Government ban on crypto

[ShowOff]

To simply those list, its decentralized currency, banks and government can't make a profit from cryptocurrency so they would rather ban and ensure that people would stick to the regular currency which then can regulate. Its nothing new, tons of government bans Cryptocurrency to the point that there are certain countries bans mining as well.

No, the government will still benefit from cryptocurrency just because of tax regulation. They regulate crypto but can't control it.
There are many reason why the government prohibit bitcoin from being used as a legal tender. We all know they are scared because bitcoin can render the banking system useless. Decentralization was not wanted by the government at all. Because they can't be controlled, regulation is one way to prevent growth and adoption.

[ultrloa]

To simply those list, its decentralized currency, banks and government can't make a profit from cryptocurrency so they would rather ban and ensure that people would stick to the regular currency which then can regulate. Its nothing new, tons of government bans Cryptocurrency to the point that there are certain countries bans mining as well.

No, the government will still benefit from cryptocurrency just because of tax regulation. They regulate crypto but can't control it.
There are many reason why the government prohibit bitcoin from being used as a legal tender. We all know they are scared because bitcoin can render the banking system useless. Decentralization was not wanted by the government at all. Because they can't be controlled, regulation is one way to prevent growth and adoption.

Just still wandering on how they can regulate the users since bitcoin is cannot be automatically taxed by anyone not unless if they implement it on auto deduction on the wallet provider.
Maybe for now banking system sees bitcoin as a threat now but for sure government will file a law on how they can rule it upon usage on their country. We don't know yet on what will be the actual scenario, this is controversial and maybe this will create hype or fud once this scenario will newly came on big countries.

[peter0425]

...or maybe the government is hiddenly hodling Bitcoin already so that people would sell their coins when they impose a ban, causing price to plummet and they'll take the coins that have been dumped.

Well Nice scenario , the question is when they will implement the banning?

Hodling Bitcoin in such specific wallets like cold storage would make them anonymous, or pseudonymous at the least and people wouldn't know.

That's something No one could ever Find , though the FBI is already Holding good amount of Bitcoins.

[Furious 7]

To simply those list, its decentralized currency, banks and government can't make a profit from cryptocurrency so they would rather ban and ensure that people would stick to the regular currency which then can regulate. Its nothing new, tons of government bans Cryptocurrency to the point that there are certain countries bans mining as well.

There are some governments that already have regulated Bitcoin and imposed a tax on cryptocurrency earnings. So, saying that governments can't make a profit from them wouldn't be true. Because of this reason, I think regulating Bitcoin is more advantageous for governments rather than banning it.

If the government can regulate then the profits will definitely flow in every income so the government will have full control if this is regulated, just look at now that many institutions have adopted bitcoin, now the government can also impose taxes so it's not just one. The thing for many other companies if the government supports it in this way, not only because of decentralization but all that it can be done completely.

The government has begun to be interested in preventing the ban completely, but the government will assess how the government will fully support it.

[Cryptokobi]

Question

Do you guys think Bitcoin has any chance of being banned by the government? I keep hearing people say that Bitcoin has a chance of being banned, yet I don’t think so because very powerful people like Elon Musk along with other companies are large investors. Is their any weight to that statement?

Answer

Bitcoin being illegal in the United States is highly unlikely for the following reasons:

1-According to the Howey test, the Trendon Shavers case established legal precedent that Bitcoin is not an illegal protection.
2-The IRS has already formalised its approach to Bitcoin (as an asset)
3-Many rich and well-connected people have personally invested in Bitcoin, and they would be upset if their political colleagues make Bitcoin illegal.
4-Traditional financial institutions in the United States, such as ICE/BAKKT (owner of the NYSE), Fidelity, TD Ameritrade, CME, and others, are now actively involved in Bitcoin mining, investing, and trading.
5-Exchanges such as coinbase, square, gemini, and others are now very big businesses that are actively interested in Bitcoin.
6-Many local states have case law and regulations on Bitcoin that makes it more difficult to make illegal.
7-There is a significant body of current case law in US courts that defines encryption and code to be covered by the first amendment.
8-Making it illegal does not ban bitcoin, but would rather show that they are a totalitarian government, albeit an incompetent one, since stopping Bitcoin is much more complicated than winning the drug war.

