Can governments crack down on crypto?

[KryptoBull]

About 15 years ago, BTC was expected by Satoshi to become a currency, a crypto-currency, meaning that it could replace fiat in payments. Today, BTC itself and many other tokens are often seen as a store of value or financial instrument, their price appreciation brings profit to investors but that also means that fiat gradually depreciates against those tokens. Things get even more complicated when many people decide to store crypto like BTC, ETH and USDT instead of storing fiat because they believe that fiat is depreciating, while tokens will continue to appreciate.

This could really affect the role of fiat in the economy, undermining the economic control of governments through money printing. Depending on their perspective, different governments have different ways of behaving. The EU wants to regulate crypto so it has issued the MiCA law ^[1], while China wants to ban crypto ^[2]. The Nigerian government alone wants to have a whole drama related to crypto ^[3].

Recently, after blaming crypto for the devaluation of the naira currency, the Nigerian government banned all crypto exchanges in Nigeria ^[4]. In particular, the Nigerian government suspects that Binance is involved in a $26B illegal money flow that has negatively impacted the Nigerian economy. To address these suspicions, they have arrested two Binance executives and demanded information about Binance's users ^[5]. Binance has denied any wrongdoing and has called for the immediate release of its executives. The company is cooperating with the Nigerian authorities in their investigation ^[6].

This incident raises important questions about the regulation of crypto exchanges. Governments around the world are still grappling with how to best oversee these new and rapidly growing crypto companies. The Nigerian government's actions remind us of the potential for conflict between governments and crypto exchanges. I think Nigeria is just trying to suppress crypto with extreme and ill-advised behavior.

With its decentralized nature, crypto will continue to exist without the permission of governments. However, in order to develop and grow stronger, crypto also needs friendly access from governments around the world, otherwise things will become extremely complicated: when crypto trading and CEXs are banned, market liquidity will collapse, investors will not want to participate in the market, and the crypto market will lose potential investors and new money. DeFi and P2P can still exist, but the crypto market will not be able to develop as strongly as in countries that accept crypto.

Given the extreme actions and the state of the crypto market in countries like China and Nigeria, I am really worried that even though crypto cannot be destroyed, governments still have enough power to suppress and stifle its development in their countries. If this situation spreads to other countries and is imitated by other governments, things could be worse than we can imagine.

I hope that in the near future, major governments will soon accept crypto and issue a legal framework to manage and collect taxes on crypto income as a legitimate asset class. Extreme actions to attack the crypto market also need to be opposed and condemned by the crypto community.

I would like to know your views on the acts of repression of the crypto market:

• Can crypto continue to thrive without the support of governments?
• Do you think governments can suppress and restrain the crypto market with their power?
• If you were the head of government, would you accept or reject the crypto opportunity for your country?

References:
[1] MiCA, EU’s Comprehensive New Crypto Regulation, Explained
[2] China Never Completely Banned Crypto
[3] An overview of cryptocurrency regulations in Nigeria
[4] Nigeria targets cryptocurrency in bid to end naira freefall
[5] Binance Executives’ Detention Could Spark Diplomatic Crisis in Nigeria
[6] Binance says it trained investigators in Nigeria under government cooperation
Note:

• My opinion was posted first in that topic, on Bitcointalk
• I leave the source link to avoid plagiarism accusation.
• I excluded/ included minor things from an original thread ^{if necessary}.

[TomPluz]

Whether we admit it or not, governments have the power to make the whole cryptocurrency market go to the south by banning the whole thing just like what we saw years ago in China and although there can still be some who are involved with crypto underground we know that the market is never the same as in previously in an open market. No government can stop or control cryptocurrency but the business surrounding them can be a lot restricted and its growth stifled if the government will exercise its state power to stop the industry from doing its normal business.

1. Can crypto continue to thrive without the support of governments?
Yes, there is still a big possibility that crypto can thrive in an environment where the government is so hostile against it but it would be impossible to flourish as the people would be so afraid to join the industry for fear of losing their money and even prosecution from authorities. The best example on this is, of course, China. I could not imagine the price of BTC right now if the China market was not killed by the government.

2. Do you think governments can suppress and restrain the crypto market with their power?
This all depends on the kind of government we are dealing with. Under an authoritarian regime, everything can be done with a stroke of a pen or even a pronouncement without the benefit of any law passed by its own legislature. There are many governments right now who are looking at cryptocurrency as their enemy as we know that crypto can be an empowering tool...something some governments may not have a liking with.

3. If you were the head of government, would you accept or reject the crypto opportunity for your country?
One day when I would be the President or Prime Minister of my country, I would totally support cryptocurrency and invite many legit exchanges from abroad to come and have business with my people. But everything has to be in order, legal and above the board. I would not tolerate any scam and scammers as well as hackers will be crucified in the public. I would also include Bitcoin as part of my country's reserve aside from gold, US Dollar and Euro. I am for regulations in a win-win fashion where both sides are benefitted and no one loses.

