When we talk about cryptocurrencies, we see how every day that passes government laws arise to try to limit those who manage and use them.
The problem with the laws
To a certain extent, it is truly normal that governments and power groups want to regulate cryptocurrencies; since creating a regulatory framework would ensure them enormous income from taxes.
What is not so normal is that they want to go beyond the limits by placing laws that increasingly suffocate those of us who believe in cryptocurrencies and use them. Nor is it normal that these laws go against what cryptocurrencies are in essence.
And much less normal is that those of us who use cryptocurrencies are allowing ourselves to be invaded by fear, fear of governments, and we are giving way to coercion, when we know very well that the very nature of cryptocurrencies (the one that attracted to us to use them in first place), is truly in danger of disappearing.
Specific problems
To be more specific, I am talking today about a topic that I have already talked about in the past. The fact that governments are forcing exchanges to implement KYC (Know Your Customer) processes to know their users is truly outrageous, and something that goes against the essence and nature of cryptocurrencies.
But as if the above were not enough, now some governments are punishing transactions with cryptocurrencies with excessively high taxes. As is the case of the 30% Hindu tax for the use of cryptocurrencies; and this, logically, removes any incentive to use cryptocurrencies and is technically a de facto ban, because although it is not official, very few people will be left wanting to use cryptocurrencies in India, given such a level of abuse.
If you want to read more about this news, take a look at >
Indian crypto exchanges’ volume plunges as 30% tax goes into effect
The proof of this that I am mentioning is that due to this, the usage volume of cryptocurrency exchanges in India has recently plummeted overwhelmingly.
And if the two previously mentioned problems were not enough (ie, the KYC problem and the excessive Tax problem); now governments (and specifically the US), through the SEC, are launching clearly unconstitutional redefinitions of what is or can be qualified as an exchange.
If you want to read more about this news, take a look at >
Coin Center takes aim at ‘unconstitutional’ SEC redefinition of an 'exchange'
The fundamental problem with this redefinition is that it would force even decentralized Exchanges to be registered at the government level, in order to then require that they also implement KYC processes, and to check everything they do down to the smallest detail.
Explanation of the facts
Now, the problem is that because the world's major centralized exchanges are heavily regulated and controlled by governments, the only way for those of us who don't accept such a level of abuse or government control to trade cryptocurrencies is through decentralized exchanges.
And the way things are currently going, even those decentralized exchanges are in danger of disappearing, or being overwhelmingly coerced by governments into complying with absurd regulations.
Because it is truly absurd that governments are treating cryptocurrencies as if they were fiat money, when we are all clear that cryptocurrencies are a means of value outside the traditional financial system.
Be careful, I am not talking here about carrying out any illegal action with our cryptographic funds, because that is not what it is about; the point is that governments are trying to make the crypto world fully integrate with the mainstream financial world.
The danger is that, just like conventional money, after that happens, governments will know exactly what we do and don't do with our money; we will be limited and controlled in many more ways than anyone is currently able to explain and this is truly serious.
But as I always say, the biggest problem is not that governments are doing all these things (and many more) to control those of us who use cryptocurrencies; the worst problem of all is that those of us who use cryptocurrencies are submitting to such measures without putting up any resistance. The problem is that the exchanges are allowing themselves to be forced into such things, the problem is that we are all losing the north of what cryptocurrencies really are and their function.
We must remember that Bitcoin, for example, was not created to be an exact copy of fiat money, but to show the deficiencies of fiat money and the global financial system. Bitcoin was born as an alternative, a new and better option, to conventional money and the traditional financial system.
With this, what I mean is that we must remember that both Bitcoin and cryptocurrencies in general, are of a disruptive nature; and that its greatest attractions are its decentralized nature, security, and anonymity; and all these things (especially anonymity) is threatened by the actions of governments worldwide when they seek to exceed the control measures in this regard.
But all these government abuses happen out of fear (of us cryptocurrency users), and because we forget the very nature of cryptocurrencies. We forget that cryptocurrencies did not ask for permission to exist; and they do not need permission from any government to exist; we forget that cryptocurrencies do not exist thanks to the permission of governments, but in spite of governments; and we also forget that cryptocurrencies are not there to make life easier for governments, but for us, the citizens of the world who are constantly outraged by government mismanagement and abuse.
The half measures
When we forget all these things, that's when half measures arise, and I really tell you that half measures do a lot of damage in any field of action, and especially in the crypto field.
Although it seems somewhat radical, it simply is not; because in this case things are white or they are black. Either we know, believe and defend the true intrinsic nature of what cryptocurrencies are, or we don't do it at all and better limit ourselves to just using the fiat money of a lifetime.
But what we cannot do is go through life pretending that cryptocurrencies are something that they are not; that is, an extension of what traditional money is. I clarify, cryptocurrencies are not an extension of money; they are more important and better than fiat money in all respects. Cryptocurrencies are superior to fiat money in everything; and therefore, we cannot let governments and power groups reduce them to a mere cheap copy of what fiat money is.
But the most important question which I ask myself before all the facts mentioned, is... How will all this happen? That is, if the world scene continues as it goes (with governments imposing more and more legal restrictions and taxes on cryptocurrencies); How can we prevent all this from happening?
Well, unless exchanges and users begin to understand all of the above, and begin to understand and defend the very nature of cryptocurrencies; There will be little we can do so that cryptocurrencies do not disappear in the future, or become an extension or cheap copy of fiat money.
Resistance is the key and governments know it, so what we must constantly remember is that half measures do too much damage in the crypto landscape, and that unless all of us who use cryptocurrencies unite for the same goals of endurance; it will be very difficult to prevent the extinction of cryptocurrencies from the world scene in the future. Let's never forget this.
And what do you think about the topic discussed?