Possible effect of a global regulatory crackdown on Bitcoin and how to prepare

[Mrbluntzy]

Many of us here and outside here already know that Bitcoin is a decentralized digital currency, and it operates without the authorities of any traditional financial systems like banks and the governments. The decentralized system of Bitcoin is what troubles the governments and the other authorities and as we already know, the governments love transparency, that's why I think that no matter how they claim to love Bitcoin, they will never stop censoring and scrutinizing Bitcoin. Even if one governments claims to love it, we know that power changes hands seasonally (Biden was once president and now Trump) and regulations can change too depending on the governments administration. Regulatory bodies and the governments worldwide will not stop to scrutinizing Bitcoin, so I think. No?

  I believe we all know that despite the US new government and other countries are showing interest to buy lum sum of Bitcoin and other crypto that Trump mentioned for the reserve, we should keep in mind that things can change later on, the interest they show now won't stop them from scrutinizing Bitcoin. Even if this new government are a bit cool with it, how about the next government to come In power?

The global regulatory crackdown on Bitcoin could happen in different ways, such as,

1. A more strictest anti-money laundering and know-your-customer regulations:

 This laws are already there but the governments might impose more stringent requirements on Bitcoin exchanges, wallets, and other services that's helping most users to comfortably adopt and accumulate bitcoin.

2. Ban on Bitcoin transactions:

Some countries already done this, they ban Bitcoin in the country and not allow people to use it. Right now, am not referring to just one or two country that didn't ban Bitcoin, I means if it's a global crackdown.

3. Taxes and levies: We can see that there  are taxing on Bitcoin transaction on users by the government of some country. Not in my country yet.

4. Licensing and registration requirements: I am thinking, what if regulatory bodies starts to require business that are using Bitcoin  to obtain licenses and register with authorities. Have any of you thought about this? Or it's already happening in some part of the world? Yes? I don't know.

The potential consequences of such a crackdown could be:

1. It can reduce adoption level and growth of Bitcoin: Stringent regulations can frustrate and discourage both some old and new users and businesses from adopting Bitcoin.

2.Increased costs: By complying with any new regulations, it could lead to higher costs and administrative burdens for Bitcoin users including businesses that are using Bitcoin.

3. Reduction in decentralization and autonomy:  When there's overregulation, censoring, scrutinizing, it could gradually wear away Bitcoin's decentralized and autonomy nature.

4. Manipulation of price: It's bound to happen if there's any stringent regulations.

To prepare for a potential global regulatory crackdown, the Bitcoin community can:

 I will give us one suggestions to prepare ourselves incase if there's any such thing and I will want us to also put down our ideas and put out more suggestions.

1. Increased education and awareness.

If you read to the end, thank you. A Note: some ideas were picked from an external source, combined with my thoughts to form a whole. I stand to me corrected in any wrong thoughts I have put up here too.

[tequilla_sunset]

Currently, BTC is seen more as a tool by the big guys than a threat.
So we shouldn't worry about it, imo, at least for now.

[TomPluz]

Honestly, we should not anymore with the possibility of government crackdown on Bitcoin and cryptocurrency. Sure, there are still some few countries who seem to be adopting the blanket ban imposed by China but they are not as influential anymore. There are far more countries which allowed Bitcoin to be acquired and traded by their people and now many big banks are already looking on how they can join the club and make profit from Bitcoin and other coins as well. Sure, there will be regulatory guidelines and policies in different forms, sizes and implications but we should be expecting of them and with regulations comes the recognition that Bitcoin is already an asset worth looking at seriously and yes now worth imposing tax with. Slowly but surely the world is waking up to the fact that Bitcoin is here to stay.

[dave_strider]

Honestly, we should not anymore with the possibility of government crackdown on Bitcoin and cryptocurrency. Sure, there are still some few countries who seem to be adopting the blanket ban imposed by China but they are not as influential anymore. There are far more countries which allowed Bitcoin to be acquired and traded by their people and now many big banks are already looking on how they can join the club and make profit from Bitcoin and other coins as well. Sure, there will be regulatory guidelines and policies in different forms, sizes and implications but we should be expecting of them and with regulations comes the recognition that Bitcoin is already an asset worth looking at seriously and yes now worth imposing tax with. Slowly but surely the world is waking up to the fact that Bitcoin is here to stay.

