The Role of Government in Crypto - page 8.

guydin

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Quote from: RILWAN on July 31, 2021, 12:51:29 AM

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will will government regulations on cryptocurrencies undermined crypto decentralized nature?

It goes without saying that any whale on the crypto market can destroy decentralisation. It can be a big bank, a big exchange or even one country, but if it has a big part of the market it is a threat for small investors.
Personally I don’t care if my crypto is not legal. The main thing for me is that I can exchange it for fiat money and I can earn on it. And nothing else bothers me.

XUNing

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Most cryptocurrencies are decentralized. If the government regulates cryptocurrency like legal tender, it will formulate corresponding regulations for this, and the cryptocurrency will be manipulated, lose its decentralization and anonymity, and destroy the blockchain encryption system. Cryptocurrency should not be regulated by the government. It must ensure the decentralized nature and freely trade in the blockchain system.

capcaypro

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When it comes to decentralization in crypto, it is actually very difficult for the government to interfere in this matter but in connection with regulations, it will be very possible for the government to regulate it because we all know that a country must have various regulations including in crypto and this will seriously injure the system. decentralization itself. because regulations play a very vital role here and we can't do anything when the government regulations are published

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Quote from: tabas on August 01, 2021, 06:14:34 AM

Quote from: RILWAN on July 31, 2021, 12:51:29 AM

will government regulations on cryptocurrencies undermined crypto decentralized nature?

The government will be able to implement regulations and prohibitions towards crypto even it is decentralized in nature. Have you seen what just happened with Monero?
It was delisted in many exchanges due to governments action.

In this aspect what government is doing is regulation but in the regard of total stoppage of cryptocurrency that it won't exist is a very difficult mission to achieve as cryptocurrency has gone beyond that. Cryptocurrency that are meme , highly manipulated coins can go down but decentralised coins like bitcoin doesn't depend on government decision.

maju69

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Quote from: jaysabi on August 01, 2021, 02:26:28 AM

Quote from: Xinarae* on July 31, 2021, 03:27:10 AM

The role of the government in crypto is negligible but even if the government gives legitimacy to decentralize crypto it cannot control crypto. If the government operates like fiat currency then it is a threat to crypto anyone can work in crypto as an independent but I don't think the government can control crypto, they should focus on how the crypto project works and informing them through ongoing communication as well as continuing the long term vision. The more companies can educate their investors the more knowledgeable and confident these investors will be, and the more informed the industry as a whole will be.

The government can definitely control it. Look at what happened in China recently. They outlawed mining operations and started cracking down on exchanges and it forced people to sell their bitcoins. If it was truly out of government's ability to control it, they could make these rules and people wouldn't respond, but that's clearly not the case.

As you said, this is one proof that the government can control the movement of Bitcoin in their country. Even China blatantly closed access as a whole. Then we will know that recent government regulations have always been things that are not very in our favor.

tabas

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Quote from: RILWAN on July 31, 2021, 12:51:29 AM

will government regulations on cryptocurrencies undermined crypto decentralized nature?

The government will be able to implement regulations and prohibitions towards crypto even it is decentralized in nature. Have you seen what just happened with Monero?
It was delisted in many exchanges due to governments action.

Haunebu

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This is an old topic and there are multiple threads related to this topic in this forum op. Check these out.

https://bitcointalksearch.org/topic/governments-can-control-cryptocurrency-3122751

https://bitcointalk.org/index.php?topic=4699045.0;wap2

In short, it would definitely be beneficial for the governments to regulate cryptocurrencies even if it affected their decentralized nature to some extent in my opinion.

Woodie

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Initiallly government involvement is usually to put the interests of its citizens first buy the problem that's there with crypto is its multinational, no one country can regulate it.
But what I see happening is crypto companies that are setup in some of these countries they are subjected to their laws to try and minimize moneylaundering and impose their tax systems on them to be passed on to its clients.

zanezane

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For me the only role that a government should have crypto is the protection of it's users because people that are involved in the cryptospace is vulnerable to attacks everyday and the only way that I can think of is for the government to have a role as a protector of the users since they have the resources to do it.

Dragonfund

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Quote from: RILWAN on July 31, 2021, 12:51:29 AM

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will will government regulations on cryptocurrencies undermined crypto decentralized nature?

Regulations comes when government notice that a particular environment is not conducive for her people, hence the necessary instructions and legal action need to be put in place expecially when it involves financial.
Crypto anonymous nature has increased some fraud activities and embezzlement of money that's why government is really concerned about regulation.
However, I think government is overdoing it. They are going far and this is one of the reason Satoshi created bitcoin to fully decentralized in a such a way that no one or group of people have sovereignty over it.

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Quote from: Xinarae* on July 31, 2021, 03:27:10 AM

The role of the government in crypto is negligible but even if the government gives legitimacy to decentralize crypto it cannot control crypto. If the government operates like fiat currency then it is a threat to crypto anyone can work in crypto as an independent but I don't think the government can control crypto, they should focus on how the crypto project works and informing them through ongoing communication as well as continuing the long term vision. The more companies can educate their investors the more knowledgeable and confident these investors will be, and the more informed the industry as a whole will be.

The government can definitely control it. Look at what happened in China recently. They outlawed mining operations and started cracking down on exchanges and it forced people to sell their bitcoins. If it was truly out of government's ability to control it, they could make these rules and people wouldn't respond, but that's clearly not the case.

