Can governments crack down on crypto?

[KryptoBull]

NO, government can't control the transaction in local exchanges. The government only applies the regulation that can bring advantage for them. Sure, the government can minimize the negative issues on local exchanges because the local exchanges must obey certain regulation.

For the global exchanges, the government has no way to intervene them. However, the government can restrict access to global exchanges.

If a government launches and manages the CEX itself, it will have full control over the transactions on it, and this is a common trend in many countries that have just accepted crypto. For CEXs that do not belong to the government, they still have to comply with regulations on providing user information when requested by the court.

Restricting people's access to global CEXs is not really common, as people can still use VPNs to invest if they really need to. A wiser action would be for the government to license that CEX and then collect taxes from their profits.

[Cryptsafe]

It is nice that the government has accepted Crypto transactions and also allowing for establishment of Local exchanges as that would help them be able to trace and monitor transactions as it pleases them. Also, taxes would be collected from transactions and also other benefits as it is due them because it would help in the national development just like I have said in my previous post.
The  Crypto exchanges also do their own part by supporting the government through compliance and other regulatory observations they undergo just to meet up with the government request.

Local exchanges are where we exchange crypto to FIAT and in local exchanges the government can control crypto transactions, so the possibility of crypto misuse in local exchanges is very small. However, the government cannot control crypto transactions in global exchanges, this is what sometimes makes the government have concerns about the misuse of crypto for illegal activities.

I believe before one purchase Crypto on exchange, they must have funded their own account with their local exchange or bank account so they could be able to transfer or make payment for their Crypto deal and mind you the both local and global exchanges are both regulated then why should the government be afraid of misuse of Crypto transactions when they already have control over the local exchange from which money was converted into payment for Crypto because from that moment, such account would be under observations for possible illegal activities.
Already the global exchange also have sophisticated means of detecting illegal or suspicious transactions that would dent their image and in so doing, they report such to the government where such account holder is from for necessary actions to be taken. I believe the government radars are quite alert at all levels watching and monitoring transactions with the help of both the local and international exchange so nothing escapes the wrath of the law when it is necessary.

[rizqillah]

NO, government can't control the transaction in local exchanges. The government only applies the regulation that can bring advantage for them. Sure, the government can minimize the negative issues on local exchanges because the local exchanges must obey certain regulation.

For the global exchanges, the government has no way to intervene them. However, the government can restrict access to global exchanges.

If a government launches and manages the CEX itself, it will have full control over the transactions on it, and this is a common trend in many countries that have just accepted crypto. For CEXs that do not belong to the government, they still have to comply with regulations on providing user information when requested by the court.

Restricting people's access to global CEXs is not really common, as people can still use VPNs to invest if they really need to. A wiser action would be for the government to license that CEX and then collect taxes from their profits.

The government should allow CEX by taking taxes from its transactions. because bitcoin has been banned in the past, but the end result is that bitcoin is getting more popular and more people are interested in it. p, the government must realize that fighting against technological progress cannot be done because many of its citizens love investments that can get high profits in crypto.

[KryptoBull]

The government should allow CEX by taking taxes from its transactions. because bitcoin has been banned in the past, but the end result is that bitcoin is getting more popular and more people are interested in it. p, the government must realize that fighting against technological progress cannot be done because many of its citizens love investments that can get high profits in crypto.

After the US elections, politicians realized that opposing crypto doesn't benefit them, and that hostile attitude only makes them lose votes to crypto-supporting politicians. Now, governments are looking to adopt crypto, but I'm worried that they'll try to appease crypto investors while still protecting the position of fiat in the economy.

The operations of crypto companies, including CEXs, could potentially help governments solve many problems related to tax revenue, labor, energy, and real estate. If governments can overcome their fear of fiat devaluation, they will be more proactive in accepting crypto!

[BDose]

Yes, they can in some aspect. They can control all centralized exchanges and crypto borrower platforms. But the will be still a way how to go around the system and find a way to exchange the money, send money without any government consequences ...as it is now with paying tax.