Agreed.

They are too much deep in the shallow waters, and they will want to regulate the crypto space as much as they can for the profit / potential and control, but they won't try to ban it outright.

[Ambatman]

I think you posted this on BTT before so will just post my reply with some modifications.

This laws are already there but the governments might impose more stringent requirements on Bitcoin exchanges,

I don't think the government will push more than this
What they care about is having Informations about the users not outrightly controlling them.

the governments love transparency,

Ironic when they themselves ain't.

it could gradually wear away Bitcoin's decentralized

Regulations wouldn't affect Bitcoin protocol in been decentralized
Same way people using CEX didn't inherently change Bitcoin from been decentralized.

we should keep in mind that things can change later on, the interest they show now won't stop them from scrutinizing Bitcoin

How this administration ends would impact the stance of the next government.
If it's successful I see no reason for the upcoming to go against it.
Besides though most countries tend to follow the US
Bitcoin isn't US owned or controlled.

Well you right, for government to be involved
There needs to be some regulation
A price to pay for faster adoption
Hopefully it's worth it.

 Sure, there will be regulatory guidelines and policies in different forms, sizes and implications but we should be expecting of them and with regulations comes the recognition that Bitcoin is already an asset worth looking at seriously and yes now worth imposing tax with. Slowly but surely the world is waking up to the fact that Bitcoin is here to stay.

Government involvement gives it some level of trust
And legality in the sight of the public
But I believe what we experiencing wasn't what most expected.

[bitterguy28]

Currently, BTC is seen more as a tool by the big guys than a threat.
So we shouldn't worry about it, imo, at least for now.

yeah even russia i believe is considering using bitcoin for oil trade there are countries that are notorious for being strict and under a dictatorship that only allows them to consume and use things that came from their own country another country similar to that is china but i do not know if they are so willing to accept bitcoin more than they can tolerate it

right now there are more countries looking at bitcoin and ways to use bitcoin to improve their economy and help them in other ways

[dave_strider]

yeah even russia i believe is considering using bitcoin for oil trade there are countries that are notorious for being strict and under a dictatorship that only allows them to consume and use things that came from their own country another country similar to that is china but i do not know if they are so willing to accept bitcoin more than they can tolerate it

right now there are more countries looking at bitcoin and ways to use bitcoin to improve their economy and help them in other ways

Yep, avoiding some things that bother them - it's one way to use BTC as a good store of value for any big country out there.

So the question would be when BTC would be adopted so much it would be considered an alternative to fiat, and a good one ( when it will be scaled to such an extent).

[JorvikCoin]

Honestly, we should not anymore with the possibility of government crackdown on Bitcoin and cryptocurrency. Sure, there are still some few countries who seem to be adopting the blanket ban imposed by China but they are not as influential anymore. There are far more countries which allowed Bitcoin to be acquired and traded by their people and now many big banks are already looking on how they can join the club and make profit from Bitcoin and other coins as well. Sure, there will be regulatory guidelines and policies in different forms, sizes and implications but we should be expecting of them and with regulations comes the recognition that Bitcoin is already an asset worth looking at seriously and yes now worth imposing tax with. Slowly but surely the world is waking up to the fact that Bitcoin is here to stay.

I'm seeing bitcoin pop up everywhere now. More countries are making rules for it instead of banning it, which I think is awesome. Big banks are getting in on it too and that makes me feel like it's the real deal. The rules might be different place to place but it's clear bitcoin's a legit thing now. Taxes and stuff will probably change but i'm cool with that, it's not going away. I just want to keep up with it all and enjoy how it's growing. It's pretty exciting to see and I wonder what's coming next for us who like it!

[TomPluz]

I'm seeing bitcoin pop up everywhere now. More countries are making rules for it instead of banning it, which I think is awesome. Big banks are getting in on it too and that makes me feel like it's the real deal. The rules might be different place to place but it's clear bitcoin's a legit thing now. Taxes and stuff will probably change but I'm cool with that, it's not going away. I just want to keep up with it all and enjoy how it's growing. It's pretty exciting to see and I wonder what's coming next for us who like it!

