July 7, 2025 • 10 mins
The Bitcoin Series - Part 12: How Will Governments Try to Control Bitcoin?
Regulation, taxation, and central bank responses.
Bitcoin was designed to exist outside of government control—but that doesn’t mean governments will sit back and do nothing.
In this episode, we explore the ways places around the world are already trying to regulate, restrict, co-opt, and control Bitcoin. From surveillance laws and licensing schemes to censorship, taxation, and propaganda, we dig into the quiet chess game unfolding between sovereign citizens and centralized power.
Can Bitcoin survive regulation? Can it be banned? Or will it simply route around everything in its path?
Let’s break down the tactics in this episode.
Stay curious. Stay grounded. Let’s build better.
Listen now and follow The Crypto 101 Show for more deep-dive episodes in this series.
Join the discord server - https://discord.gg/Y9CPnYm8C2
Looking for Crypto apparel? Crypto 101 swag, shirts and apparel available here. This episode is sponsered by Joe Ugly Apparel - www.joeuglyapparel.com
This week's episode was produced by The WIld 1 Media. If you or anyone you know is looking for podcast editing, podcast production, or any other podcast services please reach out to The WIld 1 Media at www.thewild1media.com. Thanks for listening.
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#bitcoin #BTC #crypto #cryptocurrency #defi #coins #cryptocoins #blockchain #finance #governments #policyagnostic #inflation #centralbanks #technology
Regulation, taxation, and central bank responses.
Bitcoin was designed to exist outside of government control—but that doesn’t mean governments will sit back and do nothing.
In this episode, we explore the ways places around the world are already trying to regulate, restrict, co-opt, and control Bitcoin. From surveillance laws and licensing schemes to censorship, taxation, and propaganda, we dig into the quiet chess game unfolding between sovereign citizens and centralized power.
Can Bitcoin survive regulation? Can it be banned? Or will it simply route around everything in its path?
Let’s break down the tactics in this episode.
Stay curious. Stay grounded. Let’s build better.
Listen now and follow The Crypto 101 Show for more deep-dive episodes in this series.
Join the discord server - https://discord.gg/Y9CPnYm8C2
Looking for Crypto apparel? Crypto 101 swag, shirts and apparel available here. This episode is sponsered by Joe Ugly Apparel - www.joeuglyapparel.com
This week's episode was produced by The WIld 1 Media. If you or anyone you know is looking for podcast editing, podcast production, or any other podcast services please reach out to The WIld 1 Media at www.thewild1media.com. Thanks for listening.
FOLLOW US ON:
Facebook - @crypto101show or https://www.facebook.com/The-Crypto-101-Show-100158338867665
Instagram - https://www.instagram.com/crypto101show/
Sign up for our newsletter - thecrypto101show@gmail.com
Produced by The Wild 1 Media - www.thewild1media.com
Check out our other podcasts-
https://darksidediaries.sounder.fm
https://anchor.fm/ttmygh
https://anchor.fm/morning-joe-rant-show
#bitcoin #BTC #crypto #cryptocurrency #defi #coins #cryptocoins #blockchain #finance #governments #policyagnostic #inflation #centralbanks #technology
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:09):
Welcome to the Crypto one on one Show, where we
dive into the world of cryptocurrencies, bitcoin, blockchain, and all
the technology with it. Whether you're experienced or a beginner
to crypto, our goal is to break down complex concepts
and make it easy for you to understand the basics,
from bitcoin to all coins. We'll cover it all in
a way that's easy to digest and provide listeners with
(00:30):
the knowledge and understanding they need to make informed decisions
and better critical thought. Sit back, relax, and let's simplify
your understanding of cryptocurrencies on the Crypto one on one Show.
(00:52):
The Bitcoin Series, Part twelve. How will governments try to
control bitcoin? Regulation, taxation and central bank responses. I need
to start off by saying this is not financial advice,
so if you're looking for that, the show isn't for you.
The content of this podcast episode is for informational purposes only.
The opinions expressed here are not meant to be taken
(01:14):
as financial investment or any other advice. What happens when
something built to be borderless collides with the system built
on borders. In this episode, we're looking at how governments
and legal systems respond to bitcoin not with fear or bands,
but with definitions, categories, and controls. When they call it
(01:34):
property not money, what does that change? Can it live
alongside state issued currencies like cbdc's and how does law
reshape something that was never meant to be tamed? Welcome
to Part twelve. Bitcoin in the law, where power meets
code and the rules are being rewritten in real time.
