Cryptocurrency Regulations - page 2.

pooya87

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Quote from: Juicy_D on August 01, 2022, 07:21:40 PM

it's seems regulating the activities in the cryptospace will facilitate mass adoption of Crypto currencies

It depends on what it really means when talk about "regulations". Let me give you two opposite examples.

First is the case in New York some years back. They "regulated" bitcoin businesses by requiring them to sign up for a license that had a lot of restrictions and high taxes. Not only it didn't facilitate mass adoption, it did the opposite by forcing business out of NY.

Second case is in Japan where they accepted bitcoin as a legitimate currency and also removed all taxes from payments made in bitcoin. That helped the bitcoin adoption speed up since businesses were more comfortable to accept bitcoin.
It didn't change anything in adoption of cryptocurrencies aka altcoins though.

As you can see regulation on its own is not good or bad. We have to see this as a case by case basis to figure what kind of effects it is going to have on the bitcoin adoption.

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Quote from: mk4 on August 01, 2022, 10:59:44 PM

The government regulating the cryptocurrency industry in general is going to achieve little to none. They literally can't even stop traditional finance scams; what more crypto.

I am of the opinion that some kind of legal regulation is still needed in cryptocurrency. complete anarchy is not exactly the best solution, really fertile ground for attracting various types of scams.
I agree with you about the poor management of traditional finance scams, but out of all rules, cryptocurrencies will only become playgrounds for scammers.

Zlantann

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Regulating the crypto industry would definitely kill the beauty and uniqueness of cryptocurrencies. But decentralization, freedom and lack of accountability enjoyed in the crypto sphere have given much impetus to fraudsters and ponzi scheme operators pretending to be genuine crypto operators. Their operations have given rise to the birth of countless worthless shitcoins pre-designed to fail. These scammers keep giving the crypto space bad reputation and to a large extent discourage people from venturing into the real and genuine crypto palace. I totally support deregulation or decentralization, but some sort of regulation or control to limit and discourage the entry or operations of these crypto bad-eggs should be put in place.

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Quote from: Juicy_D on August 01, 2022, 07:21:40 PM

But then, if we accept crypto regulations, what happens to the decentralized feature of crytocurrency/blockchain?

You are right to have your reservations about regulations, and it would pretty much invalidate the decentralization of the crypto industry, while not solving rug pulls or eliminating scams.

Decentralization means you do not rely on any central authority, and do not need to trust a middle man. Regulation is the exact opposite as with it, a central authority can control, freeze, or lock your funds, and request you to prove why it should be released to you.

mk4

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The government regulating the cryptocurrency industry in general is going to achieve little to none. They literally can't even stop traditional finance scams; what more crypto.

Poker Player

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What you are talking about is already happening. In most of the world, cryptocurrencies are regulated in one way or another. As for the decentralized nature, of Bitcoin in this case, what is happening is that it has been centralized through various entities such as custodial wallets or centralized exchanges. You can use Bitcoin in a decentralized way, like if you hire me to do a job and send me Bitcoin as a P2P payment, but nowadays many of the transactions go through centralized entities in one way or another. Some people see it in a very negative way, while others see it as practically inevitable.

noorman0

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The decentralized feature will still run as it should, it won't lose the interest of users even if it's only used occasionally. You just need to stick to positive principles, take what you need to take advantage of for example eliminating third parties and cutting unnecessary costs. Regulations should be obeyed consciously, so you will not violate them even if you are on free space.
Decentralization or centralization will not turn good people into bad people, and vice versa. Regulation has been around for a long time and it doesn't reduce crime rates. No matter how good prevention is, criminals are always one step ahead of finding other methods of crime.

Juicy_D

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Well, i already have my reservations when it comes to regulating Cryptocurrency. From my interaction with friends, it's seems regulating the activities in the cryptospace will facilitate mass adoption of Crypto currencies and reduce the rate at which projects rug pulls. But then, if we accept crypto regulations, what happens to the decentralized feature of crytocurrency/blockchain?

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