Topic: how governments can regulate digital currencies? - page 13. (Read 2207 times)
It seems to me that the best way to regulate cryptocurrencies by the government is full legalization and introduction of taxes, because people use crypto anyway, but while coins are not legal, the government loses a lot of potential tax fees.
Most governments already targeted the on-ramp and off-ramp for fiat to Crypto currency conversion, so regulation already cover a large portion of the transactions that are done via centralized exchanges. Regulating P2P tx's and also tx's that are done via decentralized exchanges is more difficult, but it only represents a small volume of the total tx's that are being done.
The governments also have a good hold on the payment processors and all the merchants that accepts bitcoin as a payment option. So gathering information on Crypto currency use, is a lot easier than what it was a few years ago.
The governments also have a good hold on the payment processors and all the merchants that accepts bitcoin as a payment option. So gathering information on Crypto currency use, is a lot easier than what it was a few years ago.
I think they are going to start regulating through the SEC and probably the existing exchanges as well, this is why the exchanges are now asking KYC unlike years ago. With the KYC, the government can now track down who are the people getting into crypto. If they find out you have been in crypto for years and yet not even bothering to submit for the IRS or whichever department, they might give you a visit along with the documents that you have withdraw BTCs from exchanges. This is scary of course but this might just happen one day.
Exactly those who are newly getting into crypto then they must have to go through legalized exchanges to buy and then their addresses can be tracked however for veterans story would be different since they might know ins and outs.
I think they are going to start regulating through the SEC and probably the existing exchanges as well, this is why the exchanges are now asking KYC unlike years ago. With the KYC, the government can now track down who are the people getting into crypto. If they find out you have been in crypto for years and yet not even bothering to submit for the IRS or whichever department, they might give you a visit along with the documents that you have withdraw BTCs from exchanges. This is scary of course but this might just happen one day.
Though it’s easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?
We all are aware with this fact I guess that these crypto currencies are decentralised in our world and with time there are now many countries that has legalised crypto currencies in their nation after getting the fate and potential of crypto and these crypto are legalised in these nation only and the governments of these nations regulate it by keeping eye over all these crypto activities and thus stopping the illegal use of these crypto and I think other countries should also get inspired from these digital nations. 
In this case I think that the government will not regulate individual crypto users because they cannot identify. The government can only burden taxes on every transaction that is carried out without having to participate in crypto affairs which should remain decentralized
You can start to regulate the market. The government does not need your wallets. If they manage the market.
The regulations are clearly impossible to touch open source and decentralized projects. Centralized exchanges in the other hand are easy to regulate because of KYC/AML.
As long as Bitcoin is not used directly "need to exchange it for your local money."They "centralized platform" can request to sign a message that you have borrowed Bitcoin from specific sources.
By using this method, you will not be able to sell your coin except through P2P which is considered a risk.
It requires a unified international resolution.
Though it’s easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?
If governments can make regulation to crypto currency then for sure it will help a certain country, if we are going to calculate on how many times does crypto users buy and sell crypto then taxes will be a huge amount. Furthermore, as far as i know as long as ledger is not connected then transfering of data or transacting to any address will not cost much expense if regulated.
in my opinion the government cannot regulate the crypto currency because we know that the crypto currency is currently still anonymous, the government can be regulated if all crypto currency users give their identity to the local government bank to be taxed
how do you regulate currencies.. the same way you regulate liquids and plants
you cant destroy the cannibis growth or the beer growth or its consumption.
the war on drugs and alcohol prohibition era proved that.
all that is done is outlawing or controlling the people and businesses. but thats IF agencies find whos selling or buying it.
but yea
blackmarkets, street dealers still happen
moonshiners, 'speakeasies' still happened
you cant destroy the cannibis growth or the beer growth or its consumption.
the war on drugs and alcohol prohibition era proved that.
all that is done is outlawing or controlling the people and businesses. but thats IF agencies find whos selling or buying it.
but yea
blackmarkets, street dealers still happen
moonshiners, 'speakeasies' still happened
Though it’s easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?
Yes they cannot regulate digital money because of the process which the wallet is having no identification to their server, they are not connected to any network but, i think they use something new process that everyone can use it as a currency. Somehow, government should implement digital money as a new currency since we are living in this world where technology almost control all individual.