Let's jump in question one. Will Bitcoin be banned, regulated,
(02:00):
or embraced. When a technology threatens the status quo, governments
react in one of three ways. They ban it, try
to control it, or find a way to benefit from it. Bitcoin,
being a global decentralized currency, touches every nerve of traditional power,
monetary policy, surveillance, taxation, and national security. The real question
(02:22):
isn't if governments will respond, it's how and whether the
reaction is rooted in fear, strategy, or opportunism. Let's break
this down in three parts. First part, they make a
case for banning bitcoin. Authoritarian governments like China at various
points have tried outright bans. Why do they try this
(02:43):
Because bitcoin undermines control over capital flows, monetary policy, and
citizen tracking. The decentralized currency is the antithesis of centralized authority,
but banning it rarely works. People route around it, VPNs exist,
and peer to peer exchanges flourish. It's like banning the Internet.
(03:03):
You can try, but the protocol lives on. The second
part is where they could try to regulate it. Most
democratic governments land here. They try to regulate the on
ramps and off ramps, exchanges, brokers, banks, because they can't
control the protocol itself, so they enforce know your customer
laws or anti money laundering laws on exchanges, capital gains taxes,
(03:27):
and licensing requirements for crypto businesses. Because they don't control bitcoin,
they can try to tax and watch every step around it.
The third part is where they embrace it. Some nations,
like Elsalvador or regions in Switzerland and Nigeria see bitcoin
as an opportunity to attract tech, innovation and capital, to
escape inflation or imf dependency, or to flex sovereignty from
(03:50):
bigger monetary powers. They adopt bitcoin as legal tender, build
mining infrastructure, or integrate wallets with government services. Answer to
question one is it'll be all three. Some nations will
ban it, some will regulate it to death. Others will
embrace it for strategic gain, and some will do all
(04:10):
three at once, depending on who's in power. And they'll
have to remember. Bitcoin doesn't need permission. It keeps running
block by block across borders, beyond elections. Whether governments love it,
fear it, or misunderstand it, Bitcoin doesn't care. And that
neutrality it's what makes it so powerful and so politically disruptive.
(04:31):
Question two, What does it mean when governments classify bitcoin
as property not money? It sounds like a technicality, but
this one decision changes everything. When governments classify bitcoin as
property instead of money, they're not just labeling it for
legal reasons. They're defining how you're allowed to use it
and how they get to tax, track and control of it.
(04:54):
When something is officially money, it's treated as a medium
of exchange. You can spend it freely without creating a
taxable event every time. But if bitcoin is property, that's
more like real estate or stocks, and that means every
time you spend it you owe capital gains taxes. Even
buying coffee could be a taxable event, and it becomes
(05:16):
harder to use bitcoin as actual currency in day to
day life. This classification also keeps bitcoin in a legal
gray zone. It's not illegal, but it's not practical as
money either, and that can be intentional because when governments
call bitcoin property, they don't have to ban it. They
just bury it in red tape, which basically just hinders
(05:37):
the progress it could make. It also sends a message
this isn't real money. Our money is still the real money.
So while bitcoin offers a path to financial sovereignty, the
way it's classified today makes spending it difficult and keeps
it locked in the realm of investment, not liberation. So
call it property and you slow it down, wrap it
(05:57):
in paperwork, red tape, weigh it with tax and call
that freedom. They're just making it inconvenient, not outlawed, just overburdened,
not banned, just boxed in because our society lives with labels,
and what you call a thing decides how it's used.
In calling bitcoin property keeps it chained not to a wall,
(06:17):
but to the old world. Question three can Bitcoin coexist
with cbdc's central bank digital currencies. On the surface, they're
both digital, but that's where the similarities end. Bitcoin and
cbdc's represent two completely different versions of money. One is
decentralized borderless and trustless. The other is centralized, programmable, and
(06:41):
stay controlled. Bitcoin gives power to individuals. CBDCs give more
power to governments. So can they coexist technically yes, but
philosophically is a tug of war. Cbdc's equal control not
freedom with cbdc's central banks and track every transaction in
real time, set rules on when, where, or how you
(07:04):
can spend, implement expiration dates on your savings, or even
freeze your account with a line of code. And this
isn't a conspiracy, It's part of how they're being pitched.
Bitcoin does equal the exit door. Bitcoin offers the opposite,
no central authority, permissionless, deflationary supply, and a self sovereign
(07:25):
alternative to programmable money. That's what makes it a threat
to governments pursuing digital control. Coexistence or competition. Could both
systems operate side by side, possibly, but as CBDCs roll out,
governments may incentivize use of CBDCs through tax benefits or subsidies.
They may penalize or heavily regulate peer to peer Bitcoin usage,
(07:47):
or even frame Bitcoin as risky or as subversive. So yes,
they can exist in the same timeline, but the more
Bitcoin empowers individuals, the more pressure there will be to
contain or outcompete it. The bottom line is Bitcoin is
opt in freedom, where CBDCs are opt in control, and
the world will eventually have to choose trust in math
(08:10):
or trust in mandates. Bitcoin was never asking for permission,
but now the system is watching closely. It's not just
whether you can buy it, sell it, or hold it.
