Regulators are losing their mind over crypto.
We all knew it would happen, but things are escalating quickly. The Biden administration claims they will issue an executive order based on "national security" involving the matter. I'm sure it has nothing to do with this $3.6B worth of Bitcoin they just gained control of and are trying to pin it on some random cringe couple: One of which who's name is literally "Lichtenstein". Hm yes, a bag of phones labeled, "burner phones", this is all very believable and real.
https://cointelegraph.com/news/russian-gov-t-and-central-bank-agree-to-treat-bitcoin-as-currency
It is truly insane how hard the governments are scrambling right now.
Russia just announced it will classify Bitcoin as, "an analogue of currencies". Really? 'Digital' currency is now classified as 'analogue' currency? You can't make this shit up. Full on 1984 status, but what does that even mean? Of course in this context analogue means "analogous" and not old tech.
Cryptocurrencies would function in the legal industry only if they have complete identification through the banking system or licensed intermediaries.
Uh huh, sure, that's going to work.
Again we see these nations trying to control crypto and bend crypto to their will. This is hilarious, because the only thing that gives crypto any value is the fact that nation-states can't regulate it. The more they tighten their grip, the more star-systems will slip though their fingers.
The report also highlights that cryptocurrency transactions of more than 600,000 rubles (roughly $8,000) would have to be declared; otherwise, it could be considered a criminal act. Those who illegally accept cryptocurrencies as payment will incur fines.
Again, when everyone is trading crypto for everything and the networks themselves allow you to create accounts without issuing KYC, it is laughable that governments would try to slap KYC on top of it like trying to repair a leaking wet ship with duct tape. Cat is out of the bag; not going to work long term. All these short term strategies will inevitably fail spectacularly. Get ready for the baby-rage when the regulators realize they have no teeth.
A few days after the central bank’s call for a ban, Ivan Chebeskov, a ministry official, said that the government should regulate crypto rather than prohibiting it entirely. He warned that a total ban might result in Russia falling behind in technology.
This: Exactly.
Crypto is brimming with so so so much exponential value that it can not be banned. It would be like banning a 3D-printer that prints out spaceships because people might use the 3D-printer to feed the homeless. You don't want homeless people in your town, do you? The logic is consistently ridiculous across the board. These people have completely lost touch with reality.
Are we in for some harsh nuclear winters? Sure. Will crypto get wrecked because regulators decided to crack down with their full power? Probably. But again, theses are all short term scenarios. In the long term crypto is going to break free of all these constraints and rampage the entire world as we know it. Our reality will be completely different in 20 years. I guarantee it. Exponential evolution is completely unpredictable and violently unforgiving. What doesn't bend: breaks. And the institutions of today's world do not bend.
Before Senate, CFTC cites crypto as basis for biggest expansion since Dodd-Frank
The Commodity Futures Trading Commission wants to bring spot markets for cryptocurrencies into its regulatory regime, in what would potentially be its biggest expansion since the 2010 Dodd-Frank legislation.
I don't necessarily disagree with this sentiment.
I think it's bad that people like Elon Musk can manipulate Doge with a Tweet and then profit off that manipulation without any fear of repercussion. In theory, if regulators actually did what they were designed to do, this is a good idea. The problem with this idea is that crypto is already breaking away from it with decentralized exchanges that literally can't be regulated (shoutout to RUNE and Thorchain).
However, Behnam lamented the lack of information available to the CFTC. “In essence, this is an unregulated market,” he said to Ag Committee Chairwoman Debbie Stabenow (D-MI). “There is so much we are not able to see because of this limited authority.”
lol?
Do regulators think that this is going to change? Like if the government demands crypto networks to bend the knee to regulations that they are going to do it? Again, laughable and totally out of touch.
Senator Amy Klobuchar (D-MN) drove the point home further, asking “Are there parallels with Dodd-Frank?”
“It’s a perfect example and a perfect analogy,” said Behnam.
Okay, you lost me...
Comparing a thriving expanding unregulatable crypto market with sub-prime loans and the Great Recession is "The perfect example and perfect analogy?" Are you high? That's the most insane thing one can say on a technical level in this regard. Crypto is nothing like we've ever seen before, and it's not going to play by the rules because the CFTC said so. That much is obvious.
Once again, statements like this show the ultimate disconnect and outright ignorance when it comes to this emergent and disruptive technology. They don't even realize they are being disrupted even when they already seem to know it's an unregulated market. "Well if we could just regulate it then it wouldn't disrupt us!" LOL, what? Get ready for the pain, CFTC: you don't understand what's happening here, dinosaur.
Take a nice long dirt-nap, CFTC.
At the end of the day crypto is designed to regulate itself.
These regulators are a dying breed and are being rightfully automated away.
So long, good riddance.
Conclusion
Russia wants to control crypto. CFTC wants to control crypto. India wants to control crypto. China wants to control crypto. America wants to control crypto. SEC wants to control crypto. Central banks want to control crypto.
Too bad, so sad.
They can't control crypto, and they will lash out like the children they are, and try to flip the board on everyone.
Luckily the board we built is an uncensorable distributed ledger. Flip the board all you want we have all the information required to play this game.
At the end of the day crypto is impossible to control, so the authority wants to ban it, but crypto has too much value so then it can't be banned. The establishment will continue going in circles and chasing their tails because they don't understand what is happening here. Automation is coming for their jobs too, and they don't understand how that is possible, so they deny reality itself and continue to employ circular logic. It's quite the spectacle to behold.
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