Bitcoin continues to rally even after a slight pullback this week when announcements broke that Mr munchkin, I mean Mnuchin was looking at drafting a new law that would force crypto users to adhere to KYC when moving their coins off exchanges to self-hosted wallets.
This news naturally freaked out some people who still believe int eh power of government and sold off their coins sharpishly for strong hands like myself to pick u, thanks for the Black Friday special kids.
The CEO of Coinbase, Brian Armstrong, came out against the news on Twitter and alleged proposal from the U.S. Department of Treasury, “could be an existential threat to Bitcoin.” Granted his running a centralised exchange and rules like this would seriously dent his customer base, but he has a point.
You can knock us, but never knock us out
As someone who cares about where this space is going and not to want to cut it off at the knees, I always moan and groan when I see new laws or taxes being shifted onto cryptocurrency. I don't even see why they need to get involved when it's the trading of private digital assets between two people, but okay that's just me.
I think regulation in this space is only going to slow things down in the short term. We'll still get where we need to go; regardless of governments.
Some will try to make peace with it while others are going to try and fight it every step of the way and its a great test to see how robust crypto really is and if it can withstand governments, then nothing can stand in its way of becoming a worldwide method of transacting.
Regulation pushes more decentralisation
The way I see it is regulation is only applicable to exchanges where there is a centralised business behind it, where they custody tokens and manage the arbitrage between currencies and skim a profit. These exchanges will have to adhere to regulations such as these and effectively lose customers.
Whereas decentralised exchanges and peer to peer networks will not have this problem. This means customers that do not want to participate in KYC can use decentralised tools like Bisq, Kyber and Uniswap, and people who are happy to give their information away would use services like Coinbase and Binance.
How free is your free market
Having more options allows us to cater to different peoples needs and risk tolerance and to me, that's an overall good thing. Personally, I would opt for the decentralised options where I pay a little bit extra to maintain privacy, but that's okay with me, it seems worth the fees.
I think regulation will show us which services are indeed the most decentralised and which aren't and it will become more apparent over time.
You can then use a combination of the tools or migrate from centralised to decentralised and vice versa as meander your way through the crypto market.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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