[WatChe]

• Can crypto continue to thrive without the support of governments?
• Do you think governments can suppress and restrain the crypto market with their power?
• If you were the head of government, would you accept or reject the crypto opportunity for your country?

To the first question, Bitcoin right now is standing at it ATH of 73K$ and all this has happened with out support of any big powers. Bitcoin has made it from zero dollars to 73k in almost 14 years and it's very much obvious that it will continue to survive and excel without support of govt.

Secondly, there is only one decentralised crypto currency i.e. Bitcoin, rest are all centralised one. Governments can only control the centralised one.
 
Thirdly, as a head of state no one will accept Bitcoin. Bitcoin is created for it's own purpose and was never created to replace fiat. Both have there own importance and will continue to exists side by side. 

[bounceback]

Actually bitcoin depend on their investor without support from government keep increasing the higher price, but get difficult for selling or buying bitcoin without support bank deposit for the beginner when using local exchange currency market. I think government can't crack down totally with bitcoin but they have power to stop or banned bitcoin transaction from closing exchange market access until not allowed to withdraw crypto assets to fiat using bank account.
Today bitcoin have give positive impact and take benefit each other between by adopting taxes transaction for cryptocurrency, government will not suspend using bitcoin for transaction any more behind how much taxes earn every month.

[Garden]

If the government wanted to ban cryptocurrency, it would have done it a long time ago, when this field of activity was just in its infancy. Then it would be much easier and faster to do this. But now, when it has already fully formed and become a part of people’s lives, no one will be able to completely ban crypto. Also, even the Governments of many countries keep a large part of their money in cryptocurrency. And they will not saw the branch they are sitting on.

[milewilda]

If the government wanted to ban cryptocurrency, it would have done it a long time ago, when this field of activity was just in its infancy. Then it would be much easier and faster to do this. But now, when it has already fully formed and become a part of people’s lives, no one will be able to completely ban crypto. Also, even the Governments of many countries keep a large part of their money in cryptocurrency. And they will not saw the branch they are sitting on.

Yeah you are right! We've seen bans everywhere and there are ones who had lifted that ban and there are ones who do become that neutral when it comes to crypto.Why?
They cant do any shit with it, yes they could be able to impose those centralized companies or platforms but they are really just that only good until there but making that control
in overall then it would really be something that cant be possible and for sure the government had been still that keeping on trying out their best to control it out
but well this market cant be totally that be manipulated and this is why its not surprising that it do really get that such attention.

[bitmover]

I would like to know your views on the acts of repression of the crypto market:

• Can crypto continue to thrive without the support of governments?
• Do you think governments can suppress and restrain the crypto market with their power?
• If you were the head of government, would you accept or reject the crypto opportunity for your country?

Bitcoin can exist without governments, because it is not based on speculation, but on decentralization and in a real demand for a global currency, internet money, etc.

Other cryptocurrencies are not that resilient, so the rest of the crypto market certainly need government acceptance and depends on regulations.

[MrSpasybo]

Recently, after blaming crypto for the devaluation of the naira currency, the Nigerian government banned all crypto exchanges in Nigeria ^[4]. In particular, the Nigerian government suspects that Binance is involved in a $26B illegal money flow that has negatively impacted the Nigerian economy. To address these suspicions, they have arrested two Binance executives and demanded information about Binance's users ^[5]. Binance has denied any wrongdoing and has called for the immediate release of its executives. The company is cooperating with the Nigerian authorities in their investigation ^[6].
~
I would like to know your views on the acts of repression of the crypto market:

• Can crypto continue to thrive without the support of governments?
• Do you think governments can suppress and restrain the crypto market with their power?
• If you were the head of government, would you accept or reject the crypto opportunity for your country?

I am really shocked at the behavior of the Nigerian government: they understand the law but break the law by illegally detaining people before there is any official conclusion from the court. The accusation that crypto exchanges cause local currency devaluation is just a statement by a presidential advisor, not the result of an official and clearly convicted lawsuit. Nigeria is becoming a dangerous country for crypto projects @@

1. I believe that crypto will still develop but it will be difficult to be strong if the government bans crypto transactions or ownership.

2. Governments have the power to issue laws banning or severely punishing behaviors related to the crypto market. They also have to listen to the people, but when they need to protect their power, they will take extreme actions.

3. If I were to decide, I would allow crypto to exist as a commodity, which could be owned and traded legally, profits would be taxed to supplement the budget, and help develop the country 

[Lucius]

Can crypto continue to thrive without the support of governments?

As you already wrote, if governments would ban CEXs, mining and any interaction of banks with the crypto world, then trading would actually only be possible with cash. Cryptocurrencies would be forced to go underground, and the impact on their survival and price would be catastrophic.

