Then the issue isn't with crypto itself, but with the regulation of crypto.

Which is a philosophical issue with crypto - the first cryptocurrencies were designed specifically to avoid government regulation.

But here we're talking about exchanges. Resistance to government censorship/control only applies to on-chain activity, not centralized custodians.

Most of the custodians work very hard to side step regulation and enable scams, albeit not necessarily openly on the second part, and are enabled by the on-chain primitives.

Pretty hard to avoid gov’t oversight/regulation when a USD Wire and ACH goes through the fed, for instance.

Easier when it goes through a blockchain which they can’t control.

Which is why a lot of exchanges (and all the sketchy ones) use things like Tether and stablecoins, and avoid US banks.

It's wild to me that crypto bros will screech about decentralization and how the government shouldn't be able to tell you what to do with your money, then turn around and screech for goverment oversight and regulation. Absolutely nonsensical group of people.

It does kind of feel like cryptocurrency is sort of a collective Dunning-Kruger syndrome of programmers and finance.

Programmers see all this bureaucratic regulatory red tape and decide to try and make something more efficient by removing it and claim that they've saved finance by reinventing it.

Then one by one, they start seeing why each of these regulations exist; the regulations didn't exist to keep the little person down, it was to protect against scams. And then they suddenly want regulation on their funny money, at which point cryptocurrency just kind of becomes a worse version of real currency.

Let’s, uh, not bring up the same thing about social media heh.

It's almost as if "crypto bros" are not a hive mind, but are ordinary people who hold unique and conflicting sets of beliefs.

Forums make it worse, IMO. Frankly, it’s nearly impossible on many to even keep track of who is being responded to half the time, let alone personalize them.

It’s like taking to some floating Janus head sometimes.

In person interaction doesn’t work that way.

I wasn't expressing any opinion on how crypto should or shouldn't be regulated. I was only pointing out that if someone is concerned that banking regulations don't apply to crypto exchanges, then their concern is about regulations, not about crypto itself.

If the largest value prop of the industry (and historically crypto primitives) is that it is un-regulatable (and unregulated/get rich quick) the industry doesn’t get a free pass.

> It’s a crypto issue. You can figure that out by restating their advertising/business model using ‘cash’ instead of crypto

Yeah, I think it falls down pretty quickly; if nowhere sooner, then at the point where “We issue our own cryptocurrency” turns into “We issue our own cash”.

It’s called counterfeiting or ‘chuck-e-cheese tokens’ or ‘issue our own stock’.

All point out the same issue, as both have various regulatory precedents and/or obvious real life issues.