It's about how they define it. And every legal label
is a leash, property, asset investment threat. The law isn't
just catching up to Bitcoin, it's trying to shape it.
(08:31):
And a new question becomes isn't just can Bitcoin survive
within the rules? What happens if people start choosing rules
written in code over laws written on paper. That tension
isn't going away, it's just beginning. Thanks for tuning into
Part twelve of the Bitcoin series. Hopefully I'll see you
in Part thirteen, where we take this to bitcoin and
(08:52):
the Global South adoption in emerging economies. Until then, stay curious,
stay grounded. I want to be extremely upfront that I
try my best to leave all of my opinions out
of this. I know this is very condensed and simplified,
but I want you to gain your own understanding and
beliefs and not per persuaded by me. I hope this
helped you gain a better grasp of it. Please remember
(09:14):
to share, follow, and subscribe to our mailing list and
to your favorite podcast app for future episodes so you
can gain more with your crypto knowledge. If this sparks
something in you or made you question what's possible, I'd
love to hear about it. And if you found this valuable,
share it, tag someone who needs to hear it or
just sit with it. Thanks for listening. Thanks for listening
(09:44):
to this episode of The Crypto One on one Show.
If you would like to join our email list, email
us at the Crypto One on one Show at gmail
dot com for more helpful tips. Subscribe in your favorite
podcast app and leave a review so that you don't
miss our next episode. See you next time.
Welcome to the Crypto one on one Show, where we
dive into the world of cryptocurrencies, bitcoin, blockchain, and all
the technology with it. Whether you're experienced or a beginner
to crypto, our goal is to break down complex concepts
and make it easy for you to understand the basics,
from bitcoin to all coins. We'll cover it all in
a way that's easy to digest and provide listeners with
(00:30):
the knowledge and understanding they need to make informed decisions
and better critical thought. Sit back, relax, and let's simplify
your understanding of cryptocurrencies on the Crypto one on one Show.
(00:52):
The Bitcoin Series, Part twelve. How will governments try to
control bitcoin? Regulation, taxation and central bank responses. I need
to start off by saying this is not financial advice,
so if you're looking for that, the show isn't for you.
The content of this podcast episode is for informational purposes only.
The opinions expressed here are not meant to be taken
(01:14):
as financial investment or any other advice. What happens when
something built to be borderless collides with the system built
on borders. In this episode, we're looking at how governments
and legal systems respond to bitcoin not with fear or bands,
but with definitions, categories, and controls. When they call it
(01:34):
property not money, what does that change? Can it live
alongside state issued currencies like cbdc's and how does law
reshape something that was never meant to be tamed? Welcome
to Part twelve. Bitcoin in the law, where power meets
code and the rules are being rewritten in real time.
Let's jump in question one. Will Bitcoin be banned, regulated,
(02:00):
or embraced. When a technology threatens the status quo, governments
react in one of three ways. They ban it, try
to control it, or find a way to benefit from it. Bitcoin,
being a global decentralized currency, touches every nerve of traditional power,
monetary policy, surveillance, taxation, and national security. The real question
(02:22):
isn't if governments will respond, it's how and whether the
reaction is rooted in fear, strategy, or opportunism. Let's break
this down in three parts. First part, they make a
case for banning bitcoin. Authoritarian governments like China at various
points have tried outright bans. Why do they try this
(02:43):
Because bitcoin undermines control over capital flows, monetary policy, and
citizen tracking. The decentralized currency is the antithesis of centralized authority,
but banning it rarely works. People route around it, VPNs exist,
and peer to peer exchanges flourish. It's like banning the Internet.
(03:03):
You can try, but the protocol lives on. The second
part is where they could try to regulate it. Most
democratic governments land here. They try to regulate the on
ramps and off ramps, exchanges, brokers, banks, because they can't
control the protocol itself, so they enforce know your customer
laws or anti money laundering laws on exchanges, capital gains taxes,
(03:27):
and licensing requirements for crypto businesses. Because they don't control bitcoin,
they can try to tax and watch every step around it.
The third part is where they embrace it. Some nations,
like Elsalvador or regions in Switzerland and Nigeria see bitcoin
as an opportunity to attract tech, innovation and capital, to
escape inflation or imf dependency, or to flex sovereignty from
(03:50):
bigger monetary powers. They adopt bitcoin as legal tender, build
mining infrastructure, or integrate wallets with government services. Answer to
question one is it'll be all three. Some nations will
ban it, some will regulate it to death. Others will
embrace it for strategic gain, and some will do all
(04:10):
three at once, depending on who's in power. And they'll
have to remember. Bitcoin doesn't need permission. It keeps running
block by block across borders, beyond elections. Whether governments love it,
fear it, or misunderstand it, Bitcoin doesn't care. And that
neutrality it's what makes it so powerful and so politically disruptive.
