Is ECB Preparing to Ban Bitcoin? Top Analyst Warns of Harsh Taxes, Crackdown

[GIF-JOBS]

Fears about the ECB Bitcoin ban have swelled since a controversial report’s release. Analyst Tuur Demeester warns that the report’s negative portrayal of Bitcoin could justify harsh ECB Bitcoin regulation, including potential bans. The recent European Central Bank paper, “Distributional Consequences of Bitcoin,” has undoubtedly created controversy among most cryptocurrency advocates.

Demeester thinks this is the most aggressive attitude toward Bitcoin central authorities showed. For him, it is a kind of “declaration of war”. The framing could open the door to restrictive legislation, such as severe taxes or outright bans on Bitcoin ownership.

ECB Bitcoin Ban Possible, Analyst Cites ‘Luddite’ Argument

news link: https://coingape.com/is-ecb-preparing-to-ban-bitcoin-top-analyst-warns-of-harsh-taxes-crackdown/

[MeGold666]

In summary, they don't like Bitcoin because they earn less money with their banks.

Their argument:

The wealth distribution is not fair because early adopters had it cheaper.
So, gold is not fair as well? What a cruel world!

Existential threat to central banks, risks to financial stability.
What financial stability? Fiat has proven to be the source of most financial crashes.

We live in a free market, if I want I will use carrots for trading.

[Lucius]

Well, that's a big pile of nonsense that you can usually expect from European bureaucrats who can't agree to stop moving the hands on the clock and stop summer/winter time - and now Bitcoin is bothering them because of the following:

The ECB publication criticizes how Bitcoin fares in wealth distribution. The very early adopters benefit from appreciation in its value at the cost of later adopters. In this respect, the report claims that all such value growth causes a widening wealth gap. Also, early investors can gain a superior economic position.

In contrast, there could be little Bitcoin supply left for new investors, and entry would be expensive. This line of argument, however, deviates from earlier criticisms. These have often targeted the volatile nature of Bitcoin and its potential use in criminal activities.

Their arguments remind me of all those who often cry on the forum about spilled milk because they didn't buy BTC on time and now they think the system is unfair because some did it and they didn't. They obviously don't mind the fact that some people bought gold for $1000 an ounce and today sell it for $2500 an ounce, or that some people bought shares of a company for $100 and today sell them for dozens of times more.

As can be seen in the article, their agenda that BTC consumes too much energy and serves only criminals has completely failed, and now they are looking for something new. In case they really try some crazy bans, I suggest they call the Chinese for help, let them teach them how to do it effectively.

[hd49728]

Fears about the ECB Bitcoin ban have swelled since a controversial report’s release. Analyst Tuur Demeester warns that the report’s negative portrayal of Bitcoin could justify harsh ECB Bitcoin regulation, including potential bans. The recent European Central Bank paper, “Distributional Consequences of Bitcoin,” has undoubtedly created controversy among most cryptocurrency advocates.

Some things are going to be seriously wrong in the Europe with European Union are very arbitrary with their decisions and regulations. What the hell they wanted to do by sending warning emails to Elon Musk when this man was going to host a livestream on X with Donald Trump. It's none of business for EU but they actually wanted to intervene it seriously and wrongly.

Other signals that EU countries are failing in their regulations and this news is not too shocked with me, based on what I saw from EU recent months.

[Synchronice]

Well, that's a big pile of nonsense that you can usually expect from European bureaucrats who can't agree to stop moving the hands on the clock and stop summer/winter time - and now Bitcoin is bothering them because of the following:

The ECB publication criticizes how Bitcoin fares in wealth distribution. The very early adopters benefit from appreciation in its value at the cost of later adopters. In this respect, the report claims that all such value growth causes a widening wealth gap. Also, early investors can gain a superior economic position.

In contrast, there could be little Bitcoin supply left for new investors, and entry would be expensive. This line of argument, however, deviates from earlier criticisms. These have often targeted the volatile nature of Bitcoin and its potential use in criminal activities.

