and also today's next year, most of the protests and commas are from the safe. and heidi are not many say they are not going to vote for prime minister that in the morning bought at the junk the posse. and this is going to be a very big issue, election issue, and now a political issue for the government. you find a lot more on the website. the address for that is all 0 dot com. ah . this is where these are the top stories germany, social democrats have not only won the general election ahead of the ruling. c, d, u, month's law coalition talks are expected. the leader of the s p d. all shots says voters have told the christian democrats to go into opposition on the other. i mean has been following the election aftermath in cologne. i also love shows, does have a narrow lead. he still will need to have talked with both the

green party and the liberal democrats do those of in the end, the king makers here. so we're going to have to see what's going to happen there. because also, if you look at the green party, the green party would give it support to the social democrats. but the liberal democrats would prefer to have the center, right, the christian democrats of min lashes. so it's going to be very tough dogs, thousands of supporters of civilian rule in sudan have been protesting across the country and calling for an end to the transitional government. and the power sharing agreements with the military tension between politicians and the military increased after last week's attempted cruise. a 2nd hearing in the trial of 14 palestinian authority security officers is being held in ramallah that accused of beating the activists use our bonnet to death in june bonnet was an outspoken critic that the p a and its president died hours after being arrested and beaten in detention people on the east coast of la palmer have been ordered to stay in doors

as lava from interrupting volcano approaches the sea. hundreds of buildings and the farmer have been destroyed and almost 75000 people have been forced to leave the homes. the e, u and nato have called for saba, and cause about to de escalate tensions of the border savvy and troops that on hyphen de la dr. costs over deployed special police to areas for ethnic serbs live . you always, governors considering and declaring a state of emergency as the money deadlines reached for health workers to have a vaccine against the corona virus. the declaration would allow to state workers and the national guard to fill hospitals, staffing gaps, and those are the headlines, and he's, he's going to continue here on our to 0. after inside story bye for now. from talk to al jazeera, we can what gives you hope that is going to be peace because the situation on the

ground seems to be pointing. otherwise we listen. we were never on the whatever road to off migration. we meet with global news makers and talk about the stories that imagine on sierra transaction declined, that china has made it illegal to trade crypto currencies, including the coin you. it is also looking at high to rules, beloved embracing what's being called the future of money. so should digital currency, the regulated isn't, let's talk ah, ah, hello, welcome to the program. i'm in, ron con, big coin emerged a decade ago. it was a digital alternative to money, as we know it, crypto currencies like it's a traded online, away from the control of government, central banks and institutions of the global financial system. but the world's 2

biggest economies aren't too happy about it. china has declared all crypto currency transactions to be illegal and is threatened further action. it's the latest step off to regulate, to stop banks from offering virtual currency services. earlier this year, the government is accused criminals of using crypto currencies to launder money. but it's central bank is preparing to launch its own digital. you run as early as next year. and media reports in the u. s. suggest the federal reserve is working on a so called blueprint on the future of money that could be released as early as this week for public debate. regulators have been examining tight rules and trade encrypted currencies. the reserve chairman jerome pals, as the central bank could also launch is own digital currency. we think it's really important that the central bank maintain a stable currency and payment system for the public's benefit. that's one of our jobs. we also live in a time of transformational innovation around digital payments. and we may need to

make sure that the fed is able to continue to deliver to the public a stable and trustworthy currency and payment system. so there's extensive private innovation, a lot of which is taking place outside the regulatory perimeter and innovation is fantastic. it r economy runs on innovation, but where the public's money is concerned, we need to make sure that appropriate regulatory protections are in place. and today, they really are not in some cases, while some countries are cracking down on crypt currencies, a few others are embracing them. l salvador has become the 1st country in the world to adopt virtual currencies as it legal tender. ukraine has passed a law that legalizes and regulates crypto currencies for citizens, but companies would still be subject to the law for their activities. cuba, central bank plans to recognize digital products like bitcoin and is expected to set rules on how to deal with the malta singapore, in switzerland or among nations and creating a business environment where crypto currency can growth.

