How are governments regulating cryptocurrency?

[XKUBI]

Here are some common regulatory approaches that were observed in various jurisdictions:

1. No Regulation or Limited Regulation:Some countries had not implemented specific regulations for cryptocurrencies, either because they were taking a wait-and-see approach or because they recognized the decentralized nature of cryptocurrencies.
2. Banning or Restricting:Some countries outright banned or restricted the use of cryptocurrencies. China, for example, has imposed various bans on cryptocurrency activities over the years.
3. Regulation of Exchanges:Many countries focused on regulating cryptocurrency exchanges rather than the cryptocurrencies themselves. Regulations often required exchanges to adhere to anti-money laundering (AML) and know your customer (KYC) requirements.

 

[Kirubel]

I don't think governments can regulate the exchange and transactions of any crypto coin transaction and the only way a government can regulate the cryptocurrency is to ban the transaction and holding of crypto coins in the country and setting a legal punishment's for that.

 

[Suba]

Currently, many wallets and crypto exchanges require KYC verification and also proof of address, such as Coinbase, all wallets and crypto exchanges must comply with the regulations in the country where they operate.

 

[deucher]

Currently, governments can either not regulate cryptocurrency at all or only ban the entire crypto industry on the territory of the country, because there are no mechanisms that would allow them to partially regulate crypto