Should Governments Be Allowed to Regulate Crypto as Its Growth Increases?

[Akinwale Akinkunmi]

In today's world, people have increasingly more confidence in investing in crypto through exchanges without panicking. If we were to go back 5-6 years, telling people that your money was stored or saved to increase on an exchange would have raised concerns and warnings about potential scams, with advice to withdraw funds immediately. And now even major players in the banking sector are now heavily involved.

Now talking about growth, I believe that excessive growth can also have disadvantages if not managed properly. For instance, look at what's currently happening with Binance, which is facing allegations of corruption, similar to OKX and other reputable exchanges. However, I don't blame them entirely, considering the massive amount of money flowing in and out of these exchanges.

Just yesterday, Bitget announced achieving an all-time high protection fund valuation of $690 million in January 2025 alone, similar to other exchanges like bybit. The influx of funds is substantial. With all this analysis how can our exchanges be trusted with large sums of money or do you think the government should be involved?

[electronicash]

its not up to us in how should our government regulate its growth but they will find a way to do it. but i think they are done doing it since there are already ETFs are approved and institutions are already getting into crypto like they are buying everything.

and if there are tons of money flowing out of the exchanges, its all up to them on how to regulate it. but an exchange as small as bitget, they will not mind it, they focus more on bigger ones. countries today are banning exchanges for operating illegally, they'd allow them to have license to operate if they share data to the government.

[Akinwale Akinkunmi]

its not up to us in how should our government regulate its growth but they will find a way to do it. but i think they are done doing it since there are already ETFs are approved and institutions are already getting into crypto like they are buying everything.

and if there are tons of money flowing out of the exchanges, its all up to them on how to regulate it. but an exchange as small as bitget, they will not mind it, they focus more on bigger ones. countries today are banning exchanges for operating illegally, they'd allow them to have license to operate if they share data to the government.

Your opinion is great but to me the exchange used as an example is not a small exchange although I didn't know how you arrived into the conclusion, but to me the government can go against any exchanges if they dedect imbalance or corruption. Okx and Bybit once had their own share of government checking them out.

[joniboini]

Even if we say no, do you think governments will just accept it and move on? They won't let a market as big as crypto (although some believe it's still niche compared to other markets) go without supervision, especially if it affects their image or tax earnings. Some even went as far as banning anything crypto-related due to ideological beliefs. If we're talking about exchanges, unfortunately having regulation or control over them is better since retail traders won't be able to verify anything. They can choose which exchange to use but they can't dictate liquidity. CMIIW.

[bitmover]

Unfortunately, governments do not need anyone to allow them to make regulations. They just do.

Some regulations are necessary and welcome, such as regulations over exchanges (as we all know, there are some exchanges which commits crimes, such as FTX, and governments help users to get funds back).

[Yeecrypto]

To me, I feel like exchanges' adaptation is similar to when banks first emerged. Back then, lots of people didn't readily accept them, but with time, many gained trust. As you've pointed out, exchanges are now implementing more safety measures to protect users.

 Exchanges like Bitget have managed to gain users' trust by providing monthly reports. They started the year strong, maintaining growth in line with market movements and the BTC price surge, reaching an all-time-high value of over $690 million on January 22nd. With this, I feel we might see even more trust coming to CEX.

[electronicash]

its not up to us in how should our government regulate its growth but they will find a way to do it. but i think they are done doing it since there are already ETFs are approved and institutions are already getting into crypto like they are buying everything.

and if there are tons of money flowing out of the exchanges, its all up to them on how to regulate it. but an exchange as small as bitget, they will not mind it, they focus more on bigger ones. countries today are banning exchanges for operating illegally, they'd allow them to have license to operate if they share data to the government.

Your opinion is great but to me the exchange used as an example is not a small exchange although I didn't know how you arrived into the conclusion, but to me the government can go against any exchanges if they dedect imbalance or corruption. Okx and Bybit once had their own share of government checking them out.

how should the users fully trust the OKX and bybit once again if there are deals about sharing data to the government of a country they operate?
to me binance is more repuable because the data still is safe inside them and are not bending their terms or privacy to our government that they will be banned in our country for this reason.