ah, let's bring it, i guess in new york, john big's journalist and former editor of coin desk, and he bo, stressful and assistant professor and economic law tracked university and in london . then goodman, an investor and author of the crypto trader, a warm welcome to you. all i want to begin in london. first with glen goodman. it used to be the crypto currency. should have been called cryptic currency because no one really had a clue about what it was. here we are a decade later. and not only do we understand what cryptic currency is, but governments are trying to get in on the act. and that was exactly the reason crypto currency was set up for to stop government regulation. what the chinese are doing, and let's begin with them. first is protecting their own digital currency rather than trying to regulate all of them. is that right? yes, completely, right. really, the idea with the chinese government is simply to banish all crypt currency from

the country altogether in any of their guys's and a lot of digital you on one when it's launched eventually to basically take over the role. that's crypt currencies would've originally had had the chinese government not interfered but also a very much in host road because really the digital you on is a kind of empty crypt currency. it also provides opposite of what countries like bitcoin was set out to do in the 1st place, which was to, as you say, allow people to have a certain amount of freedom from governments to and to not have anybody's permission for sort of moving that money around the chinese government wants to not only have permission rights over the moving of money, but also possibly to look into every aspect of people's financial lives to watch every single transaction go from a to b and even possibly to put limits on the way that people can use their money, this is one of the big fears about what the chinese government might do because it certainly will have the technological capability to, for example,

tell people while you've been a naughty boy, you've been saying some things that the government doesn't like. therefore, we're not going to allow you to spend your money on playing fairs or on train fairs . the idea is in some people's minds that it will be incorporated into china's growing social credit system, allowing people who behave like good girls and boys to have more rights than other people and yield john biggs. it's not just the chinese doing this. the americans are mulling over something called c, b, d, c. the central bank, digital coin, they may, will be talking about this publicly next week. once again, always seeing a tooth tear system of crypt icons. you've got the original crypt currency, which was block chain tech. all that was recorded transactions, and now you've got this, well, some people are calling stable coin, which is basically linked, almost like traditional money to a central bank to a system. are we going to see 2 separate currencies emerge?

well, sure, i mean, well, so let's, let's talk about that a little bit. i might, you could argue that the 2 currencies, the superior currency, is going to be the traditional bitcoin theory, i'm et cetera. those are, those are the currencies that can route around damage, right? and damage in this case is regulation damages, government prying damage is privacy, et cetera. you're trying to route around these, these invasions, these inferior currencies are going to be the government currencies. eventually, all governments have to go digital. i mean basically we already are digital moving money around is basically just moving zeros and ones from bank to back. so where we're at that we're at that point, the idea that a government can control this stuff at all and even even release their own curb to crypto currency is, is pretty ridiculous. but that's not going to stop them from trying to shuffle in amsterdam. is there any precedence in history hill when we talk about

a new type of currency emerging, or is this so completely new that we're kind of scrambling to regulator? so actually the very 1st regulations regulating a technology dated back from over of almost 4000 years. that's something we've been doing for a very long time. but indeed, i mean, as we discussed already, we do have new types of currency, which is very interesting because it means we have private competitions coming on a market which is public by nature. and this is why you see some governments reacting so strongly. and of course, we all know that the chinese government is doing that. and in just a few weeks or month, we'll introduce as we just discussed, their own criminal currency. i think eventually we have to discuss whether or not we still want to gold, those currencies block chain or criminal currencies because indeed there are enough very much decentralized. and there are a bit of the exact opposite hand of the spectrum when it comes to be going in the area. so that's the discussion we need to have. but yes,

i will argue this is something which is pretty much new probably in the 3 of us in london. glenn goodman, should i be selling bitcoin if area, if i've gotten the i times but if i did, should i be selling them? i mean, is this going down the toilet? i think you're far too early to say going down the toilet. though you are certainly right to worry. i think because when i look at the climate of increasing regulation across the world and particularly in america, it's still about as clear as mud how they're going to regulate these things. the european union has provided a bit more clarity recently. i just want gary gans lead securities exchange commission boss in america talking to the washington post the other day and also half an hour listening to him. and when he for the speaking i still was none the wiser. i know that he would like to regulate it and bring it, it was sort of within the existing regulatory umbrella. that's really the idea is

