Are government regulations biased?

[RustyDegen]

One thing I'm really curious about is government regulations, are they biased based on exchanges? Or what exactly do some exchange break that government orders them to stop operations.

Recently, the Malaysian government has ordered Bybit to leave the country but looks like some other exchanges are still functioning there which begs the question, is it Bybit that did something wrong? And why can't they just comply to the regulations and function like other exchanges

[electronicash]

from cointelegraph  https://cointelegraph.com/news/malaysia-securities-regulator-bybit-halt-operationsjavascript:void(0);

their government was accusing bybit of running an unregistered digital asset exchange. same as most governments are doing to other exchanges. but the authorities tightens their operations which they also acquired evidences of tax evasion through crypto trading data on devices of companies that hasn't reported their crypto activity.

i know they could just be making these up but its the government. they do what they got to do.

[Gurujebs]

One thing I'm really curious about is government regulations, are they biased based on exchanges? Or what exactly do some exchange break that government orders them to stop operations.

Recently, the Malaysian government has ordered Bybit to leave the country but looks like some other exchanges are still functioning there which begs the question, is it Bybit that did something wrong? And why can't they just comply to the regulations and function like other exchanges

It depend on what the government asked them to do or what the exchanges has done to trigger such action by the government. The number one challenge is tax, some exchanges are sent off because the exchanges don't pay tax yet they want to make money from one particular place, this trigger some government.

Another might be backdoor for customers data. Some governments want echanegs to have a backdoor to have access to every account from their country and because of political interests, the don't allow such and this don't sit well with some government.

[yhiaali3]

I think the main reason for such cases is that the exchanges do not comply with the government regulations in that country, the regulations differ from country to country and the policies of the exchanges differ so such things happen.

Governments monitor the exchanges so if they see that these exchanges are trying to hide their tax information or bypass some regulations, but what I wonder is why they ask them to leave instead of asking them to pay a fine and comply with the regulations as happened before when the US government fined Binance with a very large fine.

[joniboini]

What do you mean by biased exactly? Are you suggesting that they have stricter rules for crypto exchange but not for forex or something similar? If that's the case I don't think a case like Bybit is a good example. I'm sure if a forex broker operates illegally they'd also get banned for unregistered activity. In my country, I believe most overseas exchanges that have no license were blocked too, although people can access it just fine with VPN or DNS. As far as I'm aware the requirement to obtain a license is the same thing whether you're a local or overseas exchange. CMIIW.

Then again, I wouldn't be surprised if the government is terrible at doing its job. Pretty sure other industries also accuse them of "biased" every now and then.

[Z-tight]

To operate in certain jurisdictions, you have to register with the authorities there and they will give you the license to operate and you have to also obey their rules and regulations. That is what has happened here, if Bybit wants to continue offering their services there, they have to get licensed and comply with the regulations of that government.

[dkbit98]

Recently, the Malaysian government has ordered Bybit to leave the country but looks like some other exchanges are still functioning there which begs the question, is it Bybit that did something wrong? And why can't they just comply to the regulations and function like other exchanges

Bybit is more oriented towards leverage trading so that could be one of the reasons why they can't get license in this country.
Each country can have their own rules and regulations, and I suspect for some countries it's easier to pay some people to get license easier and faster.
Givernments have biased for sure, it's moer likely they will license exchange that is origially based in their own country than in some foreign location.

[|MINER|]

One thing I'm really curious about is government regulations, are they biased based on exchanges? Or what exactly do some exchange break that government orders them to stop operations.

Recently, the Malaysian government has ordered Bybit to leave the country but looks like some other exchanges are still functioning there which begs the question, is it Bybit that did something wrong? And why can't they just comply to the regulations and function like other exchanges

If exchange companies want to officially provide their services in a country, they have to collaborate with the government of that country, such as paying taxes to the government and providing information about the deposits and withdrawals of users in that country to the government annually or monthly or whenever the government requests.
And when a government sees that an exchange company is officially operating in their country but they are not following the government's rules and regulations and paying taxes to the government, then the government can ban them if it wants. I don't know what actually happened in this case.

[joniboini]

And when a government sees that an exchange company is officially operating in their country but they are not following the government's rules and regulations and paying taxes to the government, then the government can ban them if it wants. I don't know what actually happened in this case.

In Bybit's case, it's because they failed to follow the rules, so it's no surprise that the Malaysian government banned them. I think Indonesia did the same, mainly because they don't register an office locally. I don't think it has anything to do with bias since even local exchanges can get the same treatment if they break the same rules.

I read a few days ago that Bybit blocked registration from Malaysian IPs already, so there's a chance that they're planning to leave for good or buy some time before they enter the market again after they fulfill what has been asked of them. Surprising because I don't think those exchanges ban Indonesian IPs from registration. CMIIW.

[Stuart]

One thing I'm really curious about is government regulations, are they biased based on exchanges? Or what exactly do some exchange break that government orders them to stop operations.

