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I'm shocked how naive the DeFi industry was to think they could get away with little to no regulation. Tech doesn't rule the world. Old power structures are st

I'm shocked how naive the DeFi industry was to think they could get away with little to no regulation. Tech doesn't rule the world. Old power structures are still in place.

ushakov 5y ago
DeFi was built with censorship resistance in mind EU can come up with new laws all day every day, but considering the technical detail, these laws will be impossible to enforce
- stavros 5y ago
  The laws will be trivial to enforce. Expect to be unable to exchange cryptocurrency (that you own in your wallet) to fiat, which will almost kill the cryptocurrency market for anything other than speculation. I expect a parallel, dark economy will still be around, where people transact with cryptocurrency and can only exchange it for cash.
  - betwixthewires 5y ago
    It will kill the speculative market. Their native use cases in their own systems will still be 100% viable. If someone uses for example bitcoin cash or miner as money as they're intended nobody can do a thing about it. For those people uninterested in off ramps this means little.
    - stavros 5y ago
      I use it as money as it's intended, to get paid for my work. The supermarket doesn't accept BTC, does that still make it 100% viable? You better believe I'm going to be paid in USD from now on.
      - betwixthewires 5y ago
        For those people who use it, yes.
- BitwiseFool 5y ago
  I'm not so sure. Unless an EU citizen wants to risk submitting a false tax return under penalty of perjury, any DeFi money that results in a profit has to be reported elsewhere. Your bank will probably also start to ask questions if you do enough DeFi activity. You can probably get away with small transactions, but is it honestly worth the risk? I don't see this law as impossible to enforce, but rather, difficult to enforce. The government will still try, and most likely succeed in catching several institutions that don't comply. Governments don't actually need thorough enforcement for laws to be effective. Being easily capable of breaking a law does not mean that the law is unenforceable.
programmarchy 5y ago
Old power structures get replaced by new tech; politics is downstream from technology. Banning exchanges may actually accelerate the transition to decentralized finance.

I'm shocked how naive the DeFi industry was to think they could get away with little to no regulation. Tech doesn't rule the world. Old power structures are still in place.

ushakov 5y ago

DeFi was built with censorship resistance in mind EU can come up with new laws all day every day, but considering the technical detail, these laws will be impossible to enforce

stavros 5y ago
The laws will be trivial to enforce. Expect to be unable to exchange cryptocurrency (that you own in your wallet) to fiat, which will almost kill the cryptocurrency market for anything other than speculation. I expect a parallel, dark economy will still be around, where people transact with cryptocurrency and can only exchange it for cash.
- betwixthewires 5y ago
  It will kill the speculative market. Their native use cases in their own systems will still be 100% viable. If someone uses for example bitcoin cash or miner as money as they're intended nobody can do a thing about it. For those people uninterested in off ramps this means little.
  - stavros 5y ago
    I use it as money as it's intended, to get paid for my work. The supermarket doesn't accept BTC, does that still make it 100% viable? You better believe I'm going to be paid in USD from now on.
    - betwixthewires 5y ago
      For those people who use it, yes.
BitwiseFool 5y ago
I'm not so sure. Unless an EU citizen wants to risk submitting a false tax return under penalty of perjury, any DeFi money that results in a profit has to be reported elsewhere. Your bank will probably also start to ask questions if you do enough DeFi activity. You can probably get away with small transactions, but is it honestly worth the risk? I don't see this law as impossible to enforce, but rather, difficult to enforce. The government will still try, and most likely succeed in catching several institutions that don't comply. Governments don't actually need thorough enforcement for laws to be effective. Being easily capable of breaking a law does not mean that the law is unenforceable.

programmarchy 5y ago

Old power structures get replaced by new tech; politics is downstream from technology. Banning exchanges may actually accelerate the transition to decentralized finance.