Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: examplens on February 01, 2024, 01:03:59 AM
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A rather complex subject
Lately, it has been quite turbulent in the world of cryptocurrencies. A lot of big things happened, bad or good, I'm not sure. I have been thinking for a long time whether everything would be different if we had a clear regulation in crypto because at the moment many things that are happening seem quite spontaneous and without any order.
What do I mean? For example, the shutting down of many exchanges due to the SEC and the implementation of some rules. Even though these services have been working for years, somehow all of a sudden there was a strict application of the rules and it still cannot be done.
Even the biggest Binance got a huge fine (which they accepted to pay). Isn't it logical that they would follow the rules and not risk fines and potential sanctions and why did they wait so long?
What does this performance mean for us, ordinary people? So, could a regulation appear where it is illegal to trade on any no-KYC exchanges, that will practically bring some sort of problems to each of us?
Of course, more regulation means bigger pressure on privacy that Bitcoin & cryptocurrencies offer, which certainly opposes us to all ideas from there.
I suppose that some regulation could bring good, if, for example, services with non-custodial wallets would have to make certain deposits as protection for their clients. How long will clients be victims of hacking exchanges or theft by the owners/employees of such services?
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Rules are vital guides that put things in order. While advocating for decentralization and transparency in the finance sector, I believe that rules must be in place for essential matters. Lawsuits from the SEC against exchanges or project founders are sometimes unclear.
A visible solution is for the SEC and the necessary bodies to establish comprehensive laws guiding exchanges and project founders. This prevents situations where cases are filed without clear legal backing, leading to potential losses in court.
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The very decentralization of cryptocurrencies does not give the opportunity to counterfeit new coins and this is already the main problem that can not be solved by states with fiat currency, but to regulate it means to control, my opinion is that it is not allowed, previously fiat money no one could not regulate if they are in your hands, with cryptocurrency is the same, it should not be regulated.
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I suppose that some regulation could bring good, if, for example, services with non-custodial wallets would have to make certain deposits as protection for their clients. How long will clients be victims of hacking exchanges or theft by the owners/employees of such services?
This is the main reason I would support any regulation of Bitcoin and crypto currency, customers have suffered so much from them, I guess with this they will be more cautious in securing customers funds and also it will be much better if the regulation is so strict that as they increase so will their reserve funds be constantly be known to at least SEC. While other regulations to them would be about being fined for any data breach customers are exposed to through them.
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Isn't it logical that they would follow the rules and not risk fines and potential sanctions and why did they wait so long?
I think they were not wrong, and they must have also thought that that's why they did nothing until they realized they got caught by the SEC. Lack of knowledge or laziness are the only options left behind that might have caused them to avoid complying with SEC's rules and regulations. By the way, this all started because people used Binance to send funds to people in Gaza and Hamas. The case of Binance escalated from this and it is really logically hard to accept that they were fined $4+ billion of dollars..
What does this performance mean for us, ordinary people? So, could a regulation appear where it is illegal to trade on any no-KYC exchanges, that will practically bring some sort of problems to each of us?
You are right, rules should be made in such a way that user can keep his/her identity safe and can also safe from scams and hacks, but that's already happening, we have bunch of options to keep our funds safe in different non-custodial wallets, now its our turn to keep the seed phrase safe.