What would regulation actually look like?

[Este Nuno]

There's always this spectre of 'regulation' hanging over bitcoin. If the US, or Japan or another major country decided to regulate bitcoin, what would we expect to see exactly? How do you think they would approach it? What sort of impact would you think it would have on bitcoin, either positive or negative?

[franky1]

There's always this spectre of 'regulation' hanging over bitcoin. If the US, or Japan or another major country decided to regulate bitcoin, what would we expect to see exactly? How do you think they would approach it? What sort of impact would you think it would have on bitcoin, either positive or negative?

not regulating the payment protocol. only the business-consumer protection side

[beatljuice]

If you read the EBA Opinion on ‘virtual currencies’ (http://www.eba.europa.eu/documents/10180/657547/EBA-Op-2014-08+Opinion+on+Virtual+Currencies.pdf) they think that cryptocurrencies need governing bodies that they can then hold accountable for problems.

Like that's going to happen.

[Este Nuno]

If you read the EBA Opinion on ‘virtual currencies’ (http://www.eba.europa.eu/documents/10180/657547/EBA-Op-2014-08+Opinion+on+Virtual+Currencies.pdf) they think that cryptocurrencies need governing bodies that they can then hold accountable for problems.

Like that's going to happen.

Bitcoin Foundation.

They already do everything but take responsibility. If someone has to take the heat, why not them?

[Bitcoinpro]

regulation would look like this

complete shutdown of all em/electrical signals in the entire world

which equals impossible

the system is designed to be uncrackable

or replaced with a better uncrackable system if the first one

becomes redundant

[Este Nuno]

regulation would look like this

complete shutdown of all em/electrical signals in the entire world

which equals impossible

the system is designed to be uncrackable

or replaced with a better uncrackable system if the first one

becomes redundant

Well regulation might not be effective, but how exactly would they try to regulate? What would they even do, attempt to make people register wallets or something? AML/KYC stuff? Is that the main issue?

[LiteCoinGuy]

bitcoin is already regulated. AML and KYC is regulation.

but you can do everything from that to 80% taxes on every transaction. problem is: other countries will not follow your rules.

[Bitcoinpro]

bitcoin is already regulated. AML and KYC is regulation.

but you can do everything from that to 80% taxes on every transaction. problem is: other countries will not follow your rules.

its not regulated thats the movement of bitcoin into fiat

but im happy for you to try to explain your side of the story

[Meuh6879]

they don't regulate his debt ... and they want regulate bitcoin ?  
private people with family budget regulate more efficiently than a political view.  

[Neg]

There's always this spectre of 'regulation' hanging over bitcoin. If the US, or Japan or another major country decided to regulate bitcoin, what would we expect to see exactly? How do you think they would approach it? What sort of impact would you think it would have on bitcoin, either positive or negative?

People need to get over their fear of regulation. People won't even realise the regulation. It'll simply bee that people have to start paying taxes on bitcoin purchases or trades into fiat etc.

[Ron~Popeil]

There's always this spectre of 'regulation' hanging over bitcoin. If the US, or Japan or another major country decided to regulate bitcoin, what would we expect to see exactly? How do you think they would approach it? What sort of impact would you think it would have on bitcoin, either positive or negative?

People need to get over their fear of regulation. People won't even realise the regulation. It'll simply bee that people have to start paying taxes on bitcoin purchases or trades into fiat etc.

Regulators need to fear the people. Any bit coin specific regulation would just be government trying to get it's finger into the pie. Bit coin does not need permission.

[Este Nuno]

bitcoin is already regulated. AML and KYC is regulation.

but you can do everything from that to 80% taxes on every transaction. problem is: other countries will not follow your rules.

Companies that handle money are regulated. That's not quite the same as bitcoin itself being regulated.

[Yeezus]

People seem to be just so anti-regulation because they think bitcoin doesn't need it, but if bitcoin is going to become mainstream it's going to require some in certain areas wether you like it or not.

