Regulation is a two side sword. You can use it to protect the people who are not tech savvy and still want to be on the blockchain. Another side of the regulation is that it would pretty much kill the decentralization. 

There are many ways through which the blockchain can be snubbed once the regulation kicks in. I thought about various scenarios that would be leading to death of many tokens and the blockchains. 

Regulation of the tokens, digital assets and the exchanges could lead to some of the worst outcomes especially during the bear market scenarios. If blockchains survive the regulation there is a good chance for them in near future to remain like top giants - Bitcoin and Ethereum. 

This post is just an observation towards the regulation enforcement killing the decentralization. Do let me know your views about the same in the comments. 

![leo.png](https://i.imgur.com/ljCNQxz.png)




### Regulation at Centralized Exchanges
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Let's say if the US or any other govt of the world comes out at decides to regulate binance and other crypto exchanges. This would mean that any blockchain coin they accept in the platform would be watched over by the govt AI algorithms. 

This will lead to the reduction of various decentralized coins being listed in the exchanges. And that means a lot of coins and the blockchain could go delisted. Which would lead to the loss of money for many who are holding it. 

As every offline and swap exchanges get regulated, decentralized tokens and the chains would slowly shrink in and end up getting deserted. It's going to be pretty grim scenario to be in. 

### Regulations on Blockchains
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Ethereum's owner is out there in Public. And he can be forced under the strong Govt regulation power. Which could lead to the chains like this losing the control over their freedom to innovate and grow. And it could end up being centralized chain if powers choose to control it. 

Regulation powers like this lead to the chains collapse. And that means there is going to be collapse of the decentralized means of investment. DeFi, NFTs and a lot of decentralized asset can end up getting centralized or it could end up losing totally as the market declines. 

Blockchain getting regulated is the worst case scenario where the efforts of the developer can get reduced to dust. Something a lot of blockchains which are listed worried about. It won't be easy to regulate but if the powers choose to do that they could do it. 

### Regulations with NFTs and Digital Assets
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A lot of money can be transferred through the digital assets like NFTs and similar assets. Which means the power that these assets transfer is under the radar of the govt officials and the international financial institutions. 

Digital Assets are not easy to track but they are being kept in the public places like opensea. So the govt has means to track. A lot of programmers and the developers in the blockchain space can do this for the govt if required.

As of now we have not seen the enforcement of the laws this much strong but you never know what the govt and the rich people think about the digital assets. It takes a bit of efforts from their side for this much strong law to be enforced.

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Decentralized blockchains are the reason crypto has a power that could change the lives of the millions. But the moment it becomes centralized we are going to be seeing same old system in effect and rich getting richer and we could not push the small fry to become the shark and whale even with hard work. 

I feel that strong regulation is not going to be any easy. It would be difficult for govt to force regulation. 

But you never know. 

Worst case scenario could get triggered in this uncertain world. 

What do you think? 

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