start on how they would be able to tax bitcoin and that also means strict KYCs and no anonymity which is the worst.

[beerlover]

Just in case the government will revise the code, I guess they must also consider the citizens that are using it and at least help them liquidate their assets before the code is being revised in a legal way. They must inform and provide timeframes before they revise the law so the people who are use cryptocurrencies are well informed, well agreed and will provide cooperations.

It really is sad to find Bitcoin being regulated. Its purpose is slowly being dead and the cryptocurrencies have received the attractions from the government, enough for the government to notice it and control it. It's a government responsibility to protect their people from a bad thing.

Revising the source code of bitcoins to start regulating them might not be possible. The code has already been written and bitcoins already are been deployed on the same code. If the government needs to revise the code than they would actually need to generate a entirely new bitcoins which would be easy to track and would make things easier for the government but if this ever happens than this newly created bitcoins would possess entirely opposite characteristics than the real bitcoins. This would actually ruin the system.

Moreover, the governments are even now trying to protect their people by banning bitcoins. This is not what we all want so let it be as it is going on since the year 2009.

[Docnaster]

Regulation as I understand is just the freedom to operate in the legislated country, and so long as that's lawfully allowed in that country, when a profit is made from your trade or crypto activities, one should add that to their tax, the opposite is also true for a loss. Most people, however,  tend to apply this only when cashing out as only then the transactions will be traceable through the owner's bank account (sure, this can be avoided if cash is taken out straight away).

However, as far as regulations go in the space of crypto, it does not protect either person on either end, buying or selling, and this is because these putative fraudulent activities are embedded, if you like, on the blockchain. And so because of the complexity of the blockchain technology, thus far the government has not created an infrastructure whereby they're able to provide any form of protection.

In other words, all the legislation allows you to do is to use crypto in whichever way you want and when profit is derived from it this should be declared but that's yet, it doesn't extend any further than that.

[DabsPoorVersion]

It will help to protect the citizens,

But it doesn't mean that every user is 100% safe from hacking/scams. Also, if regulation will come, the real purpose of crypto which is decentralization, will be put to waste. Though, regulation may help to increase or to boost the usage of crypto in each and every country around the world. However, as I have said, regulation will bypass the decentralization which is one factor why we are using it.