Can crypto be regulated globally without sacrificing decentralization?

[bayu7adi]

We know that the government's principle of managing this spatial plan is a bit contrary to the decentralization principle of cryptocurrency... some of us have little hope for mass adoption of cryptocurrency, while we also realize that the concept of cryptocurrency is very much contrary to what the government expects...

Is there no solution? Is decentralized cryptocurrency really not globally adopted?

[TomPluz]

I am sure this is one of the hardest questions or concerns to consider when we are talking on decentralization and regulation as the two can collide on their very fundamental aspects. Decentralization means no control from anybody be they coming from the usual financial institutions much more the government then the concept of regulation is all about control in one degree or another and they can all be creating an "explosion" like an unmovable thing against an unstoppable one. So can be a common ground which can be acceptable to all parties? We are all hoping one can be devised. Like one can be free to acquire cryptocurrencies the sky is the limit but when one is going to sell them they have to do it in a registered exchange where KYC can be required and where data can be accessible by all including the government. Would that be a good compromise? Sadly, we can never eliminate the role and power of the government in the whole process unless we are promoting anarchy where there is no law and all can be for themselves. Now, I think what is happening with Bitcoin and ETF in the USA market can be a good model and example of fusing decentralization and regulation...though of course some may argue that this is not the case.

 

[PrivateKayla]

I've read there are efforts or initiatives looking for a happy medium. An example is the EU's Markets in Crypto-Assets Regulation (MiCA). MiCA is planning to make guidelines to protect investors and prevent illicit activities while fostering innovation and decentralization. I think it's important that regulators collaborate with crypto industry folks in creating policies that respect decentralization and protect crypto owners as well.   

[royalRitta]

I've read there are efforts or initiatives looking for a happy medium. An example is the EU's Markets in Crypto-Assets Regulation (MiCA). MiCA is planning to make guidelines to protect investors and prevent illicit activities while fostering innovation and decentralization. I think it's important that regulators collaborate with crypto industry folks in creating policies that respect decentralization and protect crypto owners as well.

And hopefully, it will be beneficial to both. Otherwise, it won't make sense 

[Crypto Library]

We know that the government's principle of managing this spatial plan is a bit contrary to the decentralization principle of cryptocurrency... some of us have little hope for mass adoption of cryptocurrency, while we also realize that the concept of cryptocurrency is very much contrary to what the government expects...

Is there no solution? Is decentralized cryptocurrency really not globally adopted?

There is no such thing in the world which is accepted everywhere in the world. And in the world there are conflicts between countries and some countries have less possibility to adopt many things due to political reasons. For example, cryptocurrency is currently illegal in my region and it was mainly because of political reasons that the previous government did not approve it. Currently, the government has changed and we are somewhat optimistic.
Now it is very easy to say whether cryptocurrency or decentralization will be a global happy adoption as many years ago people used to buy and sell things only through gold or silver and now that place has been taken by fiat currencies and these are now digital as people have adopted them globally. It is hoped that these decentralizations of cryptocurrency will be accepted globally, whether after ten years or after 50 years.

[ABCbits]

FWIW, government could try to regulate how people and company use their cryptocurrency rather than attempt to regulate cryptocurrency directly.

I've read there are efforts or initiatives looking for a happy medium. An example is the EU's Markets in Crypto-Assets Regulation (MiCA). MiCA is planning to make guidelines to protect investors and prevent illicit activities while fostering innovation and decentralization. I think it's important that regulators collaborate with crypto industry folks in creating policies that respect decentralization and protect crypto owners as well.

Let's not forget that MiCa initial draft plan to ban PoW coins (including Bitcoin) which barely avoided[1] and MiCa itself makes exchange unable to accept Monero[2].

[1] https://www.coindesk.com/policy/2022/03/14/proposal-limiting-proof-of-work-is-rejected-in-eu-parliament-committee-vote-sources/
[2] https://monero.observer/kraken-to-delist-monero-european-economic-area-31-october-2024/

[Hatchy]

We know that the government's principle of managing this spatial plan is a bit contrary to the decentralization principle of cryptocurrency... some of us have little hope for mass adoption of cryptocurrency, while we also realize that the concept of cryptocurrency is very much contrary to what the government expects...

Is there no solution? Is decentralized cryptocurrency really not globally adopted?

Government just wants to protect themselves. It's very simple to understand and that's why they fight so much against decentralization. To me, the main reason why some people are actually adopting cryptocurrency it's because of the idea about decentralization. People wants something that gives them control over their money. Who wants a system where the government has a say over them? But then, we all know that it's not going to go down easy. The government won't want to accept anything that they can't control. This is why decentralization is still drawing behind.

[royalRitta]

FWIW, government could try to regulate how people and company use their cryptocurrency rather than attempt to regulate cryptocurrency directly.

I've read there are efforts or initiatives looking for a happy medium. An example is the EU's Markets in Crypto-Assets Regulation (MiCA). MiCA is planning to make guidelines to protect investors and prevent illicit activities while fostering innovation and decentralization. I think it's important that regulators collaborate with crypto industry folks in creating policies that respect decentralization and protect crypto owners as well.

