Will bitcoin ever get regulated

[franky1]

Various nations are looking for ways to regulate the use of cryptocurrency. There are different types of such regulations. Some countries are cracking down on the use and buying of bitcoins in exchange for fiat currency. Some governments are also trying to regulate the taxation and trading of cryptocurrency. Some countries are exploring to regulate the use of cryptocurrency in the form of personal accounts and wallets. Moreover, some countries are even exploring to ban cryptocurrency all together.

But as far as bitcoin is concerned, there is no real regulation on cryptocurrency. This is because it is an entirely digital currency which is based on blockchain technology and is totally decentralised. Hence, it cannot be governed by a central bank or any other financial agency.

I'm not sure how banning cryptocurrencies all together would work, how is that even possible and how would they possibly track such movements? Anyway, I hope we don't learn the hard way, however, the most likely to happen is to have them taxed, most exchanges would be blacklisted, thus, any financial movement would trigger alarm bells, forcing you to declare any earnings that are a result of dealing with cryptocurrencies.

by stopping the american based exchanges from offering bitcoin market swaps for fiat.
by getting ISP's to monitor traffic for known data packets/websites (like they banned torrent sites on clearnet)

but these only affect public services.

[TheNineClub]

Yes, it can get regulated. Well, not regulated in the sense that today's lawmakers and authorities would like, but more like a middle ground between total regulation and total decentralization. Especially if we want to see BTC stabilization in the future, some sacrifices need to be made. So, in short, if we want a long-lasting BTC, something needs to give, investors will need to be protected, and some regulation needs to implement. The issue that arises is can it be implemented globally because a country-by-country regulation would not help.

[Abiky]

These days cryptocurrencies have turned to be the preferred one for money laundering. This is all because of its anonymity, cross border transaction, easy access and it continues. Same as the growth, there is also increase in the number of cybercrime related with cryptocurrency.

Based on the data provided by chainalysis there is a 30% up in the money laundered than the year 2020. Likewise there is more tax revenue loss happening for the government and this makes governments to push regulation than just leaving it without any policies for cryptocurrency.

That's not largely the case. The vast majority of money laundering activities take place on Fiat, not crypto. After all, cryptocurrencies like Bitcoin and Ethereum have transparent blockchain ledgers. This means it's easy enough for authorities to catch malicious actors on-chain. Why would a criminal use a cryptocurrency like Bitcoin for money laundering when he can simply use cold, hard cash? Privacy coins have a better chance for being used for such nefarious activities, but the wild fluctuations in market price, greatly defeats the purpose. I'd say the crypto market is somewhat-regulated, as governments have been able to successfully enforce KYC/AML measures on centralized exchanges. Things like decentralized exchanges and atomic swaps are out of their control, but almost nobody use these alternatives because of their low liquidity and higher learning curve. I'd prefer Bitcoin to be mildly regulated as too much regulation will stop its growth for good. Who knows what tactics mainstream governments will come up with depending on crypto/Blockchain tech's progress over time? Just my thoughts

[Xinarae*]

Bitcoin is decentralized so no one can easily control it even if bitcoin becomes a law in the whole world it will take a long time to control like fiat. Bitcoin is the currency of an online currency system this currency system is also called cryptocurrency it cannot be seen or touched it is created online and used online digitally. Bitcoin is completely controlled by us it is not controlled by any organization or individual with no government control investors can safely use bitcoin.

[mirakal]

Bitcoin is decentralized so no one can easily control it even if bitcoin becomes a law in the whole world it will take a long time to control like fiat. Bitcoin is the currency of an online currency system this currency system is also called cryptocurrency it cannot be seen or touched it is created online and used online digitally. Bitcoin is completely controlled by us it is not controlled by any organization or individual with no government control investors can safely use bitcoin.

Regulation is not literally on bitcoin itself because by nature bitcoin cannot be controlled since it uses a decentralized system. What we are talking here is about the regularization of a certain country to impose the rules to the 3rd party like an exchange to adopt with the standard rules and regulation, particularly on the KYC and Anti Money Laundering law.

[pinggoki]

To a certain degree it will be regulated but I don't think that it will be fully regulated, more likely that people are the one's that would get regulated rather than bitcoin itself. And decentralization would lose it's meaning when bitcoin gets regulated anyways so it's highly unlikely that regulation would be met with no opposition if it ever happens.