As far as Bitcoin is concerned, we should not anymore worry on crackdowns because many governments are now into the regulation phase where the rules and parameters are set for all players to follow and of course it includes how the taxes are imposed on those doing business in the crypto space. As for me, what can be next is governments getting so friendly with Bitcoin and following the lead of USA to include it in their strategic reserve though this one can take for years to happen, for sure so we just have to wait and be patient as Bitcoin is doing its roller-coaster kind of a ride. There is no more question that Bitcoin is here to stay and will really bloom like a wild rose in the desert into the future.

[omori]

As far as Bitcoin is concerned, we should not anymore worry on crackdowns because many governments are now into the regulation phase where the rules and parameters are set for all players to follow and of course it includes how the taxes are imposed on those doing business in the crypto space. As for me, what can be next is governments getting so friendly with Bitcoin and following the lead of USA to include it in their strategic reserve though this one can take for years to happen, for sure so we just have to wait and be patient as Bitcoin is doing its roller-coaster kind of a ride. There is no more question that Bitcoin is here to stay and will really bloom like a wild rose in the desert into the future.

Yep, BTC is in for the ride through 2025. We've got lots of opportunities to see it grow and reach new heights.

[target]

3. Reduction in decentralization and autonomy:  When there's overregulation, censoring, scrutinizing, it could gradually wear away Bitcoin's decentralized and autonomy nature.

This one seem to be happening already with the rise of countries trying to regulated and accumulate while the institutions are already manipulating the market. Hold coins might just be the cause of you being prosecuted.

To be prepared I think you should be keeping your coins to a wallet that isn't traceable to where you got them. If your coins comes from an exchange where you submitted KYC the consider it traceable.

[0t3p0t]

I don't think this is gonna happen because right now countries sufferring sanctions, afraid of experiencing that act or facing economical unrest is now eyeing Bitcoin as reserve or investment. And from that point of view I don't think governments will impose strict regulations to intimidate their own people to buy Bitcoin for their own while the government spend millions or even billions just to get a reserve asset for the country as that sounds hypocrite for them if they will. I think the best way to prepare is to buy and hoard in a wallet only you has control.

[tequilla_sunset]

3. Reduction in decentralization and autonomy:  When there's overregulation, censoring, scrutinizing, it could gradually wear away Bitcoin's decentralized and autonomy nature.

This one seem to be happening already with the rise of countries trying to regulated and accumulate while the institutions are already manipulating the market. Hold coins might just be the cause of you being prosecuted.

To be prepared I think you should be keeping your coins to a wallet that isn't traceable to where you got them. If your coins comes from an exchange where you submitted KYC the consider it traceable.

Agreed. But I don't see it happening to such a scale. Maybe in the future that would change, but for now, not everybody is on their feet yet trying to create reserves, let alone trying to prosecute such behavior.

[Findingnemo]

Crackdown? I think we passed that stage. Maybe not as legal tender but Bitcoin is almost a reserve now and when US makes it official then other governments are just going to follow whether they like Bitcoin or not.

Censoring on the other hand is different and already in practice that's why we see KYC requirements for any regulated platforms and that is also inevitable.

If government ban Bitcoin then it's their loss only.

[Bobcrypto]

yeah even russia i believe is considering using bitcoin for oil trade there are countries that are notorious for being strict and under a dictatorship that only allows them to consume and use things that came from their own country another country similar to that is china but i do not know if they are so willing to accept bitcoin more than they can tolerate it

right now there are more countries looking at bitcoin and ways to use bitcoin to improve their economy and help them in other ways

Yep, avoiding some things that bother them - it's one way to use BTC as a good store of value for any big country out there.

So the question would be when BTC would be adopted so much it would be considered an alternative to fiat, and a good one ( when it will be scaled to such an extent).

Let me explain something unique about Bitcoin and faits. Bitcoin as we know is decentralized, a digital coin while faits is a centralized, a physical money. In my opinion, Bitcoin has limited link with Fiats, in facts, i don't think that Bitcoin can be an alternative to fiats because both are operating on different systems.
Bitcoin is already in use online, the only link between Bitcoin and Fiats is the users conversion of Bitcoin to faits for offline uses. I think that Bitcoin has no alternative except the altcoins, it is completely digital, while faits remains a physical money.