Can crypto be regulated globally without sacrificing decentralization?

[electronicash]

if its regulated then its already centralized. the stock market or the forex market is somewhat this way where everyone has to submit our KYC as well. so more than likely authorities are still going to handle everything despite how cryptocurrencies claimed to be decentralized.

but because there are decentralized exchanges, it somehow keep the idea of decentralization. and the continuous creation of coins seem to give another meaning for decentralization.

[MrSpasybo]

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.

Yeah, even if governments want to control crypto and reduce decentralization, it won't be easy when validators are distributed across many countries, each with their own crypto policies.

All governments can do is propose solutions, listen to investor and user feedback to understand and support crypto's development while cleaning up low-quality projects in the market. Some governments are operating CEXs to generate revenue and transaction fees, which I think is a smart move for them to understand the market better before officially supporting it.

[sampoerna]

if its regulated then its already centralized. the stock market or the forex market is somewhat this way where everyone has to submit our KYC as well. so more than likely authorities are still going to handle everything despite how cryptocurrencies claimed to be decentralized.

Yes, this will apply to leib settings in general, especially CEXs which are located in areas where the law regarding crypto is really under the governance. So inevitably there will be government intervention in Indonesia, regarding regulations both for exchanges or projects and the problems of investors or users as a whole.

 It's just that when it comes to regulating crypto as a whole, it will be difficult to do, especially if transactions are carried out on DEX or on any type of decentralized platform. then it will be difficult for them to touch it, control it, and also regulate it.

[bayu7adi]

if its regulated then its already centralized. the stock market or the forex market is somewhat this way where everyone has to submit our KYC as well. so more than likely authorities are still going to handle everything despite how cryptocurrencies claimed to be decentralized.

but because there are decentralized exchanges, it somehow keep the idea of decentralization. and the continuous creation of coins seem to give another meaning for decentralization.

it is indeed difficult to associate the government with decentralization, not touching decentralization, will only make a lot of fraud happen... so I think it is really something that is impossible to happen...
even I think when the government does not touch anything about decentralization, and they impose taxes as compensation... it will still eliminate the existence of decentralization

the problem is the government cannot take any advantage without KYC.

[royalRitta]

if its regulated then its already centralized. the stock market or the forex market is somewhat this way where everyone has to submit our KYC as well. so more than likely authorities are still going to handle everything despite how cryptocurrencies claimed to be decentralized.

but because there are decentralized exchanges, it somehow keep the idea of decentralization. and the continuous creation of coins seem to give another meaning for decentralization.

it is indeed difficult to associate the government with decentralization, not touching decentralization, will only make a lot of fraud happen... so I think it is really something that is impossible to happen...
even I think when the government does not touch anything about decentralization, and they impose taxes as compensation... it will still eliminate the existence of decentralization

the problem is the government cannot take any advantage without KYC.

They can tax the hell out of it, though, only time will tell how that would go 
In the end, we should find some balance in that question, because neither side would give up on its ideals.

[ABCbits]

--snip--

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?

From my past research, some people suspect Article 68 on MiCa as the reason.

The operating rules of the trading platform for crypto-assets shall prevent the admission to trading of crypto-assets which have inbuilt anonymisation function
unless the holders of the crypto-assets and their transaction history can be identified by the crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets or by competent authorities.

You can find text i quoted above on page 93.

[enoch_from_off]

if its regulated then its already centralized. the stock market or the forex market is somewhat this way where everyone has to submit our KYC as well. so more than likely authorities are still going to handle everything despite how cryptocurrencies claimed to be decentralized.

Yes, this will apply to leib settings in general, especially CEXs which are located in areas where the law regarding crypto is really under the governance. So inevitably there will be government intervention in Indonesia, regarding regulations both for exchanges or projects and the problems of investors or users as a whole.

