Topic: Will bitcoin ever get regulated - page 10. (Read 1628 times)

Regularly new information regarding adoption and regulation of bitcoin by different countries of the world is happening. Recently El Salvador made a strong decision against opposition. Now they've made a good return out of the Bitcoin. Government have come up with plans of constructing schools and hospitals with the profit.

Now another country Zimbabwe is with the plans of regulating cryptocurrency and accept it as legal tender. This being a small country there is more good to happen on adoption. As of now nothing officially declared from Zimbabwe government, they're on consulting stage. Soon we can see a country getting added to the list.

yep but not all countries can adopt it in my personal opinion since we have different views about crypto currency and for sure those who don't believe in such things will never change even in the future. wherein only those places that believing bitcoin has a value, like El savador and other big people who gradually accept bitcoin fo example .. Actually its not surprising bitcoin wil be regulated because many people believes that it's the future money . Let just stop assuming some will accept such decisions especially china because they're now have their very own digital asset.

It is possible for cryptocurrency to be regulated. Actually, in different countries cryptocurrencies are kind of being regulated already. Some platforms with cryptocurrency intended use are now regulated by their local government to monitor the activities such as deposit and withdrawal of assets to verify whether they are complying with the policies and to check if the users are not doing any illegal activities such as money laundering.

Here in our country, several crypto platforms are regulated by the central organization which means these platforms require undergoing KYC to verify the account. This is done for smooth transaction as well as for the app to be acknowledged and for its operations to be allowable and permissable. In addition, this is another source of tax for the government, in which the state would benefit and the citizens as well (if the funds are spent properly).

Because of the regulation, there are benefits that arise in both parties such as being more widely known and used platform and giving desirable transaction processes. There are also disadvantages such as giving your personal information (for those who aren't comfy with KYC) because some are afraid of identity theft. But it's totally normal. We have to compromise in order to have what we want. It's a balanced situation IMO. After all, regulation doesn't necessarily mean that the decentralized nature will be wiped out entirely. Part of the decentralized aspect would just be altered (such as the anonymity) but the nature of crypto will remain which cannot be controlled nor manipulated.

Can you regulate Math?

The question is, why would you want it to be regulated? I understand that balance is the key but when the government tries to step in and take taxes, it really gets annoying, honestly, governments are trying to make a way on regulating cryptocurrencies through the use of taking taxes through transaction fees, I find it really concerning as I wonder if Bitcoin continues to rise, so does the transaction fees.

You are right on point only centralized services can get regulated and if a policy is targeted on decentralized services and exchanges what then become the faith of those found under decentralized services. Will they be term illegal and prohibited?

The coin itself cannot be regulated as it is fully decentralized. But as the government starts to adopt bitcoin, more likely that all crypto related activities will be regulated soon, even if we know the fact that crypto is far better more compared to fiat as long as transparency is concerned. Bitcoin cannot be regulated, but its centralized exchanges will certainly be because they are fully controlled by the government and whatever crypto transactions that are made in those centralized exchanges will certainly be traced easily.

It's pretty hard to imagine these regulations, cause there is a technical problem here, It’s not possible to calculate your cryptocurrency tax liability without sophisticated software. Tracking the cost basis and days carried for the software needs a “deep understanding” of how blockchain works. Simply recording transactions in an Excel spreadsheet is not good enough for calculating tax liability (for cryptocurrencies).

Bitcoin will not be regulated, but Bitcoin trading activities and people involved in Bitcoin transactions may be regulated.

In theory,a country can regulate Bitcoin only if all BTC mining facilities get taken under the control by the government of that country.If the government(for example the US government) can control all the nodes of Bitcoin,then Bitcoin can be controlled by that country.However,this is just a theory and it can never happen in reality,because there's no point for a government to start mining a cryptocurrency.The governments have central banks and they can print their own money(or create their own CBDCs).
Bitcoin transactions cannot get regulated,because no centralized authority can decide which transaction should be approved and which one should be declined.

