What could be the government implement re crypto?

[melinoe]

So what do you think are the policies that the governments should mainly focus on at the beginning of their adoption of crypto?

So for me, the age requirement is going to be an area that government or different government is going to grapple with if they want to regulate bitcoin as legal tender. Fiat has no restrictions for who will hold or use it for investment and so you see little children having their different save boxes that they put gift monies given to them by parents, uncles, aunty's, parents cronies etc.

As it stands now, bitcoin use or investment is restricted to 18 years old in different countries like US, also in exchanges. So if bitcoin is going to be regulated by government , how would they take care of the restrictions bearing in mind that fiat has no age barrier and bitcoin becoming in use as alternative currency.

We can read up on bitcoin restrictions from the link below:

https://coincub.com/how-old-do-you-have-to-be-to-buy-bitcoin/#:~:text=Bitcoin%20is%20for%20Everyone.,on%20local%20laws%20and%20regulations.

It can also be just circumvented through someone who would buy said person BTC and send it to the wallet in question (though, of course, such a person is needed, who would be able to buy BTC through an exchange).

After all, everybody can create a wallet for hodling

[Ziskinberg]

If an exchange isn’t regulated by the government, then technically it can be considered an illegal operation.
Sure, there are DEXs around now, but are they really popular? Not really.

As much as some don’t want to admit it, we can’t deny that regulation gives users confidence. When an exchange is licensed and monitored by the government, people feel safer using it. Of course, the trade-off is that once an exchange is regulated, KYC becomes a basic requirement.

They are not popular, but they would be an option once the other side becomes unbearable to stay on, if such a time comes

CEXes are just more convenient and go a long way to stay like that..

It will never reach a point where it becomes unbearable, because the government will always make sure people stick to centralized exchanges. If traders start moving heavy into DEX and it gets too popular, the government will just go after the operators, and no one wants to risk their money under that kind of pressure.

Worse, it might even be treated the same way as mixers, and that’s the last thing we don't want to see.

[zasad@]

If an exchange isn’t regulated by the government, then technically it can be considered an illegal operation.
Sure, there are DEXs around now, but are they really popular? Not really.

As much as some don’t want to admit it, we can’t deny that regulation gives users confidence. When an exchange is licensed and monitored by the government, people feel safer using it. Of course, the trade-off is that once an exchange is regulated, KYC becomes a basic requirement.

They are not popular, but they would be an option once the other side becomes unbearable to stay on, if such a time comes

CEXes are just more convenient and go a long way to stay like that..

It will never reach a point where it becomes unbearable, because the government will always make sure people stick to centralized exchanges. If traders start moving heavy into DEX and it gets too popular, the government will just go after the operators, and no one wants to risk their money under that kind of pressure.

Worse, it might even be treated the same way as mixers, and that’s the last thing we don't want to see.

Traders will not go to DEX, at least in the coming years. DEX is not very convenient and does not have the same functionality as centralized exchanges. Even I, with all my dislike for centralized exchanges, sometimes use them (only without KYC), because it is cheaper.
I am confident that centralized exchanges will dominate trading.

[Gozie51]

As it stands now, bitcoin use or investment is restricted to 18 years old in different countries like US, also in exchanges. So if bitcoin is going to be regulated by government , how would they take care of the restrictions bearing in mind that fiat has no age barrier and bitcoin becoming in use as alternative currency.

It can also be just circumvented through someone who would buy said person BTC and send it to the wallet in question (though, of course, such a person is needed, who would be able to buy BTC through an exchange).

After all, everybody can create a wallet for hodling

Of course law is made with its punishment attached to it. If it is circumvented then it becomes a crime against the aider.

If government in regulations decide to have age limit on bitcoin users (just as it is now on exchange and some countries) and a third party tries to transact for a "minor" then it will be a crime punishable by that law that forbids such act or action.

[Ziskinberg]

Traders will not go to DEX, at least in the coming years. DEX is not very convenient and does not have the same functionality as centralized exchanges. Even I, with all my dislike for centralized exchanges, sometimes use them (only without KYC), because it is cheaper.
I am confident that centralized exchanges will dominate trading.

It’s dominating and it won’t lose that spot as long as the government keeps backing them and regulating them. We’re already on that trend, no way we’re going back to the old days when most of crypto was unregulated. Adoption has increased, and it’s just normal that the government will step in “to protect the users.”

Whatever the real reason is, regulation is still important.

[Alphakilo]

What are some of the most important regulations about crypto that a government should be clear on?

For example, how crypto gains are taxed. If not clear, this could lead to some mismanagement or some manipulation. Without a clear framework, the way crypto gains are taxed could vary and be unjustifiable or unfair. Another thing is how will a government protect their citizens from scams in the crypto industry. They should be clear on what are part of their jurisdiction and not. For what can their citizens rely on them for? These days, legalizing crypto means a lot of things. It is just not about accepting crypto so I do understand if some governments are taking a bit more time learning about the industry. So what do you think are the policies that the governments should mainly focus on at the beginning of their adoption of crypto?

Crypto tax have already been explained by the government and I don't think that there is any part that is unclear. If you think so maybe you should share it here and we can look at it together. If it wasn't clear enough people will not have to leave their country to another crypto tax free country just to avoid paying taxes on their crypto gains.

I think that one of the oldest crypto stuff that the government has been on and that citizens can rely on them for is in recovering their crypto from scams. I mean that you can report these and count on them to pursue the case until justice is achieved. It may be slow but I think that they have improved a lot since the early days when they were still trying to understand it.

[zasad@]

Traders will not go to DEX, at least in the coming years. DEX is not very convenient and does not have the same functionality as centralized exchanges. Even I, with all my dislike for centralized exchanges, sometimes use them (only without KYC), because it is cheaper.
I am confident that centralized exchanges will dominate trading.

It’s dominating and it won’t lose that spot as long as the government keeps backing them and regulating them. We’re already on that trend, no way we’re going back to the old days when most of crypto was unregulated. Adoption has increased, and it’s just normal that the government will step in “to protect the users.”

Whatever the real reason is, regulation is still important.

For every demand there is a supply. I can give you several exchanges without KYC, for registration a temporary email and a Google authenticator analogue are enough, but I will not give guarantees that the coins will not be blocked. It is impossible to control everything.