Regulations will push the crypto community off the edge
Living in a country puts you at the mercy of certain laws and rules. In the case of crypto hodlers, regulations by the government are those rules and they generally have an influence on the perception of crypto in that society.
In Nigeria for example, crypto represents freedom, defiance from archaic rules and an opportunity to earn a living in a system that's transparent.
In Nigeria, there are also no actual regulations in place for crypto, so we're not "protected" by the government. Thank God for that by the way.
The US of A
In the US where regulations and policies are no joking matter, the government simply can't keep their lips off crypto. Every day it's one thing or the other and now a recent decision has gotten some people worried.
According to a non-profit crypto group known as Coin Center, the recent decision to give the State Treasury to make certain decisions unchecked might come back to hurt crypto.
The America Competes Act describes some of the powers that the Treasury Department will have, amongst other things. It is also fascinating how the activities of China concerns the US but that's a story for another day.
“[The law] would hand the Treasury Secretary unchecked discretion to forbid financial institutions (including cryptocurrency exchanges) from offering their customers access to cryptocurrency networks. The Secretary may not use this discretion immediately, but it is not power the Department should have.”
In this case, this could mean that the Treasury Secretary could just place sanctions or even shut down any exchange that is deemed "dangerous".
Well for what it's worth, crypto exchanges have always been the easy fall guys. They're fighting a potentially hopeless battle against forces that will NEVER accept them.
This move in the US will undoubtedly lead to some negative press and interest in crypto.
The change could also enable the Treasury to have uncompromising access to US citizens' information. So this is the government telling US citizens that we had you by the balls all along, now we're going to squeeze them.
This situation caught the eyes of Cointelegraph and many other outlets.
The privacy issues might highlight the need for privacy coins and all but that's also a story for another day.
What does Yellen think?
It is hard to decipher what Janet Yellen, the Treasury secretary thinks. On one side, she has mentioned a couple of the benefits of crypto but she's also not exactly in support.
On a couple of occasions, she has stated that as far as she can tell, cryptocurrencies are used for "illicit" transactions. So it sounds like much of the same.
In a publication on The Washington Post as far back as April of 2021, Yellen was described as a stumbling block on the path of crypto adoption in the US;
Cryptocurrency supporters and investors have hoped for some sort of validation by the federal government that stops short of enhanced scrutiny, and Yellen appears to stand in their way. Washington Post
If Yellen was a stumbling block when she needed public opinion to function, imagine how dangerous she can be when she pretty much has veto power.
Cut out the middlemen
The powers that be, only have an influence on people that try to get their approval. So, in essence, we're referring to crypto exchanges in this case.
The moment we find permanent Peer to Peer solutions and have solid payment networks across the world, the crypto industry will move towards DEXES.
I consider central exchanges to be the middlemen in the crypto industry. I also consider them to be a very important on and off-ramp for passive and active investors.
Sadly, they're constantly getting a lot of heat from the government because while regulations can come in, the crypto market is evolving at a much faster rate.
I can't see a future where crypto regulations will become a "norm" like the way they've done fiat. Unlike the traditional system that has stagnated for hundreds of years, the crypto industry presents a new challenge for governments.
Exchanges are the fall guys in everything and that's unfortunate because of their huge role in the industry.
I believe this is just a phase of the evolutionary trend because, in the near future, these same exchanges will morph into more powerful and complex beasts that governments simply can't handle.
Contact & Support
- Discord: belemo#9593
- Twitter: https://twitter.com/belemo__
- Hive.vote page
Posted Using LeoFinance Beta
This post has been manually curated by @steemflow from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating to @indiaunited. We share 100 % of the curation rewards with the delegators.
Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.
Read our latest announcement post to get more information.
Please contribute to the community by upvoting this comment and posts made by @indiaunited.
You pinned the point bro. Exchanges are the ones facing the heat and the Dexes will be the future solution incase the regulations become something to really really worry about. Most of this guys are still hypocrites.
https://twitter.com/belemo__/status/1486648560577912838
The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
It's a lot of theatres, exchanges won't fall because A they make money, and B, they are already owned by private equity firms with political ties, who have the ambitions to grow them to a level where they can be acquired by banks and in some cases acquire banks themselves, so they can have charters instead of having to deal with the banks just become one.
The idea of DEX's being a saviour is also premature, yes their code is permissionless but the chain they run on can easily be pressured to shut down. If any dex lets say on ETH was doing anything meaningul, do you think consensus and Eth foundation would stand infront of the SEC and FBI and say no we dying on this hill not to blacklist addresses using this service? No
USDT is a prime example of that, look how many addresses have been blacklisted and funds frozen not only on ETH but on the other chains they run on,
Well, you make a strong point, but on privacy chains like Zcash and the likes where there are no crumbs to trace, what are the chances of government influence?
Exchanges virtually morphing into banks makes things even more complicated because that's just means the crypto industry did a full circle.
I guess for privacy coins I'd say depends on the individual for me a small fry maybe I buy it p2p to avoid KYC or have to mine it to get some to work with, probably not alot anyone can do about that. Larger operations lets say criminals, I don't see the point for them, because where you going to get liquidity apart from exchanges? It's just better to do your deals in cash, its anonymous and highly liquid,
As for banning a privacy chain in your country, I don't think that is possible, nodes and miners can always be running somewhere, the issue there would be spending it. So you have the zcash you need to get someone to accept it, in exchange for something.
I am pretty sure if I took my bitcoin to the corner store to buy a bread the shop owner would tell me to fuck off lol and that's the biggest most well-known one.
I see it as history repeating itself in the 1800s there were many wild cat banks creating their own currencies and many failed because they weren't backed and got banked run and couldn't establish ways to liquidity to bridge with other banking currencies and eventually they died or consolidated. this obviously took years back then but with tech, it's doing it 1000 times faster, it's always a game of consolidation because centralizing drives up efficiency.
I'm also putting a lot of faith in DEXEs and DeFi but we can't ignore the fact that most nodes and websites of decentralized protocols are hosted by AWS...
People need to get involved and need to start running their own nodes if we are ever to see true decentralization. That is going to take some time afaik.
Posted Using LeoFinance Beta
I doubt these centralized exchanges can ever get out of the control and whims of the government if push came to shove
The governments of the world are woefully ill-equipped to deal with the digital realm. There is no way they are going to lasso all that is taking place.
We have enough developers who value privacy, security and freedom who are going to code around whatever the governments set down.
As I often mention, it is like the Eurodollar system. This is something that is now more than 70 years old and operates outside any government or even central bank.
To be effective, we need to get payment systems going like with HBD.
Posted Using LeoFinance Beta
Once payment systems are in place, it's going to be a full scale revolution.
While I completely agree that his latest development in anti-crypto legislation is a problem, I fail to see how the US expects to actually enforce this nonsense in the longterm. Take Binance, for example, which had to make a version unique to the US and still blacklists certain states due to nonsense policies in those areas.
What is the US crypto-hodlers response? Walk around it. Use some other wallet or service that doesn't have these limitations or, simply put, doesn't care about them.
I'm a law abiding citizen, but this battle seems like the age-old losing battle of DRM vs Piracy but on a massive scale where Crypto is years ahead of the dated regulation being rushed into place.
!1UP
You're spot on about it mate. They keep trying to implement legacy tactics on crypto and they'll continue failing.
You have received a 1UP from @entrepidus!
@leo-curator, @ctp-curator, @neoxag-curator, @pal-curator, @pob-curator, @vyb-curator, @bee-curatorAnd look, they brought !PIZZA 🍕
Delegate your tribe tokens to our Cartel curation accounts and earn daily rewards. Join the family on Discord.