Understanding Crypto Regulations


This is a solid overview of the high-level dynamics at play for those who (try to) regulate decentralized technologies. It's helpful to contextualize blockchains with other decentralized technologies that already exist, such as BitTorrent. 

Structurally, there aren’t practical ways by which governments can enforce regulations on the blockchain networks themselves. Governments have 3 options: regulate crypto-fiat exchanges by leveraging control of existing banking systems, adopting their own permissioned crypto protocols, and regulating how new projects issue tokens.


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