not to create necessarily brand new regulations across the country, but to find ways to who regulate them under existing regulations of exactly how that will be done is unclear and because it's unclear is worrying because there are all kinds of little tweaks that they could make that could either allow correct because the companies to continue to thrive, to innovate and develop new ideas and ways of doing things. or with just a few little tweaks we could find ourselves in a situation where for example, ordinary investors find it impossible to invest in crypto. i know the so called accredited investors are able to do so that could happen. and also, new businesses could find themselves being squeeze out of the crypto economy or fund berry as a so high entry that they find it hard to get into the industry, which could leave the all the money for the sort of existing big businesses. in

fact, you know, the existing credit card fees like bitcoin and the theory could even benefit from regulation because it, because they're the biggies. and it could make it more difficult for the newbies to kind of get in and build their way up. john big's actually getting makes an interesting point. we have day traders who are allowed a certain amount of access through nowadays apps on their phones to trade shares, but they can't without regulatory authority, trade huge amounts of money. and the big trades that in a, goldman sachs and banks like that have access to currently, if you buy crypto you're buying as much as you can afford and you're buying it without a huge amount of regulatory authority. so there's already regulation in place when it comes to trading shares and stuff. are we looking at laws like that to try and stop crypt currently? and is it true that what glen goodman says? the actually it's good. i'm it my only benefit the rich already. this won't be the people's cause the annual. remember those, those regulations don't stop,

don't stop equity trading, right? so just because you have a regulation doesn't mean that the whole thing is shut down is even for even for accredited, richer investor is quote unquote, or even for mom and pop folks who are using robin hood to trade on an on a daily basis the, the the biggest question here is what, what these governments are looking for is to be able to tax capital gains on crypto . and there are plenty of people out there average folks who you probably wouldn't even know to see it. who have millions and millions of dollars in crypto, who a have a very hard time getting it out into currencies. they're going to, once they start moving at that changes, all sorts of that makes all sorts of ripples and be they don't want to move it out, much rather play the markets like they have been playing. but every single government around the world, once a piece of that action, they want a piece of that capital games. and right now you don't have that. so we're in

a situation where the fcc and those folks are trying to regulate crypto in the same way. but they can't decide if it's an equity, they can decide if it's a currency they can decide of it's, i don't know, a municipal bond. who knows what, how would you define this thing within those confines? so all this regulation that's all we're talking about in some of the free or countries then yeah, it will become a rich person's game. ultimately. once all this regulation happens, because if i can move $34000000.00 worth of crypto using my using my computer that i mind back in 2008 or whatever it's, it's going to be really interesting space for the see to mess them because they want to, they want to have control over that transaction and regulate that transaction circle. we've often been called a economy that is global. i mean, we are cross border now, but crypto has actually really laid that bear that we are a borderless economy. and this is a real challenge for governance is why china is trying to crack

a loopholes like you can't even now from an offshore server. go to trade with people in china. it's a big challenge. this idea of cross border economies is something that we're gonna have to deal with. how do we do that? well, and, and i would say to especially challenge indeed for the blocks and in the crypto space, those are, i mean, for the one such as be going decentralizing distributed crypto and way of conducting meaning that it is, it is not easy for anyone to come within the system to say we're going to make a version for europe, abraham, for the us in a different version of china. it doesn't happen this way because there is no a single person behind in charge of making such changes. so we do see and did something which has been called the brussel defect, but it may be called the chinese effect, which is that if you regulate 1st, then you impact the entire world. and i think it has to do again with the nature of what we are talking about, which is a infrastructure for tomorrow's transaction. and this is why we see china being

wanting to, to regulate that because the wants to control the infrastructure. i think this is why we're going to see you as soon regulating blocks any self instead of just regular teaching. certain applications such as financial obligation. and it might be why we're going to europe also doing the same, which is again to regulate the infrastructure instead of simply focusing on certain way of using block chains, which is the regulations that we have right now in europe, which are financial in nature. but eventually, i'm pretty convinced they're going to move on to the entire system. because again, we talk about infrastructure. gums is a, come to you in just a 2nd bow and bring in john biggs. hey job, i get the feeling and correct me if i'm wrong, but i do get the feeling that your minimal regulatory authority when it comes to crypto currency. so right. i don't want folks to get to get scammed. i don't want folks to get ruined because of crypto currency and it's really re dangers out there . that said, it's what they're proposing is impossible. there's literally no way to regulate this stuff in any,