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Quote from: RILWAN on July 31, 2021, 12:51:29 AM

questions:

will will government regulations on cryptocurrencies undermined crypto decentralized nature?

Obviously, a big Yes!
One of the major alibis that the government wants to regulate cryptocurrency is to protect the people from fraud and prevent money laundering, but in reality they just want to have a control over cryptocurrency. That basically undermine the main purpose of Bitcoin's decentralisation and anonymity.
I honestly think, Bitcoin doesn't need government regulation just consider it as a currency because some countries are actually using it as a means of payment for product or service effectively and they're not even regulated.

I'm more concerned with the high volatility than the government regulations when we're talking about Bitcoin as a currency.

Mahanton

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Quote from: RILWAN on July 31, 2021, 12:51:29 AM

questions:

will will government regulations on cryptocurrencies undermined crypto decentralized nature?

They've been trying to do it but due to anonymity and decentralized aspects then they do fail out to do so which do really ending up on banning it instead of adoption.
We've seen that there are government whom do consider out on integrating or accepting it but still not able to control everything except into those platforms or
companies or merchants that do accept crypto on which they can really able to monitor out inbound and outbound transactions but outside that line is never
been possible for them to trace up and this simply means that both things are entirely different but doesnt mean that they shouldnt exist on the same time.
At least we do have some options.

mindrust

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Quote from: RILWAN on July 31, 2021, 12:51:29 AM

will will government regulations on cryptocurrencies undermined crypto decentralized nature?

Depends.

Since the exchanges are the ultimate FIAT gates and crypto adoption as a currency is limited, once they regulate the exchanges they will pretty much have the ultimate control over crypto. Crypto without any dollar value backing it is worthless by itself. If the gov can control the prices, they control the crypto itself.

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Quote from: vv181 on July 31, 2021, 02:53:49 PM

Quote from: RILWAN on July 31, 2021, 01:44:19 PM

~snip
So regulations have already started, if cryptocurrency must attained the mainstream adoption then the government will come in and make some regulation and proper taxation. There is no way cryptocurrency can operate smoothly without government interference.

I'd like to think this way, governments are forced to regulate cryptocurrencies instead of the other way around as you stated. Cryptocurrencies have proved to be able to stand the chance with its decentralized nature. And the governments are forced to embrace a new thing to comply with their own intents, which is to minimize the decentralization. I believe surely we could get masses adoption without relying upon governments interference, it is just them that wants to control cryptocurrency.

Very true. Now, some governments are forced to draft their regulation protocols towards crypto because it is gaining massive interest from the community. So even without their regulation, it is continuously being used by their citizens. If they will not act, still people will use it, unless they totally ban the usage of it. Which is actually hard, as crypto users know how to go around the prohibition. That's the advantage of crypto. The government doesn't need to know your transactions every time you deal with crypto, and that's what they are afraid of. They have no full control about its movement.

Silberman

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Quote from: RILWAN on July 31, 2021, 12:51:29 AM

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will will government regulations on cryptocurrencies undermined crypto decentralized nature?

This is completely false and there are many examples of this through history, the process in fact happens in reverse, the people are the ones that decide whether or not they want to accept an asset as a form of money and then and only then the government steps up and recognize this asset as a form of money, this is why governments can say all the bad things they want about bitcoin people are still going to use it because it is a superior form of money compared to fiat, so regulation is not needed for bitcoin to become money, bitcoin is money from the very moment it was created as it fits all the characteristics that money must have.

odolvlobo

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Quote from: RILWAN on July 31, 2021, 12:51:29 AM

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

I strongly disagree with these statements.

verita1

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Bitcoin is a support for economies especially in countries with economic instability and inflation. But governments see it as a threat to their legal tender. They prefer to print paper money and ignore the innovation that bitcoin can bring. It is no secret to anyone that governments have a system with a problem that affects its operation and that is corruption.

Bitcoin can solve it but there is the dilemma so that the implementation is the most appropriate in their economies, they must change the system and adapt it. There must be consensus in the population and adapt the nation to introduce bitcoin. We are waiting for how the country of El Salvador will make bitcoin work in its economy.

vv181

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Quote from: RILWAN on July 31, 2021, 01:44:19 PM

~snip
So regulations have already started, if cryptocurrency must attained the mainstream adoption then the government will come in and make some regulation and proper taxation. There is no way cryptocurrency can operate smoothly without government interference.

I'd like to think this way, governments are forced to regulate cryptocurrencies instead of the other way around as you stated. Cryptocurrencies have proved to be able to stand the chance with its decentralized nature. And the governments are forced to embrace a new thing to comply with their own intents, which is to minimize the decentralization. I believe surely we could get masses adoption without relying upon governments interference, it is just them that wants to control cryptocurrency.

romero121

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Governments have got different responsibility. With cryptocurrency they need to provide guidelines and it's regulatory framework on which it needs to function. Many countries weren't able to make it, because of bitcoin being decentralized and weren't able to take it into accountability for some reason. Now exchanges have begun to operate with cent percent KYC fulfilment and this truly affects the anonymous usage.

In my country now cryptocurrency usage is somewhat legalized and an exchange recently encountered an issue. Due to some technical issue users who withdraw 500 TRX will receive 14000 TRX. Knowing this lot of users benefitted. Later it was found and it gave a mail to all its users who have received this funds. Some returned the fund and for the rest who hasn't returned the fund were taken to file complaint on police with their KYC. Some way regulations are good.

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