Is Bitcoin at risk of regulation?

[lovesmayfamilis]

A recent tweet from renowned macro investor Raul Pal that Bitcoin will sooner or later become regulated has sparked much outrage. He believes that the only way for the government to accept Bitcoin is through the regulation of Bitcoin.

https://twitter.com/RaoulGMI/status/1331759587876335617?s=20


But we all understand that this is not at all the idea that Satoshi embodied.
Today, we are all seeing PayPal increasingly create the conditions for the centralization of bitcoin.
At the same time, many famous personalities disagree with the concept of passing KYC for owners.

https://twitter.com/AlenaSatoshi/status/1331963506984431618?s=20


The opinions were divided into two halves. According to Stefan Leaver, host of the famous Bitcoin podcast, perhaps
 there will be two versions of Bitcoin.
The first will be tightly regulated by the authorities, while the second will remain for adherents of libertarianism and privacy.

https://twitter.com/stephanlivera/status/1331761016649105410?s=20


How do you see bitcoin evolving in a highly regulated environment? Will the government be able to take all control measures and ultimately make bitcoin centralized?

The idea for creating a post: ( source) https://forklog.com/mnenie-nalogooblozhenie-i-regulirovanie-bitkoina-eto-normalno/

[Casdinyard]

Probably that's the only way in order for this technology to achieve acceptance across the globe. Not all people are aware of the nature of this technology and one way to push this towards more people is to boost its reliability through government regulation. But I doubt it would be a total regulation. My idea to this is an optional regulation not a mandatory regulation. And this will be made possible through third party networks which will be an alternative to crypto exchanges, for those who are just knowing only the "surface" idea of this technology.

[fiulpro]

Anything that tends to pose as a threat to the unending dominance of government will forever be at a risk of regulation.
But one should understand that " the reason why the governmental bodies are so set on regulating them and not banning them is because' they cannot ban Bitcoins" it's too involved with the people and at the same time one should understand that these regulations are going to bring protection and therefore some people might feel more comfortable in using Bitcoins.
1. Laws will be there to protect Bitcoins as an asset
2. We can gain more conservative people who are ready to invest
This regulation is something that we cannot control , but what we can do is to make a good use out of it.

[Fesatmas]

If in the end bitcoin has been regulated and limited by government regulations, I feel very disagree, which we will feel we do not have complete freedom over our own bitcoin ownership. this is very worrying. When bitcoin was widely known, of course the government already knew bitcoin loopholes in providing huge profits. It's very unfair for us to manage bitcoin the way we expected.
This is so sad bro.

[error08]

Regulation and KYC doesn't harm bitcoin nor the community, no problem.
Most of us who have registered on exchanges that require KYC have done it.
If the government wants to supervise cash flow in exchanges in order to be cautious and alert to the dangers of money laundering or any other illegal activities, they can do it just like we have been using bank service for years. However, everyone can choose to register on exchanges that not require KYC if they want, or never do it at all, using bitcoin without a third party to buy or convert bitcoin into fiat currency.

[btctaipei]

Like glass can be said half full AML/KYC can be viewd as - "Is bitcoin being rewarded by having more regulation"?

Who can say no to 25% nominal fees?   I remembered days when I have to sell 10% below for buyers to take on.  Thanks to regulation, that is no longer the case.  And this is making non centralized exchange trades so profitable and attractive.

[MusaMohamed]

They will request citizens to pay taxes for earnings from crypto and obviously the tax includes earnings from bitcoin investment or trading. They can not control all bitcoin in circulating supply, they can not mine all the left bitcoin. They can only prepare law regulations and make approvals and pressures on exchanges to get all taxes from crypto enthusiasts.

I don't say it is a bad thing but in life there are people don't pay tax and the same for crypto investment. I don't mean people should hide their earnings from crypto and reject to pay tax then have jail-time. It is not a happy ending and if you earn huge profits from crypto, pay tax is not a bad thing.

