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Centralized exchanges need supervision, they have the history of doing the most harm. Look at Mt Gox and FTX

• smeej 2y ago
  The things Mt Gox and FTX did were already criminal. If they didn't follow those regulations, what makes you think they'd follow any others?
  • JumpCrisscross 2y ago
    > If they didn't follow those regulations, what makes you think they'd follow any others? The point is enforcement. We ban weapons in some areas despite murder being illegal.
    • smeej 2y ago
      I guess that opens a whole different can of worms in the discussion, because I actually think that supports my point, that it sounds like a good idea but doesn't actually accomplish anything positive. All it ends up doing is hamstringing the companies that do want to do things the right way, because they can't compete with the companies who are snubbing all the rules anyway. Anyone who was working at Coinbase during the rise of Binance or FTX can tell you everybody knew they were playing outside the rules. Once you know how hard it is to do things right, it's easy to see when some upstart flies in and starts gobbling up market share that they're cutting corners. It took 7 years for Binance and CZ to get fined like they finally did. FTX might even still be operating if SBF hadn't panicked and filed for bankruptcy. Riding those guys out was one of Coinbase's major challenges, and competitors who didn't have established market share and teams couldn't even effectively enter the market and compete with those players. Regulation often sounds like a good idea to honest people, but it doesn't account for the reality that many people don't care at all about playing by anybody else's rules.