Question: what is the point of crypto if it becomes regulated like traditional financial assets? Crypto doesn't have any actual use-value like stocks or real estate, and its entire selling point was that it's decentralized and unregulated.
I don’t see where lack of regulation is a selling point—it greatly limits invested capital.
There's no technical merit in crypto that actually makes things fast, it's just a regulation dodge. It's necessarily slower and more expensive than TransferWise.
They have decided it's better to avoid their local businesses being beholden to foreign investors, which is a case that can be argued.
If you're being directed mostly by overseas investors who will never see your actual operation in person, that increases the pressure to cook the books, either on a direct accounting-level basis, or by cutting corners in operations, environmental or labour standards, or product quality.
Notice how some countries insist on joint ventures with a 51% local partner, which similarly ensures there's some local skin in the game.
- so there's somebody in France that can *make money* being the middle man
- so the French broker can be held to some standards reporting and what not. For example, the French broker at risk of criminal prosecution cannot sell shares to NK or Iran.
- so the rules around transfer of shares for payment and settlement are set so people can't be screwing each over or not completing settlement in a timely fashion
- because of scale: there are zillions of trades done every day. that's why netting-out is a real thing. settlement has to be fast, tight, nailed down. And regulation helps with that through known pre-approved brokers with set roles and responsibilities
Also consider that unlike crypto you gotta settle. Settlement is serious. And settle in a bonafide currency that everybody agrees is a currency: EUR, for example. And you have fixed time to do it in.
You can't be waving your hands with some stupid story about how your broker/holder of crypto,
- stopped you from withdrawing your stuff
- is down
- is in chapter 7 or 11
- that you forgot your crypto keys
- and the entity getting the cash for selling shares isn't gonna wait around for some miner to "approve" your transfer maybe in 10 mins ... or maybe tomorrow
I'm not sure what you mean by centrally registered clients. You can still use bitcoin peer to peer. Also the idea that banning peer to peer bitcoin would be what would make decentralization not worthwhile feels rather circular.
To trade you need to be registered by regulated entity, it’s already a centralised environment. You’re also purchasing shares issued by a centralised issuer, the corporation. Your suggestion that bitcoin offers any solution to settlement (much less a superior solution), just escapes me