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

[Findingnemo]

They will, there's no debate or like we have a say in that.

Regulations are not bad as long as they are doing it to protect people but what government does is just tax them on the profits they made and nothing else, which I don't call as regulations and this the reason why people not to reveal their crypto assets and pay taxes for that.

[|MINER|]

They will, there's no debate or like we have a say in that.

Regulations are not bad as long as they are doing it to protect people but what government does is just tax them on the profits they made and nothing else, which I don't call as regulations and this the reason why people not to reveal their crypto assets and pay taxes for that.

Yeap, Keeping people in control of themselves or only collecting taxes from people in the name of regulation seems to me to be nothing but hypocrisy.

However, I would also applaud the government's efforts to create regulations to help trace criminals and ensure that they receive appropriate punishment.

[zigabel]

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?

Growth is one thing every business anticipate after they set out to serve the public with their services, for growth the occur there is this relationship it always have with the law of demand and supply, the higher the demand the higher the the influx of cash and the more valuation the company providing that service in the demand gets. in the last two to three years, the evolution in the crypto industry is one which has been on the increase with a very higher demand due to the more adoption of crypto in other industries.

the higher the demand of crypto the more people demand for platforms to buy and sell there assets and that's how the exchanges begins to gain all of the market valuation and increase in their assets and all of other market capping. in as much as at some point regulation will become necessary around the exchanges it will also be challenging to get the government involved as that will be interfering with the decentralized nature of cryptocurrencies. I don't support the idea of the government interferance but i think the crypto inductry has got a way of regulating itself if the need arise.

[taufik123]

-snip-
However, I would also applaud the government's efforts to create regulations to help trace criminals and ensure that they receive appropriate punishment.

Such an application would be very useful to track down fraudsters so that the funds they stole cannot be taken and every registered exchange is compliant with the government.
The government has authority when the Exchange is under government regulations and of course crypto will grow over time with the assistance of the government. This is a positive step from the government unless it does not prohibit it.

[KryptoBull]

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.

I don't think CEXs need to be regulated, they just need to cooperate with governments in the tax filing process and criminal investigations related to crypto. CEXs don't need to be guided by governments to operate, because I believe that most governments don't fully understand crypto, even though they've tried very hard.

Some governments are even naive enough to want to introduce and manage their own CEXs to collect taxes and transaction fees from users. I see that as monopolistic behavior in the market. The crypto community needs freedom and transparent cooperation, not control like how many governments run loss-making state-owned enterprises.

[|MINER|]

-snip-
However, I would also applaud the government's efforts to create regulations to help trace criminals and ensure that they receive appropriate punishment.

Such an application would be very useful to track down fraudsters so that the funds they stole cannot be taken and every registered exchange is compliant with the government.
The government has authority when the Exchange is under government regulations and of course crypto will grow over time with the assistance of the government. This is a positive step from the government unless it does not prohibit it.

Yes, this should be the main purpose because otherwise the number of negative sites of web3, scam and fraudulent, will increase and it will not be possible to bring them under punishment.
But if the government wants to regulate crypto to commit hypocrisy, then I don't think it will ever be good for this crypto space. In other words, it will directly affect the financial freedom that people are supposed to get here.
And that is why privacy ethustian peoples use de-centralized wallets from the beginning instead of using centralized exchanger wallets.

[taufik123]

-snip-
But if the government wants to regulate crypto to commit hypocrisy, then I don't think it will ever be good for this crypto space. In other words, it will directly affect the financial freedom that people are supposed to get here.
And that is why privacy ethustian peoples use de-centralized wallets from the beginning instead of using centralized exchanger wallets.

Yes, the government will indeed have full authority over the CEX and that makes us not free in the sense that it will remain under the government, remain centralized. If you want to be truly free and decentralized then using a secure personal wallet such as a hardware wallet is the most secure without any interference from third parties, financial freedom will be everything for those who care deeply about privacy.

[robelneo]

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?