Do you think governments can suppress and restrain the crypto market with their power?

Of course, everything I wrote above is actually the answer to this question - governments have elements of power in their hands with which they govern the world and cryptocurrencies are something that most of them tolerate (for now).

If you were the head of government, would you accept or reject the crypto opportunity for your country?

Countries where one person makes decisions are not a very good example of democracy - so I think that for such things there should always be an agreement of all the competent bodies of a country, and in democratic countries like Switzerland people are always asked about such things in a referendum.

I would never impose something on people without asking them if they wanted it, and even if they wanted it, I would make sure that they were protected from scams.

[Jamal Aezaz]

If the government wanted to ban cryptocurrency, it would have done it a long time ago, when this field of activity was just in its infancy. Then it would be much easier and faster to do this. But now, when it has already fully formed and become a part of people’s lives, no one will be able to completely ban crypto. Also, even the Governments of many countries keep a large part of their money in cryptocurrency. And they will not saw the branch they are sitting on.

Exactly because cryptocurrency is now most acceptable field of earning accepted by numerous individuals and if government want to banned cryptocurrency then they would have done it long ago when not large number of people were involved in it.

I think if success rate of crypto remain the same for longer then crypto will not ban it but instead of stopping its use government will add its role and will give permission to use crypto throughout the world.

[Captain Corporate]

But why? Thats my question about it and that's important. I think the "request" or fear that government could crack down on this might be a little way too much, it feels like we are going to end up with something that may not be all that reasonable for them to do. Anytime anyone feels like governments may ban it, my first reaction is always "why?" because I do not see the logic there. Don't get me wrong, I am not saying they won't, there has been a lot of illogical stuff coming out of governments all around the world, but I do not see the proper reason for doing something like this at this moment.

[robelneo]

• Can crypto continue to thrive without the support of governments?
• Do you think governments can suppress and restrain the crypto market with their power?
• If you were the head of government, would you accept or reject the crypto opportunity for your country?

Satoshi's idea of why he created Bitcoin is to be decentralized so it doesn't have to be government-dependent or compatible with the terms of the government, and if the governments are capable of suppressing the Crypto market they should have done that years ago when Bitcoin the main Cryptocurrency is just starting, after several years it just proved that they can't.
And if I were the head of the government I would support its full implementation it's good for the many industries and new technology should be adopted for a nation to move forward.

[UNIVERSE]

Actually, crypto is independent, most of them are created for decentralization.
But in fact, it still cannot be that decentralized. Because there are indeed several things or obstacles that require crypto to be related to various regulations in certain countries.

If it's just about the coin, it's very possible to be independent. However, if it is related to other implementations, it still cannot be separated from various specific government interventions.

such as related to various exchanges that must be under the auspices of certain institutions, regulations for project creation and development, and also other things. So far we have encountered lots of CEXs spread globally. And some of them are also CEXs which must be under local government regulations. This means that the government still has the power to do so.

but of course, it won't work 100% because there are still many other ways to avoid it. There is still a DEX and also a P2P system which is quite trustworthy. So, it depends on each of us who will be involved and where we will go.

[pacar_tiri]

Satoshi's idea of why he created Bitcoin is to be decentralized so it doesn't have to be government-dependent or compatible with the terms of the government, and if the governments are capable of suppressing the Crypto market they should have done that years ago when Bitcoin the main Cryptocurrency is just starting, after several years it just proved that they can't.
And if I were the head of the government I would support its full implementation it's good for the many industries and new technology should be adopted for a nation to move forward.

It is true that Satoshi Nakamoto's main goal is as you mentioned, but in reality currently the government is starting to interfere in the world of cryptocurrency, even people who are able to provide world financial movements are also getting into cryptocurrency and trying to control Bitcoin price movements.

[LogitechMouse]

I would like to know your views on the acts of repression of the crypto market:

• Can crypto continue to thrive without the support of governments?
• Do you think governments can suppress and restrain the crypto market with their power?
• If you were the head of government, would you accept or reject the crypto opportunity for your country?

1. Well, we've seen cryptocurrency thrive for more than a decade now. We've seen Bitcoin thriving for more than a decade now, and take note, governments around the world have little to no support for it. Some even banned it in their own country. Yes, we've seen 1 or 2 governments supporting it by declaring it as legal tender in their own country, but I believe that even without the help of the governments, cryptocurrency will thrive. On the other hand, though, it will be a big hit for the crypto, and to us investors if most if not all of the governments decide to ban it in their country.
2. We've seen governments banning cryptocurrency in their country, and although people can still access it, it's still hard for them to have access to it without anybody suppressing it. Do I see more governments doing the same? There's a chance, but for now, I don't see them doing it. Regulating it would be better for the country as a whole.
3. 100% accept. I mean we are involved in cryptocurrency, and I know that most of us benefitted from crypto so why reject it? Scams? Just teach the people how not to get scammed.