Let's not forget that MiCa initial draft plan to ban PoW coins (including Bitcoin) which barely avoided[1] and MiCa itself makes exchange unable to accept Monero[2].

[1] https://www.coindesk.com/policy/2022/03/14/proposal-limiting-proof-of-work-is-rejected-in-eu-parliament-committee-vote-sources/
[2] https://monero.observer/kraken-to-delist-monero-european-economic-area-31-october-2024/

Interestingly, what exactly made them delist it (Monero), and what "rules" did it break?
Maybe I should dig a bit deeper than that, is it because it is untraceable and such?

[Bobcrypto]

Honestly speaking government regulation on cryptocurrency is the biggest setback to decentralization, However I am very optimistic that cryptocurrency will survive regulations no matter the effort by government to control crypto at their own will.
One solution, in my opinion, is Anonymity.
Government efforts on regulation has proven very difficult to outrightly regulate because there are still anonymous coins transactions that are still moving in line with decentralized plans of cryptocurrency, though government are trying to tag them as security. What ever effort government makes, I think decentralization will not be completely eroded off because many projects will venture into Anonymity options.
In addition, as government is pushing to kill decentralization, so also the crypto experts will always come up with alternative ideas to keep the ecosystem on the decentralized core plans.

[Jating]

We know that the government's principle of managing this spatial plan is a bit contrary to the decentralization principle of cryptocurrency... some of us have little hope for mass adoption of cryptocurrency, while we also realize that the concept of cryptocurrency is very much contrary to what the government expects...

Is there no solution? Is decentralized cryptocurrency really not globally adopted?

Still going to be 50/50 as far as I know, as we have seen, there are countries that really adopted it, some are in the middle and gray era, and countries that totally ban crypto. So with that, we might not see mass adoption because of this. On the contrary, should we really be wanting crypto or at least Bitcoin be adopted? I mean it has a capped of 21 millions so for sure there are people that are not going to see Bitcoin in their lifetime. So for me, doesn't matter if we will have crypto adoption globally, as long as we are still in the few then it might be good for us in the long run so that there might be enough for crypto enthusiast.

[Findingnemo]

Regulation means controlling while decentralisation is the opposite of it so I don't think it's possible to make it completely decentralised while making it regulated, already this become evident when the government pushing the crypto service providing platforms to collect KYC data of all the users that reduced the decentralisation of coins like Bitcoin itself so it can be either this or that with this kind of regulatory policies.

[Mia Chloe]

Well let's not be naive in our definitions. Decentralisation is a type of regulation too. Now if you're suggesting a central body in control, like say the government for example then you are obviously against decentralisation and looking more into a Centralised ecosystem. Anyways thankfully, bitcoin is decentralised meaning it isn't regulated by a central body like the government or a specific group.

Decentralisation is still an effective form of regulation as everyone is co- jointly in control. You and I who are bitcoiners, developers and miners all control the network together although the power of control isn't equally distributed , it is rationed based on each entities effect on the network just like a miners hash rate speaks for him as well as a whales coins does too.

[royalRitta]

Regulation means controlling while decentralisation is the opposite of it so I don't think it's possible to make it completely decentralised while making it regulated, already this become evident when the government pushing the crypto service providing platforms to collect KYC data of all the users that reduced the decentralisation of coins like Bitcoin itself so it can be either this or that with this kind of regulatory policies.

If they are centralized, yeah, that's how the rules go..
However, DEXes are just not as convenient for now.

[Aanuoluwatofunmi]

We know that the government's principle of managing this spatial plan is a bit contrary to the decentralization principle of cryptocurrency... some of us have little hope for mass adoption of cryptocurrency, while we also realize that the concept of cryptocurrency is very much contrary to what the government expects...

Is there no solution? Is decentralized cryptocurrency really not globally adopted?

As for the government aspects, we cant allow for them to take over decentralization and make everything centralized back to where we were coming from, its either they responded to the demand of the people in need for a decentralized network for their financial economy through cryptocurrency or they leave it as it has always been, because they peoples need will always surpass the government rule because we are more powerful than the government and our could go a long way in unity.

[Asiska02]

We know that the government's principle of managing this spatial plan is a bit contrary to the decentralization principle of cryptocurrency... some of us have little hope for mass adoption of cryptocurrency, while we also realize that the concept of cryptocurrency is very much contrary to what the government expects...

Is there no solution? Is decentralized cryptocurrency really not globally adopted?

The regularisation of cryptocurrencies is what is still making it not fully adopted as we want it to be, we just have to continue pushing while hoping that one day that global adoption will come with government not winning over decentralization. It is not easy for some innovations to come and overpower the existing system of the government when governments is the super house where the super power resides. We can only keep hoping and pushing from our end gradually but frankly it’ll be a good one if that’s achieved in the long time but for now they’re just bent in fighting this decentralised system and will want to win over it or else they regulate it which is not what the aim of decentralisation should be.