CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming • Hacker News Board

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#11

Post by tinus_hn » Mon, Apr 12, 2021, 5:51 PM UTC

toomuchtodo wrote: post #6

NaturalPhallacy wrote: post #3

How? How do you 'crack down' on a currency that doesn't require any existing state or bank controlled apparatus to operate? Other than the exchange point, which private exchanges for cash can circumvent, how do you crack down on what is essentially math conducted via computers that everyone has access to? Neither the article, nor the linked one from December say.

You (government currency regulators) make it illegal to convert fiat to crypto, and then monitor crypto ledgers for that last bit of folks who still attempt to use crypto. When exchanges break the law, you ship the folks who own the exchange to jail [1]. Crypto folks think they're the former cartoon panel, when it's really the latter how nation state enforcement works [2]. Governments crack down on money laundering w…

If only there were an international, barely regulated network that allows people in one country to interact with people in another.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#12

Post by rawtxapp » Mon, Apr 12, 2021, 5:51 PM UTC

NaturalPhallacy wrote: post #3

How? How do you 'crack down' on a currency that doesn't require any existing state or bank controlled apparatus to operate? Other than the exchange point, which private exchanges for cash can circumvent, how do you crack down on what is essentially math conducted via computers that everyone has access to? Neither the article, nor the linked one from December say.

You block on/off ramps and lose a lot of important information on these transactions, the people involved and tax revenue, seems like a losing proposition, but definitely doable. You can't stop people from running a software on their computer short of shutting down the whole internet, even then, there are satellites with the blockchain data now, so it'd be really hard.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#13

Post by kasperni » Mon, Apr 12, 2021, 5:52 PM UTC

With all of the effort spend worldwide on money laundering, terrorist financing, and transfer of funds regulations. I find it very hard to believe that someone won't come after cryptocurrencies at some point. None of these regulations make any sense if you can just wire the money through crypto instead.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#14

Post by [deleted] » Mon, Apr 12, 2021, 5:52 PM UTC

tinus_hn wrote: post #11

toomuchtodo wrote: post #6

Earlier quoted context omitted.

You (government currency regulators) make it illegal to convert fiat to crypto, and then monitor crypto ledgers for that last bit of folks who still attempt to use crypto. When exchanges break the law, you ship the folks who own the exchange to jail [1]. Crypto folks think they're the former cartoon panel, when it's really the latter how nation state enforcement works [2]. Governments crack down on money laundering w…

If only there were an international, barely regulated network that allows people in one country to interact with people in another.

[deleted]

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#15

Post by nrmitchi » Mon, Apr 12, 2021, 5:54 PM UTC

NaturalPhallacy wrote: post #3

How? How do you 'crack down' on a currency that doesn't require any existing state or bank controlled apparatus to operate? Other than the exchange point, which private exchanges for cash can circumvent, how do you crack down on what is essentially math conducted via computers that everyone has access to? Neither the article, nor the linked one from December say.

> Other than the exchange point, which private exchanges for cash can circumvent

"private exchanges for cash" (that really would have to happen in person) will never, ever, replace the scale at which an online exchange that can deposit money straight to a bank account will.

The goal of a "crackdown" is never to eliminate something 100% (because as you noted, that is impossible).

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#16

Post by BitwiseFool » Mon, Apr 12, 2021, 5:55 PM UTC

NaturalPhallacy wrote: post #3

How? How do you 'crack down' on a currency that doesn't require any existing state or bank controlled apparatus to operate? Other than the exchange point, which private exchanges for cash can circumvent, how do you crack down on what is essentially math conducted via computers that everyone has access to? Neither the article, nor the linked one from December say.

Consider that the government doesn't need to attack cryptocurrencies at the source because they already have full control over their own citizenry. There are plenty of things the government could do to coerce citizen compliance. Yes, "illicit" activity will still happen but if the goal was to harshly crackdown on things like Bitcoin they will have succeeded.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#17

Post by chadash » Mon, Apr 12, 2021, 5:55 PM UTC

You can argue that cash is also used for a lot of illegal activity and you would be correct, but that misses an important point, which is that cash has been with us since our country's founding and from a political point of view it would be nearly impossible to ban it, even if doing so would be a sensible policy. Cryptocurrency is still in the infant stages and banning it wouldn't entail nearly as much of a backlash.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#18

Post by pmurt7 » Mon, Apr 12, 2021, 5:55 PM UTC

kasperni wrote: post #13

With all of the effort spend worldwide on money laundering, terrorist financing, and transfer of funds regulations. I find it very hard to believe that someone won't come after cryptocurrencies at some point. None of these regulations make any sense if you can just wire the money through crypto instead.

Do you really think that terror organizations like Isis use Bitcoin to buy weapons? No, they use goold old USD.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#19

Post by Consultant32452 » Mon, Apr 12, 2021, 5:55 PM UTC

liquidise wrote: post #4

> U.S. Treasury Secretary Janet Yellen and other officials have warned about the use of cryptocurrencies for illicit transactions. Wait until you hear about cash. More seriously (and hopefully less reductionist) i feel nations who embrace cryptocurrencies early will see mixed results as the landscape matures. I am more confident that nations which turn their back on it, or shut it out completely, will see a loss of o…

The people in power are balancing the business opportunities against their own loss of control over the issuance of currency and some financial market functionalities (with smart contracts, etc.). I think it's a given they will always choose their own power over the business opportunities of others.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#20

Post by maerF0x0 » Mon, Apr 12, 2021, 5:56 PM UTC

liquidise wrote: post #4

> U.S. Treasury Secretary Janet Yellen and other officials have warned about the use of cryptocurrencies for illicit transactions. Wait until you hear about cash. More seriously (and hopefully less reductionist) i feel nations who embrace cryptocurrencies early will see mixed results as the landscape matures. I am more confident that nations which turn their back on it, or shut it out completely, will see a loss of o…

> Wait until you hear about cash.

anecdote time: I once travelled to Vietnam for a vacation, people in vietnam prefer $100 bills because they're easier to use for hiding wealth, transporting cross border, and other slightly less than legal reasons. Additionally it's the preferred currency of criminals in the country too (so I heard). They will even pay higher exchange rates for ones in better condition or with more anti-counterfeiting features

So yeah, USD is used for a lot of crime globally.

EDIT: changed "anti-moneylaundering" to "anti-counterfeiting" by suggestion