[Upgrade00]

He believes that the only way for the government to accept Bitcoin is through the regulation of Bitcoin.

Bitcoin does not need to be accepted by the government, the network does not depend on legal approval to operate and it doesn't need this to be globally adopted.

According to Stefan Leaver, host of the famous Bitcoin podcast, perhaps
 there will be two versions of Bitcoin.
The first will be tightly regulated by the authorities, while the second will remain for adherents of libertarianism and privacy.

This is a likely scenario, and we are already seeing such a distinction among Bitcoin holders. There are those who are not overly protective of their privacy and would sign up to any platform and declare their identity as long as it allows them easily transfer bitcoins to Fiat and altcoins. There are also those who guard their privacy and use Bitcoin the way it was designed, a decentralized peer to peer system which doesn't need a third party.
With time these two groups would further drift apart till we have two extremities;
• The legal whitelisted holders who are fully compliant with government regulations
• The unrecognized holders who operate under the radar.

How do you see bitcoin evolving in a highly regulated environment? Will the government be able to take all control measures and ultimately make bitcoin centralized?

Governments can not take your Bitcoin and cannot influence the network either. Any action they take is dependent on the holders of Bitcoin.

one should understand that these regulations are going to bring protection and therefore some people might feel more comfortable in using Bitcoins.
1. Laws will be there to protect Bitcoins as an asset
2. We can gain more conservative people who are ready to invest

Imo, Bitcoin does not need protection, neither can the government offer that, and if anyone needs Bitcoin to lose its decentralized nature in order to get involved, they should not be holding bitcoins at all

[mindrust]

As long as the governments exist, they'll regulate anything they can that could be used against them.

People use bitcoins against the governments and they don't like it.

If you don't want to be ruled by governments just get your gun, go out and start killing the government officials. (sooner or later it'll come to this)

What were you expecting?

People would have freedom? Without a fight?

heeehaw

[ChrisPop]

This is a sensible topic, but I'd say regulation would offer Bitcoin a massive boost towards mass adoption at the exchange of privacy. Of course that people could just not declare it and continue using it privately, but I don't see why not. I think the purpose of Bitcoin is not to confer people full anonimity, but to eliminate the middleman (aka the banks and the government) from controlling the monetary supply and overall the payment networks.

The decentralization will still be there, low fees and almost instant transactions around the world will still be there. If you look at it from this perspective, KYC is a good thing.

[mindrust]

This is a sensible topic, but I'd say regulation would offer Bitcoin a massive boost towards mass adoption at the exchange of privacy. Of course that people could just not declare it and continue using it privately, but I don't see why not. I think the purpose of Bitcoin is not to confer people full anonimity, but to eliminate the middleman (aka the banks and the government) from controlling the monetary supply and overall the payment networks.

The decentralization will still be there, low fees and almost instant transactions around the world will still be there. If you look at it from this perspective, KYC is a good thing.

If they KYC every exchange user there is, it won't be much different than the traditional banking. (we are already close btw)

Exchanges already act like banks. (middle-man) I had a couple hundred dollars on my binance account where I make some minor shitcoin trades and suddenly they wanted to KYC me when I wanted to withdraw my money.

This happened over for a few hundred bucks. Not sending your passport scan? Fine. Then you don't get your money. How is that different than banking?

I know it is not your keys not your coins but sooner or later you'll need FIAT and the govs hold the FIAT gates. Not you.

Even If you don't go through the exchanges, any other service you use may do the same because every corporate answers to the boss: The Gov.

[Alucard1]

Well, the government will really use their power to regulate anything that may harm them, they know the potential of the cryptocurrency but they still cannot approve it because of so many factors so the things they want to do is to only regulate it but not totally regulated. We already encounter some KYC in exchange so it would be not a problem if the government will regulate it and implement the KYC. As expected they are doing all of these things just because of the taxes that they may gain for those investors and traders of cryptocurrency.

