• Varyk@sh.itjust.works
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    2 months ago

    “…when you said that NFTs are the same as any crypto currency…”

    I made the exact opposite point, that nfts and cryptocurrency are not the same thing and that is the main problem with the meme.

    “Please tell me how crypto is regulated?”

    In general? currency is regulated by a regulatory organization imposing guidelines and legal restrictions on a currency so that the exploitation of that currency is minimized.

    with USD, if you accrue mineral royalties, that is income and you would pay tax on those royalties according to the IRS.

    if you mine cryptocurrency, that is income and you have to pay a tax on that mined cryptocurrency according to the IRS.

    the IRS is a large regulatory body concerned with collecting taxes from the American population.

    these are two examples of federal currency regulation.

    since you asked about which companies regulate cryptocurrencies, we can look to coinbase, the largest centralized exchange for cryptocurrency.

    coinbase complies with multiple banking acts such as KYC and consumer protection to ensure legitimate transactions the same way that your credit union or banking institution on the corner does.

    • Johanno@feddit.org
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      2 months ago

      Afaik coinbase does not actually use the Blockchain. It has a centralized own system for accounts in its system. It mirrors the value of bitcoin in its internal bitcoin. But you can’t buy bitcoin on coinbase and then send it to a real bitcoin wallet.

      I mean in the case of bitcoin it makes no sense for normal people. You have several hundred $ of transaction fees. If that would happen in coinbase nobody would buy btc.

      So your best platform for crypto is only mirroring the prices of the real Blockchains.

      • Varyk@sh.itjust.works
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        2 months ago

        If you’re referring to the coinbase wallet, that’s on the blockchain.

        you’re sending it to a custodial account owned by coinbase, not your own personal Bitcoin account.

        It’s the same thing as having a bank account and giving all of your money to the bank.

        You’re giving up absolute control of your funds for convenience, absolution of responsibility and imagined security.

        That’s how broad societal financial operations still work for the moment. centralization isn’t always nefarious, but it is largely archaic at this point.