Can governments crack down on crypto?

[KryptoBull]

Government allow crypto to exist because they feel people have freedom of choice to investment but the existence of fraud, money laundering and ponzi schemes is the reason why government is trying to regulate tye crypto space sometimes but ofcourse, the government isn't reasonable when it comes to regulation, it doesn't favour people but just them alone.

The crypto industry is too big for the government to Crack down because billions of dollars are in there that belong to people, we also have many venture capitals and also institutional investors who have money here and will fight th government if they cross the line.

Currently, if the US government wants to ban crypto, it means they are going against the world's largest investment funds, BTC mining companies and tens of millions of voters. No one wants to risk their political career to fight against a new industry that can bring revenue to the country and jobs to the people. A clear legal framework for crypto is what we are waiting for, which will help crypto be better managed, while supporting the police against criminals in the market.

On the other hand, authoritarian governments may not care about the people's wishes or the development opportunities for the country, they only want to protect their own power and interests. The fear of the new financial instrument, crypto, has led them to take extreme actions such as banning crypto or attacking exchanges. I think they are only making things worse over time because people will choose crypto over government.

[lepbagong]

The government can do many things if it wants but the government can't harm bitcoin or crypto currency if it wants.  Because millions of people in a country invest in virtual currency.  Therefore, if some actions of the government cause financial loss to those investors, then the government will have to take responsibility for that loss.  That's why the government doesn't crack down on Bitcoin at all despite doing a lot of things.

That's right, the government has full power in everything, but it can't do with Bitcoin, it's too risky if the government interferes in controlling Bitcoin, there will definitely be lots of problems that are always faced every day.

However, in a country, the government has full authority to do whatever it wants to do, but usually the government will accommodate if there is something that the community really needs.
But with bitcoin it can also be done, but usually you will also see the impact of the ban because bitcoin can be done without anyone's interference. So you will always look at the pros and cons of implementing enforcement against Bitcoin.
Because several large countries can also implement bans, but in broad practice whether this can work well is, of course, difficult to prove.

[KryptoBull]

However, in a country, the government has full authority to do whatever it wants to do, but usually the government will accommodate if there is something that the community really needs.
But with bitcoin it can also be done, but usually you will also see the impact of the ban because bitcoin can be done without anyone's interference. So you will always look at the pros and cons of implementing enforcement against Bitcoin.
Because several large countries can also implement bans, but in broad practice whether this can work well is, of course, difficult to prove.

We agree that BTC can continue to exist strongly even if it is banned by the government, and the crypto investment community will still exist through VPNs and P2P in that country. However, a ban could cause market liquidity to plummet, investor sentiment to turn negative, and most will find ways to avoid participating in this market if the risk outweighs the benefits.

The final question is the reason why governments ban BTC and crypto: I don't really understand, maybe to protect fiat or they are not ready to accept a new asset class. Of course, they often use the excuse of "protecting investors" to ban crypto.

[Jamal Aezaz]

The government can do many things if it wants but the government can't harm bitcoin or crypto currency if it wants.  Because millions of people in a country invest in virtual currency.  Therefore, if some actions of the government cause financial loss to those investors, then the government will have to take responsibility for that loss.  That's why the government doesn't crack down on Bitcoin at all despite doing a lot of things.

Actually the government can do anything if it tries to do so because everything is under the control of the government and as the people are saying that Bitcoin is decentralized and nobody can control it so it is true that it is not under the control of anyone but the government can stop the use of Bitcoin if it desires to do so.

If the government cracks down Bitcoin use then many citizens will face huge losses but I think due to its benefits the government will not do anything bad with Bitcoin and some of the countries where there is no use of Bitcoin are also accepting bitcoin because people are moving towards digital investment in which Bitcoin is the best option.

[Mr. Magkaisa]

      -    Not many countries didn't really support Bitcoin before? But in the end, they also retracted their statement on this matter. We cannot determine the future, and this is the truth on this matter. Bitcoin also shows that it is a decentralized asset that no one can really control at any time.

Although it has been predicted for a long time by someone I don't know, it's up to you to verify the person who predicted that these things would happen.

[taufik123]

-snip-
Actually the government can do anything if it tries to do so because everything is under the control of the government and as the people are saying that Bitcoin is decentralized and nobody can control it so it is true that it is not under the control of anyone but the government can stop the use of Bitcoin if it desires to do so.

It's just that the government doesn't have full control to regulate everything, it's limited. But the government can do anything related to regulations that will affect the use of crypto, crypto prices in the market because it will be a quite different trend.

As in the recent incident of the German government selling their Bitcoin, thus suppressing the price of bitcoin to drop quite drastically.
There will be more fear going on so that the market goes down and a lot of wild FUDs is scattered about how the regulation and the massive sell-off will be.

[NotATether]

What kind of question is this? It has an obvious answer!

Governments in various parts of the world like Nigeria, China, Russia, Bangladesh have all been cracking down on crypto for years as in making it illegal, and punishing anyone who is using it.

[pieppiep]

-snip-
Actually the government can do anything if it tries to do so because everything is under the control of the government and as the people are saying that Bitcoin is decentralized and nobody can control it so it is true that it is not under the control of anyone but the government can stop the use of Bitcoin if it desires to do so.

It's just that the government doesn't have full control to regulate everything, it's limited. But the government can do anything related to regulations that will affect the use of crypto, crypto prices in the market because it will be a quite different trend.

As in the recent incident of the German government selling their Bitcoin, thus suppressing the price of bitcoin to drop quite drastically.
There will be more fear going on so that the market goes down and a lot of wild FUDs is scattered about how the regulation and the massive sell-off will be.

