End Game Regulation: The US Government will eventually demand and require having a license to use cryptocurrency
End Game Prediction - A license to use crypto
With cryptocurrencies like Monero and others, I predict 2018 will be the year of regulation. We are beginning to see it now with ICOs but what is the end game regulation?
If we look at how the government controls guns by requiring a license, or anything else dangerous, we will see that sooner or later there is going to be a crypto license. This is going to happen because sooner or later someone is going to abuse the empowerment that Monero and other cryptocurrencies give and this abuse of power will be held up by politicians to push to ban cryptocurrency entirely. As public sentiment shifts toward more conservative views on crypto, I predict the compromise position from the government will be to demand all who hold crypto to get a license and become a licensed cryptocurrency user.
The license strategy separates the honest from dishonest actors in the cryptospace
Large honest holders may choose to renounce citizenship and live somewhere else. Crypto holders who do not wish to leave the United States and who wish to be seen as honest will be coerced into obtaining and maintaining a license. Just as lawyers have a license to practice law, and doctors have a license to practice medicine, crypto users will be pressured and eventually required to have a license. Those who choose not to get a license and who do not renounce US citizenship will likely be targeted by the government with the full force of the law.
On one hand with the license, there at least will be the option for licensed users to keep their privacy. Monero will not be outright banned. Technology will not be suppressed directly and people can if they are rich enough simply renounce US Citizenship and go where they are treated best. On the other hand people who aren't so rich, who aren't able to just leave, but who don't want to get and maintain a license, are going to have problems.
As we know with gun licenses, it will quickly become a way to control the spread of crypto. Users of crypto who for example have been convicted of domestic violence or violent crimes, might find they cannot get a license at all. And users who get into trouble might find their license revoked.
@dana-edwards - Very incisive and painful vision Dana - but very realistic and practical. I agree that the governments will definitely try the tried and trusted 'licensing' method of control. This is the fate of anything that enables people to exercise free choice . For example - there were countries where even a simple Radio required as license!
The license gives a sense of control to governments but does it really stop abuse? Did control of guns stop or reduce usage of guns by bad elements? I doubt.
I think the real potential of crypto can be leveraged by governments by embracing the concept, making it part of the normal governance process and letting the free economy principles decide which currency becomes the dominant one.
Thanks. As usual - a thought provoking article. Upvoted full through Steemfollower.
Regards,
@vm2904
Wonderful post Dana . Very informative. Loved reading. Regards Nainaz.
#thealliance
m07oN I4b3
Let them come and take them, indeed!
While regulation may enter the crypto space, a license to use money has yet to exist in US history, therefore it would be unprecidented.
Currencies like Monero are specifically designed to subvert attempts to know who uses it, so:
Expect to see things like laws limiting purchases, deposits or requiring exchanges to file tax info on their users USD purchases.
Fortunately, the Federal Government really can only regulate the fiat gateways that exist inside the United States.
Thank you for your continued contributions @dana-edwards and may 2018 continue to bring you Steemit success!
-The Beached Whale-
Editor in Chief - The Anderson Report
I am working to build an exchange here in Canada that will be have nodes located on Indian Reserves. There are all sorts of legal jurisdictional issues at play to make it a worthwhile venture.
Ill follow that . upvote it to.
@somena,
Please publish on this topic as you make progress, and Godspeed. I'm following you now.
Years ago, in the U.S., a group of people tried to establish a bank within an Indian nation jurisdiction. The fedgov simply moved in and destroyed it, and pretended to "help" all of us poor investors who had been "defrauded" by the founding group.
😄😇😄
We got in touch with a company that offers a turn-key approach -- but they require $300,000 a year. We are thinking that since we are the largest meetup group involved with Crypto in Victoria that we might start the exchange on a P2P system and do arbitrage with the bigger exchanges. But we are still exploring. I am networking right now with the traditional hereditary leaders of various First Nations to see how much interest there is in participating. So I will keep people posted as we go. :)
Thank you, @somena, for your response. I wish you the best of success.
Have you discussed this with @stan here on Steemit? I have a passing acquaintance with him. I may be talking out of school, but somehow I have a feeling that he may be able to offer valuable advice and possibly even some assistance.
Please do check out @stan's blog, where I think you'll find some very interesting material.
Brilliant idea.
If you look into it - You can read up on Native Law in Canada and discover that from a jurisdictional standpoint - Indian Reserves are Federal Jurisdiction. There are no Federal Laws that deal with commodities or exchanges as of yet... and even if they do -- There is a Charter of Rights and Freedoms argument to be made... See Indians from my community have a tens of thousands of year cultural history of gaming, and potlatch (our banking system) - Under the Charter, we have the right to excercise the practices that allow us to keep our culture alive. Under case law, we are allowed to practice such cultural activites in modern form.. (as an example, our right to fish does not keep us from using Trolling Boats and Nets... instead of weirs and spears) -- We don't need to hunt deer with Bows and Arrows... We can use guns.... Well... we had an exchange of currencies in our potlatch system... we also played a gambling game called Sla-hall... where people would wager years worths of their earnings at a game.... So we make the case that we have the right to engage in these practices... ALSO -- the United Nations Declaration on the Rights of Indigenous Peoples (which Canada and the Province of BC has accepted) declares that we have the right to self-determination.... Sooooo what does this all mean... IN THE VERY LEAST... if the STate challenges our right to do this -- we can look forward to a 20 year court battle before it's settled. In the meantime unless there is some compelling harm, the property of an indian can not be seized from an indian reseve.... That's part of our thinking on this.
need help!? sounds like an awesome project!
Governments can't ignore the fact that crypto's user are rising by each second pass, so now they have to legitmate it and try to get part of money from this decentralised platforms in name of regulisation and taxes.
Upvoted and commented via steemfollower
License... "Lie Sense"
all it is is Govrmnt stripping away free choice and selling it back to us. I am leaving this country.
wonderful post my dear dana really
I think that regulations will also occur due to the increasing abuse of the use of cryptocurrencies for illegal transactions in the deep web. Currencies such as monero and verge will be on the blacklist because they are the favorites, used by the delucuentas so that they can not be traced.
2018 will be full of surprises , Thanks for sharing @dana-edwards looking forward for more useful articles by you :)
Best,
@vnyrox
Check out the new tax reform laws is the USSA. Fiat to crypto is taxable, crypto to fiat is taxable, crypto to crypto is taxable. Bad news for US prisoners who use KYC exchanges like coinbase and bittrex.