[noormcs5]

Bitcoin is a decentralized coin whose number and circulation cannot be regulated as Bitcoin has a limited number of only around 21 million. Indeed, there are several countries that have adopted and legalized Bitcoin, but what the government can regulate is a tax for every transaction. The government cannot regulate the amount and price of Bitcoin itself because it is a decentralized Bitcoin whose price depends on supply and demand, this is what distinguishes Bitcoin from centralized fiat money.

There are two things which i think will likely to happen.

1- Bitcoin will get regulated but it may take more time then we may anticipate. There are lot of challeenges which will be faced in regulating bitcoin and making all the governments agree on it.

2- Bitcoin will co-exist with fiat. Government may introduce their own digitial coins but i dont see fiat getting completely eliminated. Fiat may be converted from paper money to government owned digitial coins.

[bounceback]

Regulation is not literally on bitcoin itself because by nature bitcoin cannot be controlled since it uses a decentralized system. What we are talking here is about the regularization of a certain country to impose the rules to the 3rd party like an exchange to adopt with the standard rules and regulation, particularly on the KYC and Anti Money Laundering law.

In the future it is very possible that all crypto exchanges must comply with regulations issued by the government and must pass KYC for every user who wants to transact in it and until now if we see the government continues to demand that crypto exchanges must comply, then indirectly this will certainly create bitcoin anonymity fade.

[Wawa2013]

To a certain degree it will be regulated but I don't think that it will be fully regulated, more likely that people are the one's that would get regulated rather than bitcoin itself. And decentralization would lose it's meaning when bitcoin gets regulated anyways so it's highly unlikely that regulation would be met with no opposition if it ever happens.

Therefore, there are still many countries that are neutral towards Bitcoin, because Bitcoin is very difficult to regulate. Until now the regulation is not
for Bitcoin, but the exchanges used for Bitcoin trading are usually regulated by the government. Even countries that declare Bitcoin illegal, but residents of
that country can still own Bitcoin and can make Bitcoin transactions. This is proof that it is very difficult for the government to regulate Bitcoin, that is
why many governments are afraid to legalize Bitcoin. Whereas if the government is open-minded and studies Bitcoin properly, there is nothing to be
afraid of by legalizing Bitcoin. Because Bitcoin was created for an alternative payment, and not to replace fiat.

[Slow death]

Of course, just see that there are some countries that are already regulating bitcoin and eventually all countries in the world will regulate bitcoin, it is inevitable that this will happen, because the bigger this market is getting, the more attention it is getting from governments

[witcher_sense]

2- Bitcoin will co-exist with fiat. Government may introduce their own digitial coins but i dont see fiat getting completely eliminated. Fiat may be converted from paper money to government owned digitial coins.

Hasn't bitcoin been successfully co-existing with government-issued money for more than a decade already? People have long recognized bitcoin as a savings technology, but when it comes to daily transactions, they tend to spend fiat money first because they know fiat is not suitable for storing wealth. Fiat is for spending, bitcoin is for unpredictable future spending. This system of double money has worked for years, and would still have been working very efficiently today if governments hadn't decided to intervene in it and mess things up by their questionable attempts to regulate matters that either cannot be regulated at all or cannot be regulated without first destroying the principles on which bitcoin is standing. It is widely known that bitcoin is open, borderless, censorship-free, unstoppable money which people value for its decentralized nature. Any regulations of fiat system, if successfully applied, will make bitcoin less valuable and less attractive as a savings technology, that is, it will make bitcoin worthless and the co-existence with fiat impossible.

[bitterguy28]

Of course, just see that there are some countries that are already regulating bitcoin and eventually all countries in the world will regulate bitcoin, it is inevitable that this will happen, because the bigger this market is getting, the more attention it is getting from governments

Support on this , because the larger Bitcoin reaches is the more this will be complicated for each country to handle so what they will implement is Regulation so at least they will have some control or power over crypto .

Not unless the world will rely in crypto as currency then regulation might be off the table and only some rules will be implemented .

[leea-1334]

in my opinion, this is the only cryptocurrency that will be difficult to regulate, decentralization and anonymity are just about bitcoin, because no one knows the creator, the blockchain also works by itself, unless the owner of the bitcoin wallet himself will not give the private key to the regulator and tell his identity, then it is impossible to regulate it.

