Cryptocurrency Regulations

[Juicy_D]

Well, i already have my reservations when it comes to regulating Cryptocurrency. From my interaction with friends, it's seems regulating the activities in the cryptospace will facilitate mass adoption of Crypto currencies and reduce the rate at which projects rug pulls. But then, if  we accept crypto regulations, what happens to the decentralized feature  of  crytocurrency/blockchain?

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[noorman0]

The decentralized feature will still run as it should, it won't lose the interest of users even if it's only used occasionally. You just need to stick to positive principles, take what you need to take advantage of for example eliminating third parties and cutting unnecessary costs. Regulations should be obeyed consciously, so you will not violate them even if you are on free space.
Decentralization or centralization will not turn good people into bad people, and vice versa. Regulation has been around for a long time and it doesn't reduce crime rates. No matter how good prevention is, criminals are always one step ahead of finding other methods of crime.

[Poker Player]

What you are talking about is already happening. In most of the world, cryptocurrencies are regulated in one way or another. As for the decentralized nature, of Bitcoin in this case, what is happening is that it has been centralized through various entities such as custodial wallets or centralized exchanges. You can use Bitcoin in a decentralized way, like if you hire me to do a job and send me Bitcoin as a P2P payment, but nowadays many of the transactions go through centralized entities in one way or another. Some people see it in a very negative way, while others see it as practically inevitable.

[mk4]

The government regulating the cryptocurrency industry in general is going to achieve little to none. They literally can't even stop traditional finance scams; what more crypto.

[Upgrade00]

But then, if  we accept crypto regulations, what happens to the decentralized feature  of  crytocurrency/blockchain?

You are right to have your reservations about regulations, and it would pretty much invalidate the decentralization of the crypto industry, while not solving rug pulls or eliminating scams.

Decentralization means you do not rely on any central authority, and do not need to trust a middle man. Regulation is the exact opposite as with it, a central authority can control, freeze, or lock your funds, and request you to prove why it should be released to you.

[Zlantann]

Regulating the crypto industry would definitely kill the beauty and uniqueness of cryptocurrencies. But decentralization, freedom and lack of accountability enjoyed in the crypto sphere have given much impetus to fraudsters and ponzi scheme operators pretending to be genuine crypto operators. Their operations have given rise to the birth of countless worthless shitcoins pre-designed to fail. These scammers keep giving the crypto space bad reputation and to a large extent discourage people from venturing into the real and genuine crypto palace. I totally support deregulation or decentralization, but some sort of regulation or control to limit and discourage the entry or operations of these crypto bad-eggs should be put in place.  

[examplens]

The government regulating the cryptocurrency industry in general is going to achieve little to none. They literally can't even stop traditional finance scams; what more crypto.

I am of the opinion that some kind of legal regulation is still needed in cryptocurrency. complete anarchy is not exactly the best solution, really fertile ground for attracting various types of scams.
I agree with you about the poor management of traditional finance scams, but out of all rules, cryptocurrencies will only become playgrounds for scammers.

[pooya87]

it's seems regulating the activities in the cryptospace will facilitate mass adoption of Crypto currencies

It depends on what it really means when talk about "regulations". Let me give you two opposite examples.

First is the case in New York some years back. They "regulated" bitcoin businesses by requiring them to sign up for a license that had a lot of restrictions and high taxes. Not only it didn't facilitate mass adoption, it did the opposite by forcing business out of NY.

Second case is in Japan where they accepted bitcoin as a legitimate currency and also removed all taxes from payments made in bitcoin. That helped the bitcoin adoption speed up since businesses were more comfortable to accept bitcoin.
It didn't change anything in adoption of cryptocurrencies aka altcoins though.

As you can see regulation on its own is not good or bad. We have to see this as a case by case basis to figure what kind of effects it is going to have on the bitcoin adoption.

[mk4]

I am of the opinion that some kind of legal regulation is still needed in cryptocurrency. complete anarchy is not exactly the best solution, really fertile ground for attracting various types of scams.
I agree with you about the poor management of traditional finance scams, but out of all rules, cryptocurrencies will only become playgrounds for scammers.

It's not even about complete anarchy. It's just the fact that policing everything and the authorities deciding what people can and can't invest in is obviously very ineffective.

[Pmalek]

Bitcoin can work just fine without being regulated. Don't get tricked into believing your government that you need them to show you how to do things safely. They couldn't care less about your safety or if you get scammed. The goal of their regulations is to have you pay taxes and have a harder time to cash out your crypto earnings and hiding it from them.

Bitcoin can work with or without regulation. Many altcoin projects are scams and get-rich cards for their developers and creators. The best way to stay safe from being scammed by altcoin projects is that you forget all about them. Or at least use only 1 or 2 that have been around for many years and are less likely to cause you headache.

[tranthidung]

Bitcoin can work just fine without being regulated. Don't get tricked into believing your government that you need them to show you how to do things safely. They couldn't care less about your safety or if you get scammed. The goal of their regulations is to have you pay taxes and have a harder time to cash out your crypto earnings and hiding it from them.

Regulations are not bad as they are helpful as preventive solutions for newbies to avoid or at least reduce risk of scam exposure and being scammed.

However, I agree with you that having more regulations (better regulations) does not mean we should again trust governments and put our money into their finance system from either fiat currencies to CBDCs. They are completely centralized and unsafe.

Let they regulate Bitcoin and cryptocurrency industry, exclusively crypto market but don't store your Bitcoin on any centralized platforms. No matter whether those platforms are controlled or regulated by governments.

"Not your keys, not your coins" means let's use non custodial wallets.