Their arguments remind me of all those who often cry on the forum about spilled milk because they didn't buy BTC on time and now they think the system is unfair because some did it and they didn't. They obviously don't mind the fact that some people bought gold for $1000 an ounce and today sell it for $2500 an ounce, or that some people bought shares of a company for $100 and today sell them for dozens of times more.

As can be seen in the article, their agenda that BTC consumes too much energy and serves only criminals has completely failed, and now they are looking for something new. In case they really try some crazy bans, I suggest they call the Chinese for help, let them teach them how to do it effectively.

I can't believe that what you quoted above from the article, is really an argument. That doesn't make any sense in any universe. How is it unfair if someone bought or mined Bitcoins years ago and now became a millionaire or billionaire? If that's the case, then what about those people who want to buy the house but can't because of unaffordable housing prices? Early real estate investors got houses for a few bucks and today it's impossible to even buy a small studio apartment. They might even say that it's unfair how senior software developers earn 6 figures because they are early adopters of programming languages This is insane.

I think they won't ban Bitcoin. First of all, this argument doesn't make sense and second of all, why should they ban it? It will be a huge step backward. EU needs advancement in IT technologies. I hope they won't do that, especially when even the USA accepted Bitcoin Spot ETFs.

[Sanitough]

After reading the article, I think the most likely scenario is that they’ll ban "Bitcoin mining" in the country. But it doesn’t seem like they’ll ban Bitcoin itself. In China, for example, both mining and trading are banned, but if the EU only bans mining and still allows trading, then yeah, it might be a bit of bad news, but overall, it’s not too bad for everyone.

[Lucius]

~snip~
I think they won't ban Bitcoin. First of all, this argument doesn't make sense and second of all, why should they ban it? It will be a huge step backward. EU needs advancement in IT technologies. I hope they won't do that, especially when even the USA accepted Bitcoin Spot ETFs.

I just know that for years there have been certain groups that have been trying to direct the EU towards bans regarding the trading and mining of crypto-currencies. One such group even went to the US to ask their government to ban crypto mining a few years ago.

When it comes to entrepreneurship, it is completely pointless to compare the EU and the US, we all know where the biggest companies are and how much money they make. Bitcoin is obviously not something that Europeans are too interested in, because there is also a spot ETF, but I don't think there is too much interest in it.

After reading the article, I think the most likely scenario is that they’ll ban "Bitcoin mining" in the country.
~snip~

They already tried and it didn't work -> Europe rejects proposal limiting PoW cryptos such as Bitcoin but sets draft rules for sustainability.

Besides, does it even make sense to ban cryptocurrency mining in the EU when the share of all EU members is only about 5%?

[pakhitheboss]

I just know that for years there have been certain groups that have been trying to direct the EU towards bans regarding the trading and mining of crypto-currencies. One such group even went to the US to ask their government to ban crypto mining a few years ago.

After the WW2 fiasco, it is evident that how the US has been dominating Europe and now its union. They will do anything to get Bitcoin removed from their financial ecosystem but they cannot get their objective accomplished without the nod of the US financial giants. I

When it comes to entrepreneurship, it is completely pointless to compare the EU and the US, we all know where the biggest companies are and how much money they make. Bitcoin is obviously not something that Europeans are too interested in, because there is also a spot ETF, but I don't think there is too much interest in it.

What you are saying is not the whole truth as there are companies of the EU origin that have relocated to the US as they are helpless. They as in those companies have manufacturing plants in the EU but have head offices in the US. The European Bank is only following the order that the US has been controlling for so many years.

[Free Market Capitalist]

Another of the EU's bullshit, such as caps that cannot be removed from bottles, here the issue is to regulate, prohibit and legislate. We leave it to other continents to let people use their initiative to make the world progress.

I would not be surprised that if Trump wins and makes the strategic reserve of Bitcoin that he said he was going to do here they will do the opposite like hell. Just look at the treatment Musk has been given simply because of political ideology, now imagine Trump wins and makes him a minister or something. In the EU they will surely have to do some bullshit to go against it.

[Upgrade00]

Banks always feign ignorance on how other financial assets work and give the most bullshit arguments to support restricting or banning alternative currencies.

