how governments can regulate digital currencies? - page 14.

rodel caling

full member

Activity: 952

Merit: 104

Quote from: The Scorpion on September 14, 2018, 11:36:17 AM

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 ?

Thats true mate, i think that's reason bounty hunter requiring kyc registration to start study how to comtrol bitcoin as currency.
I think kyc is a trail process for implementing rules and regulations how to monitor and control this harder anonymous digital currency.

emmaaabel12

brand new

Activity: 0

Merit: 0

Interesting question. But keep in mind they are government which means they have access to almost everything, even great people, hackers, it, computer geniuses etc. That is why I believe they could hire very smart people to help them regulate cryptos, or maybe they are already doing it, they are only waiting to apply it officially, who knows? Never underestimate the government.

tanoe

full member

Activity: 350

Merit: 100

Quote from: The Scorpion on September 14, 2018, 11:36:17 AM

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, the fact that regulating or making regulations for digital assets is not as easy as making regulations for asset owners in conventional banks. There are no tracks that can be used as a reference to tax on coins. The easiest regulation is to prohibit it as in some countries. Which indirectly kills the cryptocurrency.

kingcolex

sr. member

Activity: 254

Merit: 1258

Quote from: OmegaStarScream on September 14, 2018, 11:40:30 AM

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.

Except that is exactly where the regulations are going to be put at and things like local Bitcoin where you can buy and sell in person will be targeted for shutdowns. Which isn't too bad, just pay your taxes and don't get robbed.

pragna

full member

Activity: 1582

Merit: 101

Quote from: The Scorpion on September 14, 2018, 11:36:17 AM

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 ?

I think so, it is very difficult to regulate by any government to its inhabitants who uses digital currencies. Actually it will fully depends on peoples honesty i think. If they think that they will do their work legally they may follow government rules as a result they both may gainer legally.

Dudeperfect

hero member

Activity: 1190

Merit: 534

To be honest, there is no practical way to regulate the flow of cryptocurrencies. The best way for the government is to allow users to disclose their crypto transactions and they have the option to monitor it through the domestic crypto exchanges (with KYC). Even though some governments are trying to find the way to track the crypto transactions and ownership of it but I doubt, how full proof it is going to be in the long run.

southafricadude

member

Activity: 141

Merit: 19

they can try to regulate the exchanges and the users of them. Store your bitcoin in your own secure wallet anyway, not on an exchange. If you want to cash out bitcoin you dont have to do it on an exchange, although it does make it easy. When you withdraw from an exchange to your bank account, you will have to explain the income, and that is also where regulations might get you.

Uberse

member

Activity: 132

Merit: 12

They can be regulated by proxy by licensing and taxing miners' electrical consumption, and crypto exchanges that transmit fiat. But bitcoin, ether, litecoin and most other protocols (although not Ripple's XRP, which is a true token created administratively) just hash data using known algorithms (such as SHA-256). Use of such algorithms cannot be restricted in nations with any kind of rule of law. (Only poverty can do that, such as is found in Cuba and N. Korea.) Nor can the digital products of such algorithms (bitcoins, ethers, litecoins) be banned for the purposes of commerce. Not being fiat, to use such products to obtain goods and services is to engage in literal trade, or barter. The only regulatory potential there relates to tax enforcement, not suppression.

OmegaStarScream

staff

Activity: 3500

Merit: 6152

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.

The Scorpion

full member

Activity: 280

Merit: 100

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 ?

Topic: how governments can regulate digital currencies? - page 14. (Read 2207 times)