ever seen of my account making the captain steve stricken proud. you know, i never want to major, but this is my major right here. and then the moment every goldstein had waited for a long running feud between american teammate brooks, kept bryce in december, ended with a hug to. 6 2 sit in full, packed with individual personalities. nothing brings gulf was together. like a ryder cup joint, i guess raska al jazeera. ah, this is all just here are. these are the tell stories supporters of civilian roland . sit down and demanded the dissolution of the transitional government. the cities professionals association that lead the 2018 uprising against them. president omar bashir was an end to a power sharing deal with the military tension between politicians and the military of increased after last week's attempted. true will defend the government. people

under democratic transition to the last drop of blood. and if there's any threat to the democratic transition will fill the streets, i will be at the forefront. that's our responsibility. germany center left social democratic party has won a narrow lead and sundays parliamentary elections say to all our shoulder says you'd like to form a coalition government with the green party and the free democratic party. the climate crisis is likely to play a key role during the tolls. the villa villa of dick loggers of the world have spoken very clearly. they said who should form the next government, the strength and 3 parties, the social democrats, the greens and f d p. this is therefore the clear mandate that the citizens of this country have given these tree should form the next government. a recount has ended iceland short lived record of becoming the 1st european country to elect a female majority. parliament. an initial count in the general election had female

candidates winning 33 of the 62 seats in parliament, but that's been revised down to 30 the u. k. invited my secretary says a backlog of tests for truck drivers is to be cleared by bringing in trainers from the ministry of defense, but not enough qualified heavy goods drivers to deliver fuel to funding stations. and many i've been forced to close a 2nd hearing in the trial of 14 palestinian authority security officers keys of beating an activity to death has been adjourned. ramallah is out of banner was an outspoken critic of the p. a and its president. he died in june hours after being arrested. several provinces in chinese, china is northeast and region, experiencing power cods because of coal shortages and typing emission standards. it's affected manufacturers across the country, many of whom i've had to stop production in recent weeks. and those are the headlines music. going to continue here on algebra after inside story. goodbye

news. news. news. news transaction declined at china, has made it illegal to trade currencies including bitcoin view. it is also looking at high to rule below that embracing what's being called the future of money. so should digital currency regulated that isn't ah welcome to the program on iran con bitcoin emerged a decade ago, is a digital alternative to money. as we know it's curbside currencies,

like it 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 that 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 gun 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 title rules and trading crypto currencies. the reserves chairman jerome pals, as the central bank could often 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 is 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 crypto currencies, a few others are embracing them. el 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 currencies can grow. ah, let's bring it, i guess in new york, john big's journalist and former editor of coin desk in them. he bo shuffle and assistant professor and economic glo tracked university and in london, ken 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 full 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 currency from the country altogether in any of their guys's and allow the digital you on one when it's launched, eventually to basically take over the role. that's cryptic. 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 anti crypt. the currency of the precise opposite of what countries like bitcoin was set out to do in the 1st place, which was to 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 want 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 that for we're not going to allow you to spend your money on playing fairs or on train fez. 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 sing 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, as regulation damage is 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 as 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 that 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 data 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 the 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, he's 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 goal those currencies, block chain or critical currency because indeed they are not very much

decentralized. and there are a bit of the exact opposite 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. glen goodman, should i be selling big coin 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. and the european union has provided a bit more clarity recently. i just watched gary guns leather securities exchange commission, both in america talking to the washington post the other day and also half an hour listening to him. and when he pretty speaking, i still was none the wiser. i know that he would like to regulate it and bring it

also 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 regulate them under existing regulations of the thing that we how that will be done is unclear. and because it's unclear of worrying because there are all kinds of little tweaks that they could make that could either allow correct kind of companies to continue to thrive and to innovate and develop new ideas and ways of doing things. or with just a few little tweaks we can find ourselves in a situation where for example, ordinary investors find it impossible to invest in crypto and only 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 crept counties like bitcoin and a theorem 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 going to, it might only benefit the rich already. this would 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 gains. 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 if it's a, 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 s you'd see the message because they want to, they want to have control over that transaction and regulate that transaction. cbo circle, we've often been called a economy that is global. i mean, we are cross border now the 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 correct 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 the crypto space . those are, i mean for the one such as be going the centralized in 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 to 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 itself, 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 blockchain, which is the regulations that we have right now in europe, which are financial in nature. but eventually, i'm pretty convinced they can move on to the entire system. because again, we talk about infrastructure. gums is a come to you in just a 2nd, but we'll 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 work if you're poor doesn't, is in get, is usually by passable if you're rich in the same way. all these rules and regulations around crypto, especially china outlawing 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 goodman, and 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 knowing the foreseeable, foreseeable future, there's not really any sign of that is being done country by country. and i take a different view to john biggs on, 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, encrypt 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 and encrypt 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 crypto is 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 current play 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, how do you 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 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 cube 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've 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 the same structure and 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 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 what way one will of another. which again, is the beauty obvious because this is the for the 1st time that we do have to care about the technology so much when we talk about regulation, instead of just a regulating the use case of a certain technology, john bigs,

we often hear government say well, actually, cripps, 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 about 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 to, to, 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 have and how much cash they've made. and in that case, that's why they were regulated on 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 to, 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. and now if you firms trying to analyze their transactions, it seems that a few years ago about 78 percent of the coin transactions were tied to eagle 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 chains. and again, i think we go back to the same same issue it's, it is possible indeed to use critical currency. and i mean, this call 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 parts of the borrowing and lending industry. i mean that grew up for a moment. nothing in the space like a year. so of course that's kinda struggling to get their heads right. and we haven't even talked about an f t 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 the, 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 crit, try to say, sorry, none of these exchanges are actually very safe to trade. and 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 to 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 to 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 anytime by visiting our website out there a dot com. and for further discussion here to our facebook page at facebook dot com forward slash j inside story. and you can also join the conversation on twitter.

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