Of course, bitcoin is a neutral decentralized protocol that works on a global scale, which means the decisions of a single government or regulations coming from even a powerful country cannot destroy or change the network. However, some regulations could have short-term negative consequences, especially if aimed at network participants directly.  For example, this is true for the mining industry because miners always depend on governments in providing access to electricity. If a particular government decides to cut mining facilities off electrical power, it can do that immediately. Whether they have an incentive to do that is another question, but they at least can get miners to pay additional taxes or blacklist unwanted transactions or whatever. Naturally, miners are always free to move to another more friendly place, but the number of such places is not indefinite and likely shrinking. Other regulations such as KYC/AML procedures, centralized exchanges, custodial wallets and other bullshit are less important because they scarcely affect the network itself.

Well, there would inevitably rules around the crypto scene that the higher-ups would put out just to ensure that they could at least exhibit some control I think. Ofc, at it's core, the concept of Bitcoin won't ever be controlled or changed, but there could be rules around it such as being used only for specific transactions and whatnot to limit what users could do with it. There's also the idea of linking identities to wallets, hence KYC's (which defeats the point of pseudo-anonymity imo, but it is what it is) and there'd probably be more that would be placed to regulate its usage to avoid scams and the like so that other people wouldn't exactly be afraid of using it.

This is of course possible, it actually exists in a number of countries, there are some countries that have started to regulate Bitcoin legislation and have started applying it on the ground, you cannot ignore any matter that exists by force on the ground, Bitcoin has become a reality on the ground although this is not likes governments, but they are forced to deal with this fact, so there must come a day when all governments will be forced to clarify regulatory legislation for Bitcoin, otherwise things will slip out of their hand.

Crypto currency regulations are a ongoing process, because the Governments around the world are trying to curb it's freedom. The different legislative branches of governments are trying to find ways to stop anonymity and the free flow of Crypto currencies, without government oversight.

We know in the USA that the White House is considering a detailed executive order that will seek to tighten up oversight of encrypted digital assets. The Ransomware scandals and all the crimes that are linked with Crypto payments are now expediting this process. 

It's not that hard, it's the government that's resisting it. Look at El Salvador, they adopted bitcoin and that's already a step towards regulation, the only thing that's keeping bitcoin from being regulated is the fact that the governments of different countries don't adopt them so no way they will make a good or fair regulation if they're against it right?

The base line of bitcoin is decentralization and the government could not change that and what best they can do is to make regulations like accepting btc as legal tender as we have seen in case of El Salvador the first nation to accept Bitcoin as legal tender.The government will always put pressure on these central exchanges and will ask them to submit reports and various kinds of trouble but if you stored them on hardware wallets then no worries and till the time btc will be widely accepted as the change has begun.You cannot pass law to make Bitcoin as the central owned funds but who has the keys is the sole owner of funds.

What the government can do is put some tight restrictions in the local exchanges to avoid illegal trade and to track suspicious huge amounts of bitcoins that being moved. They can only go as far as the exchanges but when the people decide to trade like P2P transactions, they can't do anything about it. It's hard for them to regulate it as if it's a centralized coin like XRP and others where they can easily track its founder.

I believe its a very hard thing at the moment, the world is about to know a lot's off changes on the political and financial level and governments will surly not have the attention to regulate bitcoin or even focus on that thing at the moment

I think that governments will lead to the fact that in order for cryptocurrency exchanges, stores that support cryptocurrency payments services, etc. to exist in a given country, they will have to undergo regulation. There will be a free market in which we will be able to trade in cryptocurrencies beyond the eyes of the rulers, but it will probably be a much smaller market than we have now.

This is a short and straightforward answer to the question of the OP. Bitcoin will always be decentralized but only the institutions or companies that are employing bitcoin can only be subjected to regulation from the government. So nope, bitcoin will never be regulated. The governments can get some information for btc holders owed to these exchanges or remittances which require KYC, but still, they won't get the full picture of the btc movements.