CoinBase listing might be a turning point after which worlds’ legislators will start to take crypto damn seriously and start to regulate it rigorously, Draconian way.
Let’s see what they can do (+ my comments):
- Ban all crypto (already tried, f.e. in China and India);
- Declare all crypto to be regulated stocks (partially, already tried in U.S.);
- Enforce ‘the travel rule’, when it is required to carry KYC history with every transaction (it is an analog to a ban because there is no way to do it technically without changing all underlying protocols);
- Require to KYC all wallets, or, as a variant, — all wallets connected to custodial exchanges (it only passes the legal responsibility from the custodial exchanges to users, majority of which are technically not capable to effectively KYC themselves and all their counterparts;;
- Introduce licenses on stable coins issuance or ban its (temporarily reduce the number of stable coins and exponentially increase prices on a few remaining);
- Ban all ramps for private cryptocurrencies (increase prices on most popular private cryptocurrencies);
- Ban certain types of cryptography and Dapps code without build in ‘self-report KYC’ (mathematicians / coders jobs will flow into few remaining jurisdictions without those bans f.e. in Asia or Africa);
- Allow banks / retails to process users transactions / payments only in certain cryptocurrencies with a ‘clear’ (KYC) blockchain history (all processing will be done outside of the restricted jurisdictions, ‘cleared’ transactions will come outside to inside).
- Hold financially responsible all individuals who are only suspected in violating any of the those rules until those individuals are able to prove their innocence (1984?).
However, it doesn’t look like multiple political regimes, which currently run this world, are able to reach a global, sustainable long-term agreement on anything important.
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