The governments can regulate digital currencies through two process namely: creating/reforming laws on cryptocurrencies and the government's central bank. These processes are effective in regulating digital currencies that are flowing through the country.
A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?
i think you need to go back and start learning the basics about bitcoin instead of only posting in your signature campaign and earning pennies! this is not how bitcoin works. there is no "server" for a bitcoin wallet and whether the wallet is a cold storage (offline or hardware) or a hot wallet (desktop connected to internet) doesn't change the fact for its identification! they both are doing the same as far as the network is concerned which is holding private keys and signing transactions with them.
no, the government cannot manage offline wallets from nano ledger and others, online and offline are contradictory and I am sure the government cannot regulate it.
Yes, regarding bitcoin, there should be a regulation that regulates both from the government or from the Bank.
Some banks in the world state that bitcoin and other digital currencies are not legal currency or means of payment. People are urged to be careful of bitcoin and other digital currencies.
Not recognized as a legitimate currency or payment instrument, bitcoin can actually pose its own dangers. Bitcoin can be used as a means for financial criminals to practice money laundering.
Ironically, the auditor's money laundering practices cannot be detected by the Financial Transaction Reports and Analysis Center.
Bitcoin is currently a zone where law enforcement officials and financial auditors are also difficult to track and prove these criminal actions.
We must see some countries that accept bitcoin, one of which is the United States, where bitcoin is categorized as property for tax purposes. There is also Bitcoin seen as a commodity by CRA and this means the transaction is seen as a barter transaction and the income generated will be considered business income.
Some banks in the world state that bitcoin and other digital currencies are not legal currency or means of payment. People are urged to be careful of bitcoin and other digital currencies.
Not recognized as a legitimate currency or payment instrument, bitcoin can actually pose its own dangers. Bitcoin can be used as a means for financial criminals to practice money laundering.
Ironically, the auditor's money laundering practices cannot be detected by the Financial Transaction Reports and Analysis Center.
Bitcoin is currently a zone where law enforcement officials and financial auditors are also difficult to track and prove these criminal actions.
We must see some countries that accept bitcoin, one of which is the United States, where bitcoin is categorized as property for tax purposes. There is also Bitcoin seen as a commodity by CRA and this means the transaction is seen as a barter transaction and the income generated will be considered business income.
regulation of cryptocurrency sound impossible but there are measures that taken by the Government that can make it possible . the government controls everything. here are my fews tip on how cryptocurrency can be regulated successfully if the Government buy my ideology:
1.Clear up the tax situation
2.Regulate exchanges
3.Create a framework for ICOs
4.Let exchanges manage ICOs
5.Establish a working group of blockchain experts, economists and policy wonks
6.Don’t innovate yourself
1.Clear up the tax situation
2.Regulate exchanges
3.Create a framework for ICOs
4.Let exchanges manage ICOs
5.Establish a working group of blockchain experts, economists and policy wonks
6.Don’t innovate yourself
It is not an easy way to do because government should do many ways to create and make regulation about crypto currency. Therefore, there are many country still investigate and research how the crypto currency system and how does it works. The government do not want to do it in hurry. Let the government doing the best for crypto currency.
You're right. It is easy to say but so much harder to do. If it is easy to do government probably make and create the regulation about Crypto since many years ago. For that reasons, it needs a long time to make that regulation because the government should investigate and research first the movement of Crypto currency. The regulation should prevent and minimize the high risks or potential risks for the users pleasure and secure.
Though it’s easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?
they don't have the ability to affect transactions on the network. they can't physically stop people from using crypto, and they don't have jurisdiction outside their countries, where citizens are making cross-border transactions.
however, they can pass laws that affect users. they can make it illegal to use crypto (some countries have done so), although that's impossible to enforce and is mostly done as a deterrent. they can include traders and exchanges under anti-money laundering laws, forcing traders to provide ID and personal info to trade on centralized exchanges. they can (and do) analyze the blockchain for financial crime and tax purposes. and you can bet that your local tax agency wants a piece of your bitcoin profits, which you can hide in a private key, but not in your bank account after you sell at the exchange.
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