Is regulation really inevitable?

[Anonylz]

No, regulation is not inevitable and it has been happening indirectly for years, and even so now that btc is getting closer to global adoption the regulation process will keep increasing.
it is not going to be business as usual when we have big institutions joining the btc community. Regulation is inevitable and it is the price to pay for the so-desired adoption.

[goldkingcoiner]

Regulational pressure from the governments and their impotent laws toward decentralized cryptocurrencies like Bitcoin will only push us further towards removing banks and other centralized middle-men platforms like (centralized) crypto exchanges from the world of crypto. I see absolutely nothing wrong with this. Not only is it helping our cause and further developing decentralized technologies to replace the old centralized ways, but it also shows how powerless the governments are in face of decentralized blockchain technology. Its been years of promises of regulations and bans and many years later, we still stand strong.

The governments have nothing that could destroy or regulate crypto.

[serjent05]

From all stand point as Bitcoin keeps gaining more popularity and adoptions it won't be inaccurate to say the government are endlessly finding a way to do a complete regulation on Crypto currency specifically Bitcoin, Despite most times the word crypto currency might be used to address all crypto related digital asset but the main target remains Bitcoin due to it's decentralised and distributed network as well as been the major crypto asset.

Bitcoin represents all cryptocurrencies, it is the "King" and taming the king is like controlling all its domain ( cryptocurrency industry).  So regulators always aim for the dominant one to give a good example.

Why it is obvious getting full control of Bitcoin functionality and distribution seems impossible due the fact it has no central point of control one might expect stricter rules governing the use of custodian and non-custodian wallet, declaration of all cold wallet addresses, Setting up committee to monitor transactions on the blockchain public ledger, introduction of wallet trackers and ownership on different OS and maybe lots of wild experimentation to make regulation a possibility.

It is impossible because of the system and traditions people have where trust is given to a third-party company recognized by the government thinking that it is best to let the licensed entity by the government manage their financial security.  People are too reluctant to manage their own finance and bear the sole responsibility of securing it.

Believe you me no matter how advanced bitcoin decentralisation might look or sound the government will never risk giving their citizens full control of their assets. The always want to be in charge and has long has they have this limitation of full custody stricter laws regarding Bitcoin usage might spring up. Technology is advancing

The government always wanted to show its citizen its power and control reason why any government will do its best to control all things and the cryptocurrency industry is no exemption.  As long as people are using centralized industry, no matter how decentralized bitcoin is, there is always this choke point where the government regulates anything that passes it.  Besides regulation is inevitable if the industry needs government adoption.

[Gyfts]

Regulation's already here. Miners were the first to be targeted, under the guise of "climate change" activism in Europe and the U.S. In reality, it's merely politicians using climate change as a facade to drill down the miners and make crypto mining less profitable, therefore curtailing the enter market. They'll move on to higher taxes and force crypto users to register all crypto holdings with the government. They might even pass a wealth tax (it's customary to pay taxes on assets that are sold for a profit, not mere accumulated wealth). That'll cause holders to immediately dump their assets.

Decentralization does not mean an authoritarian government is incapable of regulation. Sometimes I sense complacency amongst crypto users that decentralization protects them from the government. It helps, but it's not 100% immune.

[Hamza2424]

Power in Hands is a very decent concept but as you know that on the digital era maximum of people tried their best to stand with privacy concerns but the power rule is what you think not always get it. Privacy is a myth on web 2.0 we know that very well so it would be no wonder that decentralization can also e a myth as Bitcoin is the key and governments cant risk their stakes by providing the key to the users. Well said...

[Ziskinberg]

Well, the main thing is that the government is looking for a way how to regulate the increase of fraud and money laundering. They have found out that crypto is also a medium use for illegal activities bringing their attention. I do opposing to the situation that they will imposed strict market regulations but if this could help to minize these activities, I no longer to stop it but giving their support as long there is a fair rules implemented.

This is already been applied to some countries who already accepting Bitcoin. Regulation is not the thing we worried about but the growing case of scams which I see this could help it.