[dave_strider]

Yes, they can in some aspect. They can control all centralized exchanges and crypto borrower platforms. But the will be still a way how to go around the system and find a way to exchange the money, send money without any government consequences ...as it is now with paying tax.

They can act up on some things and force centralized entities to do something accordingly, but they are not able to get a hold of them completely.
So there is a limit to their power, of course.

[Cryptsafe]

The government should allow CEX by taking taxes from its transactions. because bitcoin has been banned in the past, but the end result is that bitcoin is getting more popular and more people are interested in it. p, the government must realize that fighting against technological progress cannot be done because many of its citizens love investments that can get high profits in crypto.

The taxes collected from the CEX are enough for the government to allow them to do their work as they benefit from it. The world is fast advancing and currently, it is a digital era coupled with strong and sophisticated technology that can not be fully resisted by anybody because we are in the digital age and by so doing, there are lots of benefits attached to it and as a matter of fact, we are currently seeing the benefits of bitcoin and crypto to the world at large as it has turned a major investment and a store of value for many nations and individuals globally. Cracking down on crypto would be a bit difficult as there are lots of benefits attached to its adoption and existence.

[Gurujebs]

Yes, they can in some aspect. They can control all centralized exchanges and crypto borrower platforms. But the will be still a way how to go around the system and find a way to exchange the money, send money without any government consequences ...as it is now with paying tax.

As it seems, more than 70% of population of users rely on centralized exchanges, study has shown that a Binance user has atleast two more accounts on other centralized exchanges. If the government decide to do operations "control" every centralized exchanges, it's going to be a disaster especially if threaten ban from places they make huge revenue.

I know some people will say that's not possible right now or it can't happen now but it doesn't mean they can't pull such on us. This is why building decentralization should be forever development, not just centralized things.

[yohananaomi]

NO, government can't control the transaction in local exchanges. The government only applies the regulation that can bring advantage for them. Sure, the government can minimize the negative issues on local exchanges because the local exchanges must obey certain regulation.

For the global exchanges, the government has no way to intervene them. However, the government can restrict access to global exchanges.

If a government launches and manages the CEX itself, it will have full control over the transactions on it, and this is a common trend in many countries that have just accepted crypto. For CEXs that do not belong to the government, they still have to comply with regulations on providing user information when requested by the court.

Restricting people's access to global CEXs is not really common, as people can still use VPNs to invest if they really need to. A wiser action would be for the government to license that CEX and then collect taxes from their profits.

The government should allow CEX by taking taxes from its transactions. because bitcoin has been banned in the past, but the end result is that bitcoin is getting more popular and more people are interested in it. p, the government must realize that fighting against technological progress cannot be done because many of its citizens love investments that can get high profits in crypto.

It seems you are right that technological progress is inevitable and everyone must be able to adjust to this progress. So is the progress with crypto, where many countries have been able to accept it and not a few have no accepted it, but it is adjusted to the situation of their own country. But it is indeed very unfortunate if you cannot accept crypto as an investment because many are helped by it and of course it is useful for its people.

[KryptoBull]

As it seems, more than 70% of population of users rely on centralized exchanges, study has shown that a Binance user has atleast two more accounts on other centralized exchanges. If the government decide to do operations "control" every centralized exchanges, it's going to be a disaster especially if threaten ban from places they make huge revenue.

I know some people will say that's not possible right now or it can't happen now but it doesn't mean they can't pull such on us. This is why building decentralization should be forever development, not just centralized things.

When governments understand the role and value of crypto, they have no reason to ban CEXs, unless they want to develop their own CEXs to collect both taxes and transaction fees like they are currently operating some stock exchanges. From an economic profit perspective, large CEXs will attract more users and generate more tax revenue for governments. I never believe in the efficiency of state-owned companies, they often report losses despite monopolizing many sectors in the economy

DEXs have existed in the market steadily, it will be the future of crypto but cannot replace CEXs. We have discussed this in many other topics, in short, CEXs are where ordinary investors can also easily participate in the crypto market without having to understand how to use blockchain.