Their arguments remind me of all those who often cry on the forum about spilled milk because they didn't buy BTC on time and now they think the system is unfair because some did it and they didn't.

Everyone is a genius in hindsight. In reality, lots of people were aware of Bitcoin and did not spare it a second thought, and out of those who were not aware of it, I'll wager that more than 90% of them would have sold when they did their first 100% ROI or even sooner only to buy again at a much later date when it is more expensive or go all in on altcoins chasing the next big ICO.

[AmoreJaz]

After reading the article, I think the most likely scenario is that they’ll ban "Bitcoin mining" in the country. But it doesn’t seem like they’ll ban Bitcoin itself. In China, for example, both mining and trading are banned, but if the EU only bans mining and still allows trading, then yeah, it might be a bit of bad news, but overall, it’s not too bad for everyone.

If in case they will indeed ban crypto mining, we know for sure that other countries are very open to these miners. They can always find other places to continue their business. Just like when China did such action, miners just relocate and look for other cheaper places.

In summary, they don't like Bitcoin because they earn less money with their banks.

Their argument:

The wealth distribution is not fair because early adopters had it cheaper.
So, gold is not fair as well? What a cruel world!

Existential threat to central banks, risks to financial stability.
What financial stability? Fiat has proven to be the source of most financial crashes.

We live in a free market, if I want I will use carrots for trading.

Bottomline, the decision still lies on your hands. Whether you will opt for fiat or crypto or any other assets, the finality will be on you. Should not consider other assets because that's not yours for you to think about. Think of your own financial status so you won't be confused on how to decide which best suits your financial needs.

[pooya87]

So bitcoin price starts rising up after a long period and all of a sudden we see the same old FUDs start coming out again? I don't believe in coincidence...

In any case I have to point out that just because someone wrote an article saying some nonsense about Bitcoin most of which are repetition of old propaganda (like energy consumption) that doesn't mean ECB is preparing for a ban.
At the same time, we know that the Western governments have always been increasing their surveillance and crackdown on anything Bitcoin related for a very long time now. In other words it is an ongoing thing, not a new ban!

[davis196]

A central bank being hostile towards Bitcoin? Is this something we've never seen before? I don't remember any central bank around the world being positive and friendly to Bitcoin and cryptocurrencies in general. This guy isn't saying anything new in his article.
The European Central Bank has been more or less anti-crypto since the first years of crypto being noticed by the public.
By the way, central banks cannot impose taxes over crypto. Only the governments can impose taxes, but some governments are listening to the opinions of the central bankers. Anyway, it seems very convenient that such FUD is being spread, when there's a small price pump and BTC hit sixty eight thousand dollars. The FUDsters are about to attack.

[icalical]

As far as I understand the ECB does not make a direct "declaration of war" on Bitcoin but, rather, calls for increased regulation in view of financial stability issues, environmental impact, and the use of bitcoin for illegal actions. From its part, the European Central Bank underlined the risks of energy-intensive mining processes involved in the production of Bitcoin and the volatility of its price, which-as far as they are concerned-makes it unreliable as a store of value.

That said, outright bans in the near term do not appear likely. It would seem that more will be done to regulate Bitcoin's role within the EU, with the ECB still considering its implication on energy security and financial crime, some speculate possible restrictions by 2025. If tougher regulation does come along the way, Bitcoin has shown it can survive some amount of crackdown from regulators in the past, and all this may mean enhanced oversight rather than a blanket ban. Not everyone has the same story to tell of Bitcoin's failure as a form of currency, seeing how it is being integrated into the mainstream with ETFs and institutional acceptance.

[NeuroticFish]

I read that some bankers don't like bitcoin. Is this something new?

ECB has some powers, but at the end each EU country still has its own laws. So I don't think they can do more than excessive taxation.
A ban would be impossible, since I think that legally it's between Apple stocks and Monopoly money, of which neither could be banned.

[Text]

This is definitely a worrying development for the crypto community. Painting Bitcoin in a negative light doesn't bode well for future regulations. An outright ban seems unlikely, but harsh taxes or restrictions could definitely put a damper on things. Hopefully, the ECB takes a more balanced approach and focuses on regulation that fosters innovation instead of stifling it.

