Is Bitcoin Cash ecosystem safe from regulation by enforcement?

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Avatar for francis105d1
1 year ago

The short answer should be yes, with a few caveats. If you hold your private keys and keep them in a secret place far away from anyone other than yourself, you should be okay, not just from regulators but other attack vectors as well.

CashTokens NFT protocols. (BCHGuru)
The NFTs projects utilizing CashTokens will be safe from any regulation as long as those creating the art remain anonymous and those NFTs don't represent a security or connect to the actual work in one way or form. You would not be able to say one NFT picture is worth one ounce of gold because that will make a security, but as long as the utility remains only in digital form there is no way for regulators to spot you from holding, selling, and buying NFTs. That also means you must use decentralized tools (TapSwap) and have no developer's name behind it otherwise those facilitating the trading could be set as targets.

BCHBulls protocol.

The team is fully doxxed and that means regulators could target them for prison because they are facilitating an activity that may become illegal in the future. After all, a government may decide trading with leverage is a bad thing and to protect retail investors those creating those tools should go to prison, similar to Tornado Cash. The government could make it illegal to use the protocol but the solution would be pretty straightforward copy and paste the code and restart it with a new team that remains anonymous if we see that sort of regulation by enforcement as the mixer saw. I must add if the Feds decide to make protocols like BCHBulls illegal you could continue to use those features at your own risk or just change jurisdiction.

SmartBCH.

The sidechain could be attacked by regulators if SmartBCH implements staking and it could also target the bridges that connect between L1 and the sidechain (the current bridge is centralized), not to mention all the tokens that can be bought and sold using decentralized exchanges, as such those projects that remain with anonymous developers should continue to be fine (BenSwap, MistSwap, and others). Those that were doxxed may suffer regulation by enforcement (TangoSwap).

Bitcoin Cash itself.

If Bitcoin is not a security so Bitcoin BCH shouldn't be either because both share the same creator, now developers could be targeted but that could be a breach of constitutional rights at least in the USA but I guess just to keep it safe it will be safe if developers remain anonymous as much as possible and only dox themselves if it is extremely necessary.

The government could make it illegal to buy, sell and hold commodities like BTC and BCH, but that is another topic. The only solution will be to move to another location or stop that activity and it will be a personal decision at that point. Obviously, if that happens you will know your country has gone mad and probably you will be undeniably under a dictatorship at that point so probably you will be long gone by that time or move on to another country before something like that becomes true.

Now the focus for the Bitcoin Cash community should be to keep focusing on becoming the greatest peer-to-peer economic system that the world has ever known.

The other protocols (CashTokens and SmartBCH) should adopt a decentralized way to run things. Any token or future project should adopt an anonymous approach and a decentralized trading strategy from the get-go.

Bitcoin Cash holders must learn to host themselves their private keys and use peer-to-peer protocols and decentralized exchanges as much as possible.

So in general the BCH asset is safe from any regulators at least in the form and way it is right now, that may change but it will indicate your country has gone totally fascist or worst.

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