Topic: How do you think, will states be able to regulate the crypto currency? - page 3. (Read 3398 times)

Regulations, of course, depend on the country/state where they are being issued. But they are coming and that's a fact. If not regulations, then bans. As more and more money is being thrown into the crypto market - more and more money is being taken away from the reach of governments with the current pretty much non-existant definition of cryptocurrencies. Also, governments are there to protect their citizens (they should be) and there is no way to protect your people when you have no idea about what they're doing. What I think is the only reasonable way to 'fight' the regulations is by being involved when forming them. Thing is, we need to have a conversation with governments, we have to reach a consensus that would be beneficial to both parties - the crypto community and the country. It simply has to be a win-win situation, otherwise there is no future for crypto. The core characteristics of cryptocurrencies have to remain, but there should be some sort of regulatory system to avoid scams and make this type of currency a safe alternative for the general public. Governments can get tax money from transactions (we gotta pay the taxes, that's just how it is) and therefore it is also beneficial for them. I am not exactly sure yet how to regulate cryptocurrencies in a way that they would keep their 'anonymity' and so on., but I'm currently working on a project with a mission to achieve exactly that - fair, open and regulated environment for cryptocurrency adoption, that is safe and sustainable. We can't forget some of benefits fiat currencies currently have, we have to bring them to crypto.

Hi! The question is highly subjective because we know the US is composed of various States that are independent from one another. Having said that, you should know that since they are distinct and independent from one another, their laws vary as well. These laws depend on their legislative departments for they are in the better position to know what works for them.

As regards regulation of cryptocurrencies, I think it would depend on their individual legislation.

No they can't, not unless they buy crypto themselves and manipulate the market lol. Otherwise, no one's going to give it up.
I do see that utilizing smart contracts will be a way to navigate regulation in a trustless manner

Nope, the only things they can regulate are some of the exit point from bitcoin to fiat and the exchanges
 
I suppose you might get different stances like we do with Cannabis where a lot of states differ in their viewpoint but regulating Crypto it just will not happen.

States could attempt to regulate crypto from a licensure standpoint (i.e., you have to have a license to sell bitcoin in NY).  This is currenlty being challenged in NY in fact.  But there is also the concept of the dormant commerce clause and regulation affecting interstate commerce.  Bitcoin almost by definition is interstate commence--so I think the main players here are the SEC and CFTC, and both will be fighting for regulatory territory here.  Bitcoing trading likely will be treated as currency trading (CFTC), but a lot of ICOs are going to end up being deemed investment contracts under Howey (SEC).  Interestingly, some States have their own securities laws, known as Blue Sky laws, that also must be complied with for securities offerings in that state.

Optimal regulation of the country's crypto-currency is even very useful for the development of the crypto-currency and its spread all over the world. The state can establish general rules for circulation of the crypto currency and establish a profit tax on operations with crypto currency. There is nothing wrong. In exchange, the state recognizes crypto currency as a legal tender and takes it under its protection by its judicial bodies. At the same time, its main principles, including the anonymity and decentralization of the crypto currency, do not lose.

I am surprised so many people said States can’t regulate cryptos. They can regulate whatever they want to, people following what regulations state is another matter. I don’t know if different people here are thinking of a different concept of regulation. What I understand by regulation is passing laws or rules that affect bitcoin users, both individuals and companies (like exchanges).

In this sense, some partial regulations have already been implemented. In my country miners are regulated as self-employed people and have to pay taxes according to that, profits on bitcoin trading are also regulated and for those who have very important amounts of bitcoins there are also regulations. Exchanges aren’t regulated yet but they will be.

Many other countries have similar regulations or even more, so I don’t wonder whether Governments will be able to regulate cryptos as they already have.

States regulating cryptocurrency will be automatic in my opinion the moment they are not giving bitcoin a free hand to operate. But taking it further is when they now want to regard it as either investment or asset which which will then bring all fintech companies or exchnahe sites into the tax net. By that, they can go to extent of ensuring they submit their reports of their transactions on a monthly to the relevant government agencies in charge of regulating their activities.

I suppose every state will take it's own law and position, in general, to bitcoin a they always do. So on such place like Las Vegas the circulation of crypto currencies is going to be free for sure.

If the government will legalize bitcoin there is big possibility of its regulation but until then there is no way it can be done without they’re recognizing bitcoin as a currency. The time that any states or country will legalize it the more it’s harder for them to monitor all as they need an army of web agents to take down illegal activities that is hiding on Blockchain technology.

This is only my opinion and it might be right or not as it will be subjectively being observed.

I'm sure they can figure out how to do this, they have billions of dollars and when you have money you have everything. What will they do if people stop using fiat and just use cryptocurrencies? governments could deny people from accessing public services. If they knew who is using crypto, One of the advantages of crypto is anonymity. The future of the world is decentralization of the world.
But if they buy everything no need to regulate it

The answer is, they can't due to bitcoin's decentralized nature. No one can regulate bitcoin transactions due to the anonymity it provides but if the government of each country are determined to control bitcoin, then I guess that if they acquire at least more than half of the total bitcoin they can monopolize and control the price using the law of supply and demand. But I also guess that if CIA were to intervene with bitcoin transaction, then they just might crackdown the secrets of regulating it, thus imposing tax and becoming a state-policy.

I think yes of course, If they want they can do it, Bitcoin is a big thing now for the most powerful countries and they want to regulate it because there is a big money that is involve inside of it and their citizens are making a profit and loss out of it so they will soon regulate it with taxes for that big money that is circulating. Bitcoin and cryptocurrency exchanges as of now I think is not paying in the government regarding those taxes with each every transactions so I think this is the main objective of USA.

How is the government going to collect those BTC? LOL goodluck.

States does not need to regulate all users, all it needs to do is to regulate the service providers and those are the middle men. Just like the case of banks, government agencies does not deal with individuals but the moment they control those who made the transaction possible, then there is nothing they cant do. Just in the case of KYC for exchange sites, its from the state and the moment all this is circulated, there wont be an hiding place than to just do it if you still want to carry out less stress transactions.

It would be hard for them to totally regulate internet transaction and mostly if the type of government is democratic and not a communist one. But those who always abides by the law would have no problem at all as if it was intended to protect them but the criminal minded individuals who uses bitcoin in an act against the law is and must be destroyed.

No clue how it's going to work logistically.And I wonder how all of the governments will work that out.

Yes, given the status of the United States of America, I strongly think it will be able to regulate cryptocurrencies. Nonetheless, I concede that the latter feat is challenging in a sense that some people can just do a little workaround just so they can sustain their cause without having to submit to the authorities' demands. To be more accurate, I think regulation is easy. What is difficult is the execution of such regulation because it is the only time that the government can assess its plausibility.

The government does not approve of the way people pay each other with bitcoins even in the event of legalization. I am sure that all governments who will attempt to legalize the use of bitcoins will make it only in exchange for Fiat. Probably online exchangers who are currently working without authorization will be closed. The exchange of bitcoins is through exchange on which registered users ' Bank account and how this expense will come from the Fiat banks will charge tax.

Implement tax on bitcoin or control bitcoin supply in order to preventing inflation or other privilege that government able to do in order to regulate bitcoin for good.
The advantage is people may use bitcoin as their main transaction anywhere and anytime !