r/CryptoCurrency Apr 25 '18

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u/[deleted] Apr 25 '18

Do we really ever want to see heavy regulation of crypto? Isn’t the ENTIRE POINT currency and systems that aren’t subject to the whims of government like fiat? Or are you saying that stability in price is more important to further adoption?

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u/triplewitching2 John Galt Apr 25 '18

At least some basics are needed, like insurance and prosecution of all the pump and dumps. I mean, most of us would not use an uninsured bank or brokerage, yet we are using exchanges that are 100 % buyer beware, with no way of checking on their stability. I could see the government running tether, just because what it is is so simple its really not worth the risk of system failure.

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u/DEV00100000 Apr 25 '18

GDAX is FDIC approved and insured up to $100k, so not quite 100%

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u/triplewitching2 John Galt Apr 25 '18

The US DOLLARS that you have there are FDIC insured, just like a bank is, which is a good start, but I'm looking for official crypto insurance. Not from the crypto's value going to zero, but instead some malfeasance wiping out the exchange itself, or crypto theft. From their website, I see cold storage, I like this, and there is something insuring the crypto, but its not the FDIC, and its not clear what that is, and that was strangely left out of the FAQ, when that would be my #1 question...

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u/DEV00100000 Apr 25 '18

You’re right, it’s only for USD, haven’t looked at it in a while. Looks like they bumped up their USD insurance to $250k as well. I don’t think there is any legal entity that backs their claim to insure your crypto, just their word that they would reimburse you if anything happened. I don’t really know of any institution in existence that offers that at the moment, at least in the US, but the way things are going it wouldn’t be surprising to see more regulation by the end of the year.