[Lucius]

So bitcoin price starts rising up after a long period and all of a sudden we see the same old FUDs start coming out again? I don't believe in coincidence...

It seems to me that someone put the news on the air with the intention of spreading FUD, but it is more than obvious that no one is too interested in such news, especially when it comes to the EU market, which is not too inclined to invest in cryptocurrencies anyway.

In any case I have to point out that just because someone wrote an article saying some nonsense about Bitcoin most of which are repetition of old propaganda (like energy consumption) that doesn't mean ECB is preparing for a ban.
At the same time, we know that the Western governments have always been increasing their surveillance and crackdown on anything Bitcoin related for a very long time now. In other words it is an ongoing thing, not a new ban!

Exactly, and when you look back 5 years, all those EU bureaucrats who see the enemy in BTC are actually going around in circles and always saying the same stupid things and trying to fight against an "enemy" that is not really that. It reminds me a bit of the communist era, when the communists always fought against internal and external enemies, even if they had no one to fight against because they had already either killed everyone or locked them in prison.

I think that the ECB basically just wants to suppress BTC as a currency as much as possible, while trading is not too much of a problem. This is something that exists in countries such as Thailand, Turkey, Vietnam and some say Nigeria, and it will obviously spread more and more around the world - because "they" are most afraid of what Bitcoin represents as a decentralized currency, but trading with it and taxation it is not something they are against.

[tbct_mt2]

So bitcoin price starts rising up after a long period and all of a sudden we see the same old FUDs start coming out again? I don't believe in coincidence...

It's not coincidence and FUD are prepared, written to be very ready for release at right time of needing FUD. This happens many times, so coincidence basically rarely to happen, and if things repeat many times, no reason to think it's coincidence.

In any case I have to point out that just because someone wrote an article saying some nonsense about Bitcoin most of which are repetition of old propaganda (like energy consumption) that doesn't mean ECB is preparing for a ban.

Energy consumption is another FUD type against Bitcoin.
Debunking the "Bitcoin is an environmental disaster" argument can help to enlighten people who are new in this market and are fearful about this FUD.

At the same time, we know that the Western governments have always been increasing their surveillance and crackdown on anything Bitcoin related for a very long time now. In other words it is an ongoing thing, not a new ban!

They can announce of ban, then announce of unban, many times like China and this governmental FUD type is not new, not coincidence too.

[Z-tight]

It is just funny reading the article, the ECB almost sound butthurt that BTC is decentralized and they cannot control it how they want, nor print or manipulate it in favor of their masters. Their argument of inequality in wealth distribution is baseless, people who buy assets early enough often make more profit than investors that buy later, but we all know that they will do anything to attack BTC and discourage people from using it.

[PrivacyG]

The ECB publication criticizes how Bitcoin fares in wealth distribution. The very early adopters benefit from appreciation in its value at the cost of later adopters. In this respect, the report claims that all such value growth causes a widening wealth gap. Also, early investors can gain a superior economic position.

In contrast, there could be little Bitcoin supply left for new investors, and entry would be expensive. This line of argument, however, deviates from earlier criticisms. These have often targeted the volatile nature of Bitcoin and its potential use in criminal activities.

Their arguments remind me of all those who often cry on the forum about spilled milk because they didn't buy BTC on time and now they think the system is unfair because some did it and they didn't. They obviously don't mind the fact that some people bought gold for $1000 an ounce and today sell it for $2500 an ounce, or that some people bought shares of a company for $100 and today sell them for dozens of times more.

It honestly sounds like they are desperate about more people becoming Rich through Bitcoin so they are trying to crack down on them.

If they are this scared about Bitcoin then it is time to ban every thing that is scarce too.  Including Limited Editions of all sorts of B S clothing brands that are bought by scalpers and re sold for hundreds of percent more in Profit.

In fact.  How about ban Inflation.  People used to buy things much cheaper many years ago when I was not even born.  How about punish them for it, why did they have to pay less for stuff than I do!  Was it a plan of the Elderly to gain superior economic position all along?

Ridiculous as per usual.  No thing new to see.  Simply Institutions doing their 'best'.