Recently, the Malaysian government has ordered Bybit to leave the country but looks like some other exchanges are still functioning there which begs the question, is it Bybit that did something wrong? And why can't they just comply to the regulations and function like other exchanges

This can vary depending on what the government of the country wants to get and are not getting it. The very first thing about these countries when it comes to crypto exchanges and usage is the fact of regulating the use, and for exchange paying of tax. Due to the fact that the decentralized nature of the crypto community will not grant the access to users identity, they could be demanding from the exchange these personal information, which maybe the exchange is not accepting to release.

Most times, the government just doesn't like the idea of everyone being able to break free from the shackles of financial freedom. They always want to be at the top, taking and always taking, but crypto industry brought a free way for all to take that which is possible financially.

[|MINER|]

And when a government sees that an exchange company is officially operating in their country but they are not following the government's rules and regulations and paying taxes to the government, then the government can ban them if it wants. I don't know what actually happened in this case.

In Bybit's case, it's because they failed to follow the rules, so it's no surprise that the Malaysian government banned them. I think Indonesia did the same, mainly because they don't register an office locally. I don't think it has anything to do with bias since even local exchanges can get the same treatment if they break the same rules.

I now know what I didn't know through your post. And yes, that's why I said in my post that a government doesn't just ban an exchanger from their country without a reason. 
And I think there should be the same rules for all local and foreign companies. It is often seen that many countries give some concessions to foreign companies, which causes local companies to face losses.

I read a few days ago that Bybit blocked registration from Malaysian IPs already, so there's a chance that they're planning to leave for good or buy some time before they enter the market again after they fulfill what has been asked of them. Surprising because I don't think those exchanges ban Indonesian IPs from registration. CMIIW.

Definitely I also think that bybit that will not gonna block indonesians IP's from registration I think it is the Indonesian government who restrict bybit IP in their regions

[electronicash]

One thing I'm really curious about is government regulations, are they biased based on exchanges? Or what exactly do some exchange break that government orders them to stop operations.

Recently, the Malaysian government has ordered Bybit to leave the country but looks like some other exchanges are still functioning there which begs the question, is it Bybit that did something wrong? And why can't they just comply to the regulations and function like other exchanges

This can vary depending on what the government of the country wants to get and are not getting it. The very first thing about these countries when it comes to crypto exchanges and usage is the fact of regulating the use, and for exchange paying of tax. Due to the fact that the decentralized nature of the crypto community will not grant the access to users identity, they could be demanding from the exchange these personal information, which maybe the exchange is not accepting to release.

Most times, the government just doesn't like the idea of everyone being able to break free from the shackles of financial freedom. They always want to be at the top, taking and always taking, but crypto industry brought a free way for all to take that which is possible financially.

meaning if the exchange doesn't agree to their condition like allowing  the govvernment to access users data, the government will kick the exchange and accuse them of operating without license.  that's a real mafia operation but this is how governments work though. how else could they see what the citizens are doing if they can't access databases.

i guess all i can assume is that binance didn't agree to the condition that out government wants access to its users in our country. great decision CZ.

[albon]

A centralized exchange CEX is controlled by a single group or entity such as a privately held company or a publicly traded corporation. The controlling entity is solely responsible for all aspects of the platform business. But let's say the main reason for such lawsuits is that those exchanges are not complying with their country government regulations so it will be penalized by law. Moreover, each exchange has certain rules and regulations that are completely legalIt goes beyond. Each country government monitors the exchanges so if they find that these exchanges are hiding their tax information they will fine them.

[Gurujebs]

One thing I'm really curious about is government regulations, are they biased based on exchanges? Or what exactly do some exchange break that government orders them to stop operations.

Recently, the Malaysian government has ordered Bybit to leave the country but looks like some other exchanges are still functioning there which begs the question, is it Bybit that did something wrong? And why can't they just comply to the regulations and function like other exchanges

Unless we get the complete information about what happened behind the scene. There are couple of things that can make exchange live a particular country, probably unfair regulations or the tax agreement is not what they can keep up with. If the government is asking for what they are making, they make have to leave. I believe if other exchanges are making less amount of what been charge, they will exit the country without been ask.

It could also be that Bybit has done something the country find to be illegal or break their law and they were charged ridiculous amount of money and for that reason they left the country with out any other consideration.

[bayu7adi]

If it is still accessible, usually it is just a period to complete some administration from Bybit customers.. the Malaysian government has also set a 14-day period for Bybit to complete all its affairs... several news portals that I read, Bybit apparently does not comply with local regulations... and the cryptocurrency exchange does not have an official license, and some of its fatal mistakes are listing without permission from the government agency that oversees this field... for clear facts, maybe you know better...

I prefer Binance's way of doing business, where Binance partners with local exchanges to be partners... all local regulations related to administration can be easily complied with because this collaboration makes it easier for business people to continue running and making a profit.