Govts would want to regulate exchanges much more!

[error08]

I don’t really get it when you say government can save the funds of their employees ? How will it work in the first place if there is no end-to-end tracking of the bitcoin transaction. If you are saying that people will save their pensions and salaries in the form of bitcoin then they could go anonymous easily. I mean there are so many services like chip mixer which can blend your coins and output would be completely anonymous. This it could go really wrong for the government to track all of this and maintain the integrity of to whom they pay. 

Moreover, exchanger is even different thing and payments can’t be made on that too. That’s complicated process. That’s why bitcoin was sought for in the first place.

He may be referring to the new proposed regulation by FinCEN (Financial Crimes Enforcement Network) that will make cryptocurrency exchanges behave a lot more like banks. Under this regulation, an exchange would be required to report personal information if someone makes a total of more than $10,000 in transactions in one day, and if someone wants to send bitcoin to others who has a private wallet, he has to provide some detailed personal information about the recipient, then exchanges obliged to collect reports of all this and turn them over to the authority on request. Really a pain in the ass for them in the US, better to stay away from exchanges then.

[romero121]

With the present market rise and the increased usage from common people iin payments as well as on investment needs have made governments have deep analysis to make regulatory compliance for cryptocurrency exchanges which serve as backbone to the success of cryptocurrency market.

More country governments have made separate teams to analyse the possible ways. In some countries the major focus is to make tax revenue out of the trading done by the users. Here based on the trading volume will be the taxation.

[ChrisPop]

I expect governments to regulate exchange. It does not feel safe to trade on an unregulated an uninsured trading platform. It is like giving your money to a bucket shop in an off-shore country. They can't really steal the money, but who stops them from doing fraudulent activity? I mean hypothetically they could arrange a deal with a hacker to expose a vulnerability and behave like they have been hacked.

Centralized exchanges should be regulated, audited and insured. Otherwise the default risk is very high both for traders and investors.

Looking forward to a future with decentralized exchanges.

[buwaytress]

People can use DEXes (decentralized exchanges) if govt regulations will be too restrictive.

I do observe that in crypto, necessity truly becomes the mother of invention. Banking system collapse? Introduce Bitcoin.

And for regular people oppressed by their own governments, and the outside world, as in the case of Iran (for one instance)? Ban crypto, people go p2p or Dex. Sanction banking systems and fiat systems, people send money abroad with crypto.

[Psynthax]

Government institutions will try to control the keys of the citizens that will sadly get caught in their mess and I do agree that technologically illiterate people will be the first to suffer and most of them have the most money. DEXes will also be painting a target when they become popular, government does not want someone that is hurting their cashflow in anyway.

If the "dex" we are talking about here truly a decentralized exchange I think best government can do is to ban the site or the platform however it could still be alive despite all the restrictions the government trying to enforce.

Otherwise p2p is the way to go and if that's what we got left maybe we need some kind of reliable middleman could be a new platform just to minimize scamming.

[Yatsan]

Actually that news or issue is not new anymore for the fact that even before this rising of Bitcoin reaching its new ATH, governments have already stated in different countries that they would be requiring exchanges to get regulated before allowing them to operate and their reason is they wanted to regulate and monitor money movements on exchanges to keep its constituents safe but the real deal is they were always up for the taxation that is primarily for their own good as well. People comes into realization how important and beneficial having cryptocurrency was so they are doing everything specially the government to take hand on having access on regulation because of the potential benefits they can gain from it.

[fullhdpixel]

Govts would want to regulate exchanges much more!

Bitcoin is now hitting to $40K. Governments will take Bitcoin seriously and will regulate the exchanges much more as many US pensioners having money in the form of Bitcoin among them many are US soldiers, lawyers or government officials. Many of them keep their money on exchanges. Therefore governments may take it seriously just to save the funds of their employees and their peoples.

The government is already doing that, they are trying as much as they can to start regulating cryptocurrency exchanges and they are using centralized exchanges as their tools, and those who are making use of CEX.

I have once seen news that very soon they will pass a kind of rules where centralized exchanges users will always have to give out the information about those they want to send cryptocurrency to, that way the government will have some information about who owns the non-custodial address. Anyway, we don’t know what plans they have yet, we can only wait for them to take their moves and we know what to do.

[death69]

That is why DEXs are here to help. Centralized exchanges are the first to be investigated and new laws as well as regulations will be implemented first on them. It is better to change to DEXs right now and get use to it. 

[Oilacris]

That is why DEXs are here to help. Centralized exchanges are the first to be investigated and new laws as well as regulations will be implemented first on them. It is better to change to DEXs right now and get use to it. 

DEX might be here but we know that this wont really be that sufficient to provide the needs of people when it comes to fiat conversions or transactions.

This is why we do see that people do much prefer on using centralized and thats quite obvious and evident on checking out the volume.

Its no surprise that government would really stir up the market and getting some involvement yet they do know on what they can do
and what they can benefit out.

[Miaallen]

That is absolutely the way I see it most especially in the US with what they are currently dragging with the Ripple. I have also read that a lot of new exchanges projects that has their head office in the US now delay their launch to first get certified by the US SEC before they start operation so as to avoid being clamped down just like they're doing with Ripple.

[BigBoy89]

Govts would want to regulate exchanges much more!

Bitcoin is now hitting to $40K. Governments will take Bitcoin seriously and will regulate the exchanges much more as many US pensioners having money in the form of Bitcoin among them many are US soldiers, lawyers or government officials. Many of them keep their money on exchanges. Therefore governments may take it seriously just to save the funds of their employees and their peoples.

It's normal, and Govs are now hungry for fresh cash (taxes) with all the free covid printed money.

That's why we have to use more DEXs instead of centralized and regulated exchanges and to keep our coins in our wallets. IMO exchanges should be used only one-way ->  deposit - trade - back in your own wallet.

[jaberwock]

Government institutions will try to control the keys of the citizens that will sadly get caught in their mess and I do agree that technologically illiterate people will be the first to suffer and most of them have the most money. DEXes will also be painting a target when they become popular, government does not want someone that is hurting their cashflow in anyway.

Decentralized systems will obviously get better, but it is also not changing anything from not tech savy people neither.

Think about it this way, there are people with 14 billion dollars total that gave their money to grayscale so they could invest into bitcoin for them. That is the ultimate level, sure we use centralized exchanges and our money doesn't even belong to us and wallets keys are at exchanges and that is very risky, and we consider THAT risky, these guys literally gave their money to someone else to buy bitcoin for them, they do not even hold the bitcoins nor the money, someone else just says "I got your money don't worry" to them and that it, we can at least withdraw out bitcoins to our own wallets if we want to. So long story short we are not really going to see too many people use DEX and governments will get away with it for sure.