For quite some time now, rumors on cryptocurrency regulation have been swirling. To the many countries who thought banning cryptocurrency wasn’t the ideal option, regulation has been seen as the gateway to checking cryptocurrencies are used for good and at the same time, protect its people.
Although the idea of regulation won’t come lightly though as many countries have resorted to tightening the laws on cryptocurrencies.
In the world of finance, reasonable regulations are put in place to help with transparency and fairness. Accepting cryptocurrencies as a thing of value is already a hard pill for some people to swallow and therefore any possibility of them turning into an instrument of fraud, scam and other security concerns would lead to a whole new issue altogether.
A lot of assets in the markets are being regulated. For instance, in the United States, one country who has being going back and forth about how to handle cryptos, has Stocks being regulated by the Securities and Exchange Commission (SEC), government currency is regulated by the Department of the Treasury and the Federal Reserve whiles commodities are being regulated by the Commodity Futures Trading Commission.
Therefore a new asset class in the form of cryptocurrencies, already tagged as an inferior thing, with no single regulator will only bring about uncertainty and more problems.
Many have seen these trend of governments going in hard on cryptos as a way to force them out or discourage investors from going on board. However, regulations on cryptocurrencies could turn out to be a good thing.
Many crypto experts are urging regulators to act quickly based on the fact that many investors have already been scammed out of millions in the crypto market. Many ICO’s have been rumored to be used for laundering money and financing terrorist attacks, so, therefore, an eye to check out and drive these bad things out of the crypto world is definitely what the market needs right now.
Every country across the globe is going about cryptocurrency in its own way. Some has banned them outright, whiles other has integrated them in their system. An example is Estonia, whose government has to digitize citizenship, banking and health care of Blockchain.
Regulations on cryptocurrencies would also see them as not securities or collateral, a development which would see an increased investment from the mainstream. Investors can now buy cryptocurrencies of their choice without any fear of buying securities.
This year looks to be a year of regulatory perspicuity for cryptocurrencies and regardless of how they may come, it will prove to be a major break for the cryptocurrency market.
