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RE: BitShares-Based SEC-Compliant Tokens & Exchange
"of all the global exchanges perhaps only Coinbase would not be shut down if/when the SEC decides to act"
And how can the SEC presume global jurisdiction? How can John predict every country will bow down to the SEC's demands?
Ever heard of FATCA? Ever wonder why every bank in the world pretty much pays attention to US regulations? You can expect the SEC to go to every monetary authority in the world (FINMA, Monetary Authority of Singapore, SEC of Hong Kong, etc.) and get them on board for the same rules. They already comply with all the KYC/AML rules for the most part, it is just extending the policies to Token Generating Events.
Now, those jurisdictions that don't fall in line will risk the same thing that happened to Switzerland to open up its banking system to FATCA (threaten huge fines on Swiss banks and threaten to pull their US licenses). Or if it is a smaller "offshore" jurisdiction it will be branded as money laundering, tax evasion, and then they will fall in line because the global financial system will avoid them if they don't.
Governments are going to embrace blockchain full swing for everything from currency to securities to derivatives to asset tracking. But the caveat is they will also tax everything and be very accurate because of the ability to track the transactions on the ledger! Get ready to fall in line with the regulations or get squashed, the days of cowboy trading in cryptocurrency are numbering near single digits now. Don't be a deer in the headlights!
I'm aware of FATCA. It's my understanding SEC uses SWIFT as leverage over foreign banks, and threatens to restrict usage if not compliant.
Cryptocurrencies obviate the established monetary transfer system. Not to mention exchanges don't have to deal with banks to begin with. The only exchanges I could see getting targeted are those exchanging fiat currency to crypto.
Also, how could any government even think of moving on decentralized exchanges? Target the coders?
Here I will give you an example of how governments work, and you can tell me if I am wrong. I will use the example of an infamous illegal substance which comes from a natural plant, which is banned throughout most of the modern world called cocaine.
In China there is a a famous idiom "Kill the chicken to scare the monkey", which is what governments do all the time with selective enforcement.
Replace the word "cocaine" with "token which is a security" in the above example, and you have exactly what will happen to a select few once regulatory frameworks are put into place. Some will get away, some will be fined, some will lose everything and go to jail. Funding drugs, crime, terrorism and money laundering will be the chants repeated by regulators, whether true or not. This playbook has been used since the beginning of organized society, "for the children" and "we need to protect you from yourself".
In reality there are lobbyists with big dollars headed to regulator revolving doors to get this unregulated space under regulation and on a global scale. Don't believe me? Why is opium illegal yet pharmaceutical opioid abuse is a major problem in America? Big pharma lobbyists or "for the children", you tell me.
I couldn't have said it better. In any case, Anarchy is not ideal.
I agree with what you're saying in how the US government can and will use intimidation and will act on, or coerce other governments to act on foreign companies and individuals. However, if even one jurisdiction refuses SEC demands, which is increasingly likely as BRICS nations pivot from SWIFT, and allows an unregulated exchange, what now? WikiLeaks is still kicking and Julian Assange isn't in jail (supposedly), and we all know to what ends the US has gone to plug those leaks.
My other point also remains, how can a government, or coalition of governments take on a decentralized system without it being an exercise in futility?
The proverbial monkeys are still torrenting en masse, despite the killing of and threats to kill more proverbial chickens. Given .gov success at taking down torrent sites, ahem ThePirateBay, and prevention of peer to peer file sharing, what success will they have at taking down decentralized cryptocurrency exchanges?
Your comparison to Torrents is interesting. But keep in mind Torrents only threaten the existing model of selling content that the entertainment industry enjoys. Torrent use does not threaten the very thing that gives governments power, which is the monopoly they have in the issuance of FIAT. Do you really think they will sit this one out on the sidelines?
I don't think they'll sit back, I just don't see how they can successfully reign in cryptocurrency exchange regulation.
We may be able to change their policy by affecting public opinion throw educating campaigns , espicially as we have stable tokens (like bitusd ) that cant be a bubble
We also can buy policies by supporting politicians who are pro innovation
Right. These lawmen don't have jurisdiction and even if they imagined they did, their power is illegitimate. It's nice that BTS offer tools for people who want to comply, but that is honestly the LAST thing I want to see from a crypto and would likely sell if off if given the chance to vote against eternal war and endless boots stomping on human faces.