As long as no harm is caused to the user then I will welcome the regulation. But if there are interests of a few people who cause harm to users, I will honestly protest strongly. Because after all we must mutually benefit each other without any party feeling disadvantaged.
Regarding fraud and illegal acts, obviously it will always be there and many irresponsible people will use this to access their transactions. If it can reduce fraud and illegal acts why not.

That is really the case we can't skip the possibility that one day the government will impose some crypto restrictions and even stricter than what we think. I expect such condition knowing that fraud and money laundering is really hard to stop but possibly even increasing numbers. But I do how this won't against our well and this is for everyone's benefit. Their moves isn't clear for now but for sure this will lead to somewhat we need to adjust, unlike the usual thing we do, KYC might be mandatory.

[Antonas1]

No doubt. Every country will always look a ways to smack Bitcoin down with their regulations, because full control over the people's assets is important. Wealth tax is one of the reasons. They will always say that Bitcoin is often used for terrorist financing, drugs, and a lot of bad stuff. That's why they think they should regulate Bitcoin or cryptocurrencies. Although fiat money has become a crime tool long before cryptocurrencies existed, they are ignored it.
I suspect maybe the CBDC exists to build up the next regulations they will make (just a wild opinion).

[gurbar_nakub]

From all stand point as Bitcoin keeps gaining more popularity and adoptions it won't be inaccurate to say the government are endlessly finding a way to do a complete regulation on Crypto currency specifically Bitcoin, Despite most times the word crypto currency might be used to address all crypto related digital asset but the main target remains Bitcoin due to it's decentralised and distributed network as well as been the major crypto asset.

Why it is obvious getting full control of Bitcoin functionality and distribution seems impossible due the fact it has no central point of control one might expect stricter rules governing the use of custodian and non-custodian wallet, declaration of all cold wallet addresses, Setting up committee to monitor transactions on the blockchain public ledger, introduction of wallet trackers and ownership on different OS and maybe lots of wild experimentation to make regulation a possibility.

Believe you me no matter how advanced bitcoin decentralisation might look or sound the government will never risk giving their citizens full control of their assets. The always want to be in charge and has long has they have this limitation of full custody stricter laws regarding Bitcoin usage might spring up. Technology is advancing

It's inevitable and it's coming from the people, not from the governments. There are too many scams and a lot of victims are now begging the authorities in charge to help them.

[Maidak]

No doubt. Every country will always look a ways to smack Bitcoin down with their regulations, because full control over the people's assets is important. Wealth tax is one of the reasons. They will always say that Bitcoin is often used for terrorist financing, drugs, and a lot of bad stuff. That's why they think they should regulate Bitcoin or cryptocurrencies. Although fiat money has become a crime tool long before cryptocurrencies existed, they are ignored it.
I suspect maybe the CBDC exists to build up the next regulations they will make (just a wild opinion).

Everything is just an excuse for them to find a way to impose bitcoin on their framework, fiat is ignored simply because it is created and controlled by the government but bitcoin is not, it is only a matter of time before they set regulations for bitcoin. The government will never let us threaten their power. As long as we live under their control, we can never think of being completely free without any control from them, regulation is inevitable.

[Fara Chan]

No doubt. Every country will always look a ways to smack Bitcoin down with their regulations, because full control over the people's assets is important. Wealth tax is one of the reasons. They will always say that Bitcoin is often used for terrorist financing, drugs, and a lot of bad stuff. That's why they think they should regulate Bitcoin or cryptocurrencies. Although fiat money has become a crime tool long before cryptocurrencies existed, they are ignored it.
I suspect maybe the CBDC exists to build up the next regulations they will make (just a wild opinion).

What kind of regulation does the OP mean, bitcoin cannot be controlled by anyone, because the basic framework of development does not include it. Regulations can only limit support, but not control bitcoin, and no one will ever agree to this issue. Therefore, I don't think that regulation will have any effect on bitcoin's future journey, because from the past there has never been regulation.
Unlike the case with CBDC, it absolutely has a pattern that can be set by them.

