Topic: Regulations As the Catch 22 (Read 144 times)

the thing is there are 2 types of regulations

regulations that turn a "money service" into police officers to monitor its customers looking for crimes and suspecting the customers

regulations that turn a "money service" into the suspects. where both regulators and money service customers report on bad money services.
where the money service is supervised and punished and money services if playing by the rules  "honestly" get to be a secured and insured custodian of customers funds with customer protection rules

fiat banks are treated as the first and second kind
crypto services are treated as just the first kind

Regulations, either a very strict one or not is so much better than getting banned at all in any particular country. So even it's against all users will, we can't do anything but to follow it or doing things technically difficulty ~ a bit.

Regulation or involvement of the government can indeed stop scams and also it will help build trust among mass people about bitcoin. More people will come into crypto space if there is more regulation.

But apart from that advantages, there is nothing. I think cryptocurrency is unique because there is no regulation or government involved to control it. The government will put tax on the crypto you own and they will also put taxes on every transaction you make by their regulated system. So it is a big no from me.

Bitcoin itself needs no regulations. Any regulations that govts would try to put on Bitcoin would be to try to curb its use (and we've seen some proposals for these sorts of regulations before), so obviously those aren't needed. We don't need regulations that would make using cryptocurrency illegal, or controlling your own cryptocurrency illegal, or strongest KYC laws that make a lot of basic cryptocurrency use illegal. We don't need any of that. The regulations and laws should take into account the thing they are regulating, not just try to put old school finance rules around crypto which operates completely differently.

What are needed are regulations on crypto companies. But intelligent regulations, not just suing crypto companies retroactively for rules that didn't exist in crypto, which is the strategy US regulators seem to be putting forward.



We need centralized pegged stablecoins to be regulated precisely because they are centralized and pegged. They need to be transparently held and insured.

We need crypto exchanges to be regulated and insured so that bitcoin/crypto lost in hacks is never a loss for the customer and we know that these exchanges are holding all customer funds in a safe way and also none of the FTX style fraud is happening.

We need regulatory bodies going after things that are actually scams in the crypto world, of which there certainly are some. Also I think its okay if all these DeFi schemes where its just a new token and some investment/payout/locking scheme the creators came up with be labeled as Gambling, allowed, but like the tokens have to be labeled as gambling, because well none of DeFi is actually DeFi, a better name would be Open Finance because that stuff ain't decentralized, but most of it would be better labeled as GambleFi cuz its just a million different tokenized gambling finance schemes. Most aren't scams just very risky gambling schemes. The only problem with regulating it in this way is who gets to decide which are labeled gambling. This would just be for labeling purposes to help people who don't know what they are doing get shilled into some random token but then they go on an exchange and its listed as a gambling token and maybe they think twice about throwing their money at random crap. Just some sort of cautionary labelling would be useful for customer protection. Govt could even leave it up to the exchanges to handle this, that would be better, with just the rule being they have to do this sort of labeling on the exchange whenever they add a new crypto token.

Also I do think there should probably be some sort of regulations on lending crypto, because there's been tons of financial fallout in the crypto industry over lending. I think lending should be able to be offered but there needs to be some sort of basic protections against systemic collapse like we've seen this bear market among lenders. All these crypto companies were all lending to each other and all connected and so once Luna collapsed and then Celsius collapsed that led to lots more collapses. I don't know what lending regulations would look like but there should be something.

Also for pre-mine sales, regulated it sure. Just have the company that is doing a pre-mine go through a simple process to register what they are doing and make sure they are publicly stating what this thing is that they are selling, including possible downsides, just like a company might do in a financial report when talking about future expectations.

Oh also for staking service companies they should make all the tax information available and transparent to the customer, so the customer isn't left trying to figure out their staking income for taxes all by themselves which is a nightmare. That's common sense regulation right there.


Beyond this there probably shouldn't be anything. Anything beyond this would start getting to the point where govt is getting in the way of the industry and doing much more harm than good. Regulations should focus on insurance for customer protection, transparency for customer protection, perhaps labeling for customer protection, and not much beyond that. The sorts of things you hear the SEC talking about or that has been proposed in Europe sounds straight up tyrannical like these politicians who don't even know the first thing about the industry and the technology think they can just apply old finance rules to it when they don't have any clue that these rules don't even apply in any sensible way.

On the contrary, with the presence of regulation, trust can build up on cryptocurrency.  It can boost the industry because people who are once hesitant to participate can now feel secure with the presence of the regulatory bodies watching or guiding the crypto industry.  Although I myself don't feel that regulation is needed, but the presence of scam and fraudster that keep other people to adopt bitcoin at bay, I think regulation is needed for crypto adoption boom.

Regulation may only take effects on centralized exchange due to untrustworthy level and if that happens I don't think it would be very easily for new cryptocurrency to emerge in the industry anymore because of the regulation terms. Have you seen the case of terra and FTX so if this happens there could be a better chance of securing investors funds creating a new wave for the cryptocurrency industry to gain more trust and reliability.

Regulations in crypto are fine as long as they are fair. I mean the SEC have been scamming us for ages, they say they protect investors. Why won’t they approve a spot bitcoin ETF then? The only people they like to protect are the elites, from competition. They approve futures bitcoin ETF’s but not spot, it’s a scam.

Look what happened with FTX for example, genuine regulations could have stopped that. A proof of reserves regulation for all exchanges could help.

If you want people to not have this much freedom to scam you, then you need government to intervene, because in that case it would be a lot more illegal, it is still illegal to scam people but since crypto doesn't have proper regulations, there aren't that many government officials in place to keep following whats going on and catch these people, they can get away with it a lot easier right now. If you want more regulations though, then you would have less people scamming, or even if they scam, they will go a lot more frequently to jail, and yet there will be a lot more government involvement with it as well.

One thing I know, the Bitcoin network does not need any government regulation.  It is autonomous and is good on its own.  But companies created by people need to be regulated.  Start-ups and other companies that wanted to take part in the cryptocurrency industry should be regulated and filtered so that scammers and fraudsters can be identified.  The government does not need to intervene in how blockchain is functioning but rather implement intervention and screening on the companies and projects who aim to collect funds from investors to develop blockchain applications.

Regulation if properly used is essential to safeguard the investments of people but regulation, in order to milk money on the crypto industry, is not needed at all.

In the early days of crypto many of us got into this space as there was less regulation. Therefore  the free market.
However since crypto started, there have been many platforms that have come and gone. Many of them that left were always on bad terms. Some were not. A few platforms that are still around are on good terms still.

One of the biggest negatives so far in Crypto is what happened with FTX. It is a shame since many of these exchanges had the vision to be like the "new" banks. At least be something that people can benefit from more vs the traditional banks.

Now with all of these scams that have happened. more regulation is coming.

However the question is this. It is the Catch 22 on regulation

we need it, yet we don't need it.

Reason no rules before, free market, came lots of scams. Therefore rules are needed in this space.

However rules give the powers that be much more power and will make crypto a harder place to trade in etc.

Your thoughts,
Do you think regulations are need more in crypto? should we have someone watching out more for the users of cryptos?

or would you rather see the current free for all aspect continues?

tell us below, why or why not?