Lets say binance,us cooperate with the government. why should they chose binance.us when its all the same when they just sign up under coinbase.

[albon]

Regulations for crypto are legal and systematic structures that the government formulate to create various aspects of digital resources. The regulations of cryptocurrencies in various judicials may be directly banned from the detailed rules created to support blockchain users. In the united states the regulator is not specific to land and it is constantly developing. Various federal organizations treat digital resources differently based on their own evaluation of crypto properties. Lawmakers can also consider and states can establish their own rules.

[Akinwale Akinkunmi]

its not up to us in how should our government regulate its growth but they will find a way to do it. but i think they are done doing it since there are already ETFs are approved and institutions are already getting into crypto like they are buying everything.

and if there are tons of money flowing out of the exchanges, its all up to them on how to regulate it. but an exchange as small as bitget, they will not mind it, they focus more on bigger ones. countries today are banning exchanges for operating illegally, they'd allow them to have license to operate if they share data to the government.

Your opinion is great but to me the exchange used as an example is not a small exchange although I didn't know how you arrived into the conclusion, but to me the government can go against any exchanges if they dedect imbalance or corruption. Okx and Bybit once had their own share of government checking them out.

how should the users fully trust the OKX and bybit once again if there are deals about sharing data to the government of a country they operate?
to me binance is more repuable because the data still is safe inside them and are not bending their terms or privacy to our government that they will be banned in our country for this reason.

Lets say binance,us cooperate with the government. why should they chose binance.us when its all the same when they just sign up under coinbase.

[joniboini]

-snip-

Did you forget to write your reply? You just quoted another post without adding anything new. You can simply edit your post instead of deleting it if you forget to post the correct reply. I know it's a few days late as a reminder but better late than never.

[Crwth]

Since governments are the reason a country operates and makes the country work and grow, they can be part of the process and maybe facilitate the growth of crypto in a particular country. I believe if the government in their country increases activity, the confidence of lay people who don't know how to use it will grow. Plus, if the banking sector in that specific country becomes crypto-friendly, it will also add to that increase.

I am a little bit concerned about the growth of this because a lot of people are also trying to scam people on it. If it grows, there won't be any trust anymore.

[TomPluz]

The reality is that the government does not need any permission to regulate any industry doing business under its jurisdiction...maybe the question should be: how the government should regulate this specific industry which is cryptocurrency. Ideally, cryptocurrency must not be regulated but the problem is human nature...without some form of a regulation there will be bad players that will victimize other people by abuses, scams and other similar tricks to suck out money from innocent people. I am then rooting for an acceptable (not design to kill business) regulatory framework so that we can do business with some fairness and a high level of accountability can be established. No regulations means we would remain in the Wild, Wild West era which can affect the long-term growth potential of the industry.

[joniboini]

I am then rooting for an acceptable (not design to kill business) regulatory framework so that we can do business with some fairness and a high level of accountability can be established. No regulations means we would remain in the Wild, Wild West era which can affect the long-term growth potential of the industry.

I second this. While I don't think the government can do everything it wants nowadays because social media can spread information faster, some decisions can be skewed to one over the other. Especially if lobbying or stuff like that is allowed. I don't know how it works in other countries, but my country introduced so many new ineffective regulations that get reverted because of protests and whatnot. I believe crypto community can do the same thing if it's large enough to influence the government income.

[yhiaali3]

Just yesterday, Bitget announced achieving an all-time high protection fund valuation of $690 million in January 2025 alone, similar to other exchanges like bybit. The influx of funds is substantial. With all this analysis how can our exchanges be trusted with large sums of money or do you think the government should be involved?

I think with the fallout from the $1.5 billion hack of the bybit exchange that is running crypto right now there is no longer any trust in centralized exchanges even if governments are involved.

Although bybit, the US government and everyone knows that the criminal Lazarus group is the one who did the theft but they can't do anything because they are under the protection of the North Korean lunatic that no one dares to approach.

[Z-tight]

Regulation is important for some aspects of the crypto industry. Centralized exchanges have to be regulated, if not many of them will rugpull their customers with impunity. Cryptocurrencies like memecoins also need to be regulated and the reason is obvious. Regulation comes with certain disadvantages, but it is necessary for some aspects of the industry.