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Valve gets pressured by payment processors with a new rule for game devs and various adult games removed
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Gov can't really do anything about it. Bitcoin was designed to be gov agnostic. They can tell you it's illegal but there's also really no way for them to know (if you're not dumb).
Hell there are entire unregulated black markets on the dark web.
Also with the orangutan in chief being something of a crypto grifter himself, it's not likely to be regulated at all.