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

[Asiska02]

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?

When it comes to the exchanges, I think the government is one way or the other involved already as they’re centralized exchange and their mode of operations can be well tracked by the government if situation for it warrants. So they will most likely be trusted by their mode of operation and how not often the government will want to clamp down on their affairs, because that’s only when they now become a threat to the public using them. Exchanges are not a place to store money, so even using them for a long time as a place to store your money, it becomes risky and trust or reputation won’t be needed in that regard.

[Aanuoluwatofunmi]

To an extent governments are regulating the centralized crypto entities but to be frank, we may not like it if they have full control over regulating everything about crypto, of which we also know that they cant do that, because bitcoin in cryptocurrency cannot be regulated, even if others are, then coming back to the government regulation, not all will be in our favour if they do so, because they are going to impose inflationary charges upon every user as long as they are in charged, but this is all about decentralization and p2p which has limited them to some certain extent.

[yhiaali3]

if they have full control over regulating everything about crypto, of which we also know that they cant do that, because bitcoin in cryptocurrency cannot be regulated, even if others are, then coming back to the government regulation, not all will be in our favour if they do so

It's true that Bitcoin is decentralized, and it's true that governments cannot control it. However, they can regulate it and enact the necessary laws for various legal and legitimate Bitcoin transactions in any country.

Of course, they won't be able to impose a ban or censorship on Bitcoin, but they can impose this on third-party services, such as centralized exchanges and third-party payment services, forcing them to comply with government regulations and impose KYC and AML on their users.

[bitbit97]

Give government access to anything that has finances and let it participate in regulation, it will "eat" this sector fully and will turn it into milking how, killing every single opportunity to earn. Allow government to regulate crypto and we will never see 100% growth anymore. I also think that if government regulate crypto, it will kill any competition among projects. We wont get so much creativity as we have now. And I dont understand how will government let cryptocurrency operate parallels banks.

[Z-tight]

I also think that if government regulate crypto, it will kill any competition among projects. We wont get so much creativity as we have now.

It is not in our place to dictate whether government will regulate crypto or not. Governments will surely regulate crypto services if they want to offer their service in their jurisdiction. They say regulation is to protect investors and it is very necessary for shitcoins and shit services, if not many of them will scam people with impunity.