Should Cryptocurrency Be Regulated?

Does the Crypto World Need To Be Regulated?

The cryptocurrency had left no country untouched from its effects since 2017 when the price of Bitcoin skyrocketed around $10,000 on some of the crypto exchanges (Obviously the community gained huge profits!).

How A Regulatory Environment Can Benefit Crypto Space?

Some of the international forums, like G20, signaled to handle the murky crypto crystal ball when the central banks of countries met in Buenos Aires in March 2020. G20 committed to set regulations for monitoring the transactions involved in crypto assets.

  • Smart and transparent regulatory environment can attract hesitant crypto enthusiasts with fresh investments and better services.
  • Regulators of different countries may start developing confidence and start introducing cryptos with limited supply, once the anxiety related to money laundering and financial terrorism will be reduced.
  • Governance in the crypto space can help in developing crypto partnerships, allowing several startups and developers to identify cryptocurrency as a great opportunity.
  • Digital coins which are still considered as doubtful currency can earn a respectable name in the financial space.

Some Ground Rules before Regulation

To protect investors, increase the confidence of novices, and satisfy various regulators, some ground rules must be considered before introducing or restricting crypto assets:

  • Clear and crisp definition must be formulated after having a consensus between regulators and renowned companies in the crypto space.
  • No hidden and abrupt rules must be imposed on exchanges, but the clarity of guidelines need to be maintained at the initial stage of the introduction of rules
  • Regulations must focus on providing a conducive and secure environment to crypto investors, rather than restricting them to not get involved in crypto investments.
  • Anti Money Laundering rules, guidelines related to Know Your Customers, verification, and authentication process, taxation rules must be clearly formulated.
  • Businessmen, investors, exchanges, startups, and people associated with the crypto space could be incentivized initially to follow the regulatory rules.

What Does Cryptocurrency Regulation Future Hold?

Undoubtedly, recent meetings of central banks, discussions among the CEOs of crypto giants, and debates around the expansion of cryptocurrency reveal an appetite for a balanced regulatory environment.

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Tarulika Jain

Tarulika Jain

Latest technologies like Blockchain, Artificial Intelligence, Internet of Things and many more amuse my mind to read and my fingers to write.