What are your thoughts?

We all hope u right, but u never know when we talk about U.S....

[Ziskinberg]

To simply those list, its decentralized currency, banks and government can't make a profit from cryptocurrency so they would rather ban and ensure that people would stick to the regular currency which then can regulate. Its nothing new, tons of government bans Cryptocurrency to the point that there are certain countries bans mining as well.

There are some governments that already have regulated Bitcoin and imposed a tax on cryptocurrency earnings. So, saying that governments can't make a profit from them wouldn't be true. Because of this reason, I think regulating Bitcoin is more advantageous for governments rather than banning it.

If this going to happen around the world, we are simply giving up our anonymity. By simply paying tax to the government, we are also giving them the chance to know more about what we do in crypto and how much we are able to get from here.

Because the more we are exposed to them, the more they got the interest to oblige every crypto holder to tell how much they hold and their crypto assets. And this might lead to some tax abuse that will happen in the near future for the corrup leaders and which I worried about for the worse case scenario like being controlled by the government.

[livingfree]

To simply those list, its decentralized currency, banks and government can't make a profit from cryptocurrency so they would rather ban and ensure that people would stick to the regular currency which then can regulate. Its nothing new, tons of government bans Cryptocurrency to the point that there are certain countries bans mining as well.

They can still make money from it. They don't have to ban it and just impose a regulatory tax that every profit gained through crypto is taxable and has to be declared as income.

In some countries, they're doing this. Instead of putting a ban to crypto related income, they're simply giving their people freedom to get along with another source of income through crypto trading.

[Murtaza345]

I think it will not be in the world because of Bitcoin value.i think any country in the world Will not do this,yes may be temporary it can but it's not possible to ban Bitcoin perminantly.because there are millions of inversters Evan infuancers have involved in Bitcoin,so how can they afford loss.and how can they allow Bitcoin ban.but there are many countries thinking about regulating Bitcoin .and I think some countries have done.alow Bitcoin.So if someone is thinking about Bitcoin ban its their thinking.

[OscarDavidson]

They can still make money from it. They don't have to ban it and just impose a regulatory tax that every profit gained through crypto is taxable and has to be declared as income.
In some countries, they're doing this. Instead of putting a ban to crypto related income, they're simply giving their people freedom to get along with another source of income through crypto trading.

I agree with this point. I think civilized countries should give an example to all world and show everyone that Bitcoin and crypto are not dangerous. However, these assets can be regulated in the proper way so people can even pay taxes for the crypto received from mining or trading. Perhaps, Bitcoin can become a second international currency like USD.
Have you heard about Venezuela's experience? They try to relieve the country's economy with the help of their own crypto known as El Petro. There is already allowed to pay salary with El Petro and the prices in the country partially indexed to the coin.

[Iranus]

Government can ban it but they can't stop their people to use Bitcoin. Recently china govt tried to ban mining and uses of bitcoin but they failed badly. Indian govt and Nigeria attempted to regulate cryptocurrency and tried to stop their people to trade crypto via Bank account, But they did not succeed and has finally been forced to give legitimacy to bitcoin transactions. So, govt can ban crypto but It will not be good for them.

[AakZaki]

They can still make money from it. They don't have to ban it and just impose a regulatory tax that every profit gained through crypto is taxable and has to be declared as income.

In some countries, they're doing this. Instead of putting a ban to crypto related income, they're simply giving their people freedom to get along with another source of income through crypto trading.

but for my country this is still complicated to do, tracking is required on their personal crypto wallet and it is still not possible. the use of regulatory tax is only imposed on exchanges in that country, not for individuals or individuals. Some crypto regulations in developing countries allow crypto to be used only as a commodity asset no more than that.

Crypto is becoming very popular and many are already aware of it. Several agencies have also started to enter crypto, large companies and others. Other income through crypto trading provides an opportunity for them to get more profit but still with a high risk and become their own responsibility.

[Abiky]

No one can access the bitcoins in your custodian wallet!
No one can restruct you from making a transaction to another wallet!
No one can restrict the introduction of new coins into the market!