 It's just that when it comes to regulating crypto as a whole, it will be difficult to do, especially if transactions are carried out on DEX or on any type of decentralized platform. then it will be difficult for them to touch it, control it, and also regulate it.

Yeah, govs can touch what they can reach, but some parts of the space would be an issue for them, generally speaking, which is good security and decentralization-wise.
However, the overall trend is pretty worrying.

[royalRitta]

--snip--

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?

From my past research, some people suspect Article 68 on MiCa as the reason.

The operating rules of the trading platform for crypto-assets shall prevent the admission to trading of crypto-assets which have inbuilt anonymisation function
unless the holders of the crypto-assets and their transaction history can be identified by the crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets or by competent authorities.

You can find text i quoted above on page 93.

I see. Thanks, I will dig into it a bit later.
Much appreciated!

[Baki202]

I really doubt that because if crypto is being regulated globally it would be centralized and crypto being centralized makes it a whole less fun because there are going to be a whole lot of rules and regulations guarding it and I'm sure a lot of users here wouldn't want to participate no more in crypto when it's centralized and the number of participants will reduce drastically because as crypto is decentralized it's widely accepted by people, and people are enjoying the fact that they have an investment and they are unknown of the worth of the assets they are holding, the issue of centralization is just the government messing around it wont work.

[Z-tight]

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

Government regulation of crypto can be strict sometimes, take the U.S. for example, with Gary Gensler and the sec attacking crypto firms and projects nonstop. We must understand that the government would never fancy a decentralized project that they cannot control, but we can do with a lenient kind of regulation and not constant attacks.

[vegasus]

Who will regulate globally?
If each country may be yes, but if globally, is there a global body that is responsible for regulating something, especially crypto?

Usually it will be large countries that are indeed very influential in global world developments that provide certain rules related to cryptocurrency, and in the end the news affects the crypto market in general. but if it is regulated globally, hmm I'm not sure, because each country has its own interests and authorities. like right now there are countries that free and legalize it but there are also those that strictly make crypto illegal and regulate crypto in their country according to the provisions of each country.

[kai]

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?

I think this is a difficult discussion because I see that the regulations for one region are different. There are countries that do not agree with the existence of cryptocurrency and there are also those that are widely open to crypto adoption. If there are many statements like this, the results will definitely depend on all countries, whether the country opens its eyes or closes its eyes to all the technology produced by cryptocurrency.

[Celph]

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?

In my opinion,I don't think  that would be entirely possible,really.
Cypto being decentralised is what makes it unique as a digital currency unlike other fiat currencies.When investors can particularly affect the way the way the market moves is really what makes crypto interesting and welcomes more investors to the crypto market.
If crypto should be regulated globally with th effect of sacrificing decentralisation,i guess it could crumbl the market because alot of investors might withdraw from the market.
  Except we use decentralised government models like DAO's and global copperation along with info sharing among others,i guess this would be a tough nut to crack.

[enoch_from_off]

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?

In my opinion,I don't think  that would be entirely possible,really.
Cypto being decentralised is what makes it unique as a digital currency unlike other fiat currencies.When investors can particularly affect the way the way the market moves is really what makes crypto interesting and welcomes more investors to the crypto market.
If crypto should be regulated globally with th effect of sacrificing decentralisation,i guess it could crumbl the market because alot of investors might withdraw from the market.
  Except we use decentralised government models like DAO's and global copperation along with info sharing among others,i guess this would be a tough nut to crack.

I don't see all the govs unite in "regulating" crypto - so, we may see the things going for such a case, but it won't be during our lifetime, probably 

[royalRitta]

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?

I think this is a difficult discussion because I see that the regulations for one region are different. There are countries that do not agree with the existence of cryptocurrency and there are also those that are widely open to crypto adoption. If there are many statements like this, the results will definitely depend on all countries, whether the country opens its eyes or closes its eyes to all the technology produced by cryptocurrency.

Yeah, the govs are not united in their beliefs, currently.
And that's good for the space, in reality