4 ms·

Which one is it, pick one ffs ... crypto is unreglated or crypto is regulated? Why does everyone bang on about how it is not trad finance and it shouldnt be re

Which one is it, pick one ffs ... crypto is unreglated or crypto is regulated? Why does everyone bang on about how it is not trad finance and it shouldnt be regulated, tell you all about how they are genius tier traders who make tons of money BUT its the governments fault they lost it all for not regulating their unregulated financial "investments" hard enough.

boppo1 4y ago
I think that's a case-by-case thing and we're finding out the answers to it now. I had no stake in FTX and keep almost all of my rather meager crypto in paper wallets. My point here isn't about whether or not I think crypto should be regulated. My point is if crypto is going to be regulated, shouldn't regulators be able to sniff out a bad actor? Imagine if Madoff had started working with the SEC to help consult on policy. Wouldn't people have been upset with the SEC when he went bust since he was rubbing shoulders with them?
- kasey_junk 4y ago
  So about Madoff: https://en.wikipedia.org/wiki/Bernie_Madoff#Government_access https://en.wikipedia.org/wiki/Bernie_Madoff#Government_acces... He was rubbing shoulders with many of the financial regulators including the SEC and people were pretty upset about it.
  - tanseydavid 4y ago
    Madoff was "Chairman of the NASDAQ" in 1990, 1991 and 1993. You might expect him to have many contacts with SEC personnel during this period. Building his image along the way.
- jdm2212 4y ago
  FTX is a Bahamas-based company. Why would US regulators be regulating a Bahamas company with no US presence?
  - kobalsky 4y ago
    FTX.US is a US company and it was included in the bankrupcy filings.
advisedwang 4y ago
Hackernews is not one person, the people saying it should be regulated are different people fron the ones saying it should be unregulated. For better or worse, this is the "discourse"
- blitzar 4y ago
  If you want to your crypto to be regulated, dont invest in it on an offshore unregulated exchange. If you traded it on an offshore unregulated exchange, dont cry that it is unregulated.
  - deleted 4y ago
    [deleted]
jdhn 4y ago
I'm personally in the former (unregulated) category. The furthest regulation should go is KYC, and even that may be a bit too much (although I realize why .gov would force that). Does it suck that people lost a lot of money? Yes. Do I think the government should investigate this? No, because the flip side of having the government investigate this is government regulations, and I'd like to keep the crypto space as regulation free as possible even if it results in episodes like this.
- streb-lo 4y ago
  So you think SBF should just walk away? And the same for the next exchange that blows up everyone's money? Say goodbye to crypto as you know it then. Crypto without on/off ramps to USD is just a cool hobbyist project for libertarians, the price floor is probably zero.
  - jdhn 4y ago
    >So you think SBF should just walk away? And the same for the next exchange that blows up everyone's money? Yes. That's the flip side of the "no government interference" coin.
    - moralestapia 4y ago
      Fraud is still fraud, though, doesn't matter if you used funny money to carry it out. SBF is an American, FTX US was an American company and for sure at some point he touched US dollars from American entities, uh oh, the guy's going to jail.
      - JamesianP 4y ago
        According to their website they take fiat currency. So yeah. Also there's the VC funding, which presumably was mainly USD. Though not many people probably care about their losses.
dpweb 4y ago
You simply cannot have a financial system without indemnification. This is the value provided by a central authority. Peers could provide this, in a decentralized system I would think, but you don't hear much about it.

boppo1 4y ago

I think that's a case-by-case thing and we're finding out the answers to it now. I had no stake in FTX and keep almost all of my rather meager crypto in paper wallets. My point here isn't about whether or not I think crypto should be regulated. My point is if crypto is going to be regulated, shouldn't regulators be able to sniff out a bad actor? Imagine if Madoff had started working with the SEC to help consult on policy. Wouldn't people have been upset with the SEC when he went bust since he was rubbing shoulders with them?

kasey_junk 4y ago
So about Madoff: https://en.wikipedia.org/wiki/Bernie_Madoff#Government_access https://en.wikipedia.org/wiki/Bernie_Madoff#Government_acces... He was rubbing shoulders with many of the financial regulators including the SEC and people were pretty upset about it.
- tanseydavid 4y ago
  Madoff was "Chairman of the NASDAQ" in 1990, 1991 and 1993. You might expect him to have many contacts with SEC personnel during this period. Building his image along the way.
jdm2212 4y ago
FTX is a Bahamas-based company. Why would US regulators be regulating a Bahamas company with no US presence?
- kobalsky 4y ago
  FTX.US is a US company and it was included in the bankrupcy filings.

advisedwang 4y ago

Hackernews is not one person, the people saying it should be regulated are different people fron the ones saying it should be unregulated. For better or worse, this is the "discourse"

blitzar 4y ago
If you want to your crypto to be regulated, dont invest in it on an offshore unregulated exchange. If you traded it on an offshore unregulated exchange, dont cry that it is unregulated.
- deleted 4y ago
  [deleted]

jdhn 4y ago

I'm personally in the former (unregulated) category. The furthest regulation should go is KYC, and even that may be a bit too much (although I realize why .gov would force that). Does it suck that people lost a lot of money? Yes. Do I think the government should investigate this? No, because the flip side of having the government investigate this is government regulations, and I'd like to keep the crypto space as regulation free as possible even if it results in episodes like this.

streb-lo 4y ago
So you think SBF should just walk away? And the same for the next exchange that blows up everyone's money? Say goodbye to crypto as you know it then. Crypto without on/off ramps to USD is just a cool hobbyist project for libertarians, the price floor is probably zero.
- jdhn 4y ago
  >So you think SBF should just walk away? And the same for the next exchange that blows up everyone's money? Yes. That's the flip side of the "no government interference" coin.
  - moralestapia 4y ago
    Fraud is still fraud, though, doesn't matter if you used funny money to carry it out. SBF is an American, FTX US was an American company and for sure at some point he touched US dollars from American entities, uh oh, the guy's going to jail.
    - JamesianP 4y ago
      According to their website they take fiat currency. So yeah. Also there's the VC funding, which presumably was mainly USD. Though not many people probably care about their losses.

dpweb 4y ago

You simply cannot have a financial system without indemnification. This is the value provided by a central authority. Peers could provide this, in a decentralized system I would think, but you don't hear much about it.