[dave_strider]

As it seems, more than 70% of population of users rely on centralized exchanges, study has shown that a Binance user has atleast two more accounts on other centralized exchanges. If the government decide to do operations "control" every centralized exchanges, it's going to be a disaster especially if threaten ban from places they make huge revenue.

I know some people will say that's not possible right now or it can't happen now but it doesn't mean they can't pull such on us. This is why building decentralization should be forever development, not just centralized things.

When governments understand the role and value of crypto, they have no reason to ban CEXs, unless they want to develop their own CEXs to collect both taxes and transaction fees like they are currently operating some stock exchanges. From an economic profit perspective, large CEXs will attract more users and generate more tax revenue for governments. I never believe in the efficiency of state-owned companies, they often report losses despite monopolizing many sectors in the economy

DEXs have existed in the market steadily, it will be the future of crypto but cannot replace CEXs. We have discussed this in many other topics, in short, CEXs are where ordinary investors can also easily participate in the crypto market without having to understand how to use blockchain.

It's like talking about Bitcoin and centralized (in nature) coins - there is no need to cross one or the other from the equation, they exist together and won't be able to do that yet, and they don't need to, really. Both have their cases.

[yohananaomi]

Local exchanges are where we exchange crypto to FIAT and in local exchanges the government can control crypto transactions, so the possibility of crypto misuse in local exchanges is very small. However, the government cannot control crypto transactions in global exchanges, this is what sometimes makes the government have concerns about the misuse of crypto for illegal activities.

NO, government can't control the transaction in local exchanges. The government only applies the regulation that can bring advantage for them. Sure, the government can minimize the negative issues on local exchanges because the local exchanges must obey certain regulation.

For the global exchanges, the government has no way to intervene them. However, the government can restrict access to global exchanges.

Actually, the purpose of the government making regulations that require transactions on local exchanges is not to intervene, and I agree with that, but the government can monitor if there are those who are considered to have violated the rules. They can provide protection, so, as you also said that it can minimize negative problems that occur on local exchanges. True, if it is on a global exchange it will be difficult to do anything because the government does not have authorization.

[KryptoBull]

It's like talking about Bitcoin and centralized (in nature) coins - there is no need to cross one or the other from the equation, they exist together and won't be able to do that yet, and they don't need to, really. Both have their cases.

I think most tokens operate on a public blockchain and have a fairly good degree of decentralization, the consensus protocol usually ensures that the data recorded on the blockchain is independent and cannot be manipulated. I don't like fiat or centralized tokens because they don't belong in this crypto market.

Governments would prefer a centralized asset like CBDC, that's why they once introduced CBDC to eliminate crypto but they failed. No one wants to use or trust government CBDCs. We can only trust BTC and top altcoins because they are managed by the community rather than a few government members.

[dave_strider]

It's like talking about Bitcoin and centralized (in nature) coins - there is no need to cross one or the other from the equation, they exist together and won't be able to do that yet, and they don't need to, really. Both have their cases.

I think most tokens operate on a public blockchain and have a fairly good degree of decentralization, the consensus protocol usually ensures that the data recorded on the blockchain is independent and cannot be manipulated. I don't like fiat or centralized tokens because they don't belong in this crypto market.

Governments would prefer a centralized asset like CBDC, that's why they once introduced CBDC to eliminate crypto but they failed. No one wants to use or trust government CBDCs. We can only trust BTC and top altcoins because they are managed by the community rather than a few government members.

Say it to digital yuan, you can't be wrong when there are restrictions for everything else going at full speed  But I agree.

[AlphaBeta]

I believe they can, they just have to put some restrictions in place and all the channels we currently have are gone. Only thing is, I don't think they have the motivation to do this, at least not yet.