The Role of Government in Crypto

[maju69]

The role of the government in crypto is negligible but even if the government gives legitimacy to decentralize crypto it cannot control crypto. If the government operates like fiat currency then it is a threat to crypto anyone can work in crypto as an independent but I don't think the government can control crypto, they should focus on how the crypto project works and informing them through ongoing communication as well as continuing the long term vision. The more companies can educate their investors the more knowledgeable and confident these investors will be, and the more informed the industry as a whole will be.

The government can definitely control it.  Look at what happened in China recently.  They outlawed mining operations and started cracking down on exchanges and it forced people to sell their bitcoins.  If it was truly out of government's ability to control it, they could make these rules and people wouldn't respond, but that's clearly not the case.

As you said, this is one proof that the government can control the movement of Bitcoin in their country. Even China blatantly closed access as a whole. Then we will know that recent government regulations have always been things that are not very in our favor.

[Gozie51]

will government regulations on cryptocurrencies undermined crypto decentralized nature?

The government will be able to implement regulations and prohibitions towards crypto even it is decentralized in nature. Have you seen what just happened with Monero?
It was delisted in many exchanges due to governments action.

In this aspect what government is doing is regulation but in the regard of total stoppage of cryptocurrency that it won't exist is a very difficult mission to achieve as cryptocurrency has gone beyond that. Cryptocurrency that are meme , highly manipulated coins can go down but decentralised coins like bitcoin doesn't depend on government decision.

[capcaypro]

When it comes to decentralization in crypto, it is actually very difficult for the government to interfere in this matter but in connection with regulations, it will be very possible for the government to regulate it because we all know that a country must have various regulations including in crypto and this will seriously injure the system. decentralization itself. because regulations play a very vital role here and we can't do anything when the government regulations are published

[XUNing]

Most cryptocurrencies are decentralized. If the government regulates cryptocurrency like legal tender, it will formulate corresponding regulations for this, and the cryptocurrency will be manipulated, lose its decentralization and anonymity, and destroy the blockchain encryption system. Cryptocurrency should not be regulated by the government. It must ensure the decentralized nature and freely trade in the blockchain system.

[guydin]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will will government regulations on cryptocurrencies undermined crypto decentralized nature?

It goes without saying that any whale on the crypto market can destroy decentralisation. It can be a big bank, a big exchange or even one country, but if it has a big part of the market it is a threat for small investors.
Personally I don’t care if my crypto is not legal. The main thing for me is that I can exchange it for fiat money and I can earn on it. And nothing else bothers me.

[Argoo]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will will government regulations on cryptocurrencies undermined crypto decentralized nature?

Of course, states and their governments will be forced to either ban or regulate the circulation of cryptocurrencies. They cannot allow uncontrolled circulation of "nobody's" money and in ever-increasing volumes. This will be a long-term confrontation and it will depend on how we can defend our right to use the cryptocurrency.
However, cryptocurrency will have to exist along with the national money of states and take its own niche in the financial sector.

[nicecrypto]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will will government regulations on cryptocurrencies undermined crypto decentralized nature?

Initially cryptocurrencies were created to be out of the control of authorities, so if the government captured the control over crypto, the main idea would be destroyed. Nevertheless, different actions from the governments can have a big negative impact on the crypto world/ For example, they can ban different services and exchanges on their territory.

I agree with you here, I too don't see anything or regulations that the government will bring to the cryptocurrency space that will be more positive to the market than what it already has now. If anything, the government will only restrict every freedom that crypto has brought to the financial system. The reason crypto is still this attractive is that it is not been regulated by the government and once that is in place, crypto will be gone.

[TheGreatPython]

will government regulations on cryptocurrencies undermined crypto decentralized nature?

Governments may able to interfere only up to some level and not up to the level where the basic characteristics of cryptos to be disturbed. I mean a crypto user may remain anonymous and enjoy all the benefits of cryptocurrencies regardless of what level of regulations imposed by their government. This way, I believe we can enjoy cryptos without losing its decentralized nature even among government's regulations but the only need is getting into cautious practices.

By cautious practices I refer P2P and other similar things things. Government cannot make P2P trading illegal hence if we choose right practices then crypto will remain decentralized in any level of government regulations.

[Snappycoco]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will will government regulations on cryptocurrencies undermined crypto decentralized nature?

Yes it is. Cryptocurrency is built for poor and by the poor. Decentralisation doesn't require a regulatory body which a government provide. This is why most of DeFi doesn't have to do KYC and all you need is your wallet unlike centralised exchanges like binance. However, Governments role in the society is to protect its constituent from fraudulent activities thats why some country bans the idea of Cryptocurrency.

[Assface16678]

I think still not undermined crypto decentralized nature. Because until now although government made crypto illegal to use, i think people will still can own it. For market although it is blocked, there are a lot of decentralized exchange that we can use directly from our wallet or device to exchange our coin.