The only way governments can control your assets is if you store them on centralized platforms or use such platforms to exchange.

Exactly. That's the beauty of Bitcoin's decentralization. No one will be able to stop it, as long as there's a considerable amount of nodes and miners supporting the Blockchain. By using a non-custodial wallet and decentralized exchange, you'd be able to overcome government restrictions. Be prepared to face fines or jail time if you ever get caught using Bitcoin in a country whose use is illegal. While government bans won't have a direct effect over the prominence of the Bitcoin network, it will certainly affect mainstream adoption. Most people will be afraid of using Bitcoin after it's "banned" by the government. Only a small number of people will continue to use it regardless of the government's negative stance towards Bitcoin.

Nonetheless, we could say that nothing lasts forever. Who knows how Bitcoin will survive after being banned by governments worldwide? Mainstream adoption will be at its lowest, so I guess that the number of nodes and miners on the network will decline too. We're going to have to see what happens in the future as governments see Bitcoin as a threat to the current monetary system. Just my opinion

[Jemzx00]

Government can ban it but they can't stop their people to use Bitcoin. Recently china govt tried to ban mining and uses of bitcoin but they failed badly. Indian govt and Nigeria attempted to regulate cryptocurrency and tried to stop their people to trade crypto via Bank account, But they did not succeed and has finally been forced to give legitimacy to bitcoin transactions. So, govt can ban crypto but It will not be good for them.

Bitcoin and other cryptocurrency are already ban from certain countries, if I am correct. Most of them are denied access from crypto, like how the government ban access on certain websites, which users are forced to VPN to access cryptocurrency. Yes, they can still have access on crypto but it would a hassle to and can be problem on certain website as they can be targeted for account termination or inaccessible account once found out that they live on certain banned country.

An example where an account error may happen are on gambling website and trading website where KYC are held. Even, non-strict website on KYC can hold your funds when you've been ask for an KYC due to transaction on your account. Most of this situation results on an account termination or funds being on hold due to illegal use of crypto.

There are various inconvenience that these ban can cause to their citizen trying to access crypto which is best to follow the protocol or migrate somewhere else to be eligible on full access on crypto.

[isaac_clarke22]

~

I wasn't even aware that FBI held Bitcoins already.
Even those who impose law to it were even hodling something for themselves just to keep their people away from it.

[livingfree]

They can still make money from it. They don't have to ban it and just impose a regulatory tax that every profit gained through crypto is taxable and has to be declared as income.
In some countries, they're doing this. Instead of putting a ban to crypto related income, they're simply giving their people freedom to get along with another source of income through crypto trading.

I agree with this point. I think civilized countries should give an example to all world and show everyone that Bitcoin and crypto are not dangerous. However, these assets can be regulated in the proper way so people can even pay taxes for the crypto received from mining or trading. Perhaps, Bitcoin can become a second international currency like USD.
Have you heard about Venezuela's experience? They try to relieve the country's economy with the help of their own crypto known as El Petro. There is already allowed to pay salary with El Petro and the prices in the country partially indexed to the coin.

Yes, they're open to this and if they see that there's something that won't go along with the government, they'll at least put some restriction but not a total ban for it. As for Venezuela, did it really helped the country with their Petro? what's profitable are the established cryptos.

but for my country this is still complicated to do, tracking is required on their personal crypto wallet and it is still not possible. the use of regulatory tax is only imposed on exchanges in that country, not for individuals or individuals. Some crypto regulations in developing countries allow crypto to be used only as a commodity asset no more than that.

Crypto is becoming very popular and many are already aware of it. Several agencies have also started to enter crypto, large companies and others. Other income through crypto trading provides an opportunity for them to get more profit but still with a high risk and become their own responsibility.

It can be applied for the individuals who make money from crypto. Just like the people from the US, when they've gained profit from crypto, they're filing it as their revenue along with respective taxation.

[Asuspawer09]

Question

Do you guys think Bitcoin has any chance of being banned by the government? I keep hearing people say that Bitcoin has a chance of being banned, yet I don’t think so because very powerful people like Elon Musk along with other companies are large investors. Is their any weight to that statement?

