Topic: REGULATION OF CRYPTOCURRENCY (Read 250 times)

Regulation  is a good thing  if it was only focussing on  icos   since we are seeing lot of scam and worthless coins and tokens  every day or every weak but am afraid it may go wrong and turn to be the worst thing that can ever happen to cryptocurency world .

Maybe it should be regulated in some way but not centralized if that's even possible.

With China imposing tax regulations on crypto as well as Russian President, Vladmir Putin, giving July as the deadline for a framework of the restrictions on the crypto community, what is the general opinion and feelings on regulations of cryptocurrency worldwide? Personally, I feel like,
far outweighs the "pro" of regulations essentially cutting out scammers.

Regulation for crypto currency means paying taxes and besides it can help many who want to be part of the cryptoecosystem but are afraid to invest because of scammers.

1. It means a wider audience since people would consider bitcoin being a legitimate investment once government intervention takes place. It also opens a door for the doubters and haters to see for themselves what bitcoin really is.
2. I for one think that this will bring positivity in the long run, seeing that it will help bitcoin and the cryptospace mature and the interest of people will surely shoot up once they know that a 'trusted' figure is allowing bitcoin trades and whatnot in their soil.
3. No. There'd be no such direct control that would be established once regulations are set; a government can only restrict certain actions done with crypto on their soil and nothing more. The purpose would remain the same and it wouldn't be defeated at all.

You have a point though but don't you think that regulation will mean returning power to the governments and financial instutions thereby making crytpo look like the normal fiat currencies? Don't you that this will oppose everything Satoshi had in mind before creating Bitcoin? With regualtion, where then is the concept of 'anonymous transactions'?

I don't think we should necessarily be afraid of the "R word" (regulation). It will bring with it more safety and that can only be good for traditional investment outfits wanting to join the space. This being said too much of a squeeze on ICO's will mean less companies contributing to the ecosystem which is no good. It's not an easy one my friend!

Regulation of cryptocurrency merely is the rules and laws discussing what should be and what shouldn't be done when using it. When implemented, government keeps constant watch of it.
IMO, regulation is a good thing since it will lessen scams in crypto world, and will encourage others to use it as well. The only downside of regulation is tax.
Not really, because satoshi intended for bitcoin to be used as a means to settle payments(to be used as a currency) in a decentralized way. Even if there are regulatory rules, governments will not be able to control bitcoin.

Regulation will have a positive impact on the cryptocurrency market. First of all, there will be less scams, which are now, unfortunately, common. At the same time, regulation will affect the decrease in market volatility and, accordingly, traders ' profits will decrease.

Your submission is very correct but don't you think that reulation=return of power to the governments and the banks which is totally opposite of what Satoshi had in mind before creating Bitcoin?

With respect to the price of cryptocurrencies, we believe that regulation in the short-term will lead to decreases of most cryptocurrencies. We have also seen that development in the past. However, in the long term, we believe that regulation will lead to influx of money into the crypto market from institutional investors. Most institutional investors are today prohibited from investing in crypto as their respective investment policies prohibit them from investing in anything that is not regulated (overly simplified). So, when they are able to go into crypto then prices will go up.

All the best,
Cryptowisser

Just something I'd like to mention in regard to your post:
as Satoshi said, in 20 years Bitcoin would have alot of volume or no volume, which probably applies to crypto in general too
sure, Bitcoin started out small, but if more and more countries made it very difficult to obtain crypto legally, that'd block a very big portion of potential adoption.
this would probably mean that in the end, Bitcoin would be as it started - a small group of people use it to pay eachother, and the value could still slowly creep down and at some point people could just stop using it completely?

I mean, if Bitcoin is to reach a lot of volume, it'd require adoption, which won't happen if many countries end up banning crypto, even if VPN is an option.

And, tracking crypto is also something which would be rather easy as long as people don't use a privacy coin I think, again with reference to "the average user" incase of adoption, they would probably not want to go through difficult channels just to sell/buy crypto, that'd mean going through an exchange = generally have to provide private info, especially for when cashing out.

the other option, like localbitcoins, incase it was "outlawed", there'd probably be many 'sting operations' and such.. really, it does seem quite easy to severely wound crypto in general, if this was wanted by the (first) world,
however as you say, it can't truly be killed, but at some point it'd just be so few users that there'd be little reason to continue.

(my uneducated opinion)

Thank you for this detailed analysis. From what I can make of this, it will actually be difficult to regulate cryptocurrency. The only thing I see in the shortrun is restrictions as it is in China and few other countries.

I don't have any answers but more questions regarding the topic:
1.- Do we want crypto world to become mainstream? And, if such, are regulations necessary to that end?
2.- If so, what kind of regulations can be implemented in order to maintain the crypto word as a decentralized one?

Because I feel there is a contradiction in here. Many people talk about crypto becoming mainstream, also, as a way of payment wide recognized and applicable. But, is such a thing possible without any regulation? Let's think about little business, I don't know, a Cofee Shop in the middle of a little town. Imagine the owner willing to receive crypto payment. Can it be possible with no regulation?
 Just questions. I don't have determined my position on the matter yet. But any insight will be appreciated.

Regulation of the cryptocurrency is the control of the state by all monetary means. So that the state could see every payment or purchase. Cryptocurrency is a kind of freedom, they want to take it from us.

Bitcoin was born to protect people against governments and bankers. Regulations = control by governments and bankers. It should not be welcomed in this space.

Recently, we have been seeing a lot of news regarding the regulation of the cryptocurrency but can cryptocurrency be truly regulated or essentially wiped out of its existence? I don’t think so. Cryptocurrency is designed to be decentralized, which means there will not be any central authority which could have total control over it ( in contrast to your day to day currencies issued by the government ). There isn’t any central location that the government could simply shutdown ( unless every single country in the world agree to crackdown all crypto-related entities and business at once which is highly unlikely ) Even if a country decided to ban all crypto related activity (like what China did), all it takes is just a VPN and you will be able to continue transacting on other international platforms.

Besides, tracking a specific crypto wallet although is not impossible, would be very difficult when it comes to connecting a particular address to an identity in the real world. Not to mention a simple VPN or a proxy server could be used to obfuscate the location of an individual.

One of the ways that governments will use in their attempt to regulate cryptocurrency is to make the process of converting cryptocurrency to fiat currency extremely difficult. But this would probably require a global endeavor. If a particular country is banning the conversion of cryptocurrency into the country’s currency, its citizens could simply bypass the restriction by converting their cryptocurrencies into other fiat currencies and then back to their home currency. It will be troublesome, but not impossible. In the short term, this could be some unpleasant experience but in the long term cashing out might not be a problem at all.  If we were to reach a point where all major merchants start accepting transactions in cryptocurrencies and you could essentially purchase almost everything with crypto, why would you need traditional currencies anymore? 😉

That is the ultimate revolution that we all dream of!

A lot is going on regarding the regulation of cryptocurrency. Consequenly, a lot of questions are bugling the minds of crypto lovers and even new adopters.
1. What does regulation mean for cryptocurrency?
2.Do you think this will have positive or negative impact on the cryptocurrency world?
3. With regulation, will the aim of the founders of Bitcoin be defeated?

Give your take on this issue as a way of encouraging people who are still skeptical about cryptocurrency.