(04:31):
Question two, What does it mean when governments classify bitcoin
as property not money? It sounds like a technicality, but
this one decision changes everything. When governments classify bitcoin as
property instead of money, they're not just labeling it for
legal reasons. They're defining how you're allowed to use it
and how they get to tax, track and control of it.
(04:54):
When something is officially money, it's treated as a medium
of exchange. You can spend it freely without creating a
taxable event every time. But if bitcoin is property, that's
more like real estate or stocks, and that means every
time you spend it you owe capital gains taxes. Even
buying coffee could be a taxable event, and it becomes
(05:16):
harder to use bitcoin as actual currency in day to
day life. This classification also keeps bitcoin in a legal
gray zone. It's not illegal, but it's not practical as
money either, and that can be intentional because when governments
call bitcoin property, they don't have to ban it. They
just bury it in red tape, which basically just hinders
(05:37):
the progress it could make. It also sends a message
this isn't real money. Our money is still the real money.
So while bitcoin offers a path to financial sovereignty, the
way it's classified today makes spending it difficult and keeps
it locked in the realm of investment, not liberation. So
call it property and you slow it down, wrap it
(05:57):
in paperwork, red tape, weigh it with tax and call
that freedom. They're just making it inconvenient, not outlawed, just overburdened,
not banned, just boxed in because our society lives with labels,
and what you call a thing decides how it's used.
In calling bitcoin property keeps it chained not to a wall,
(06:17):
but to the old world. Question three can Bitcoin coexist
with cbdc's central bank digital currencies. On the surface, they're
both digital, but that's where the similarities end. Bitcoin and
cbdc's represent two completely different versions of money. One is
decentralized borderless and trustless. The other is centralized, programmable, and
(06:41):
stay controlled. Bitcoin gives power to individuals. CBDCs give more
power to governments. So can they coexist technically yes, but
philosophically is a tug of war. Cbdc's equal control not
freedom with cbdc's central banks and track every transaction in
real time, set rules on when, where, or how you
(07:04):
can spend, implement expiration dates on your savings, or even
freeze your account with a line of code. And this
isn't a conspiracy, It's part of how they're being pitched.
Bitcoin does equal the exit door. Bitcoin offers the opposite,
no central authority, permissionless, deflationary supply, and a self sovereign
(07:25):
alternative to programmable money. That's what makes it a threat
to governments pursuing digital control. Coexistence or competition. Could both
systems operate side by side, possibly, but as CBDCs roll out,
governments may incentivize use of CBDCs through tax benefits or subsidies.
They may penalize or heavily regulate peer to peer Bitcoin usage,
(07:47):
or even frame Bitcoin as risky or as subversive. So yes,
they can exist in the same timeline, but the more
Bitcoin empowers individuals, the more pressure there will be to
contain or outcompete it. The bottom line is Bitcoin is
opt in freedom, where CBDCs are opt in control, and
the world will eventually have to choose trust in math
(08:10):
or trust in mandates. Bitcoin was never asking for permission,
but now the system is watching closely. It's not just
whether you can buy it, sell it, or hold it.
It's about how they define it. And every legal label
is a leash, property, asset investment threat. The law isn't
just catching up to Bitcoin, it's trying to shape it.
(08:31):
And a new question becomes isn't just can Bitcoin survive
within the rules? What happens if people start choosing rules
written in code over laws written on paper. That tension
isn't going away, it's just beginning. Thanks for tuning into
Part twelve of the Bitcoin series. Hopefully I'll see you
in Part thirteen, where we take this to bitcoin and
(08:52):
the Global South adoption in emerging economies. Until then, stay curious,
stay grounded. I want to be extremely upfront that I
try my best to leave all of my opinions out
of this. I know this is very condensed and simplified,
but I want you to gain your own understanding and
beliefs and not per persuaded by me. I hope this
helped you gain a better grasp of it. Please remember
(09:14):
to share, follow, and subscribe to our mailing list and
to your favorite podcast app for future episodes so you
can gain more with your crypto knowledge. If this sparks
something in you or made you question what's possible, I'd
love to hear about it. And if you found this valuable,
share it, tag someone who needs to hear it or
just sit with it. Thanks for listening. Thanks for listening
(09:44):
to this episode of The Crypto One on one Show.
If you would like to join our email list, email
us at the Crypto One on one Show at gmail
dot com for more helpful tips. Subscribe in your favorite
podcast app and leave a review so that you don't
miss our next episode. See you next time.
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