[mk4]

It always is. If Bitcoin adoption increases far more from here, that would most probably effectively decrease the power of central banks. And with that, it makes a bit of sense for them to heavily regulate it due to the threat to their power.

Will it happen though? I'm not sure, but I personally wouldn't be surprised if they actually did.

Will they be successful? Yes, just as successful as them banning drug use and piracy/torrenting. /s

[marlo1001]

There are already more and more KYC in the crypto space, soon regulation will be even severe. Gov will not allow money that they coudnt track

[hatshepsut93]

Bitcoin's protocol is impossible to regulate, because you can't regulate how people use computers across the world. What can be regulated is the exchange ecosystem, and it has already been regulated - every major exchange has KYC and shares information with government. Maybe in the future there will be even more rules, like for example a need to declare how much coins do you hodl when you cross the border. But the last person from OP got it right - there will be two options for using Bitcoin - abiding to these regulations, or ignoring them.

[target]

Definitely at risk. We don't know yet how much they'd grip but if it's enough to only regulate what is going in and out of the exchanges, they will lose tax money. Will they allow that to happen? It depends on the kind of government where you are. But surely crypto users will try to get away using DEX like blocknet up to the extent of using the privacy coins.

[Kupid002]

There are already more and more KYC in the crypto space, soon regulation will be even severe. Gov will not allow money that they coudnt track

Actually more of the exchange is now required KYC for using it. there are just exchange that you can still use for a  small limit but in order for you to widraw higher amount you need to comply and pass the requirements they ask for verification process.

They cannot track all the transaction but you also need to convert it in Fiat in order to use the money you own in crypto currency which you need to use crypto exchange or P2P that also asking for verification.

[Reid]

The problem is the abuse which cannot be stopped.
Anything in this world is going through that phase.
You cannot just please everyone.

If you are working in a government office and you are making a lot of money thru corruption then you are against it.
No doubt. I just spoke with one just hours ago.
Decentralization is a fucking sickness to them.
Anywhere it goes I will support bitcoin. Just not to the depths that it will be used for evil deeds.

[LeGaulois]

Like it or not but Bitcoin is already being regulated by multiples legislations, taxes, and so on... It should not be expected that this would happen overnight. Institutions and governments make decisions over time, and as an ecosystem, there are many niches to think about.

In any case, we can see over the years, especially since 2016-2017, this is becoming increasingly common and it will certainly continue to do so in the future. The AML/KYC is just an appetizer of what is waiting for us.

There are a lot of people here on Bitcointalk who argued that the regulations would help Bitcoin to be massively adopted, and it seems to be still the case in 2020. In a few months or years (at least in a near future, <5years) you will figure out that nonsense and that you either don't understand Bitcoin completely or you're not so interested in it, except to see the price increasing by xx% in a few months, just being interested in a pseudo-quick-rich scheme.


Regulations are cancer for Bitcoin's ideology. Fuck that!

It was created precisely to do without all that and have better financial independence. All you want is nothing more than to copy and paste the same nonsense from the current financial system. If you want to repeat the same mistakes, you might as well go back to the current monetary system.

Bitcoin has developed very well, both technically and economically, and has created its own ecosystem that has progressed very well so far. We don't need governments to keep moving forward, we don't need a financial dictatorship that tells us what to do, and prevents us from doing something as we want.

The adoption increased without them, so why preaching them.

[Yatsan]

There is really a high probability that the situation will fall into that scenario of Bitcoin being regulated by the government of certain countries to allow its people upon using and transacting Bitcoin into the vicinity of their country's property. As long as the government see that people are more likely engaging into a new thing, they will surely and always be get in between and regulate everything for they are claiming that it is just for the sake and welfare of its people. Accept it or not, that would probably the upcoming phase where government wanted to put into their hand and control the usage of Bitcoin in their country which most likely other users are always considering if their country is allowing crypto usage to let them transact and be able to make use of it freely.