[Lucius]

I think that in the regulation of what we call cryptocurrencies, two currents are breaking down that want to go in two different directions. The first direction is an ordinary wild west in which everyone does what they want and mostly passes without serious consequences, and is supported by all those who want to continue running their crypto Ponzi scheme indefinitely.

The second direction has nothing against the regulation of the crypto sector, on the contrary, it encourages the authorities to get serious and disable various entrepreneurs who earn billions of dollars through their projects, leaving behind millions of defrauded people, and thus they harm all honest people who do not have any bad intentions.

When I talk about bad people, I am primarily referring to narcissistic maniacs like Kwon who publicly admit that they enjoy watching everything around them fail, and then cause a mega earthquake on the crypto market with their actions.

Bitcoin is something completely different and in a separate category, and it is difficult for any positive regulation to harm it.

[Charles-Tim]

From my interaction with friends, it's seems regulating the activities in the cryptospace will facilitate mass adoption of Crypto currencies and reduce the rate at which projects rug pulls.

That is true, but cryptocurrencies needs regulation because altcoins are securities, instead of being a commodity, they are having central authority and manipulation become possible.

If only bitcoin is existing, it would have been better.

But then, if  we accept crypto regulations, what happens to the decentralized feature  of  crytocurrency/blockchain?

Are they even decentralized? No, altcoins are not decentralized.

[Findingnemo]

Well, i already have my reservations when it comes to regulating Cryptocurrency. From my interaction with friends, it's seems regulating the activities in the cryptospace will facilitate mass adoption of Crypto currencies and reduce the rate at which projects rug pulls. But then, if  we accept crypto regulations, what happens to the decentralized feature  of  crytocurrency/blockchain?

Regulating the cryptocurrency based services may be useful to find the scammer but it is impossible to eradicate scams and rug pulls because basically anyone can create a project with any idea they have and also they can raise funds even before it hits the public sale so how the regulations will stop the scam projects which will probably run away with all the raised money.

[Yogee]

....But then, if  we accept crypto regulations, what happens to the decentralized feature  of  crytocurrency/blockchain?

There are many crypto products that claims to be that but they were really not decentralized to begin and yet we see a lot of people using them. My take is that these users won't quickly change their choice just because those platforms made changes to be compliant as long as they find them convenient and they're making money.

[hatshepsut93]

There's decentralization of they network and decentralization of the whole ecosystem. Regulations are very unlikely to affect the network, because the network is global and was created to withstand any attempts to control it. But ecosystem is already quite centralized, with majority of Bitcoin volume happening through centralized exchanges. Regulations can make certain types of p2p trades that require bank transfers less attractive, pushing users even more towards centralized exchanges. Regulations could also force smaller exchanges to close down, living only a few companies on the market.

[Marvell1]

The government regulating the cryptocurrency industry in general is going to achieve little to none. They literally can't even stop traditional finance scams; what more crypto.

I am of the opinion that some kind of legal regulation is still needed in cryptocurrency. complete anarchy is not exactly the best solution, really fertile ground for attracting various types of scams.
I agree with you about the poor management of traditional finance scams, but out of all rules, cryptocurrencies will only become playgrounds for scammers.

It is true that we are afraid that regulation will cause us to lose our freedom, lose our decentralization. Nevertheless, without any regulation for cryptocurrencies, it will become a very messy and complicated issue, criminals will take advantage of this loophole to wreak havoc. Regulations will not be able to completely prevent fraudulent and scam acts but will reduce them somewhat and criminals will be held responsible for their deceitful acts.

[Smartvirus]

Well, i already have my reservations when it comes to regulating Cryptocurrency. From my interaction with friends, it's seems regulating the activities in the cryptospace will facilitate mass adoption of Crypto currencies and reduce the rate at which projects rug pulls. But then, if  we accept crypto regulations, what happens to the decentralized feature  of  crytocurrency/blockchain?

Unfortunately, cryptocurrency wasn't made to be regulated. I think this is one of the reasons most users that are hooked up to cryptocurrency today enjoy it so wel. It's unregulated nature and the fact that one is in complete control over his affairs. That's everything to most and regulations would only take that away which would make it no different from the CBDC out there. Contrary to mass adoption, I think it would just fade off and that's so much not what we need.

Talking about criminals, I guess they've never stopped from the beginning of time, its left for users of the cryptospace to grow wiser.

[Darker45]

If and when Bitcoin is regulated, it does not necessarily mean that it is becoming centralized. Regulations, fair and proper ones at least, don't have to take away a cryptocurrency's best feature.

The reason why I am supporting regulations on the cryptocurrency market is that majority of crypto projects are simply created to prey on innocent people and take away their money. They are totally free to start a project anytime, even with unsustainable and simply ridiculous tokenomics, start an ICO or IEO or whatever, and make money. The project fails; they create another one and, again, make money.

There is no office or agency whatsoever which scrutinizes or approves any of these projects.

[dataispower]

Well, i already have my reservations when it comes to regulating Cryptocurrency. From my interaction with friends, it's seems regulating the activities in the cryptospace will facilitate mass adoption of Crypto currencies and reduce the rate at which projects rug pulls. But then, if  we accept crypto regulations, what happens to the decentralized feature  of  crytocurrency/blockchain?

Cryptocurrency doesn't have any serious regulations, the thing that makes cryptocurrency to have regulations is the standard of the market return by investors, so the regulations is not something we can be sure of cryptocurrency. I believe that since it's a decentralized currency it doesn't have any way of someone regulating it due to it's adoption. Why the adoption affectes cryptocurrency it's because cryptocurrency have a influence over More buying and selling in the market