[BlackHatCoiner]

I suspect maybe the CBDC exists to build up the next regulations they will make (just a wild opinion).

CBDCs are definitely going to be regulated, as they'll essentially work as surveillance money. I don't understand how is this on-topic, though.

What kind of regulation does the OP mean, bitcoin cannot be controlled by anyone, because the basic framework of development does not include it.

He means to impose a legal framework around bitcoin, same as with stocks, precious metals, and markets. For example, taxation of bitcoin.

[indah rezqi]

Believe you me no matter how advanced bitcoin decentralisation might look or sound the government will never risk giving their citizens full control of their assets. The always want to be in charge and has long has they have this limitation of full custody stricter laws regarding Bitcoin usage might spring up. Technology is advancing

Many countries do not want to legalize bitcoin as a legal currency and means of payment where the government continues to try to limit its use with various regulations. I don't see why governments are so concerned about bitcoin and its use case as a means of payment, it's not like a real threat to the future of fiat.

So far, bitcoin is associated with cases of illegal transactions as well as several unlawful acts such as drug trafficking, money laundering and the like. Though it is not something new even though bitcoin does not exist. Fiat have a bad reputation and it was completely centralized compared to bitcoin, but both are currencies that can be abused. It's just that bitcoin is a different kind of currency with a number of great innovations compared to the fiat system.

[Mr.right85]

Believe you me no matter how advanced bitcoin decentralisation might look or sound the government will never risk giving their citizens full control of their assets. The always want to be in charge and has long has they have this limitation of full custody stricter laws regarding Bitcoin usage might spring up. Technology is advancing

Regulation is inevitable but regulation is not always equal to restriction or banning because it all depends on the country and their administration. We have Bangladesh that has outright banned bitcoin and we also have El Salvador that has adopted bitcoin with open arms as legal tender. Then we have all the others in between.

We've had cries of an apocalyptic end and somehow, it has never surfaced. We often get to move past that as time goes on and somehow, regulations might seem impossible with the steps governments have been taking towards the bitcoin network but that too can stay far away from sight.

It's difficult for the government to accept that there could be something out of there control but, they also have to realise that the quest to be free is a part of human nature and humans would always seek that out when they find any sense of better some place else.

I wonder why these countries crying bans and bans aren't seeing what other nations that have been this open to a ccepting cryptocurrencies are seeing.

[Dunamisx]

No, regulation is not inevitable and it has been happening indirectly for years, and even so now that btc is getting closer to global adoption the regulation process will keep increasing.

With their regulations in government settings, it has nothing to do with the massive and continuous adoption of bitcoin since the decentralization of the digital currency bitcoin has solved it all, no amount of regulations put in place can have effect on bitcoin except for centralized exchanges in which most of them are promoters of shitcoins can got regulated but bitcoin remains unregulated by government.

[Rengga Jati]

Believe you me no matter how advanced bitcoin decentralisation might look or sound the government will never risk giving their citizens full control of their assets. The always want to be in charge and has long has they have this limitation of full custody stricter laws regarding Bitcoin usage might spring up. Technology is advancing

This is the truth, sadly, no matter whether we have tried Bitcoin to be decentralized, the government will make certain centralization in some ways to reach it. They even make regulations about Bitcoin and other cryptocurrencies, trying to control them in some ways as they can. Although basically, they may not be able to control all access to Bitcoin because they are decentralized and can be gained from other decentralized ways, the government will always limit the decentralization.

We have found so many exchanges that must be centralized, government tries to control the exchanges themselves or other regulations or they will be banned. But on the other hand, we can also still be able to pass it in certain ways like decentralized P2P, although this is also risky to take.

[RealMalatesta]

Yes, indeed, the government wants to control bitcoin, but don't forget that it is not run by one or two people and because of its decentralized nature, the government cannot interfere in the process. Governments may be able to control the exchanges that trade bitcoins but what about decentralized exchanges? The government certainly will not be able to control it.

