Can governments crack down on crypto?

[FanEagle]

We should probably just not focus on things this easy when there are bigger stuff to consider, it is going to be just a thing that will not be all that important, and it is going to definitely take some time. I think we should probably just consider the fact that we are going to be all that more difficult if government tries to crack down on it, instead of let it be.

The difference is that, if they crack down on it, they need to spend money on chasing who uses it, and that makes them lose money, and governments do not like to lose money back to people, they like to keep it. Instead, if they let it be, they can charge tax on it, and that means they are going to be able to make money, and do a lot better. I think they would prefer that.

[1715059475]

1715059475

[snowpega]

<snip>

Yes, the government has the power that they can start a crackdown on crypto anytime they feel discomfortable about this but in my honest opinion doing this is not a good step as the crypto industry has a bright future in the coming times well if we see El Salvador has already accepted Bitcoin as their legal asset. The people of El Salvador can buy sell or sell crypto assets as an legal tender on the other hand many countries people facing the problem that like they can not use cryptocurrency as their legal asset. Now maybe you wonder that how can a government can ban crypto from the country.

They can ban all the exchanges that offer to buy Crypto assets and they can even ban the servers that hold your crypto assets. Recently you may also know that many people of India who are highly involved in the crypto industry have started to move to those countries that are crypto-friendly because I came to know that India has banned crypto but for now I think they have lifted the ban on crypto but I am not sure about this because I am not resident of India if in any case, you guys know about this must share the update about it. Many Thanks!

[Sophokles]

They can block URLs and track users to seize their crypto but they won't be able to completely shut down a crypto platform. Also, crypto platforms are using decentralized storage solutions and domain solutions to have a backup URL for their platform in case they face any problems with the centralized server. That means no matter what the govt do decentralized crypto platform like dex can not be shut down from the internet, and if the government blocks the URL users can just use a VPN to avoid detection.

[mdzahed134]

Government’s can crackdown on a specific project as like they can block IP's or URL's in a project, but there also solution if you will use VPN. They can shutdown for a individual project and it’s happened in many counties but they can't totally stopped crypto. And governments will never crackdown specially decentralised project, they can only controlled centralized project if they want.

[Belarge]

Government’s can crackdown on a specific project as like they can block IP's or URL's in a project, but there also solution if you will use VPN. They can shutdown for a individual project and it’s happened in many counties but they can't totally stopped crypto. And governments will never crackdown specially decentralised project, they can only controlled centralized project if they want.

The crackdown of crypto is very possible in the system. Crypto projects are best and good for improvement. The Government means good for the country, they're trying their possible best to eliminates cryptocurrency because they sensed it to be threats. Government have power and dominates every activities within a country, they mean good and development for a country, one of the major reasons they're not sliding back but focused on their budgets. The government have a hand in the restrictions of crypto projects in the market.

[lalabotax]

They might be able to do it for some things, but not everything about crypto, especially Bitcoin, seems impossible to crack down. They can only tighten the regulations and use of Bitcoin, and that is only in the area under their government.

Unless it is related to a project or anything that was created or built in that country. So it will be quite easy for the government to obstruct and even crack down the projects as long as they are not following the mechanism from the government. Because they will definitely argue about regulations.

[oktana]

I would like to know your views on the acts of repression of the crypto market:

• Can crypto continue to thrive without the support of governments?
• Do you think governments can suppress and restrain the crypto market with their power?
• If you were the head of government, would you accept or reject the crypto opportunity for your country?

1. Cryptocurrency isn’t about the government, it is about 2 individuals. Which is exactly why Satoshi created Bitcoin, money that is independent of the government.
2. They can suppress it (imagine the use of cryptocurrencies was declared illegal in a country), but people will always find a way out.
3. This is a heavy question. As a user, I would approve it, but note that the decisions we make as a user aren’t what we’ll make for the mass because factors need to be considered. But for a more straightforward answer; as long as cryptocurrencies are used just about the way they currently are, I would definitely accept it.

[Essential10]

Yes, governments can do it. I think the government could try to ban or regulate crypto, but such a ban would be very difficult to enforce. For example, even though China has banned crypto, there are still many people involved in crypto transactions. As we know Bitcoin works on a decentralized network where transactions are verified and recorded through a global network. This could make it nearly impossible for a government to completely shut down the Bitcoin network. Bitcoin transactions are pseudonymous, meaning users are identified by their wallet address rather than their real identity. This will certainly make it challenging for governments to track and regulate crypto transactions.