The government has a duty to protect its citizens, and they will not let their citizens be abused and get scammed by online companies, so their duty is to regulate this exchange to avoid people suffering from losing their hard-earned money and their well-being.
By regulating cryptocurrency-based systems, they encourage people to use cryptocurrency. The government will have a hard time controlling cryptocurrency, but they can on cryptocurrency-based companies.

[|MINER|]

Yes, the government will indeed have full authority over the CEX and that makes us not free in the sense that it will remain under the government, remain centralized. If you want to be truly free and decentralized then using a secure personal wallet such as a hardware wallet is the most secure without any interference from third parties, financial freedom will be everything for those who care deeply about privacy.

Even if a person cannot afford these hardware wallets, I still think they can achieve financial freedom by using a decentralized wallet instead of a centralized wallet.
In this case, it would be best to use wallets that have the Hierarchical Deterministic feature. Moreover, there are better mixer wallets like coinomize to further enhance privacy.

[Crwth]

I believe it is important to get the government to have regulations because many people wouldn’t invest if there were no proper policies or safeguards for their investments. If there is a balance, there shouldn’t be a problem with it, in my opinion.

[bhadz]

I believe it is important to get the government to have regulations because many people wouldn’t invest if there were no proper policies or safeguards for their investments. If there is a balance, there shouldn’t be a problem with it, in my opinion.

That is right and that's why SEC is there to make guidelines. But not all of the guidelines are in favor of us, people who are into crypto. And if they decided to regulate it, we can't do anything about it but to tolerate and just follow what they are setting for the guidelines that they'll create. It is needed to make safeguards for the safety of everyone who's interested to invest to this market and to help avoid scams too.

[taufik123]

Even if a person cannot afford these hardware wallets, I still think they can achieve financial freedom by using a decentralized wallet instead of a centralized wallet.
In this case, it would be best to use wallets that have the Hierarchical Deterministic feature. Moreover, there are better mixer wallets like coinomize to further enhance privacy.

Yes you can still have financial freedom without using a hardware wallet, but using a Decentralized Wallet like Electrum that is used specifically for Bitcoin.

But if you say Mixer Wallet like Coinomize, I think you are wrong because Coinomize is not a Wallet but a service that provides Bitcoin mixing services to secure Bitcoin transactions made so that it remains private.

[|MINER|]

Even if a person cannot afford these hardware wallets, I still think they can achieve financial freedom by using a decentralized wallet instead of a centralized wallet.
In this case, it would be best to use wallets that have the Hierarchical Deterministic feature. Moreover, there are better mixer wallets like coinomize to further enhance privacy.

But if you say Mixer Wallet like Coinomize, I think you are wrong because Coinomize is not a Wallet but a service that provides Bitcoin mixing services to secure Bitcoin transactions made so that it remains private.

Oh shit.
I don't know if I was in sleeping when I wrote my post, because I myself know very well that Coinomize is not a wallet, because I already know a lot about them and also you can see I am promoting them through my signature. 
This was a typo mistake dude. I was probably trying to say how to get the most out of a decentralized hot wallet without using a hardware wallet by using the coinomize service .

[taufik123]

-snip-
This was a typo mistake dude. I was probably trying to say how to get the most out of a decentralized hot wallet without using a hardware wallet by using the coinomize service .

What is getting the most out of it?
Privacy or for other needs?
Because of Coinomize's Mixing service that provides a high level of privacy on the transactions made.

But if you talk about a wallet other than a hardware wallet, then Electrum is the first wallet that can be used for all the devices you have, Free and Open Source.

[Fivestar4everMVP]

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?

If the government decide the want to regulate this exchanges, they don't need our permission to, this is a fact I think you should or already know, but outside of this, I would also like to say that exchanges don't need government regulation to be trustable and reputable, an exchange can be reputable and trustworthy in all their dealing and report even without the government being there to regulate or oversee to the affairs and running of the exchange.

And personally, I prefer that crypto exchanges operate without government interference, all we have to do is ensure to not turn this exchanges into our private wallet where we store our long term investments, atleast, this practice helps us stay safe just incase anything happens to the exchange.