But the government will not stop trying to control it by making regulations for crypto users and they may be required to fill out forms about the crypto they have on the exchange. But the government will find it difficult to find crypto data outside of the exchange because it is a private right to keep what they own. But again, the government will continue to try to find it and impose taxes on us.

Decentralized exchanges and decentralized finance is the number one enemy of the governments. You still have to find a way to turn your fiat into crypto and your crypto into fiat, so there will always be exchanges that work in that field and working together with the governments via KYC, but aside from that with the improvements of DEX and DeFi, we are really going to end up seeing things get a lot better in the long run for sure.

This will prevent governments from interfering with our money, they have already taken so much and did so little with it, and I believe that we are going to really see regular people like us prosper thanks to this new technology.

[KaliLinux]

Fully regulate? Quite impossible. The government would regulate cryptocurrency partially. If you deal with p2p and store Bitcoin in a non-custodial wallet like Ledger then how the government would monitor or regulate you? Yes, they can regulate exchange, custodial wallets, etc. That's how they can regulate a large number of users because at the end of the day we have to use the exchange. Dex always won't help is at all points.

And talking about DEXs, I believe for now they are not subject to KYC/AML regulations that's why most people will continue to advise to use them in other to avoid providing your personal information but what happens if the Government really wants to regulate, this means they too might be put under that law as well and both CEXs and DEXs are fully under the Governments monitoring scop except for countries whos Government are pro-Bitcoin/cryptocurrency.

[Antonas1]

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What kind of regulation does the OP mean, bitcoin cannot be controlled by anyone, because the basic framework of development does not include it. Regulations can only limit support, but not control bitcoin, and no one will ever agree to this issue.

They make regulations not to control Bitcoin, but to control users.
For example, there are several countries that have banned using Bitcoin, such as Algeria, Nepal, and Bangladesh. Meanwhile, countries such as China, Bahrain, Turkey, and Russia only legally restricted to using Bitcoin in their countries. It all happened because these countries made regulations. You can read the full list at Countries Where Bitcoin Is Banned or Legal In 2022.

Therefore, I don't think that regulation will have any effect on bitcoin's future journey, because from the past there has never been regulation.
Unlike the case with CBDC, it absolutely has a pattern that can be set by them.

No, these regulations may affect cryptocurrencies. Imagine if all countries agreed to completely ban Bitcoin, and no one was against regulation. What will happen?

[lixer]

Broad adoption without regulation is impossible imo. If you want bitcoin to be adopted widely then you need to accept regulations by the governments. The regulations will make crypto exchanges look like banks because of the KYC enforcement (if it hasn't happened already) and that is not a good thing. Crypto means freedom and KYC is the exact opposite of being free. We are trying to escape the FIAT slavery system but regulations will turn crypto into a similar thing.

Indeed because there are countries who currently ban cryptos but they might change their minds for one condition and that is if people will agree for the crypto to be regulated by them. This is hard but this is better than nothing. At least people can still experience if what are cryptos.

Crypto exchanges (the centralized one) were already look like a bank even before because they can hold and freeze the users funds. Not all centralized exchanges mandate a KYC but if they did and we don't like it then we can switch on decentralized exchanges. Regulations can also be avoided but there might be some inconveniences that we might felt.

[Fara Chan]

He means to impose a legal framework around bitcoin, same as with stocks, precious metals, and markets. For example, taxation of bitcoin.

This is even more unlikely, the legal framework is based on many considerations, bitcoin is not legalized as an official currency and legal tender, but it is not a use case prohibition, even if the state prohibits bitcoin, people can still access it in various ways. The case of stocks, precious metals and markets, is different with bitcoin, and if taxation is expected, it has been subject to withholding transactions through banks or so-called administrative fees.

No, these regulations may affect cryptocurrencies. Imagine if all countries agreed to completely ban Bitcoin, and no one was against regulation. What will happen?

It doesn't matter if the ban is enforced, did you know that bitcoin was also synonymous with prohibition, but its development continues to improve until now. Try to find a country that prohibits bitcoin, whether bitcoin's growth has stopped, the answer is no. They only restrict but don't completely ban, so bitcoin can still be accessed in that country.