Crypto Regulations will Forfeit its Goal, and 'Denature' DeFi

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Location: Lagos

February 10th, 2022, 10:09 am

I was interested in the current news headline which states:

"Amid Nigeria CBN Crytocurrency Ban, Russia set to Legalise Bitcoin"

At first sight, the headline appears to suggest that Russia is making reasonable progress with adoption of the crypto. But I beg to differ.

Let's take time to x-ray what regulation Russia is proposing. According to Nairametrics, here are what Russia crypto Regulations will entail:
What you should know about Russia’s crypto adoption plan

1. The report stated that the circulation of crypto in the legal sector will be possible only with full identification, through the banking system or licensed intermediaries.
2. Operations equivalent to more than 600 thousand rubles (roughly $8,000) must be declared.
3. Transactions outside the legal sector for such amounts will become a criminal offense and an aggravating circumstance under the Criminal Code.
4. Fines will be introduced for the illegal acceptance of cryptocurrencies as a means of payment.
Let's read between the lines.

As a science student, this regulation of crypto brings to mind what we termed as PROTEIN DENATURING. Many things can denature protein. Heat is an example. And when protein is denatured, it loses its functions and purpose.

Now, with my vast experience in finance and Decentralised Finance (DeFi), the regulation by Russia will achieve no other purpose but to Denature DeFi.

Don't fall for it!

Crytocurrencies like Bitcoin, built on the block blockchain technology, are the building blocks of Decentralised Finance.

What is Decentralised Finance?
Decentralized finance, or 'DeFi', is an emerging digital financial infrastructure that theoretically eliminates the need for a central bank or government agency to approve financial transactions. ... The idea is that no single entity has control over, or can alter, that ledger of transactions.

Now look at points 1 and 2 in the quoted Russia regulation proposals.

In short, Regulating Crytocurrency like Russia is planning to do is synonymous to 'Centralizing ' a Decentralised Finance.

End of story.

Please share...

I'm really not that nice... :mrgreen:

February 11th, 2022, 6:48 pm

I really understand the article and the points
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Location: Abuja

February 13th, 2022, 1:07 pm

Yes the items shows the state will start to control Cryptocurrencies and the users and traders. And that control must not be given.
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Location: Some where in Nigeria

February 27th, 2022, 10:44 pm

It seems this country wants to control everything
An eye for an eye left thousands blind,
remember that......
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February 28th, 2022, 10:56 am

Deon wrote: February 27th, 2022, 10:44 pm It seems this country wants to control everything
It's not just Nigeria. Defi (Blockchain, crypto) all pose a great threat to traditional finance and the control the government has been enjoying

May 1st, 2022, 6:10 am

I’ve learned the basics about this at Learn Online Nigeria
and it’s got a comprehensive material for such topics. I’m now here, interested in expanding my understanding of the subject and I’m pleased that this one is very informative. Thank you.

May 1st, 2022, 9:28 am

I have learned it in some forum as well, yeah it is good to expand out knowledge as we age.
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