[Este Nuno]

People seem to be just so anti-regulation because they think bitcoin doesn't need it, but if bitcoin is going to become mainstream it's going to require some in certain areas wether you like it or not.

What sort of areas are you referring to in particular?

[franky1]

People seem to be just so anti-regulation because they think bitcoin doesn't need it, but if bitcoin is going to become mainstream it's going to require some in certain areas wether you like it or not.

regulations allow businesses to play with peoples money (fractional reserves)
regulations allow businesses to limit how much people can use their money (ATM limits AML/KYC limits)
regulations allow businesses to simple take money away from people without warning (account freezing, fee's)

which we do not want... but....

consumer protection laws PREVENT businesses doing what they like with peoples money
consumer protection laws PREVENT businesses stealing peoples money
consumer protection laws PREVENT businesses from refusing to hand people their full amount of money

i do not advocate regulation, i do advocate consumer protection.. and thats me saying this, a business owner

[ShakyhandsBTCer]

There's always this spectre of 'regulation' hanging over bitcoin. If the US, or Japan or another major country decided to regulate bitcoin, what would we expect to see exactly? How do you think they would approach it? What sort of impact would you think it would have on bitcoin, either positive or negative?

People need to get over their fear of regulation. People won't even realise the regulation. It'll simply bee that people have to start paying taxes on bitcoin purchases or trades into fiat etc.

Regulators need to fear the people. Any bit coin specific regulation would just be government trying to get it's finger into the pie. Bit coin does not need permission.

A small amount of regulation can be healthy for any industry. For example if regulators were to require that exchanges periodically audit their holdings of coins they hold for their customers then the Gox fiasco could never have happened (assuming what they have claimed is true)

[moriartybitcoin]

The main purpose of regulation is to de-anonymize bitcoin by controlling the entrance and exit points, ie ensuring that exchanges like coinbase are fully regulated so that when you BUY or SELL bitcoins, you are required to verify your identity. This way, the government knows how much Bitcoin you own at all times and can cross-reference your IRS forms for tax evasion, etc.  Also if they decide to ban bitcoin in the future (as they banned gold ownership during WWII), they can simply write you a letter (or show up at your door ..) and demand your Bitcoin.

So that's the point of regulation, as always, increased control ...

I created https://CoinChimp.com as an ANONYMOUS bitcoin exchange. We NEVER verify identity or require documents from our customers, enabling you to buy and sell btc completely privately.

[joecooin]

Regulators want:

- to know who has what kind of money
- to know who sends what money to whom and what for
- to decide who is allowed to have or send money all together
- to be able to stop any transaction and confiscate any money

And they want all this 100%, not 50% or even 99% will be enough.

Such coin can be built.

Joe



 
edit: spelling

[ShakyhandsBTCer]

Regulators want:

- to know who has what kind of money
- to know who sends what money to whom and what for
- to decides who is allowed to have or send money all together
- to be able to stop any transaction and confiscate any money

And they want all this 100%, not 50% or even 99% will be enough.

Such coin can be built.

Joe

Regulators would not necessarily want to know all of this information. Regulation simply means that the certain aspects of an industry are restricted in one or more ways. There are certain regulations that do not require any information to be reported.

[franky1]

moriartybitcoin (shame on you for not knowing this, especially with you 50+ businesses(it makes you look amateurish and fishy!!))

joecooin
and
ShakyhandsBTCer

all 3 have not quite got it correct.

firstly businesses under THEIR OWN policies (regulation handbook they develop which is tailored to their business) would require user identification when handling FIAT!!

the thing that the 3 people should know is that not every document/account is automatically uploaded to government. most of the time it is just securely stored within the business and accessible at any time should something suspicious get flagged up..

normally then and only then is this info sent as a SAR to a government agency. so dont over dramatize the fact that a business taking information, would automatically pass it on to government. as this is not the case.

regulations are reactive, not proactive. meaning until a government agency receives a SAR they usually dont know what is happen between client/business, so you can relax just a little