any way that's familiar to anybody at the fcc or even in the chinese government. china's great firewall works if you're poor doesn't, is because usually by passable if you're rich in the same way, all these rules and regulations around crypto, especially china outline crypto. they don't have any effect. it really has no effect on the average minor out there doesn't really care. and the average person with crypto doesn't really care about crypto transactions are gonna occur in china . whether the chinese government happen or not. that's one of the keys. that's one of the benefits of this, and that was one of the benefits of the original internet. it was it again, routed around damage and damage. in this case, very specifically as regulation. i'm all for keeping people safe and keeping people who aren't familiar with the stuff out of it until they've educated themselves enough. but that said, it's almost impossible to stop being somebody from being smart on the internet and also some impossible stops somebody being stupid on the internet. glenn, good. and then all we talking about

a universal system of regulatory authority that takes place globally. are we talking a financial un security council of sorts? is that the only way of actually managing critic currency? maybe eventually, but certainly not in the foreseeable, foreseeable future. there's not really any sign of that being done country by country. and i take a different view to john biggs on the, on some of these issues, for example, with, with regards to china. now, i don't live in china and i don't know how easy it is to get around the rules. but i did read the people's bank of china's new rules or new statement, rather unclipped the currency which was earlier this week. and those are pretty strong words. basically anybody who even owns an encrypted country or tried to deal in any crypt because he just an ordinary person trading it is in legal trouble now . like could be very serious legal trouble. we could have, you know, the intelligence services bang on their door kind of trouble, at least not for the people's bank of china's note employed. so i would be very

scared if i living in china and getting around the rules with virtual private networks and all the rest of it. i would be quaking in my boots. so i expect that will change behavior of quite a lot of people in terms of general regulation in the us and so on. what worries me about because john was saying that, you know, a lot of ordinary people have got crypt tires and they're not necessarily paying taxes. i mean the rules at the moment a quite clear in britain and in america you pay capital gains tax on your credit and profit. you do that. if you don't do that, you're breaking the law and you're going to go to jail. you know, everybody, i know, pay type to buy capital gains tax on the crypt. profit i know low decrypt, so accountants specialists. there were a website that will calculate your crypto profits for you. you know, this is a whole big industries don't like i do when i want to pull you up on that point. i do wanna pull you up on that point because it's something that i actually don't the answer to. so maybe you can help us do you only pay taxes rather once you turn it into effect currency, once you turn it into a dollar or a pound or sterling,

whatever, if it varies from country to country, suddenly here in the u. k, where i live, it's very clear that every time you do a crypto to crypto transaction, that is a capital gains tax event. you would pay tax on any profits made during that transaction. i believe there are some countries i can't remember which ones off the top of my head where it is only when you convert from crypto to fear that it becomes a tax event. but i will say from the u. k. any transaction, any crypto transaction is a taxable transaction. cuba shuffle is this spin taxes. is this been the basis of how you write laws about crypto currency? how you manage to control it by selling people on the idea that they made money, they need to pay taxes. well, you could be in might use our discussion right now to discussing the beauty of crypto, which is that on the one hand we do have a certain infrastructure which indeed is really hard to regulate and all the other . and we do have people using these and structuring transacting and there we know

that there are different ways to, to force the people who are actually to not the people to behave in a certain way. it may be that indeed you take markets into accounts, which will be taxes or a financial incentive. this is one way it could be that you do the chinese way, which is you actually rely on the law and especially criminal law. and you say, if you do that, you go to jail is going to be pretty effective. and it might be that you try to increase the norms. what is a good behavior? what is the bad behavior? but it's better the old that needs to be embedded within the actual design of blocks in one way. one will of another, which again is the beauty of this because this is the for the 1st time that we do have to care about the quality so much when we talk about regulation, instead of just a regulating the use case of a certain technology. john biggs, we often hear government say, well actually, chris, i currency is being used for legal purposes, being used to buy weapons on the internet to buy drugs. and it's, it's all about,