[tsaroz]

It can and they are doing it. Just look at china, being one of the hotpot of crypto and blockchain technology to going to cave ages for crypto, the government decided and did killed crypto in China. Even though holding crypto itself is not illegal in China, they have made it so much difficult for the general people to buy and sell them with cash that some people do visit other countries just to buy or sell crypto. There's a total ban on mining even when there's energy surplus and wastage.
But it can't be a role model to every country as every government are not as technocrat and has blanket policing. The effect can be less severe for others.

[Taskford]

Yes, governments can do it. I think the government could try to ban or regulate crypto, but such a ban would be very difficult to enforce. For example, even though China has banned crypto, there are still many people involved in crypto transactions. As we know Bitcoin works on a decentralized network where transactions are verified and recorded through a global network. This could make it nearly impossible for a government to completely shut down the Bitcoin network. Bitcoin transactions are pseudonymous, meaning users are identified by their wallet address rather than their real identity. This will certainly make it challenging for governments to track and regulate crypto transactions.

Indeed they can do it since they have the power to put stop on everything circulating in their country especially about crypto since they can just request all the network provider on their country to block the access of the sites and then we can see those crypto platforms start declining until we can't see any people using crypto or those platforms related to it. In case of china people still can find a lot of ways to have an access and participate on any crypto activities but the problem there is they can't easily do what they like to do especially for cashing out their earnings since bitcoin has been banned on their country and I think there's limited ways for them to cashout bitcoin unless they found trusted person which they can do p2p transactions.

[Makus]

The Nigerian government recently took a hard stance on crypto, accusing it of contributing to the decline of the naira's value. This resulted in a ban on all crypto exchanges operating within the country ^[4]. Specifically,

Op you've done a great job in compiling such an interesting post, but however the issue of the Nigerian government and binance did not lead to ban of cryptocurrency. In fact we still have full access to crypto, the only problem was that they suspected that the volume of p2p trade with dollar to naira from binance exchange was very high and that could have lead to the cause of the rapid volatility of the dollar to naira, so binance was asked to stop all p2p transactions with the NGN fiat. However there are still other exchange out there that still have Naira p2p.

[Vincom]

It can and they are doing it. Just look at china, being one of the hotpot of crypto and blockchain technology to going to cave ages for crypto, the government decided and did killed crypto in China. Even though holding crypto itself is not illegal in China, they have made it so much difficult for the general people to buy and sell them with cash that some people do visit other countries just to buy or sell crypto. There's a total ban on mining even when there's energy surplus and wastage.
But it can't be a role model to every country as every government are not as technocrat and has blanket policing. The effect can be less severe for others.

I also hope that other governments will be wise and have more reasonable solutions for the development of crypto in their countries. Crypto brings jobs, income, taxes and employment, crypto does not threaten fiat or the political power of the government - there is no reason for the government to apply extreme solutions to crypto and turn their country into a dangerous place for crypto companies. I am waiting for the legal framework for crypto in the US, which could be the leading legal framework as it will be referenced by many other countries.

Op you've done a great job in compiling such an interesting post, but however the issue of the Nigerian government and binance did not lead to ban of cryptocurrency. In fact we still have full access to crypto, the only problem was that they suspected that the volume of p2p trade with dollar to naira from binance exchange was very high and that could have lead to the cause of the rapid volatility of the dollar to naira, so binance was asked to stop all p2p transactions with the NGN fiat. However there are still other exchange out there that still have Naira p2p.

Thank you for providing more information. I only read the news that the largest CEXs, Binance, Coinbase, and Kraken, are no longer welcome in Nigeria. It is possible that this extreme action by the Nigerian government is only targeting the largest foreign CEXs with the highest trading volume, and which have been accused by the presidential advisor.

I would like to know how this action will affect the liquidity of the crypto market in Nigeria? Will people still be able to trade crypto normally with acceptable slippage?

• Nigeria Blocks Access To 3 Major Crypto Exchanges

[Makus]

I would like to know how this action will affect the liquidity of the crypto market in Nigeria? Will people still be able to trade crypto normally with acceptable slippage?

• Nigeria Blocks Access To 3 Major Crypto Exchanges
  

The fact that 3 exchanges where asked to stop NGN fiat p2p doesn't necessarily mean that crypto p2p has ended in Nigeria, in fact this action is only creating more traffic in other exchange whole still accepts NGN fait for p2p transactions . So definitely all those other exchanges will start having more customers within this short period of time. And currently they are contemplating on how to better the situation rather than making it worse than this. So in no time everything will become normal and running.

[husencoe]

I would like to know your views on the acts of repression of the crypto market:

• Can crypto continue to thrive without the support of governments?
• Do you think governments can suppress and restrain the crypto market with their power?
• If you were the head of government, would you accept or reject the crypto opportunity for your country?