Answer

Bitcoin being illegal in the United States is highly unlikely for the following reasons:

1-According to the Howey test, the Trendon Shavers case established legal precedent that Bitcoin is not an illegal protection.
2-The IRS has already formalised its approach to Bitcoin (as an asset)
3-Many rich and well-connected people have personally invested in Bitcoin, and they would be upset if their political colleagues make Bitcoin illegal.
4-Traditional financial institutions in the United States, such as ICE/BAKKT (owner of the NYSE), Fidelity, TD Ameritrade, CME, and others, are now actively involved in Bitcoin mining, investing, and trading.
5-Exchanges such as coinbase, square, gemini, and others are now very big businesses that are actively interested in Bitcoin.
6-Many local states have case law and regulations on Bitcoin that makes it more difficult to make illegal.
7-There is a significant body of current case law in US courts that defines encryption and code to be covered by the first amendment.
8-Making it illegal does not ban bitcoin, but would rather show that they are a totalitarian government, albeit an incompetent one, since stopping Bitcoin is much more complicated than winning the drug war.

What are your thoughts?

There are a few countries where bitcoin is banned like China, Algeria, etc. but if we know how the internet works you could easily access bitcoin or cryptocurrency even if it is banned in your country.

Something like a VPN thing could easily be used to bypass but it might actually just depend on what website that you are going to use if they are going to were going to allow the access.

I mean there are some websites that does not allow the use of VPN, it not that risky because you could always buy a VPN if you want to buy bitccoin.

[pixie85]

governments all over the world ban bitcoin and this is not new and bitcoin is increasingly in demand. Big investors have jumped into the world of crypto and they are collecting bitcoin as an asset in the future.

Mostly unstable governments who fear for their fiat currency.

Banning bitcoin tells the world they're vulnerable and weak. It's one of the worst things you can do to your country's economy and status on the global arena.

I'm not scared of bans because in the EU it's already legalized and many countries are trying to invite crypto businesses by lowering taxes.

[Wawa2013]

It is not surprising for me to know that there are always countries that want to ban Bitcoin, it's all because Bitcoin cannot be controlled.
The government will then take safe steps by banning Bitcoin normally, moreover the government thinks Bitcoin can threaten the Banks system.
So it's no wonder some countries ban Bitcoin, and if there are countries that legalize Bitcoin, it usually can't be used for payments.
Usually Bitcoin is legalized only as a digital asset.

[Distinctin]

It is not surprising for me to know that there are always countries that want to ban Bitcoin, it's all because Bitcoin cannot be controlled.
The government will then take safe steps by banning Bitcoin normally, moreover the government thinks Bitcoin can threaten the Banks system.
So it's no wonder some countries ban Bitcoin, and if there are countries that legalize Bitcoin, it usually can't be used for payments.
Usually Bitcoin is legalized only as a digital asset.

I would say that these countries are just trying to save their own, not their people. They know the possible benefits that their people will get from the crypto investment but these corrupt leaders never wanted it to happen.

They wanted everything will be in their control which could not. And they ban crypto for this reason and this is just like showing how wrong they use their power.

[abel1337]

It is not surprising for me to know that there are always countries that want to ban Bitcoin, it's all because Bitcoin cannot be controlled.
The government will then take safe steps by banning Bitcoin normally, moreover the government thinks Bitcoin can threaten the Banks system.
So it's no wonder some countries ban Bitcoin, and if there are countries that legalize Bitcoin, it usually can't be used for payments.
Usually Bitcoin is legalized only as a digital asset.

There are few countries that banned bitcoin, Well, being threatened by the technology can at least make the government move to eradicate the use of it in their domain. As of now, I think most of the population today are still using their fiat and their banks in their daily transactions but come to think of it, Over the years people started to learn how to use bitcoin and this is what the government trying to avoid, An increasing number of people that can abandon banks and start using bitcoin. Though there are countries that have a positive approach to bitcoin, In our country we have a custodial wallet that is mandated by the authorities and can be at least used on paying bills, buying credits, and could be used on daily transactions.