it's very, very shady. how much of is true and how much of that is scamming growing now, perhaps a decade ago, it was a very criminal enterprise. but is it now? i mean, it's still, it's still used for 2 to skirt skirt laws. a lot of people use it for us, your gambling, that sort of thing. and the u. s. you can have gambling. so you basically have to use crypto to, to buy, and that sort of thing. buying a k 47 and a bunch of hair one on the internet. i mean, you can do that with you can do that with dollars as well. so it's not that it's people use people use all types of currencies for, for shady dealings. what's and i think i think glenn is right in terms of the, in terms of the capital gains. but again, it's almost impossible to figure out those capital gains things and people and left people are self reporting. and the rest of the, as you see, and a number of these organizations don't have the skill or the ability to figure out what's happening in, in crypto markets, unless you're stuck on a coin base. unless you're stuck in a crack, unless you're trading in

a place that is, that is regulated by u. s. law. and plenty of people aren't going to be i are going to hang out and the places where they're regulated by us last just for that very purpose. so yeah, the only shady dealings that are going on is people don't want to don't want to tell how much cash they haven't, how much cash they've made. and in that case, that's why they were regulated. all, all the other stuff you can buy or you can buy heroin, you can buy ecstasy or whatever. that's obviously scare mongering. and a lot of these markets are john john, let me put that too. well, i guess let me put that. so i guess what john is effectively said, cbo is that you can use all of this money to do shady dealings, but there are shady dealings done with other currencies. the problem here is the fact that this is outsmarted regulatory authorities. they simply don't know what to do about it. they, they're, they're struggling all. they struggling to think of course, they will probably never say that, you know, in a 2 party way. but we do have some numbers from, you know,

big data analyses. firms trying to analyze their transactions, it seems that a few years ago about 78 percent of the transactions were tied to the legal activities. and apparently now they've reported that it is about 1.5 percent, which is a lot, but also pretty much nothing compared to all of the legal ways of using block change. and again, i think we go back to the same same issue it's, it is possible indeed to use critical her and see. and i mean, this wouldn't be the best for the purpose of legal activities or the ones which will protect your privacy in a better way. but if you are killed and if you do not fear the regulator, you may technically do so, which is new. but all the other end i feel like most people wouldn't 1st wants to do that. and if they wants to engage in such activities, they will fear the regulator regardless of the actual capacity. in practice. glenn goodman has crypto currency outsmarted all of the financial regulators of the world . think the problem is it just changes so quickly. i mean, for example,

the defy industry, the centralized finance, which in some ways could replace part of the, the borrowing and lending industry. i mean, not just grew up for moment, nothing in the space like a year. so of course that's kinda struggling to get the heads. right. and we haven't even talked about an f t 's course. you know, the j pegs which people buy and sell and audio files and that kind of thing. i mean, that's a whole lot of burgeoning industry which again what nobody had heard of last year. and now it's like a pretty big deal with multi $1000000.00 deals. going on the whole time, so yet regulatory and regulators all struggling to keep up. and there are always several steps behind. you know, even in the traditional finance industry, i would like, i would like to say that i would like to see crypto exchanges better regulated. i'd like to see them regulated like stock exchanges so that the kind of people who come to me for advice and say, you know, can you teach us how to trade, credit cards? i always have to apologize to them like i do in my book, the crypto trying to say,

sorry, none of these exchanges are actually very safe to try a don, you know, even the ones that are regulated in the states like coin base and kracken that regulated money exchanges, but they're not regulated a proper stock exchanges which, you know, so the regulators are looking at their trading flow properly and that, and that does worry me to some degree. but by the same token, you know, it's a difficult one because you don't want over regulation either one of them regulated don't want them regulated so much that it becomes really, really expensive for any new entrance to come into the market. unfortunately, we are out of time, but i do want to thank a glen goodman to shuffle and john biggs, and i want to thank you to for watching. you can see the program again any time by visiting our website out there a dot com. and for further discussion here to our facebook page at facebook dot com forward slash hey j, inside story. and you can also join the conversation on twitter. handle is at asia inside story, from me, iran cars and the entire team here in the

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need to take america to try to bring people together trying to deal with people who left behind me. ah, germany social democrats says they have a clear monday to lead up to sundays vote. but months of coalition talks our respective ah, i'm about this and this is a live from don't have also coming up. photo says in saddam call for the transitional government to be dissolved the tensions month after last week to attempt facing justice palestinian authority security forces a back in court after the death of critic news out

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