Dear Cryptocurrency Investors…and those concerned about the future of regulation,
The bad bitcoin news continues and most of us do not want to hear it, but we need to.
We need to think about what they will do next. Before the dominoes begin to fall. Currently, cryptocurrency appears to be reacting.
It’s time to be proactive or at least think ahead.
What’s the bad thing about ICO’s being regulated?
The next bend in the road.
It’s the first good way in. A way for governments to begin their crawl into the cryptosphere using the alleged reason that they want to protect you – to save you money. Because, you know – if they leave it up to you – you’ll screw it up and some fools will get ripped off.
A Broad Stroke…
So, instead of going after the thieves, the regulators use a broad brush. They paint everyone red. It’s then your job, as a cryptocurrency developer, to prove your innocence. You are automatically guilty from the start. Hey, it’s the way of the money-changers.
That’s how regulations work. Not laws, which help to convict the bad guys, but regulations to tell the good guys how they will run their businesses. From how many toilets a grocery store must have to the slope of the wheel chair ramps at Wally World.
Can you imagine the crypto-regulations? How many coins a crypto might have. How much they may charge. Where they can sell. How they will register and identify all users. How the company must be formed. What records it must keep.
I could go on.
The point? Innovation would suffer. Coins, good and bad, would die. The big boys on the block would file all the necessary paper work and press on, only to become embroiled in more legal issues. Bitcoin would need to register. The one saving grace – that bitcoin is not a company or a corporation – would be tossed in the crapper.
You’d have the same choice as before. Which company should I invest in? Which controlled, fiat dollar financed, regulatory burdened, bankster run, non-private new-crypto should I choose?
How about none of the above, if crypto gets ramrodded?
Now, you might say that ICO’s, which in the early days of purist-crypto (that never really existed), are no different than premining. And I’d have to agree. But if you accept an ICO, then no harm no foul and…let the best seed money bear fruit. Not much different than initial stock offerings that go belly up or soar.
No longer. The regulators, in their quest to ensure the permanence of centralized government monetary systems have no choice but to secure the current systems via tight controls of the supply of money; and that means anything that is even remotely connected to money. And that means…you and me.
Cryptocurrency is more closely related to stocks than money, some will argue, but make no mistake, the ICO warning is a shot over the bow, again.
So, what is next, logically?
Ignoring for the moment, steps being taken by various governments to fold crypto-regulation into the murky half-laws dealing with KYC and money laundering issues, how will the government gangs launch their next foray?
Here’s an idea.
When the laws pass that will require all Americans, Europeans, Asians etc., to report their crypto-holdings, that will simply be the opening bell. The “hey, we’ve just legitimized your bubble money and now you must let us ruin it” moment.
Next, after regulating who may or may not create a cryptocurrency, via an ICO, they (our blessed regulators who invent and create nothing) will, in the most obvious of blunders, conclude that anyone seeking to initiate a blockchain based crypto or similar, must first seek approval from a bureaucrat, who is necessarily, holding keys to the jail cells. It will be the Pre-ICO rules. Comply or bye-bye. Good guys must be throttled with numerous and confusing righteous regulations, above and beyond the laws, to be sure.
Now that is not all.
How else, given their penchant for protecting their conscriptual citizenry, will our illustrious innovators of graft continue to serve our interests?
I say they will go full retroactive. After all, it’s the best way to collect taxes. Make them guilty, yesterday.
Henceforth, all cryptos having existed prior to now, and which are not currently in compliance with the laws heretofore dictated, must comply immediately. All persons having control or interest in the core development of any and all cryptocurrencies, must come forward to [fill in the blank] and file all appropriate applications, submit all required fees, undergo a background check, and more or less, be told exactly how said currencies will be sold, dispensed or used.
The above, is of course nonsense or is it?
Keep an eye out.
Just wait for it. Maybe in a year?
I’d be nervous if I was a “dev.”