how governments can regulate digital currencies?

[yousufatik]

Though it’s easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?

[tamango]

I think that regulation  don't necessary want to do having full control of wallets but can be done mainly by regulating exchanges that allow FIAT money so that when someone has to change crypto in FIAT he is tracked and his identity is checked.

[Noobaru]

It is possible to some extent. Like with hot (online) wallets, where they will eventually demand some identification from users, I suppose. But it is nearly impossible with hardware wallets.

[jet]

Government will regulate the project itself and not the wallet. Its a violation to the persons right if government will have access to the wallet. ICO should be regulated to filter the legit and the scam. Another thing, the cryptomarket should be centralized and all holders should provide information to the company for proper identification

[bhm45]

Though it’s easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, they’re not connected to any network.so is it possible to regulate ?

Yes they cannot regulate digital money because of the process which the wallet is having no identification to their server, they are not connected to any network but, i think they use  something new process that everyone can use it as a currency. Somehow, government should implement digital money as a new currency since we are living in this world where technology almost control all individual.

[Darksoul]

I think that regulation  don't necessary want to do having full control of wallets but can be done mainly by regulating exchanges that allow FIAT money so that when someone has to change crypto in FIAT he is tracked and his identity is checked.

I agree.  It’s not at all necessary to regulate the owner’s wallet, it’s enough just to tighten the nuts on the exchange offices and the state will be able to monitor users!

[Morrower]

I think that for now it's impossible for government to control wallets or crypto on the whole. People who can affect it anyhow won't let it go.
That's why some countries forbid crypto as they can't regulate it anyhow.

[Zyarifa]

the government will certainly try to work hard in regulating digital currency in this case the crypto currency will be very difficult to make investments with various considerations and also the rules applied by the government

[etoker]

Many countries are working to regulate the system.For example ; Brazil,Japan, Honk Kong, Ukrain ,Venezuella etc.I hope other countries also try to regulate the system.This is very important for the future of the system.

[boysnoel12]

You can study ripple to understand on how the government regulate the project itself but not the blockchain or token's price. Ripple is centralized because there's someone regulating the project itself unlike other project where the founder of the project unable to do the same as the ceo if ripple did because thet aim for decentralization unlike the ripple.

[bdamenaakter]

I think they are going to start regulating through the SEC and probably the existing exchanges as well, this is why the exchanges are now asking KYC unlike years ago. With the KYC, the government can now track down who are the people getting into crypto. If they find out you have been in crypto for years and yet not even bothering to submit for the IRS or whichever department, they might give you a visit along with the documents that you have withdraw BTCs from exchanges. This is scary of course but this might just happen one day.

[bagas79]

The rules clearly cannot possibly touch open and decentralized projects. Centralized exchanges on the other hand are easily managed due to KYC or AML, a practical way to regulate cryptocurrency flow for the government is to allow users to disclose their crypto transactions and they have the option to monitor through domestic crypto exchanges except with KYC.

[Zed0X]

Regulation can be done on centralized exchanges. The "problem" for government is regulating decentralized exchanges. Right now, I do not see how they can do it. Let's just wait if they can develop a system for that.

[zenbook]

They can regulate but only if peoples want to use selling their digital currency to fiat currency.
as long peoples using digital currency without using fiat currency, i think government cannot regulate them.

[AltLogan]

I hardly believe government has any power to do so.
At least they have no such experts to control it or ban.