Unfortunately, cryptocurrency is currently being used for many crimes, one of which, as you mentioned, is that the freedom to use cryptocurrency can actually backfire on the government. When citizens are exposed to fraud, it will make people depressed and feel that the government is not providing solutions for their people so that they are not deceived again.

Only a few governments can provide regulations regarding the use of Cryptocurrency and they have stated at the beginning that the government is not responsible when fraud occurs using Cryptocurrency digital currency.

[Jaephoenix]

Well, it is 100% possible for governments to crack down on crypto. They think it is all about aiding nd abetting crime but it is not true at all. Though criminals use crypto sometimes to launder funds, it has other good use cases like entertainment, web3 etc

[Gurujebs]

Well, it is 100% possible for governments to crack down on crypto. They think it is all about aiding nd abetting crime but it is not true at all. Though criminals use crypto sometimes to launder funds, it has other good use cases like entertainment, web3 etc

Are you saying criminals and scammers don't used paper money that the government printed. In fact, everyone use fiat because even before Bitcoin was born from the Genesis block, people don't have other currency to spend aside from fiat and scammers are still using it to date, even terrorism are fund through fiat, so let's cut the excuses of fraud and scan because it's everywhere.


Bitcoin is obvious because they can see it and because it's complex and new to.some people, they usually fall for scams but when a new person get use to crypto and understand everything about it, they hardly get scammed even using the fiat because crypto teaches both security and use of them.

[Rubel007]

-snip-
Actually the government can do anything if it tries to do so because everything is under the control of the government and as the people are saying that Bitcoin is decentralized and nobody can control it so it is true that it is not under the control of anyone but the government can stop the use of Bitcoin if it desires to do so.

It's just that the government doesn't have full control to regulate everything, it's limited. But the government can do anything related to regulations that will affect the use of crypto, crypto prices in the market because it will be a quite different trend.

As in the recent incident of the German government selling their Bitcoin, thus suppressing the price of bitcoin to drop quite drastically.
There will be more fear going on so that the market goes down and a lot of wild FUDs is scattered about how the regulation and the massive sell-off will be.

Unfortunately, cryptocurrency is currently being used for many crimes, one of which, as you mentioned, is that the freedom to use cryptocurrency can actually backfire on the government. When citizens are exposed to fraud, it will make people depressed and feel that the government is not providing solutions for their people so that they are not deceived again.

Only a few governments can provide regulations regarding the use of Cryptocurrency and they have stated at the beginning that the government is not responsible when fraud occurs using Cryptocurrency digital currency.

When governments fail to catch criminals, it is not unusual for chaos to ensue. That is not only the problem, they thought if legalize this crypto they'll think they'll have more shortfalls in getting revenue. Until governments find a solution to this, there is little chance of legitimacy. There is and will continue to be criminal activity almost everywhere in the world, and governments must also act according to the demands of the public.

[KryptoBull]

When governments fail to catch criminals, it is not unusual for chaos to ensue. That is not only the problem, they thought if legalize this crypto they'll think they'll have more shortfalls in getting revenue. Until governments find a solution to this, there is little chance of legitimacy. There is and will continue to be criminal activity almost everywhere in the world, and governments must also act according to the demands of the public.

Hmm, fiat is also used by criminals with a frequency and value that far exceeds crypto, but fiat is not banned because governments know that they don't need to burn down the whole forest just to kill one worm. The same is true for crypto: governments can get more benefits by accepting crypto instead of spending a lot of effort to ban it.

I believe that in the future, crypto acceptance will be a major global trend, especially after the strong price increase of BTC and many altcoins in this uptrend. Some governments may choose to stand outside this wave, that's their choice for their country!

[Geey]

we don't know the future development of crypto, but now crypto continues to develop and we hope that in the future it will develop even more than before so that it will have a positive impact on investors... if the government suppresses crypto so that crypto experiences a decline in development then it is possible that crypto will sink, but the government We can trick it by inviting cooperation and asking the government to create a tax law for crypto, so that the government cannot close it down, even if so, crypto will still be alive and can develop in the future.

[JoyMarsha]

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.

The government still has the power to crack down on crypto even as it has stayed for more than a decade of existence.
What I suspect can't be possible to do, is to ban crypto globally at once. But a country to ban crypto on its own is possible. We have seen how some countries like the USA and Nigeria government have taken action against crypto exchanges. Some other countries can do the same thing in the future, stopping their citizens from trading crypto.The government still has the power to crack down on crypto even as it has stayed for more than a decade of existence.

[sampoerna]

The government still has the power to crack down on crypto even as it has stayed for more than a decade of existence.
What I suspect can't be possible to do, is to ban crypto globally at once. But a country to ban crypto on its own is possible. We have seen how some countries like the USA and Nigeria government have taken action against crypto exchanges. Some other countries can do the same thing in the future, stopping their citizens from trading crypto.The government still has the power to crack down on crypto even as it has stayed for more than a decade of existence.

They do have the ability to do that, but it is limited by the regulations in their country and also some of the projects they can reach, again this is related to regulations which can make crypto limited in that country, but that doesn't mean it really can't be accessed by anyone anymore. public.

Crypto, which in fact is decentralized, can essentially be accessed by everyone in the world freely, that's why one of the goals of creating Bitcoin is to give people the freedom to use this cryptocurrency globally without any restrictions from the government. However, as time goes by, it turns out the government doesn't allow this.

because they cannot limit it directly. In the end, brands make arrangements through regulations in their respective territories to impose forced restrictions with various regulations for their communities. And indeed this has been quite successful, yes of course this regulation will have pros and cons, there will be positives and negatives.