It's not like all the government around the world have banned or made it illegal, I think that the reason for some of these is that they still believed that it's still all speculation and we have to do something about it.  I think the role of government should be the same as any investment, consumer rights and fair taxation.

[Yatsan]

If the regulation that was placed is really strict and only favors the side of the government then probably you can say that it undermines the decentralized nature of cryptocurrency. But if it's the reverse and the government and the people support it then we can see something positive happen to cryptocurrency in general.

Indeed because what we commonly hear and read from the news that is happening into different countries is that their government is putting a high restrictions on using cryptocurrency within their vicinity that hinders those who wanted to use cryptocurrency freely. If the government and people will agree into certain regulations that will benefit both parties and not just bias into a one sided decision, we can somehow state that there will be no problem with regards to government stand with cryptocurrencies if certain regulations will be made just for the sake of control that is not too much for the people.

[capcaypro]

The government will be able to implement regulations and prohibitions towards crypto even it is decentralized in nature. Have you seen what just happened with Monero?
It was delisted in many exchanges due to governments action.

Wait a minute, I don't know what you mean by cases involving Monero as well as the government because what I do know is that Monero has been in the spotlight because of cases of Telegram users using XMR to buy illegal pornographic material – many of which involved minors so they were delisted from several exchange.
did I miss the information or am I wrong please explain more about this

[tabas]

The government will be able to implement regulations and prohibitions towards crypto even it is decentralized in nature. Have you seen what just happened with Monero?
It was delisted in many exchanges due to governments action.

Wait a minute, I don't know what you mean by cases involving Monero as well as the government because what I do know is that Monero has been in the spotlight because of cases of Telegram users using XMR to buy illegal pornographic material – many of which involved minors so they were delisted from several exchange.
did I miss the information or am I wrong please explain more about this

That example is just part of the 'illegal' activity that can be done with the involvement of Monero. You can think of many illegal activities and the governments are including any single illegal activity that you can think of.
It is why they're strict with Monero and enforced those exchanges to delist it or else they'll face the consequences.

[Nora Olin]

I think that a lot of recent news about exchanges are due to the suppression of the national government. For the market, government supervision and suppression of the encryption field are negative. It is not good for us, but this will not affect decentralization. Nature, these two things are not related.

[RILWAN]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

I strongly disagree with these statements.

if you have a contrary views to this statement then please share you knowledge with us as we are all here to learn and help one another gain knowledge.

[iv4n]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

I strongly disagree with these statements.

if you have a contrary views to this statement then please share you knowledge with us as we are all here to learn and help one another gain knowledge.

You are right Rilwan, it's one of the roles of the government. What's wrong is your headline! The government doesn't have a role in crypto, they can't regulate decentralized crypto,  they can regulate what is within their jurisdictions, so what they can do is to regulate the usage of crypto, not crypto itself! If the government has some coins/miners then they can have a role in crypto! Depending on the coins or tokens they have, and of course, the quantities at their disposal, if they mine then it's important their mining power, their role can be bigger or smaller!

[King Khaizan]

I see regulations in a country, they only regulate crypto commodity trading regulations, the reason is for security, because they reveal one example of a circulating case that many crypto asset traders take away customer money, and this is their concern so that domestic investors can be guaranteed its security is because there is a guarantee for the security of customer money, through a clearing house.

[ChiBitCTy]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will government regulations on cryptocurrencies undermined crypto decentralized nature?

I agree that the government should be regulating cryptocurrency markets as that is vitally important.  If they didn't monitor them, that would be like them not monitoring the stock markets, and that is a bad thing.  If they didn't monitor them then we would have more coins like Bitconnect and BitClub. 

I think some governments will try to undermine crypto and have already started doing so in some places.

[Lubang Bawah]

I see regulations in a country, they only regulate crypto commodity trading regulations, the reason is for security, because they reveal one example of a circulating case that many crypto asset traders take away customer money, and this is their concern so that domestic investors can be guaranteed its security is because there is a guarantee for the security of customer money, through a clearing house.

There are still many things that are not known about crypto, besides the crime of exchanges taking consumer money, security is the most important thing, we often see the fact that many projects are hacked so they have to change address contracts.

[LUCKMCFLY]

He thought that governments in general were quite radical as far as BTC is concerned, but seeing that the Government of "El Salvador" after the decision of its president opted to adopt BTC, it implies that not everything in the world is lost, that There are people are leaders and supporting progress methods, which know that at any time the traditional global economy is a great bubble that at any time can explode.

At the same time, I have also seen that other governments have joined this initiative, among which Paraguay stand out, which is making measures to adopt the BTC, are things that must be applauded. I think the role of these governments who think about the future are those who will be an example for everyone in the world, for now I think it is the most immediate role.