Well,,, did they government not decide a few years ago that both Bitcoin and Ethereum were "decentralized" enough to not require regulation? Decentralization is also applicable to Ethereum, just not to the same level of Bitcoin.

Also,,, I do not think Bitcoin ever was anonymous, it was always private, but never anonymous.

[Sebas.tian]

No because there are still some country who don't still believe on bitcoin than to see bitcoin as a scam decentralized currency that have few years to stand in the community. Even some countries that adopted bitcoin are still looking for ways to involve taxes on their citizens which will be difficult for them to impose such taxes to bitcoin users.
It will be difficult for bitcoin to be regulated because many people are used to centralized currency which they don't believe any other decentralized currency. Those that don't have knowledge about bitcoin in the societies will not be happy about such plan or opinion.

[Alisha-k]

Except Bitcoin becomes centralized, it can not be regulated.
They're still countries who are yet to understand what Bitcoin is and it's mode of operation, the still believe Bitcoin to be Ponzi

The government can not regulate what it doesn't have believe or faith in.

[pushups44]

This topic have taken the center stage of my thought we have seen how countries around the world are gradually opening the economy to adopt bitcoin and as a result a lot of government policies are already underway to develop a framework that allow regulation of the bitcoin ecosystem which have made me to wonder on this topic. Can a decentralized currency like bitcoin ever get regulated?

Yes, in some jurisdictions like China bitcoin can be banned, but in the U.S. and other freer countries we are likely going to see an emphasis on compliance and restrictions on how companies can behave in relation to bitcoin. While bitcoin can never be completely banned in practice, we will likely see more oversight of exchanges and financial institutions to make sure investors are paying taxes, money is not laundered, and that investors get adequate protection.

As long as regulation is done intelligently, it will be beneficial for the industry.

[Mamun74]

I think yes,Bitcoin already some countries legal. Bitcoin ever get regulated i think It’s possible. Many companies and many countries they are interested in cryptocurrency in bitcoin. Many investor comes in last 2-3 year in crypto World. I think It's Very tough to government regulation in bitcoin but i hope one day It's possible to happen.

[Henrobakkara]

This topic have taken the center stage of my thought we have seen how countries around the world are gradually opening the economy to adopt bitcoin and as a result a lot of government policies are already underway to develop a framework that allow regulation of the bitcoin ecosystem which have made me to wonder on this topic. Can a decentralized currency like bitcoin ever get regulated?

It depends on what you see as regulating Bitcoin. Can the Government determine how miners mine Bitcoin? how many Bitcoins are sent to exchange by miners? the price at which Bitcoin is sold? I don't think all these are possible however, I do believe that regulation will mostly be on the exchanges in reporting suspicious Bitcoin transactions and putting other measures in place like AML/KYCs

[uchegod-21]

It depends on what you mean by regulation. I believe you are not mistaking it with centralization.
Bitcoin is not centralized but Bitcoin can be regulated.
Currently, many countries are regulating Bitcoin in different ways according to their country’s policies.
They regulate it to enable it to be legal or legitimate in their country. The people that cannot find a way to regulate Bitcoin are the people that is always afraid of what Bitcoin will develop to, so you will see them ban Bitcoin in their country.

[Abiky]

Yes, in some jurisdictions like China bitcoin can be banned, but in the U.S. and other freer countries we are likely going to see an emphasis on compliance and restrictions on how companies can behave in relation to bitcoin. While bitcoin can never be completely banned in practice, we will likely see more oversight of exchanges and financial institutions to make sure investors are paying taxes, money is not laundered, and that investors get adequate protection.

As long as regulation is done intelligently, it will be beneficial for the industry.

China may have "banned" Bitcoin, but people can still access it through other means. What the Chinese government has done is restrict exchanges and people from conducting business with Bitcoin. But they cannot stop the network itself due to its decentralized nature. I guess other countries will take advantage of Bitcoin's rise for taxation purposes. Anything that would benefit mainstream governments will get their approval. While some governments say Bitcoin is used for money laundering and tax evasion (in order to justify their means), others say all of the contrary.

I don't think every single country will ban Bitcoin because it's impossible to reach a common agreement between them. Regulations are a must to legitimize the crypto/Blockchain industry. But too much regulations will stifle its growth. Everything will depend on the collaboration of individuals and governments alike. As long as everything's done correctly, Bitcoin will continue to grow like there's no tomorrow. Just my opinion