1. I think yes.  Crypto can exist without support from the government.  Crypto is decentralized where the price cannot be determined by any entity and the price is purely based on supply and demand.  And it has been a value that is free from government interference until now. Even many countries have banned it from their citizens, but it is still used.  The government cannot completely suppress crypto because of its decentralization.

2. I do not think so.  We have seen a lot of pressure from Tiongkok and other countries to ban crypto, but it is not fully implemented.  Because crypto is free and if the country really prohibits its citizens from 100% being able to use crypto, it will deprive its citizens of the opportunity to earn income from crypto.

3. I will definitely support it.  Crypto provides many benefits in the real world.  So many opportunities that can be taken.  So, why should I waste it if it can support my country and society.  That's not enough, there is also need to educate the public about the benefits and risks of crypto, as well as the regulations that keep it always on a good path.

[bangjoe]

Of course the state has the right to any control over what its people can consume, including crypto currency if we look at it broadly, we see countries that limit themselves to crypt currency besides Nigeria, there are China and Bangladesh and also other countries that oppose crypto currency operating in their countries, this is determined by political and / or government decisions in managing the country.

So the three points of your question OP the answer is Yes, the government has the control to regulate what is allowed and what is not within the scope of its power, of course with certain policies to prevent things they fear from happening in the country they manage.

Can Crypto develop even though it is not supported by the government?, Of course it can, but surely the scale will not be large and vulnerable to being dangers.

[allthebitandbobs]

Government’s can crackdown on a specific project as like they can block IP's or URL's in a project, but there also solution if you will use VPN. They can shutdown for a individual project and it’s happened in many counties but they can't totally stopped crypto. And governments will never crackdown specially decentralised project, they can only controlled centralized project if they want.

Government had a capacity to crack the transaction by their ulr and had access to many process.But mostly government track the high transaction in the crypto space,because the transaction with high volume will liable for the government with more taxes.It was also the reason for the tracking of high volume.It’s better to use the hardware wallet in the cryptocurrency field as compared to the use of exchanges to hold your money.Because we don’t know when the exchange will close their business and this leads to loss of assets in that exchange for the traders.

[Mpamaegbu]

Have you heard China banned cryptocurrency multiple times? Have you heard SEC decline the legitimacy of Bitcoin?

For China, just like with other anti–crypto countries, it's a struggle to suppress the activities of cryptocurrencies and that's why they repeatedly carry it out. They ban and reban, ban again and then forgot they had banned it before only to ban it again. It's a funny circle. Nigeria is also another case. Notably, the government can only ban crypto activities but not cryptocurrencies. It's almost an impossible task and that's why Bitcoin continues to thrive despite government hate of it.

[Makus]

Have you heard China banned cryptocurrency multiple times? Have you heard SEC decline the legitimacy of Bitcoin?

For China, just like with other anti–crypto countries, it's a struggle to suppress the activities of cryptocurrencies and that's why they repeatedly carry it out. They ban and reban, ban again and then forgot they had banned it before only to ban it again. It's a funny circle. Nigeria is also another case. Notably, the government can only ban crypto activities but not cryptocurrencies. It's almost an impossible task and that's why Bitcoin continues to thrive despite government hate of it.

This is why we consider Satoshi to be a very smart person. His actions and code used in making Bitcoin network was a wise one, the fact that it is not being controlled by any central authority is what makes it immune to governments threats and their deeds to to ban Bitcoin/ cryptocurrency. However I still believe that some day, they'll come to realization that Bitcoin and cryptocurrency is a beautiful inventory. The case of Nigeria, Nigeria has never really ban cryptocurrency, they only restricted the citizens to buy crypto using bank payments.

[xandriel]

Yes, governments can easily disrupt the crypto market. They can simply impose taxes on your accounts, ban some major markets, or declare cryptocurrencies illegal assets. Moreover, they have many ways to track you even if you try to use crypto behind their backs. So, we hope governments play fair and don't interfere with us right now.

[Abiky]

Yes, governments can easily disrupt the crypto market. They can simply impose taxes on your accounts, ban some major markets, or declare cryptocurrencies illegal assets. Moreover, they have many ways to track you even if you try to use crypto behind their backs. So, we hope governments play fair and don't interfere with us right now.

Then what's the point of decentralization and censorship-resistance if governments make crypto illegal? Crypto will survive, but people using it will be at risk of getting jailed or fined by the government. Imagine what would happen if all of the world's countries ban crypto/Blockchain tech. Market prices will decline at a very fast pace. After all, institutional and retail investors are the ones who move the crypto market to new heights. Without them, crypto will only remain a "niche" to the general public.

Like it or not, crypto needs the government to grow. With legalization of the crypto industry, market prices will stay high for a long time. Nothing is set in stone, so lets hope for the best.