Regulators deliberately provide unclear rules.

[Luzin]

Source: https://images.app.goo.gl/AE5ssLBaXa1PP23bA

Some of the problems and demands that regulators have made on trades and individuals are frequent. I think regulators are deliberately looking for mistakes to be a source of money. In fact, I know some cases do end up with substantial fines and some prison sentences.

Don Wilson says that regulators are deliberately disguising the rules. It is done on purpose and not by accident. In theory it looks easy to regulate how to apply and get a license. But it seems that the process is not that easy. Regulators like the SEC seem to keep trying to control crypto. They continue to try to expand their authority, they will continue to monitor employees, everything related.

They are like the police, FBI or CIA that can work anytime anywhere. They have the classic excuse of saying security, money laundering anything to keep finding fault.  So it seems to me that this regulator seems to do more harm than good. Maybe even regulators can be called an obstacle to crypto development.

This article comes from some sources that I read and I am quite sad because some time regulators work only for money. They stand in the name of investor safety and all that.
CMIIW


Source:
1. https://www.coindesk.com/policy/2024/10/23/whos-afraid-of-gary-gensler-not-don-wilson-the-trader-who-beat-the-regulator-once-before
2. https://cointelegraph.com/news/crypto-regulation-uk-not-clear-shift-europe-mica

[Fiatless]

Some of the problems and demands that regulators have made on trades and individuals are frequent. I think regulators are deliberately looking for mistakes to be a source of money. In fact, I know some cases do end up with substantial fines and some prison sentences.

It is evident that the crypto industry is developing and complex. This means regulators will keep reviewing and expanding laws that control different areas. It is the responsibility of the SEC and other regulators to educate crypto firms about these laws, and their implications. It is also the right of these businesses to constantly seek clarification about any ambiguity they find regarding these laws.

I also think that these government agencies are instruments used by politicians to reduce the influence of the crypto community and also make some money through fines. But we cannot also deny that some of these regulatory laws are targeted are protecting investors from fraudulent actors in the sector.

These regulators are the government, and my people will say, "You cannot fight and win the government". But there are ways of trying to avoid these attacks. Crypto firms should ensure they abide by the regulation. They should have a team of qualified crypto professionals who include lawyers and accountants that has deep knowledge of these regulatory laws. They should always seek clarification if they don't understand some provisions of the law. Just as Don Wilson and his firm DRW won the case against the U.S. Commodity Futures Trading Commission in 2013, the court can give accused crypto firms favourable judgments if they can prove their innocence.

[FortuneFollower]

This article comes from some sources that I read and I am quite sad because some time regulators work only for money. They stand in the name of investor safety and all that.
CMIIW

What did you expect from those on the govs pay? 

[Luzin]

I also think that these government agencies are instruments used by politicians to reduce the influence of the crypto community and also make some money through fines. But we cannot also deny that some of these regulatory laws are targeted are protecting investors from fraudulent actors in the sector.

We are in a difficult position, but I hope they remain professional with their duties. It is not looking for mistakes that are reconstructed by regulators.

What did you expect from those on the govs pay?  

Of course I hope they are professional. They work because they are right to enforce the rules. They must really have definite guidelines, not based on thinking but there are fixed rules and do not make double standards. Sometimes I feel aggrieved because their decisions make the market bad, but I understand that is indeed the dynamics of the crypto industry. I am also aware that this condition is what we can take advantage of to benefit. It seems that the target of this regulator must have the courage to fight to prove that the institution is indeed clean and innocent. They must dare to fight and not take it for granted.

[betswift]

I understand what you're saying about regulators, and I see why you find them to be blockers. But you know, we mustn't forget that they also have an important role to play in protecting those who invest. It's true that their rules are often annoying, but without them, we would risk finding ourselves with a lot of fraud and shady things in the crypto world. So, even if it's frustrating, I think they help create an environment where we can have a little more confidence. but we can also say that they are there out of interest,

The line is really thin in that question, because, I think most out there, would call the regulators the govs leash dogs, which don't see the crypto space as something that is free to reign on their own ground  Sure, big companies and entities are free to use crypto to propel themselves while being watched, however, we see more cases of people related to some exchanges and some projects getting arrested because of X (the reason, in fact, may be different - accusations of fraud, money laundering via the said exchanges, etc.) - and it's a bell for us to listen and watch for what awaits for us.

[john_egbert]

The line is really thin in that question, because, I think most out there, would call the regulators the govs leash dogs, which don't see the crypto space as something that is free to reign on their own ground  Sure, big companies and entities are free to use crypto to propel themselves while being watched, however, we see more cases of people related to some exchanges and some projects getting arrested because of X (the reason, in fact, may be different - accusations of fraud, money laundering via the said exchanges, etc.) - and it's a bell for us to listen and watch for what awaits for us.

I get what you're saying about regulators, but I think we give them a bit too much trouble. Yes, there are stories of arrests, but that just proves that there are people who are trying to rig. The regulators, even if they bore us with their rules, protect small investors. Without them, who would really want to throw their money into a corner where everyone does whatever they want? So, even if it can be annoying, their presence is a minimum of security. And yeah, they have their own interests, but that doesn't mean they don't also work for the good of the people.

If the ends justify the means for you - yeah, totally 
But if they know that they would be seen as - just - by arresting people related to such projects (exchanges or not), wouldn't they use it to their own benefit regarding the exchanges that wouldn't comply with some rules, for example?

[stadus]

The issue is that they’re not effective at educating people about the rules, but those rules are transparent since they’re written down and anyone can check them. The problem with some crypto operators is that they run their businesses without consulting experts to understand the legal aspects. Some even continue their operations knowing they’re violating the law because they believe they can gain more benefits than the penalties they’d face.

We need to accept the reality that rules are rules, and regulators exist for a reason. Their role is to implement the law since they are the agency tasked with doing so. This issue has recently come to light because the SEC has been monitoring every financial business. They prioritize their focus, and when crypto was still in its infancy, it wasn’t a priority. However, as it has grown, it has become one.

You might argue that they create rules to make money, but you can’t say what they’re doing is wrong because they have a basis for their actions. The proof is that they often win cases filed against them or that they file themselves.

[john_egbert]

The issue is that they’re not effective at educating people about the rules, but those rules are transparent since they’re written down and anyone can check them. The problem with some crypto operators is that they run their businesses without consulting experts to understand the legal aspects. Some even continue their operations knowing they’re violating the law because they believe they can gain more benefits than the penalties they’d face.

We need to accept the reality that rules are rules, and regulators exist for a reason. Their role is to implement the law since they are the agency tasked with doing so. This issue has recently come to light because the SEC has been monitoring every financial business. They prioritize their focus, and when crypto was still in its infancy, it wasn’t a priority. However, as it has grown, it has become one.

You might argue that they create rules to make money, but you can’t say what they’re doing is wrong because they have a basis for their actions. The proof is that they often win cases filed against them or that they file themselves.

What can be said for sure is that the crypto space will be more and more interesting for regulators to work around simply due to the scale it has grown till this moment.. and still going!